HOUSE BILL 508
54th legislature - STATE OF NEW MEXICO - first session, 2019
Candy Spence Ezzell
RELATING TO HORSE RACING; AMENDING THE TIME FRAME FOR THE NUMBER OF LIVE RACE DAYS NECESSARY FOR A RACETRACK TO MAINTAIN A GAMING OPERATOR'S LICENSE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 60-1A-2 NMSA 1978 (being Laws 2007, Chapter 39, Section 2) is amended to read:
"60-1A-2. DEFINITIONS.--As used in the Horse Racing Act:
A. "board" means the gaming control board;
B. "breakage" means the odd cents by which the amount payable on each dollar wagered exceeds a multiple of ten;
C. "commission" means the state racing commission;
D. "exotic wagering" means all wagering other than on win, place or show, through pari-mutuel wagering;
E. "export" means to send a live audiovisual broadcast of a horse race in the process of being run at a horse racetrack from the originating horse racetrack to another location;
F. "guest state" means a jurisdiction, other than the jurisdiction in which a horse race is run, in which a horse racetrack, off-track wagering facility or other facility that is a member of and subject to an interstate common pool is located;
G. "guest track" means a horse racetrack, off-track wagering facility or other licensed facility in a location other than the state in which a horse race is run that is a member of and subject to an interstate common pool;
H. "handle" means the total of all pari-mutuel wagering sales, excluding refunds and cancellations;
I. "horse race" means a competition among racehorses on a predetermined course in which the horse completing the course in the least amount of time generally wins;
J. "host state" means the jurisdiction within which a sending track is located, also known as a "sending state";
K. "host track" means the horse racetrack from which a horse race subject to an interstate common pool is transmitted to members of that interstate common pool, also known as a "sending track";
L. "import" means to receive a live audiovisual broadcast of a horse race;
M. "interstate common pool" means a pari-mutuel pool that combines comparable pari-mutuel pools from one or more locations that accept wagers on a horse race run at a sending track for purposes of establishing payoff prices at the pool members' locations, including pools in which pool members from more than one state simultaneously combine pari-mutuel pools to form an interstate common pool;
N. "jockey club" means an organization that administers thoroughbred registration records and registers thoroughbreds;
O. "licensed premises" means land, together with all buildings, other improvements and personal property located on the land, that is under the direct control of a racetrack licensee, including the restricted areas, grandstand and public parking areas;
P. "licensee" means a person licensed by the commission and includes a holder of an occupational, secondary or racetrack license;
Q. "occupational license" means a license issued by the commission to a vendor or to a person having access to a restricted area on the licensed premises, including a horse owner, trainer, jockey, agent, apprentice, groom, exercise person, veterinarian, valet, farrier, starter, clocker, racing secretary, pari-mutuel clerk and other personnel designated by the commission whose work, in whole or in part, is conducted around racehorses or pari-mutuel betting windows;
R. "pari-mutuel wagering" means a system of wagering in which bets on a live or simulcast horse race are pooled and held by the racetrack licensee for distribution of the total amount, less the deductions authorized by law, to holders of winning tickets; "pari-mutuel wagering" does not include bookmaking or pool selling;
S. "pari-mutuel wagering pool" means the money wagered on a specific horse race through pari-mutuel wagering;
T. "practical breeder" means a person who has practical experience in breeding horses, although the person may not be actively involved in breeding horses;
U. "primary residence" means the domicile where a person resides for most of the year, and, if the person is temporarily out of state, the address where a person will return when the person returns to New Mexico or the address that a person uses for purposes of a driver's license, passport or voting;
V. "quarter horse" means a racehorse that is registered with the American quarter horse association or any successor association;
W. "race meet" means a period of time within dates specified by the commission in which a racetrack licensee is authorized to conduct and does conduct live racing on the racing grounds;
X. "racehorse" means a quarter horse or thoroughbred that is bred and trained to compete in horse races;
Y. "racetrack license" means a license to conduct horse races issued by the commission;
Z. "racetrack licensee" means a person who has been issued a racetrack license;
AA. "racing grounds" means the area of the restricted area of licensed premises used for the purpose of conducting horse races and all activities ancillary to the conduct of horse races, including the track, stable area, jockey's quarters and horse training areas;
BB. "retainage" means money that is retained from wagers on win, place and show and on exotic wagers by a racetrack licensee pursuant to the Horse Racing Act;
CC. "restricted areas" means the stable area, the area behind the pari-mutuel betting windows and anywhere on the racing grounds;
DD. "secondary licensee" means all officers, directors, shareholders, lenders or holders of evidence of indebtedness of a corporation or legal entity owning a horse racetrack, and all persons holding a direct or indirect interest of any nature whatsoever in the horse racetrack, including interests or positions that deal with the funds of the racetrack or that are administrative, policymaking or supervisory;
EE. "simulcast" means a transmission of a live audiovisual broadcast of a horse race being run at a horse racetrack other than the horse racetrack or other licensed facility at which the broadcast is being received for viewing pursuant to a simulcasting contract;
FF. "stakes race" means a horse race in which nominations or entry or starting fees contribute to the purse; an overnight race is not a stakes race;
GG. "steward" means an employee of the commission who supervises horse races and oversees a race meet while in progress, including holding hearings regarding licensees and enforcing the rules of the commission and the horse racetrack;
HH. "takeout" means amounts authorized by statute to be deducted from the pari-mutuel wagers;
II. "thoroughbred" means a racehorse that is registered with the jockey club;
JJ. "track" means the surfaced oval area on which horse races are conducted; and
KK. "vendor" means a person who provides goods or services to or in the racing grounds or restricted area of the licensed premises of a horse racetrack."
SECTION 2. A new section of the Horse Racing Act is enacted to read:
"[NEW MATERIAL] RACE MEETS--LIVE RACING DAYS.--Live racing shall begin on the first day of a race meet authorized for a racetrack licensee and shall conclude on the final day of the authorized race meet. A race meet shall be composed of three live race days for each week of the race meet with at least ten live races per day for a racetrack licensee that paid gaming tax to the state on its net take in an amount equal to eight million dollars ($8,000,000) or less in the prior fiscal year pursuant to Section 60-2E-47 NMSA 1978 or four live race days for each week of the race meet with at least nine live races per day for a racetrack licensee that paid gaming tax to the state on its net take in an amount greater than eight million dollars ($8,000,000) in the prior fiscal year pursuant to Section 60-2E-47 NMSA 1978. There shall be a lapse of no more than three consecutive days in live racing from the date a race meet ends at the racing grounds of one racetrack licensee and the beginning of a race meet for another racetrack licensee."
SECTION 3. Section 60-2E-27 NMSA 1978 (being Laws 1997, Chapter 190, Section 29, as amended) is amended to read:
"60-2E-27. GAMING OPERATOR LICENSEES--SPECIAL CONDITIONS FOR RACETRACKS--NUMBER OF GAMING MACHINES--DAYS AND HOURS OF OPERATIONS.--
A. A racetrack licensed by the state racing commission pursuant to the Horse Racing Act to conduct live horse races or simulcast races may be issued a gaming operator's license to operate gaming machines on its premises where live racing is conducted.
B. A racetrack's gaming operator's license shall automatically become void if:
(1) the racetrack no longer holds an active license to conduct pari-mutuel wagering;
(2) the racetrack paid gaming tax to the state on its net take in an amount greater than eight million dollars ($8,000,000) in the prior fiscal year pursuant to Section 60-2E-47 NMSA 1978 and fails to maintain a minimum of four live race days a week with no more than three consecutive days elapsing between live race days and with at least nine live races on each race day during its licensed race meet, except as provided in Subsection F of this section; or
(3) the racetrack paid gaming tax to the state on its net take in an amount equal to eight million dollars ($8,000,000) or less in the prior fiscal year pursuant to Section 60-2E-47 NMSA 1978 and fails to maintain a minimum of three live race days a week with no more than four consecutive days elapsing between live race days and with at least ten live races on each day during its licensed race meets, except as provided in Subsection F of this section.
C. Unless a larger number is allowed pursuant to Subsection D of this section, a gaming operator licensee that is a racetrack may have up to six hundred licensed gaming machines.
D. By execution of an allocation agreement, signed by both the allocating racetrack and the racetrack to which the allocation is made, a gaming operator licensee that is a racetrack may allocate any number of its authorized gaming machines to another gaming operator licensee that is a racetrack. To be valid, the allocation agreement must bear the written approval of the board and the state racing commission, and this approval shall make specific reference to the meeting at which the action of approval was taken and the number of votes cast both for and against the approval. By allocating a number of its authorized machines to another racetrack, the allocating racetrack automatically surrenders all rights to operate the number of machines allocated. No racetrack shall operate or be authorized to operate more than seven hundred fifty gaming machines.
E. Gaming machines on a racetrack gaming operator licensee's premises may be played only on days when the racetrack is either conducting live horse races or simulcasting horse race meets. On days when gaming machines are permitted to be operated, a racetrack gaming operator licensee may offer gaming machines for operation for up to eighteen hours per day; provided that the total number of hours in which gaming machines are operated does not exceed one hundred twelve hours in a one-week period beginning on Tuesday at 8:00 a.m. and ending at 8:00 a.m. on the following Tuesday. A racetrack gaming operator licensee may offer gaming machines for play at any time during a day; provided that the total hours of operation in each day from just after midnight of the previous day until midnight of the current day does not exceed eighteen hours. A racetrack gaming operator licensee shall determine, within the limitations imposed by this subsection, the hours it will offer gaming machines for operation each day and shall notify the board in writing of those hours.
F. Maintaining fewer live race days or fewer live races on each race day or allowing more than the permitted number of days to elapse between live race days during a licensed race meet does not constitute a failure to maintain the minimum number of live race days or races or a failure to restrict the elapsed period between live race days as required by Paragraphs (2) and (3) of Subsection B of this section if the licensee submits to the board written approval by the state racing commission for the licensee to vary the minimum number of live race days or races or expand the elapsed period between live race days, and the variance is due to:
(1) the inability of a racetrack gaming operator licensee to fill races as published in the licensee's condition book as long as the same type of canceled race is run within the following two race weeks as the race season permits;
(2) severe weather or other act, event or occurrence resulting from natural forces;
(3) a strike or work stoppage by jockeys or other persons necessary to conduct a race or meet;
(4) a power outage, electrical failure or failure or unavailability of any equipment or supplies necessary to conduct a race or meet;
(5) hazardous conditions or other threats to the public health or safety; or
(6) any other act, event or occurrence that the board finds is not within the control of the licensee even with the exercise of reasonable diligence or care.
G. Alcoholic beverages shall not be sold, served, delivered or consumed in the area restricted pursuant to Subsection F of Section 60-2E-26 NMSA 1978."
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