HOUSE BILL 340

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Gail Chasey

AN ACT

RELATING TO BANKING; ALLOWING CREDIT UNIONS TO CONDUCT SAVINGS PROMOTION RAFFLES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 30-19-1 NMSA 1978 (being Laws 1963, Chapter 303, Section 19-1, as amended) is amended to read:

     "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in Chapter 30, Article 19 NMSA 1978:

          A. "antique gambling device" means a gambling device manufactured before 1970 and substantially in original condition that is not used for gambling or commercial gambling or located in a gambling place;

          B. "bet" means a bargain in which the parties agree that, dependent upon chance, even though accompanied by some skill, one stands to win or lose anything of value specified in the agreement. A bet does not include:

                (1) bona fide business transactions that are valid under the law of contracts, including:

                     (a) contracts for the purchase or sale, at a future date, of securities or other commodities; and

                     (b) agreements to compensate for loss caused by the happening of the chance, including contracts for indemnity or guaranty and life or health and accident insurance;

                (2) offers of purses, prizes or premiums to the actual contestants in any bona fide contest for the determination of skill, speed, strength or endurance or to the bona fide owners of animals or vehicles entered in such contest;

                (3) a lottery as defined in this section; [or]

                (4) a savings promotion raffle as defined in Section 58-11-18 NMSA 1978; or

                [(4)] (5) betting otherwise permitted by law;

          C. "gambling device" means a contrivance other than an antique gambling device that is not licensed for use pursuant to the Gaming Control Act and that, for a consideration, affords the player an opportunity to obtain anything of value, the award of which is determined by chance, even though accompanied by some skill, whether or not the prize is automatically paid by the device, but does not include a savings promotion raffle pursuant to Section 58-11-18 NMSA 1978;

          D. "gambling place" means a building or tent, a vehicle, whether self-propelled or not, or a room within any of them that is not within the premises of a person licensed as a lottery retailer or that is not licensed pursuant to the Gaming Control Act, one of whose principal uses is:

                (1) making and settling of bets;

                (2) receiving, holding, recording or forwarding bets or offers to bet;

                (3) conducting lotteries; or

                (4) playing gambling devices; and

          E. "lottery" means an enterprise wherein, for a consideration, the participants are given an opportunity to win a prize, the award of which is determined by chance, even though accompanied by some skill. "Lottery" does not include the New Mexico state lottery established and operated pursuant to the New Mexico Lottery Act, a savings promotion raffle pursuant to Section 58-11-18 NMSA 1978 or gaming that is licensed and operated pursuant to the Gaming Control Act. As used in this subsection, "consideration" means anything of pecuniary value required to be paid to the promoter in order to participate in a gambling or gaming enterprise."

     SECTION 2. Section 58-11-18 NMSA 1978 (being Laws 1987, Chapter 311, Section 18, as amended) is amended to read:

     "58-11-18. POWERS OF CREDIT UNIONS.--

          A. In addition to the powers authorized elsewhere in the Credit Union Act, a credit union may:

                [A.] (1) enter into contracts of any nature;

                [B.] (2) sue and be sued;

                [C.] (3) adopt, use and display a corporate seal;

                [D.] (4) acquire, lease, hold, assign, pledge, hypothecate, sell and discount or otherwise dispose of property or assets, either in whole or in part, necessary or incidental to its operations;

                [E.] (5) lend funds to members;

                [F.] (6) borrow from any source; provided that a credit union shall have prior approval of the director before borrowing in excess of an aggregate of fifty percent of its capital;

                [G.] (7) purchase the assets of another credit union, subject to the approval of the director;

                [H.] (8) offer various financial services approved by the director;

                [I.] (9) hold membership in other credit unions organized under the Credit Union Act, the Federal Credit Union Act or other acts and in associations and organizations controlled by or fostering the interests of credit unions, including a central liquidity facility organized under state or federal law;

                [J.] (10) engage in activities and programs as requested by any governmental unit;

                [K.] (11) act as fiscal agent and receive payments on deposit accounts from a governmental unit;

                [L.] (12) sell or offer to sell insurance to the same extent allowed by law to other state chartered lending institutions; [and]

                (13) conduct a savings promotion raffle; and

                [M.] (14) provide services to persons within the credit union's field of membership, including electronic funds transfers and the sale and negotiation of instruments, including money orders, traveler's checks and stored value cards.

          B. As used in this section, "savings promotion raffle" means a promotion offered by a financial institution authorized to do business in New Mexico in which the sole consideration required for a chance of winning designated prizes is the deposit of at least a specified amount of money into a savings account or other savings program offered by the financial institution. Consideration shall not be deemed to have been given in a savings promotion raffle as long as each ticket has an equal chance of being drawn. Interest rates associated with a savings promotion raffle may be set at a rate necessary to partially offset the cost of cash prizes."