0001|                         HOUSE BILL 735
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                        DANIEL P. SILVA
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0006|     
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0007|                                
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0008|     
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0009|     
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0010|     
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0011|                             AN ACT
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0012|     RELATING TO GAMING; PERMITTING LIMITED CASINO GAMING ACTIVITIES;
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0013|     REQUIRING A LOCAL REFERENDUM; ESTABLISHING ADMINISTRATIVE AND
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0014|     REGULATORY PROVISIONS; IMPOSING A TAX ON CASINO GAMING
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0015|     ACTIVITIES; CREATING THE GAMING AUTHORITY; PROVIDING PENALTIES;
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0016|     MAKING AN APPROPRIATION; AMENDING AND ENACTING SECTIONS OF THE
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0017|     NMSA 1978.
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0018|     
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0019|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0020|       Section 1.  [<u>NEW MATERIAL</u>]  SHORT TITLE.--Sections 1
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0021|     through 46 of this act may be cited as the "Gaming Control Act".
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0022|       Section 2.  [<u>NEW MATERIAL</u>]  LEGISLATIVE POLICY.--It is
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0023|     the policy of the legislature that:
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0024|            A.  limited gaming activities should be permitted in
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0025|     the state if those activities are strictly regulated to ensure
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0001|     honest and competitive gaming free from criminal and corruptive
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0002|     elements and influence; and  
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0003|            B.  the holder of any license or permit issued by the
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0004|     state in connection with the regulation of gaming activities has
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0005|     only a revocable privilege and has no property right or vested
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0006|     interest in the license or permit. 
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0007|       Section 3.  [<u>NEW MATERIAL</u>]  DEFINITIONS.--As used in the
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0008|     Gaming Control Act: 
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0009|            A.  "applicant" means any person who has applied for
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0010|     a manufacturer's license, distributor's license, establishment
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0011|     license, service technician's license or gaming machine license
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0012|     pursuant to the provisions of the Gaming Control Act or for
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0013|     approval of any act or transaction for which approval is
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0014|     required or permitted under the provisions of that act;
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0015|            B.  "application" means a request for the issuance of
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0016|     a manufacturer's license, distributor's license, establishment
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0017|     license, service technician's license or gaming machine license
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0018|     pursuant to the provisions of the Gaming Control Act or for
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0019|     approval of any act or transaction for which approval is
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0020|     required or permitted under the provisions of that act but does
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0021|     not include any supplemental forms or information that may be
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0022|     required with the application;
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0023|            C.  "authority" means the gaming authority created
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0024|     pursuant to the Gaming Control Act;
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0025|            D.  "casino gaming" means all types of gaming;
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0001|            E.  "credit instrument" means a writing that
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0002|     evidences a gaming debt owed to a person who holds a gaming
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0003|     establishment license at the time the debt is created, and
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0004|     includes any writing taken in consolidation, redemption or
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0005|     payment of a prior credit instrument;
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0006|            F.  "distributor" means a person who distributes
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0007|     gaming devices to a gaming establishment licensee;
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0008|            G.  "distributor's license" means any license issued
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0009|     by the authority that authorizes the person named to be a
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0010|     distributor;
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0011|            H.  "equity security" means:
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0012|                 (1)  any voting stock of a company or similar
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0013|     security;
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0014|                 (2)  any security convertible, with or without
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0015|     consideration, into voting stock or similar security or carrying
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0016|     any warrant or right to subscribe to or purchase voting stock or
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0017|     similar security;
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0018|                 (3)  any warrant or right to subscribe to or
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0019|     purchase voting stock or similar security; or
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0020|                 (4)  any security having a direct or indirect
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0021|     participation in the profits of the issuer;
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0022|            I.  "game" or "gambling game" means any game played
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0023|     with cards, dice, equipment or any mechanical, electromechanical
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0024|     or electronic device or machine for money, property, checks,
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0025|     credit or any representative of value; but "game" or "gambling
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0001|     game" does not include games played with cards in private homes
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0002|     or residences in which no person makes money for operating the
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0003|     game except as a player;
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0004|            J.  "gaming" or "gambling" means to operate, carry
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0005|     on, conduct, maintain or expose for play any game;
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0006|            K.  "gaming device" means any mechanical,
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0007|     electromechanical or electronic contrivance, component or
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0008|     machine used in connection with gaming or any game that affects
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0009|     the result of a wager by determining win or loss.  "Gaming
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0010|     device" includes a system for processing information that can
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0011|     alter the normal criteria of random selection that affects the
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0012|     operation of any game or determines the outcome of a game. 
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0013|     "Gaming device" does not include a system or device that affects
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0014|     a game solely by stopping its operation so that the outcome
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0015|     remains undetermined;
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0016|            L.  "gaming employee" means any person connected
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0017|     directly with the operation of a gaming establishment licensed
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0018|     to conduct any gaming; the term "gaming employee" also includes
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0019|     employees of a person holding a manufacturer's license whose
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0020|     duties are directly involved with manufacture of gaming devices
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0021|     within New Mexico; employees of a person holding a distributor's
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0022|     license whose duties are directly involved with the distributor
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0023|     of or gaming devices within New Mexico; and employees of a
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0024|     person whose duties are directly involved with servicing and
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0025|     repairing gaming devices within New Mexico.  "Gaming employee"
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0001|     does not include bartenders, cocktail servers or other persons
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0002|     engaged solely in preparing or serving food or beverages, or
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0003|     secretarial personnel, janitorial, stage, sound and light
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0004|     technicians and other nongaming personnel;
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0005|            M.  "gaming establishment license" or "establishment
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0006|     license" means a license to conduct casino gaming at a location
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0007|     specified in the license; 
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0008|            N.  "gaming machine" means any mechanical,
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0009|     electrical, electronic or electromechanical device, contrivance
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0010|     or machine that, upon insertion of a coin, token or similar
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0011|     object, or upon payment of any consideration, is available to
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0012|     play or operate, the play or operation of which, whether by
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0013|     reason of the skill of the player or operator or application of
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0014|     the element of chance, or both, may deliver or entitle the
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0015|     player or operator to receive cash, premiums, credits,
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0016|     merchandise, tokens or any thing of value, whether the payoff is
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0017|     made automatically from the machine or in any other manner;
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0018|            O.  "gross revenue" means the total of all the
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0019|     following, less the total of all cash paid out as losses to
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0020|     winning patrons and those amounts paid to purchase annuities to
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0021|     fund losses paid to winning patrons over several years by
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0022|     independent administrators:
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0023|                 (1)  cash received from patrons for the purpose
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0024|     of gaming;
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0025|                 (2)  cash received in payment for credit
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0001|     extended by a licensee to a patron for the purpose of gaming;
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0002|     and
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0003|                 (3)  compensation received for conducting any
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0004|     game in which the licensee is not a party to a wager;
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0005|            P.  "license" means a manufacturer's license, a
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0006|     distributor's license, an establishment license, a technician's
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0007|     license or a license required by the authority by regulation for
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0008|     conducting other gaming activities;
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0009|            Q.  "licensed gaming establishment" means any
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0010|     premises in which or on which gaming is conducted pursuant to a
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0011|     license revised by the authority;
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0012|            R.  "licensee" means any person to whom a valid
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0013|     license has been issued;
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0014|            S.  "manufacturer" means a person who manufactures,
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0015|     assembles, produces, programs or makes modifications to any
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0016|     gaming device for use or play in New Mexico or for distribution
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0017|     outside New Mexico from any location within New Mexico;
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0018|            T.  "manufacturer's license" means any license issued
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0019|     by the authority that authorizes the licensee to manufacture,
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0020|     assemble, produce, program or otherwise produce or make
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0021|     modifications to any gaming device in New Mexico or from a
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0022|     location outside New Mexico for use or play in New Mexico;
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0023|            U.  "person" means an individual or other entity;
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0024|            V.  "publicly traded corporation" means a corporation
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0025|     that:
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0001|                 (1)  has one or more classes of securities
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0002|     registered pursuant to the securities laws of the United States
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0003|     or of New Mexico; 
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0004|                 (2)  is an issuer subject to the securities laws
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0005|     of the United States or of New Mexico; or 
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0006|                 (3)  has one or more classes of securities
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0007|     registered or is an issuer pursuant to applicable foreign laws
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0008|     that the authority finds provide protection for investors that
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0009|     is comparable to or greater than the stricter of the securities
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0010|     laws of the United States or of New Mexico laws; and
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0011|            W.  "regulation" means a rule, standard, directive or
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0012|     statement of general applicability that effectuates the law or
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0013|     policy or describes the procedures of the authority.
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0014|     "Regulation" does not include:
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0015|                 (1)  a statement concerning only the internal
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0016|     management of the authority and not affecting the rights or
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0017|     procedures available to any licensee or other person;
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0018|                 (2)  a declaratory ruling;
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0019|                 (3)  an interagency memorandum; or
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0020|                 (4)  the authority's decision in a contested
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0021|     case or relating to the application for a license.
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0022|       Section 4.  [<u>NEW MATERIAL</u>]  GAMING AUTHORITY CREATED.--
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0023|            A.  The "gaming authority" is created and consists of
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0024|     five members.  Two members shall be appointed by the governor
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0025|     with the consent of the senate.  One member shall be appointed
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0001|     by the president pro tempore of the senate with the consent of
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0002|     the senate.  One member shall be appointed by the speaker of the
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0003|     house of representatives with the consent of the senate.  One
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0004|     member shall be appointed by the other four members of the
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0005|     authority, with the consent of the senate.  All members of the
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0006|     authority shall be residents of New Mexico and citizens of the
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0007|     United States.
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0008|            B.  The members of the authority shall be appointed
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0009|     for terms of five years, except, of the members who are first
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0010|     appointed, two shall be appointed for a term of five years, two
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0011|     shall be appointed for a term of four years and two shall be
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0012|     appointed for a term of three years.  Thereafter, all members
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0013|     shall be appointed for terms of five years.  An appointed
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0014|     authority member shall serve and have all of the duties and
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0015|     powers of that office during the period of time prior to final
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0016|     action by the senate confirming or rejecting his appointment.
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0017|            C.  Vacancies on the authority shall be filled within
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0018|     thirty days by the person originally appointing the member whose
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0019|     position is vacant and the appointee shall serve for the
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0020|     unexpired portion of the term in which the vacancy occurs.              D.  The authority shall appoint a chair annually from 
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0021|     its membership.
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0022|            E.  No more than three members of the authority shall
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0023|     be from the same political party.
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0024|            F.  The members of the authority shall be reimbursed
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0025|     pursuant to the provisions of the Per Diem and Mileage Act when
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0001|     engaged in authority business.
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0002|            G.  The special investigations division of the
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0003|     department of public safety shall conduct background
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0004|     investigations of all members of the authority prior to
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0005|     confirmation by the senate.  A person who has been convicted of
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0006|     a felony or any crime involving gambling, moral turpitude, fraud
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0007|     or theft is not eligible for appointment and shall not serve as
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0008|     a member of the authority.
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0009|            H.  No member of the authority or any member of his
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0010|     immediate family or household shall have any financial interest
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0011|     in or derive any financial benefit from a business that is
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0012|     regulated by the authority, and at the time of taking office,
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0013|     each authority member shall file with the secretary of state a
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0014|     sworn statement to that effect.
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0015|       Section 5.  [<u>NEW MATERIAL</u>]  AUTHORITY--MEETINGS--QUORUM--RECORDS.--
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0016|            A.  A majority of the qualified membership of the
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0017|     authority then in office constitutes a quorum.  No action may be
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0018|     taken by the authority unless at least three members concur.
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0019|            B.  Written notice of the time and place of each 
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0020|     meeting of the authority shall be given to each member at least
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0021|     ten days prior to the meeting.
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0022|            C.  Meetings of the authority shall be open and
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0023|     public in accordance with the Open Meetings Act, except that the
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0024|     authority may have closed meetings to hear security and
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0025|     investigative information.
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0001|            D.  All proceedings of the authority shall be
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0002|     recorded by audio tape or other equivalent verbatim audio
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0003|     recording device.
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0004|            E.  The chairman of the authority or a majority of
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0005|     its members then in office may call a special meeting of the
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0006|     authority upon written notice to all members of the authority.
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0007|       Section 6.  [<u>NEW MATERIAL</u>]  AUTHORITY'S POWERS AND 
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0008|     DUTIES.--
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0009|            A.  The authority shall develop and implement the
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0010|     state's policy on gaming consistent with the provisions of the
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0011|     Gaming Control Act.  It has the duty to fulfill all
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0012|     responsibilities assigned to it pursuant to that act and has all
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0013|     powers necessary to carry out those responsibilities.  It may
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0014|     delegate power to its employees but it retains accountability. 
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0015|     The authority is an adjunct agency.
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0016|            B.  The authority shall:
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0017|                 (1)  make the final decision on issuance,
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0018|     denial, suspension and revocation of all licenses pursuant to
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0019|     and consistent with the provisions of the Gaming Control Act; 
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0020|                 (2)  develop, adopt and promulgate all
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0021|     regulations necessary to implement and administer the provisions
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0022|     of the Gaming Control Act;
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0023|                 (3)  conduct itself, or employ a hearing officer
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0024|     to conduct, all hearings required by the provisions of the
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0025|     Gaming Control Act and any other hearings it deems appropriate
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0001|     to fulfill its responsibilities;
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0002|                 (4)  meet at least once each month; and 
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0003|                 (5)  prepare and submit an annual report in
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0004|     December of each year to the governor and the legislature
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0005|     covering its activities in the most recently completed fiscal
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0006|     year, a summary of gaming activities in the state authorized
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0007|     pursuant to the Gaming Control Act and any recommended changes
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0008|     in or additions to the laws relating to gaming in the state. 
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0009|            C.  The authority may:
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0010|                 (1)  employ individuals to assist it in carrying
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0011|     out its responsibilities;
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0012|                 (2)  impose civil fines not to exceed ten
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0013|     thousand dollars ($10,000) for the first violation and fifteen
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0014|     thousand dollars ($15,000) for subsequent violations of any
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0015|     prohibitory provision of the Gaming Control Act or any
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0016|     prohibitory provision of a regulation adopted pursuant to that
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0017|     act; 
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0018|                 (3)  conduct investigations, subpoena persons
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0019|     and documents to compel access to or for the production of
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0020|     books, papers, records or memoranda in the custody or control of
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0021|     any licensee or compel the appearance of employees of a licensee
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0022|     or other persons for the purpose of ascertaining compliance with
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0023|     any provision of the Gaming Control Act or a regulation adopted
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0024|     pursuant to its provisions;
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0025|                 (4)  administer oaths and take depositions to
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0001|     the same extent and subject to the same limitations as would
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0002|     apply if the deposition were pursuant to discovery rules in a
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0003|     civil action in the district court;
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0004|                 (5)  sue and be sued subject to the limitations
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0005|     of the Tort Claims Act; 
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0006|                 (6)  contract for the provision of goods and
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0007|     services necessary to carry out its responsibilities;
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0008|                 (7)  conduct audits of applicants, licensees and
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0009|     persons affiliated with licensees;
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0010|                 (8)  inspect all places where gaming is
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0011|     conducted or gaming devices are manufactured, sold or
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0012|     distributed and inspect all equipment and supplies in those
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0013|     places; 
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0014|                 (9)  summarily seize and remove from places
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0015|     inspected and impound any equipment, supplies, documents or
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0016|     records for the purpose of examination or inspection; and 
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0017|                 (10)  except for the powers specified in
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0018|     Paragraphs (2) and (5) of this subsection, carry out all or part
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0019|     of any of the foregoing powers and activities through delegation
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0020|     of authority to its employees. 
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0021|       Section 7.  [<u>NEW MATERIAL</u>]  AUTHORITY REGULATIONS--DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.--
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0022|            A.  The authority may adopt any regulation:
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0023|                 (1)  consistent with the provisions of the
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0024|     Gaming Control Act; and
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0025|                 (2)  deemed necessary by it to implement the
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0001|     provisions of the Gaming Control Act.
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0002|            B.  No regulation affecting any person or agency
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0003|     outside the authority shall be adopted, amended or repealed
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0004|     without a public hearing on the proposed action before the
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0005|     authority or a hearing officer designated by it.  The public
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0006|     hearing shall be held in Santa Fe.  Notice of the subject matter
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0007|     of the regulation, the action proposed to be taken, the time and
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0008|     place of the hearing, the manner in which interested persons may
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0009|     present their views and the method by which copies of the
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0010|     proposed regulation or a proposed amendment to or proposed
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0011|     repeal of an existing regulation may be obtained shall be
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0012|     published once at least thirty days prior to the hearing date in
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0013|     a newspaper of general circulation and mailed at least thirty
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0014|     days prior to the hearing date to all persons who have made a
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0015|     written request for advance notice of hearing.  All regulations
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0016|     shall be filed in accordance with the State Rules Act.
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0017|            C.  The authority shall adopt regulations:
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0018|                 (1)  prescribing the method and form of
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0019|     application to be followed by applicants for licenses; 
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0020|                 (2)  requiring work permits for gaming employees
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0021|     and prescribing the information to be furnished by a licensee
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0022|     about his gaming employees; 
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0023|                 (3)  requiring the fingerprinting or other
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0024|     reliable methods of identification of applicants; 
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0025|                 (4)  prescribing the manner and procedure of all
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0001|     hearings conducted by the authority or a hearing officer;
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0002|                 (5)  requiring an applicant to pay all or part
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0003|     of the fees and costs of investigation of the applicant as
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0004|     determined by the authority; 
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0005|                 (6)  prescribing the manner and method of
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0006|     collection and payment of fees and the issuance of licenses;
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0007|                 (7)  defining the area, games and gaming devices
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0008|     permitted and the methods of operation of the games and gaming
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0009|     devices;
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0010|                 (8)  establishing hours of operation for gaming;
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0011|                 (9)  prescribing under what conditions the
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0012|     nonpayment of a gambling debt by a gaming establishment licensee
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0013|     is grounds for suspension or revocation of its license;
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0014|                 (10)  governing the manufacture, sale,
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0015|     distribution, repair and servicing of gaming devices;
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0016|                 (11)  requiring any applicant or licensee to
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0017|     waive any privilege with respect to any testimony at any hearing
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0018|     or meeting of the authority, except a privilege afforded by the
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0019|     constitutions of the United States or New Mexico; 
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0020|                 (12)  governing the specifications for approval
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0021|     and licensing of gaming machines;
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0022|                 (13)  governing accounting procedures, security,
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0023|     collection and verification procedures required of licensees and
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0024|     matters regarding financial responsibility of licensees; and 
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0025|                 (14)  establishing grounds and procedures for
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0001|     the denial, suspension or revocation of a license.
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0002|       Section 8.  [<u>NEW MATERIAL</u>]  EMPLOYEES--BACKGROUND
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0003|     INVESTIGATION.--
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0004|            A.  A background investigation shall be conducted on
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0005|     each applicant for employment with the authority.  The authority
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0006|     shall contract with the department of public safety for the
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0007|     performance of the investigations.  The background
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0008|     investigations shall include credit checks, police record
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0009|     checks, conviction record checks, national and statewide
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0010|     criminal records clearinghouse checks and fingerprint checks. 
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0011|     All information obtained through a background investigation
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0012|     shall be confidential, except that the authority may exchange
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0013|     such confidential information with state, federal and local law
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0014|     enforcement agencies.
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0015|            B.  Any individual convicted of a felony or any crime
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0016|     involving gambling, moral turpitude, fraud or theft shall not be
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0017|     employed by the authority.
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0018|       Section 9.  [<u>NEW MATERIAL</u>]  CONFLICTS OF INTEREST--AUTHORITY--EMPLOYEES.--
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0019|            A.  In addition to all other provisions of New Mexico
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0020|     law regarding conflicts of interest of state officials and
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0021|     employees, a member of the authority, an authority employee or
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0022|     any person residing in the household of a member of the
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0023|     authority or an employee shall not:
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0024|                 (1)  directly or indirectly, individually, as a
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0025|     member of a partnership or other association, or as a
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0001|     stockholder, director or officer of a corporation, have an
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0002|     interest in a business licensed pursuant to the Gaming Control
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0003|     Act; or 
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0004|                 (2)  accept or agree to accept any economic
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0005|     opportunity, gift, loan, gratuity, special discount, favor,
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0006|     hospitality or service having an aggregate value of one hundred
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0007|     dollars ($100) or more in any calendar year from a person
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0008|     licensed or applying for a license pursuant to the Gaming
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0009|     Control Act.
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0010|            B.  If a member of the authority, an employee of the
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0011|     authority or any person residing in the household of any of the
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0012|     named persons violates any provision of this section or
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0013|     Subsection H of Section 4 of the Gaming Control Act, the member
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0014|     of the authority or an employee of the authority shall be
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0015|     removed from his office or position.
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0016|       Section 10.  [<u>NEW MATERIAL</u>]  CASINO GAMING PERMITTED--ELIGIBLE COUNTIES--CONDITIONS.--Casino gaming is permitted:
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0017|            A.  in a licensed gaming establishment;
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0018|            B.  at the times, in the manner and under the
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0019|     conditions prescribed by regulations of the authority; 
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0020|            C.  at no more than two locations in:
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0021|                 (1)  a class B county:
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0022|                      (a)  having a population as determined by
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0023|     the 1990 federal census of not more than twenty-five thousand
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0024|     persons and not less than ten thousand persons; and
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0025|                      (b)  having a 1993 net taxable value of
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0001|     property, as that term is defined in the Property Tax Code, of
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0002|     at least two hundred seventy million dollars ($270,000,000) but
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0003|     not more than three hundred thirty million dollars
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0004|     ($330,000,000); and
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0005|                 (2)  a class A county currently having a
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0006|     population of less than four hundred thousand persons; and
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0007|            D.  if the requirement of Section 11 of the Gaming
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0008|     Control Act has been complied with.
    |
0009|       Section 11.  [<u>NEW MATERIAL</u>]  POSITIVE REFERENDUM
    |
0010|     REQUIREMENT.--Casino gaming permitted pursuant to Section 10 of
    |
0011|     the Gaming Control Act shall not be conducted within a
    |
0012|     municipality or within a county outside of the boundaries of a
    |
0013|     municipality unless an election is held pursuant to this section
    |
0014|     and a simple majority of the registered voters of the
    |
0015|     municipality or the area of a county outside the boundaries of a
    |
0016|     municipality, respectively, voting on the question votes in
    |
0017|     favor of permitting the casino gaming.  The governing body of a
    |
0018|     municipality or a county, respectively, shall adopt a resolution
    |
0019|     calling for an election within seventy-five days of the
    |
0020|     effective date of the Gaming Control Act on the question of
    |
0021|     permitting the casino gaming authorized by that act.  The
    |
0022|     question may be submitted to the voters and voted on as a
    |
0023|     separate question at any general election or at any special
    |
0024|     election called for that purpose by the appropriate governing
    |
0025|     body.  The election on the question shall be called, held,
    |
0001|     conducted and canvassed in substantially the same manner as is
    |
0002|     provided by law for general elections.  If the question of
    |
0003|     permitting gaming in the municipality or county, respectively,
    |
0004|     fails, the appropriate governing body shall not call an election
    |
0005|     on the question of permitting casino gaming until two years has
    |
0006|     elapsed from the previous election.  No election shall be held
    |
0007|     pursuant to this section within forty-two days of any primary,
    |
0008|     general, municipal or school district election unless the
    |
0009|     election is held on the day of the primary, general, municipal
    |
0010|     or school district election.
    |
0011|       Section 12.  [<u>NEW MATERIAL</u>]  LICENSE REQUIRED FOR CERTAIN
    |
0012|     ACTIVITIES.--
    |
0013|            A.  No person shall own, possess or control a place
    |
0014|     used for gaming unless the place is licensed as a gaming
    |
0015|     establishment. 
    |
0016|            B.  No person shall sell or distribute in the state
    |
0017|     any gaming device unless he is licensed as a distributor. 
    |
0018|            C.  No person shall manufacture, assemble, program or
    |
0019|     make modifications to a gaming device for use or play in this
    |
0020|     state or for distribution outside this state unless he is
    |
0021|     licensed as a manufacturer.
    |
0022|            D.  No person shall possess or control a place where
    |
0023|     there is an unlicensed gaming machine.  Any unlicensed gaming
    |
0024|     machine, except one in the possession of a licensee while
    |
0025|     awaiting licensure of the machine, is subject to forfeiture and
    |
0001|     confiscation by any law enforcement agency or officer.
    |
0002|            E.  No person shall service or repair a gaming device
    |
0003|     or associated equipment unless he is licensed as a service
    |
0004|     technician.  
    |
0005|            F.  No person shall engage in any activity for which
    |
0006|     the authority requires a license or permit without obtaining the
    |
0007|     license or permit.
    |
0008|       Section 13.  [<u>NEW MATERIAL</u>]  LICENSURE--APPLICATION.--
    |
0009|            A.  The authority shall establish the following
    |
0010|     categories of licenses:
    |
0011|                 (1)  manufacturers;
    |
0012|                 (2)  distributors;
    |
0013|                 (3)  establishment;
    |
0014|                 (4)  machines;
    |
0015|                 (5)  service technicians; or
    |
0016|                 (6)  any other category of license deemed
    |
0017|     necessary for secure, orderly, effective and efficient control
    |
0018|     and operation of casino gaming in the state.
    |
0019|            B.  Except for a gaming establishment licensee having
    |
0020|     licensed machines, no licensee shall hold more than one type of
    |
0021|     license issued pursuant to the provisions of the Gaming Control
    |
0022|     Act or own a majority interest in, manage or otherwise control,
    |
0023|     a holder of another type of license issued pursuant to the
    |
0024|     provisions of that act.
    |
0025|            C.  Applicants for a license shall apply on forms
    |
0001|     provided by the authority and furnish all information requested
    |
0002|     by the authority.  Submission of an application constitutes
    |
0003|     consent to a credit check of the applicant and all persons
    |
0004|     having a substantial interest in the applicant and any other
    |
0005|     background investigations required pursuant to the Gaming
    |
0006|     Control Act or deemed necessary by the authority.
    |
0007|            D.  All licenses issued by the authority pursuant to
    |
0008|     the provisions of this section shall be reviewed for renewal
    |
0009|     annually, unless revoked, suspended, canceled or terminated.
    |
0010|            E.  No license issued pursuant to the provisions of
    |
0011|     the Gaming Control Act shall be transferred or assigned.
    |
0012|            F.  The application for a license shall include:
    |
0013|                 (1)  the name of the proposed licensee;
    |
0014|                 (2)  the location of the proposed operation;
    |
0015|                 (3)  the gaming devices to be operated,
    |
0016|     supplied, distributed or serviced;
    |
0017|                 (4)  the names of all persons directly or
    |
0018|     indirectly interested in the business and the nature of such
    |
0019|     interest; and
    |
0020|                 (5)  such other information and details as the
    |
0021|     authority may require.
    |
0022|            G.  The authority shall furnish to the applicant
    |
0023|     supplemental forms that the applicant shall complete and file
    |
0024|     with the application.  Such supplemental forms shall require,
    |
0025|     but shall not be limited to, complete information and details
    |
0001|     with respect to the applicant's habits, character, criminal
    |
0002|     records, business activities, financial affairs and business
    |
0003|     associates, covering at least a ten-year period immediately
    |
0004|     preceding the date of filing of the application.
    |
0005|       Section 14.  [<u>NEW MATERIAL</u>]  LICENSE FEES.--
    |
0006|            A.  The following license fees shall be paid to the
    |
0007|     authority: 
    |
0008|                 (1)  establishment license, two hundred fifty
    |
0009|     thousand dollars ($250,000) for the initial license and twenty-five thousand dollars ($25,000) for annual renewal;   
    |
0010|                 (2)  manufacturer's license, five thousand
    |
0011|     dollars ($5,000) for the initial license and one thousand
    |
0012|     dollars ($1,000) for annual renewal; 
    |
0013|                 (3)  distributor's license, five thousand
    |
0014|     dollars ($5,000) for the initial license and one thousand
    |
0015|     dollars ($1,000) for annual renewal; and
    |
0016|                 (4)  for each separate gaming machine licensed,
    |
0017|     one hundred dollars ($100) initially and one hundred dollars
    |
0018|     ($100) annually for renewal.
    |
0019|            B.  The authority shall establish the license fee for
    |
0020|     service technicians and the fee for any other license or permit
    |
0021|     by regulation, but no fee established by the authority shall
    |
0022|     exceed one hundred dollars ($100).  The authority shall also
    |
0023|     establish by regulation a nonrefundable application fee of no
    |
0024|     more than five hundred dollars ($500) to be charged to
    |
0025|     applicants other than establishment license applicants.
    |
0001|       Section 15.  [<u>NEW MATERIAL</u>]  REQUIRED DISCLOSURE BY
    |
0002|     APPLICANTS.--
    |
0003|            A.  The following disclosures are required of all
    |
0004|     applicants:
    |
0005|                 (1)  name and address of the applicant and the
    |
0006|     name and address of the following:
    |
0007|                      (a)  if the applicant is a corporation,
    |
0008|     the officers, directors and each stockholder in the corporation;
    |
0009|     except that, in the case of stockholders of publicly held equity
    |
0010|     securities of a publicly traded corporation, only the names and
    |
0011|     addresses of those known to the corporation to beneficially own
    |
0012|     five percent or more of the securities;
    |
0013|                      (b)  if the applicant is a trust, the
    |
0014|     trustee and all persons entitled to receive income or benefit
    |
0015|     from the trust;
    |
0016|                      (c)  if the applicant is an association,
    |
0017|     the members, officers and directors;
    |
0018|                      (d)  if the applicant is a subsidiary, the
    |
0019|     officers, directors and each stockholder of the parent
    |
0020|     corporation; except that in the case of stockholders of publicly
    |
0021|     held equity securities of a publicly traded corporation, only
    |
0022|     the names and addresses of those known to the corporation to
    |
0023|     beneficially own five percent or more of the securities; 
    |
0024|                      (e)  if the applicant is a partnership or
    |
0025|     joint venture, all of the general partners, limited partners or
    |
0001|     joint venturers;
    |
0002|                      (f)  if the parent company, general
    |
0003|     partner, limited partner or joint venturer of any applicant is
    |
0004|     itself a corporation, trust, association, subsidiary,
    |
0005|     partnership or joint venture, then all the information required
    |
0006|     in this section shall be disclosed by the parent company,
    |
0007|     general partner, limited partner or joint venturer as if it were
    |
0008|     itself the applicant so that full disclosure is achieved; and
    |
0009|                      (g)  if any member of the immediate family
    |
0010|     of any individual applicant is involved in the applicant's
    |
0011|     business in any capacity, then all of the information required
    |
0012|     in this section shall be disclosed for the immediate family
    |
0013|     member as if the family member were the applicant; 
    |
0014|                 (2)  all the states and jurisdictions in which
    |
0015|     each control person:
    |
0016|                      (a)  does business and the nature of that
    |
0017|     business for each state and jurisdiction;
    |
0018|                      (b)  has contracts to supply gaming
    |
0019|     devices, associated equipment or gaming services, including the
    |
0020|     nature of the devices, equipment or services involved for each
    |
0021|     state or jurisdiction; and
    |
0022|                      (c)  has applied for, has sought renewal
    |
0023|     of, has received, has been denied, has pending or has had
    |
0024|     revoked a gaming license of any kind, and the disposition of the
    |
0025|     application, renewal, denial, pendency or revocation of the
    |
0001|     license in each state or jurisdiction; and regarding any gaming
    |
0002|     license that has been revoked or has not been renewed, or any
    |
0003|     gaming license application that has been denied or is or has
    |
0004|     remained pending for greater than six months, all the facts and
    |
0005|     circumstances underlying the failure to receive a license by
    |
0006|     renewal or application or regarding the revocation;                          (3)  the details of any conviction in or
    |
0007|     judgment of a state or federal court of each control person of
    |
0008|     any felony and any other criminal offense other than traffic
    |
0009|     offenses;
    |
0010|                 (4)  the details of any bankruptcy, insolvency,
    |
0011|     reorganization or any pending litigation of each control person;
    |
0012|                 (5)  for each control person who is a natural
    |
0013|     person, the general details of employment, residence, education
    |
0014|     and military history since the age of eighteen years and any
    |
0015|     federal, state or local elective position ever held by the
    |
0016|     control person;
    |
0017|                 (6)  a consolidated report of all reportable
    |
0018|     information on all reportable contributions by each control
    |
0019|     person to any local, state or federal political candidate or
    |
0020|     political committee in this state for the past five years that
    |
0021|     is reportable pursuant to the provisions of any existing state
    |
0022|     or federal law;
    |
0023|                 (7)  the identity of any entity with which each
    |
0024|     control person has a joint venture or other contractual
    |
0025|     arrangement to supply any state or jurisdiction with gaming
    |
0001|     devices, associated equipment or gaming services, including a
    |
0002|     disclosure with regard to the entity of all of the information
    |
0003|     requested in Paragraph (1) of this subsection;
    |
0004|                 (8)  financial statements and copies of federal
    |
0005|     and state income tax returns of the applicant for the five years
    |
0006|     prior to the date of application;
    |
0007|                 (9)  any economic interest known by the
    |
0008|     applicant that is held by any member of the authority or an
    |
0009|     employee of the authority in the business of the applicant or
    |
0010|     any control person; and
    |
0011|                 (10)  any additional disclosures as determined
    |
0012|     to be necessary by the authority.
    |
0013|            B.  No license may be issued or renewed for an
    |
0014|     applicant or licensee who has not complied with the disclosure
    |
0015|     requirements, including periodic updates required pursuant to
    |
0016|     regulations of the authority, described in this section for each
    |
0017|     of its control persons. 
    |
0018|            C.  As used in this section, "control person" means
    |
0019|     the applicant and all persons whose identity must be disclosed
    |
0020|     in Paragraph (1) of Subsection A of this section.
    |
0021|            D.  Any response to a request for a name, address,
    |
0022|     date of birth, social security number, place of birth, current
    |
0023|     residence, current marital status, duration of marriage,
    |
0024|     residence addresses for the last ten years and spouse's name,
    |
0025|     address, date of birth and social security number shall include
    |
0001|     all versions of that information that has been used by the
    |
0002|     applicant or the control person for whom the information has
    |
0003|     been requested.
    |
0004|            E.  Pursuant to regulations adopted by the authority,
    |
0005|     all or any part of the costs of any disclosure or background
    |
0006|     investigation of any applicant may be billed to and shall be
    |
0007|     paid by the applicant.
    |
0008|       Section 16.  [<u>NEW MATERIAL</u>]  ACTION BY AUTHORITY ON
    |
0009|     APPLICATIONS.--
    |
0010|            A.  Any person that the authority determines is
    |
0011|     qualified to receive a license pursuant to the provisions of the
    |
0012|     Gaming Control Act, having due consideration for the proper
    |
0013|     protection of the health, safety, morals, good order and general
    |
0014|     welfare of the inhabitants of this state and the declared policy
    |
0015|     of this state, may be issued a license.  The burden of proving
    |
0016|     qualifications is on the applicant.            
    |
0017|            B.  An application to receive a license shall not be
    |
0018|     granted unless the authority is satisfied that the applicant is:
    |
0019|                 (1)  a person of good moral character, honesty
    |
0020|     and integrity;
    |
0021|                 (2)  a person whose prior activities, criminal
    |
0022|     record, if any, reputation, habits and associations do not pose
    |
0023|     a threat to the public interest or to the effective regulation
    |
0024|     and control of gaming or create or enhance the dangers of
    |
0025|     unsuitable, unfair or illegal practices, methods and activities
    |
0001|     in the conduct of gaming or the carrying on of the business and
    |
0002|     financial arrangements incidental thereto; and
    |
0003|                 (3)  in all other respects qualified to be
    |
0004|     licensed consistent with the laws of this state.
    |
0005|            C.  A license shall not be granted pursuant to the
    |
0006|     Gaming Control Act unless the applicant has satisfied the
    |
0007|     authority that:
    |
0008|                 (1)  the applicant has adequate business
    |
0009|     probity, competence and experience in business or gaming;
    |
0010|                 (2)  the proposed financing of the applicant is
    |
0011|     adequate for the nature of the proposed license and from a
    |
0012|     suitable source; any lender or other source of money or credit
    |
0013|     that the authority finds does not meet the standards set forth
    |
0014|     in Subsection B of this section shall be deemed unsuitable; and 
    |
0015|                 (3)  the applicant is sufficiently capitalized
    |
0016|     under standards set by the authority to conduct the business
    |
0017|     covered by the license applied for.
    |
0018|            D.  In addition to other requirements for licensure,
    |
0019|     an applicant for an establishment license shall at the time of
    |
0020|     submitting the application:
    |
0021|                 (1)  pay a nonrefundable deposit of one hundred
    |
0022|     thousand dollars ($100,000) to cover the expenses of background
    |
0023|     investigations necessary to be performed in connection with that
    |
0024|     application;
    |
0025|                 (2)  present an irrevocable commitment to
    |
0001|     construction of a hotel with a minimum of two hundred rooms
    |
0002|     adjoining the proposed casino gaming establishment with the
    |
0003|     completion of the construction to be a condition precedent to
    |
0004|     the issuance of the license; and
    |
0005|                 (3)  demonstrate to the satisfaction of the
    |
0006|     authority that the applicant has the ability and the willingness
    |
0007|     to promote economic development and employment in the community
    |
0008|     in which the establishment is located.
    |
0009|            E.  An application to receive a license constitutes a
    |
0010|     request for a determination of the applicant's general moral
    |
0011|     character, integrity and ability to participate or engage in or
    |
0012|     be associated with gaming.  Any written or oral statement made
    |
0013|     in the course of an official proceeding of the authority or by
    |
0014|     any witness testifying under oath that is relevant to the
    |
0015|     purpose of the proceeding is absolutely privileged and does not
    |
0016|     impose liability for defamation or constitute a ground for
    |
0017|     recovery in any civil action.
    |
0018|            F.  The authority shall investigate the
    |
0019|     qualifications of each applicant before any license is issued by
    |
0020|     the authority and shall continue to observe and monitor the
    |
0021|     conduct of all licensees and the persons having a material
    |
0022|     involvement directly or indirectly with a licensed gaming
    |
0023|     operation.
    |
0024|            G.  The authority has the authority to deny any
    |
0025|     application or limit, condition, restrict, revoke or suspend any
    |
0001|     license for any reasonable cause.
    |
0002|            H.  The authority may issue or deny a license to the
    |
0003|     applicant.  The authority may limit or place those reasonable
    |
0004|     conditions it deems necessary to the public interest upon any
    |
0005|     license for which application has been made.
    |
0006|            I.  After the issuance of the license, it shall
    |
0007|     continue in effect upon proper payment of the license fees,
    |
0008|     subject to the power of the authority to revoke, suspend,
    |
0009|     condition or limit licenses.
    |
0010|            J.  The authority has full and absolute power to deny
    |
0011|     any application for any cause it deems reasonable.  If an
    |
0012|     application is denied, the authority shall prepare and file its
    |
0013|     written decision upon which its order denying the application is
    |
0014|     based.
    |
0015|       Section 17.  [<u>NEW MATERIAL</u>]  EXCLUSION OR EJECTION OF
    |
0016|     CERTAIN PERSONS FROM LICENSED ESTABLISHMENTS--PERSONS 
    |
0017|     INCLUDED.--
    |
0018|            A.  The authority shall by regulation provide for the
    |
0019|     establishment of a list of persons who are to be excluded or
    |
0020|     ejected from any licensed gaming establishment.  The list may
    |
0021|     include any person whose presence in the establishment is
    |
0022|     determined by the authority to pose a threat to the public
    |
0023|     interest or to licensed gaming, or both.
    |
0024|            B.  In making the determination in Subsection A of
    |
0025|     this section, the authority may consider any:
    |
0001|                 (1)  prior conviction of a crime that is a
    |
0002|     felony under state or federal law, a crime involving moral
    |
0003|     turpitude or a violation of the gaming laws of any jurisdiction;
    |
0004|                 (2)  violation or conspiracy to violate the
    |
0005|     provisions of the Gaming Control Act relating to:
    |
0006|                      (a)  the failure to disclose an interest
    |
0007|     in a gaming establishment for which the person must obtain a
    |
0008|     license; or
    |
0009|                      (b)  willful evasion of fees or taxes; 
    |
0010|                 (3)  notorious or unsavory reputation that would
    |
0011|     adversely affect public confidence and trust that the gaming
    |
0012|     industry is free from criminal or corruptive demands; or
    |
0013|                 (4)  written order of any other governmental
    |
0014|     agency in this state or any other state that authorizes the
    |
0015|     exclusion or ejection of the person from an establishment at
    |
0016|     which gaming is conducted.
    |
0017|            C.  A licensed gaming establishment has the right,
    |
0018|     without any list established by the board, to exclude or eject
    |
0019|     any person from the establishment who poses a threat to the
    |
0020|     public interest or to licensed gaming or for any business
    |
0021|     reason.
    |
0022|            D.  Race, color, creed, national origin or ancestry,
    |
0023|     age, disability or sex shall not be grounds for placing the name
    |
0024|     of a person upon the list or for exclusion or ejection under
    |
0025|     Subsection C of this section.
    |
0001|       Section 18.  [<u>NEW MATERIAL</u>]  INTERNAL AND EXTERNAL
    |
0002|     CONTROL SYSTEMS.--
    |
0003|            A.  Each licensed gaming establishment shall adopt
    |
0004|     internal and external control systems that shall include, but
    |
0005|     not be limited to, provisions for:
    |
0006|                 (1)  safeguarding its assets and revenues,
    |
0007|     especially the recording of cash and evidences of indebtedness;
    |
0008|                 (2)  making and maintaining reliable records,
    |
0009|     accounts and reports of transactions, operations and events,
    |
0010|     including reports to the board; and
    |
0011|                 (3)  a system by which the amount wagered on
    |
0012|     each gaming machine and the amount paid out by each machine is
    |
0013|     recorded on a daily basis, which results may be obtained by the
    |
0014|     authority by appropriate means as described in regulations
    |
0015|     promulgated by the authority; all manufacturers will be required
    |
0016|     to have such a system available for licensed gaming
    |
0017|     establishments for the gaming machines that it supplies for use
    |
0018|     in New Mexico; and all distributors shall make such a system
    |
0019|     available to establishments.
    |
0020|            B.  The internal control system shall be designed to
    |
0021|     reasonably ensure that:
    |
0022|                 (1)  assets are safeguarded;
    |
0023|                 (2)  financial records are accurate and
    |
0024|     reliable;
    |
0025|                 (3)  transactions are performed only in
    |
0001|     accordance with management's general or specific authorization;
    |
0002|                 (4)  transactions are recorded adequately to
    |
0003|     permit proper reporting of gaming revenue and of fees and taxes,
    |
0004|     and to maintain accountability of assets;
    |
0005|                 (5)  access to assets is permitted only in
    |
0006|     accordance with management's specific authorization;
    |
0007|                 (6)  recorded accountability for assets is
    |
0008|     compared with actual assets at reasonable intervals and
    |
0009|     appropriate action is taken with respect to any discrepancies;
    |
0010|     and
    |
0011|                 (7)  functions, duties and responsibilities are
    |
0012|     appropriately segregated and performed in accordance with sound
    |
0013|     accounting and management practices by competent, qualified
    |
0014|     personnel.
    |
0015|            C.  Each licensed gaming establishment and each
    |
0016|     applicant for a gaming establishment license shall describe, in
    |
0017|     the manner the authority may approve or require, its
    |
0018|     administrative and accounting procedures in detail in a written
    |
0019|     system of internal control.  Each licensed gaming establishment
    |
0020|     and applicant for a gaming establishment license shall submit a
    |
0021|     copy of its written system to the authority.  Each written
    |
0022|     system shall include:
    |
0023|                 (1)  an organizational chart depicting
    |
0024|     appropriate segregation of functions and responsibilities;
    |
0025|                 (2)  a description of the duties and
    |
0001|     responsibilities of each position shown on the organizational
    |
0002|     chart;
    |
0003|                 (3)  a detailed, narrative description of the
    |
0004|     administrative and accounting procedures designed to satisfy the
    |
0005|     requirements of Subsection A of this section;
    |
0006|                 (4)  a written statement signed by the
    |
0007|     licensee's chief financial officer and either the licensee's
    |
0008|     chief executive officer or a licensed owner attesting that the
    |
0009|     system satisfies the requirements of this section;
    |
0010|                 (5)  if the written system is submitted by an
    |
0011|     applicant, a letter from an independent certified public
    |
0012|     accountant stating that the applicant's written system has been
    |
0013|     reviewed by the accountant and complies with the requirements of
    |
0014|     this section; and
    |
0015|                 (6)  such other items as the authority may
    |
0016|     require.
    |
0017|            D.  The authority shall adopt and publish minimum
    |
0018|     standards for internal control procedures.
    |
0019|       Section 19.  [<u>NEW MATERIAL</u>]  GAMING EMPLOYEES--ISSUANCE
    |
0020|     OF WORK PERMITS--REVOCATION OF WORK PERMITS.--
    |
0021|            A.  A person shall not be employed as a gaming
    |
0022|     employee unless the person holds a valid work permit issued by
    |
0023|     the authority.
    |
0024|            B.  A work permit shall be issued and may be revoked
    |
0025|     by the authority as provided in regulations adopted by the
    |
0001|     authority.
    |
0002|            C.  Any person whose work permit has been denied or
    |
0003|     revoked may seek judicial review as provided in applicable law.
    |
0004|       Section 20.  [<u>NEW MATERIAL</u>]  AGE REQUIREMENT FOR PATRONS
    |
0005|     AND GAMING EMPLOYEES.--A person under the age of twenty-one
    |
0006|     years of age shall not:
    |
0007|            A.  play, be allowed to play, place wagers or collect
    |
0008|     winnings from, whether personally or through an agent, any game
    |
0009|     authorized under the Gaming Control Act; or
    |
0010|            B.  be employed as a gaming employee.
    |
0011|       Section 21.  [<u>NEW MATERIAL</u>]  ACCEPTANCE OF CREDIT
    |
0012|     INSTRUMENTS BY LICENSEE.--
    |
0013|            A.  A credit instrument evidencing a gaming debt is
    |
0014|     authorized by the Gaming Control Act and may be enforced by
    |
0015|     legal process.
    |
0016|            B.  A gaming establishment licensee or person acting
    |
0017|     on the licensee's behalf may accept an incomplete credit 
    |
0018|     instrument that is signed by a patron and states the amount of
    |
0019|     the debt in figures.  The licensee may complete the instrument
    |
0020|     as is necessary for the instrument to be presented for payment.
    |
0021|            C.  A gaming establishment licensee or person acting
    |
0022|     on behalf of a licensee:
    |
0023|                 (1)  shall not accept a credit instrument that
    |
0024|     is incomplete except as authorized in Subsection B of this
    |
0025|     section; and
    |
0001|                 (2)  may accept a credit instrument that is
    |
0002|     payable to an affiliate or affiliated company or may complete a
    |
0003|     credit instrument in the name of an affiliate or affiliated
    |
0004|     company as payout if the credit instrument otherwise complies
    |
0005|     with this section and the records of the affiliate or an
    |
0006|     affiliated company pertaining to the credit instrument are made
    |
0007|     available to the authority upon request.
    |
0008|            D.  This section does not prohibit the establishment
    |
0009|     of an account by a deposit of cash, recognized traveler's check
    |
0010|     or any other instrument that is equivalent to cash.
    |
0011|            E.  Any person, gaming establishment licensee or its
    |
0012|     agents or employees that violates the provisions of this section
    |
0013|     is subject only to the penalties provided by regulations of the
    |
0014|     authority.  The failure of a person to comply with the
    |
0015|     provisions of this section or the regulations of the authority
    |
0016|     does not invalidate a credit instrument or affect the ability to
    |
0017|     enforce the credit instrument or the debt that the credit
    |
0018|     instrument represents.
    |
0019|       Section 22.  [<u>NEW MATERIAL</u>]  FACE VALUE OF CREDIT
    |
0020|     INSTRUMENT INCLUDED IN COMPUTATION OF GROSS REVENUE--
    |
0021|     EXCEPTIONS--CASH RECEIVED IN PAYMENT OF DEBT NOT INCLUDED IN
    |
0022|     GROSS REVENUE.--
    |
0023|            A.  For the purposes of the Gaming Control Act,
    |
0024|     except as otherwise provided in Subsection C of this section,
    |
0025|     the computation of gross revenue shall include the face value of
    |
0001|     any credit instrument if, within two years after the last day of
    |
0002|     the month following the month in which that instrument was
    |
0003|     accepted by the gaming establishment licensee, the authority
    |
0004|     determines that:
    |
0005|                 (1)  the instrument was not signed by the patron
    |
0006|     or otherwise acknowledged by him in a written form satisfactory
    |
0007|     to the authority;
    |
0008|                 (2)  the licensee did not have an address for
    |
0009|     the patron at the time of accepting the instrument, or, in lieu
    |
0010|     of that address, has not provided the authority, within a
    |
0011|     reasonable time after its request, the current address of the
    |
0012|     patron to whom the credit was extended;
    |
0013|                 (3)  the licensee has not provided the authority
    |
0014|     with any evidence that the licensee made a reasonable effort to
    |
0015|     collect the debt;
    |
0016|                 (4)  the licensee has not provided the authority
    |
0017|     with any evidence that the licensee checked the credit history
    |
0018|     of the patron before extending credit to him;
    |
0019|                 (5)  the licensee has not produced the
    |
0020|     instrument within a reasonable time after a request by the
    |
0021|     authority for the instrument unless it:
    |
0022|                      (a)  is in the possession of a court,
    |
0023|     governmental agency or financial institution;
    |
0024|                      (b)  has been returned to the patron upon
    |
0025|     his partial payment of the instrument and the licensee has
    |
0001|     obtained a substitute credit instrument for the remaining
    |
0002|     balance;
    |
0003|                      (c)  has been stolen and the licensee has
    |
0004|     made a written report of the theft to the appropriate law
    |
0005|     enforcement agency; or
    |
0006|                      (d)  cannot be produced because of any
    |
0007|     other circumstance that is beyond the licensee's control;
    |
0008|                 (6)  the signature of the patron on the
    |
0009|     instrument was forged and the licensee has not made a written
    |
0010|     report of the forgery to the appropriate law enforcement agency;
    |
0011|     or
    |
0012|                 (7)  upon an audit by the authority, the
    |
0013|     licensee requested the auditors not to confirm the unpaid
    |
0014|     balance of the debit with the patron and there is not other
    |
0015|     satisfactory means of confirmation.
    |
0016|            B.  For the purpose of the Gaming Control Act, the
    |
0017|     computation of gross revenue shall not include cash or its
    |
0018|     equivalent that is received in full or partial payment of a debt
    |
0019|     previously included in the computation of gross revenue pursuant
    |
0020|     to Subsection A of this section.
    |
0021|            C.  The provisions of Subsection A of this section do
    |
0022|     not apply to any credit instrument that is settled for less than
    |
0023|     its face amount to:
    |
0024|                 (1)  induce a substantial partial payment;
    |
0025|                 (2)  compromise a dispute; or
    |
0001|                 (3)  obtain a patron's business if:
    |
0002|                      (a)  an agreement is entered into to
    |
0003|     discount the face amount of a credit instrument before it is
    |
0004|     issued to induce timely payment of the credit instrument; and
    |
0005|                      (b)  the percentage of discount of the
    |
0006|     instrument is reasonable as compared to the prevailing practice
    |
0007|     in the industry.
    |
0008|       Section 23.  [<u>NEW MATERIAL</u>]  CALCULATION OF GROSS
    |
0009|     REVENUE--CERTAIN EXPENSES NOT DEDUCTIBLE.--
    |
0010|            A.  In calculating gross revenue, any prizes,
    |
0011|     premiums, drawings, benefits or tickets that are redeemable for
    |
0012|     money or merchandise or other promotional allowance, except
    |
0013|     money or tokens paid at face value directly to a patron as the
    |
0014|     result of a specific wager and the amount of cash paid to
    |
0015|     purchase an annuity to fund losses paid to winning patrons,
    |
0016|     shall not be deducted as losses from winnings at any game except
    |
0017|     a gaming machine.
    |
0018|            B.  In calculating gross revenue from gaming
    |
0019|     machines, the actual cost to the licensee of any personal
    |
0020|     property distributed to a patron as the result of a legitimate
    |
0021|     wager may be deducted as a loss, but not travel expenses, food,
    |
0022|     refreshments, lodging or services.  For the purposes of this
    |
0023|     section, "as the result of a legitimate wager" means that the
    |
0024|     patron must make a wager prior to receiving the personal
    |
0025|     property, regardless of whether the receipt of the personal
    |
0001|     property is dependent on the outcome of the wager.
    |
0002|       Section 24.  [<u>NEW MATERIAL</u>]  LIMITATIONS ON TAXES AND
    |
0003|     LICENSE FEES.--No municipality or other political subdivision of
    |
0004|     the state shall impose any license fee or tax on any licensee
    |
0005|     licensed pursuant to the Gaming Control Act except for the
    |
0006|     imposition of property taxes and gross receipts taxes.
    |
0007|       Section 25.  [<u>NEW MATERIAL</u>]  USE OF CHIPS, TOKENS OR
    |
0008|     LEGAL TENDER REQUIRED FOR ALL GAMING.--All gaming shall be
    |
0009|     conducted with chips, tokens or other instrumentalities approved
    |
0010|     by the board or with the legal currency of the United States.
    |
0011|       Section 26.  [<u>NEW MATERIAL</u>]  RECORDS OF GAMING
    |
0012|     ESTABLISHMENT LICENSEES.--
    |
0013|            A.  A gaming establishment licensee shall keep its
    |
0014|     books and records to clearly show the amount of gross revenue
    |
0015|     and other revenues received.
    |
0016|            B.  On a monthly basis, the gaming establishment
    |
0017|     licensee shall furnish to the authority reports and information
    |
0018|     as the authority may require with respect to its activities on
    |
0019|     forms designed and supplied for that purpose by the authority.
    |
0020|       Section 27.  [<u>NEW MATERIAL</u>]  COMMUNICATION OR DOCUMENT OF
    |
0021|     APPLICANT OR LICENSEE ABSOLUTELY PRIVILEGED--PRIVILEGE NOT
    |
0022|     WAIVED--DISCLOSURE OF PRIVILEGED INFORMATION PROHIBITED.--
    |
0023|            A.  Any communication or document of an applicant or
    |
0024|     licensee is absolutely privileged and does not impose liability
    |
0025|     for defamation or constitute a ground for recovery in any civil
    |
0001|     action if it is required by:
    |
0002|                 (1)  law or the regulations of the authority; or
    |
0003|                 (2)  a subpoena issued by the authority to be
    |
0004|     made or transmitted to the authority.
    |
0005|            B.  The privilege created pursuant to Subsection A of
    |
0006|     this section is not waived or lost because the document or
    |
0007|     communication is disclosed to the authority.
    |
0008|            C.  Notwithstanding the powers granted to the
    |
0009|     authority by the Gaming Control Act, the authority:
    |
0010|                 (1)  shall not release or disclose any
    |
0011|     privileged information, documents or communications provided by
    |
0012|     an applicant or licensee without the prior written consent of
    |
0013|     the applicant or licensee or pursuant to a lawful court order
    |
0014|     after timely notice of the proceedings has been given to the
    |
0015|     applicant or licensee;
    |
0016|                 (2)  shall maintain all privileged information,
    |
0017|     documents and communications in a secure place accessible only
    |
0018|     to members of the authority; and
    |
0019|                 (3)  shall adopt procedures and regulations to
    |
0020|     protect the privileged nature of information, documents and
    |
0021|     communications provided by an applicant or licensee.
    |
0022|       Section 28.  [<u>NEW MATERIAL</u>]  MOTION FOR RELEASE OF
    |
0023|     CONFIDENTIAL INFORMATION.--An application to a court for an
    |
0024|     order requiring the authority to release any information
    |
0025|     declared by law to be confidential shall be made only upon
    |
0001|     motion in writing on ten days written notice to the authority,
    |
0002|     the attorney general and all persons who may be affected by the
    |
0003|     entry of such an order.  Copies of the motion and all papers
    |
0004|     filed in support of it shall be served with the notice by
    |
0005|     delivering a copy in person or by certified mail to the last
    |
0006|     known address of the person to be served.
    |
0007|       Section 29.  [<u>NEW MATERIAL</u>]  GAMING MACHINE CENTRAL
    |
0008|     SYSTEM.--The authority shall develop and operate a central
    |
0009|     system to which all licensed gaming machines are connected.  The
    |
0010|     central system shall be capable of:
    |
0011|            A.  retrieving and auditing the operation, financial
    |
0012|     data and program information of the network;
    |
0013|            B.  disabling from operation or play any gaming
    |
0014|     machine in the network that does not comply with the provisions
    |
0015|     of the Gaming Control Act or the regulations of the authority;
    |
0016|            C.  communicating, through program modifications or
    |
0017|     other equally effective means, with all gaming machines licensed
    |
0018|     by the authority; 
    |
0019|            D.  interacting, reading, communicating and linking
    |
0020|     with gaming machines from a broad spectrum of manufacturers and
    |
0021|     associated equipment; and
    |
0022|            E.  providing linkage to each gaming machine in the
    |
0023|     network at a reasonable and affordable cost to the state or the
    |
0024|     establishment and allowing for program modifications and system
    |
0025|     updating at a reasonable rate of cost.
    |
0001|       Section 30.  [<u>NEW MATERIAL</u>]  MACHINE SPECIFICATIONS.--To
    |
0002|     be eligible for licensure, each gaming machine shall meet all
    |
0003|     specifications established by regulations of the authority and:
    |
0004|            A.  be unable to be manipulated in a manner that
    |
0005|     affects the random probability of winning plays or in any other
    |
0006|     manner determined by the authority to be desirable;
    |
0007|            B.  have at least one mechanism that accepts coins or
    |
0008|     currency, but does not accept bills of denominations greater
    |
0009|     than twenty dollars ($20.00);
    |
0010|            C.  be capable of having play suspended through the
    |
0011|     central system by the authority until the authority resets the
    |
0012|     gaming machine;
    |
0013|            D.  house nonresettable mechanical and electronic
    |
0014|     meters within a readily accessible locked area of the gaming
    |
0015|     machine that maintain a permanent record of all money inserted
    |
0016|     into the machine, all cash payouts of winnings, all refunds of
    |
0017|     winnings made by the machine's printer, all credits played for
    |
0018|     additional games and all credits won by players;
    |
0019|            E.  have a printing mechanism capable of printing out
    |
0020|     at the request of the authority readings on the electronic
    |
0021|     meters of the machine;
    |
0022|            F.  be capable of printing a ticket voucher stating
    |
0023|     the value of a cash prize won by the player at the completion of
    |
0024|     each game, the date and time of the day the game was played in a
    |
0025|     twenty-four hour format showing hours and minutes, the machine
    |
0001|     serial number, the sequential number of the ticket voucher and
    |
0002|     an encrypted validation number for determining the validity of a
    |
0003|     winning ticket voucher;
    |
0004|            G.  be capable of being linked to the authority's
    |
0005|     central system for the purpose of auditing the operation,
    |
0006|     financial data and program information as required by the
    |
0007|     authority;
    |
0008|            H.  provide for a payback value for each credit
    |
0009|     wagered, determined over time, of not less than eighty percent
    |
0010|     or more than ninety-six percent; 
    |
0011|            I.  offer only games authorized and examined by the
    |
0012|     authority; and
    |
0013|            J.  display the gaming machine license issued for
    |
0014|     that machine in an easily accessible place, before and during
    |
0015|     the time that a machine is available for use.
    |
0016|       Section 31.  [<u>NEW MATERIAL</u>]  POSTING OF GAMING MACHINE
    |
0017|     ODDS.--The odds of winning on each gaming machine shall be
    |
0018|     posted on or near each gaming machine.  The authority shall
    |
0019|     provide the manner in which the odds shall be posted by
    |
0020|     regulation.
    |
0021|       Section 32.  [<u>NEW MATERIAL</u>]  EXAMINATION OF MACHINES AND
    |
0022|     EQUIPMENT--COST ALLOCATION.-- 
    |
0023|            A.  The authority shall examine prototypes of gaming
    |
0024|     devices of manufacturers seeking a license as required pursuant
    |
0025|     to the provisions of the Gaming Control Act.  
    |
0001|            B.  The authority by regulation shall require the
    |
0002|     manufacturer seeking the licensing of a gaming device to pay the
    |
0003|     anticipated actual costs of the examination in advance and,
    |
0004|     after the completion of the examination, shall refund
    |
0005|     overpayments or charge and collect amounts sufficient to
    |
0006|     reimburse the authority for underpayments of actual costs.
    |
0007|            C.  The authority may contract for the examination of
    |
0008|     gaming devices to meet the requirements of this section.
    |
0009|       Section 33.  [<u>NEW MATERIAL</u>]  GAMING TAX--IMPOSITION--ADMINISTRATION.--
    |
0010|            A.  An excise tax is imposed upon the privilege of
    |
0011|     conducting casino gaming in the state.  This tax shall be known
    |
0012|     as the "gaming tax".
    |
0013|            B.  The gaming tax is measured as a percentage of
    |
0014|     gross revenue of a licensed gaming establishment.  The rate of
    |
0015|     the tax is twelve percent.
    |
0016|            C.  The gaming tax shall be administered and
    |
0017|     collected by the taxation and revenue department in cooperation
    |
0018|     with the authority, and the provisions of the Tax Administration
    |
0019|     Act apply to the collection and administration of the tax.
    |
0020|       Section 34.  [<u>NEW MATERIAL</u>]  GAMING FUND CREATED--DISTRIBUTION OF ALL FEES AND TAXES TO THE GAMING FUND--DISTRIBUTION FROM THE FUND.--
    |
0021|            A.  The "gaming fund" is created in the state
    |
0022|     treasury.  All license fees collected pursuant to the Gaming
    |
0023|     Control Act and all net proceeds of the gaming tax shall be
    |
0024|     deposited into the gaming fund.

    |
0025|            B.  The gaming fund shall be invested as are other
    |
0001|     state funds.  Interest earned on the investment of the fund
    |
0002|     shall be retained in the fund.
    |
0003|            C.  Money in the gaming fund is appropriated as
    |
0004|     follows:
    |
0005|                 (1)  the receipts to the fund from license fees
    |
0006|     and other administrative impositions to the authority to
    |
0007|     administer the Gaming Control Act; and
    |
0008|                 (2)  the balance to the general fund;
    |
0009|       Section 35.  [<u>NEW MATERIAL</u>]  FRAUDULENT ACTS--PENALTY.--
    |
0010|            A.  A person commits an offense if the person
    |
0011|     knowingly:
    |
0012|                 (1)  alters or misrepresents the outcome of a
    |
0013|     game or other event on which wagers have been made after the
    |
0014|     outcome is made sure but before it is revealed to the players;
    |
0015|                 (2)  places, increases or decreases a bet or
    |
0016|     determines the course of play after acquiring knowledge not
    |
0017|     available to all players of the outcome of the game or any event
    |
0018|     that affects the outcome of the game or that is the subject of
    |
0019|     the bet or to aid anyone in acquiring that knowledge for the
    |
0020|     purpose of placing, increasing or decreasing a bet or
    |
0021|     determining the course of play contingent upon that event or
    |
0022|     outcome;
    |
0023|                 (3)  claims, collects or takes, or attempts to
    |
0024|     claim, collect or take, money or anything of value in or from a
    |
0025|     gambling game, with intent to defraud, without having made a
    |
0001|     wager contingent thereon, or claims, collects or takes an amount
    |
0002|     greater than the amount won;
    |
0003|                 (4)  entices or induces another to go to any
    |
0004|     place where a gambling game is being conducted or operated in
    |
0005|     violation of the provisions of the Gaming Control Act, with the
    |
0006|     intent that the other person play or participate in that
    |
0007|     gambling game;
    |
0008|                 (5)  places or increases a bet after acquiring
    |
0009|     knowledge of the outcome of the game or other event that is the
    |
0010|     subject of the bet, including past-posting and pressing bets;
    |
0011|                 (6)  reduces the amount wagered or cancels the
    |
0012|     bet after acquiring knowledge of the outcome of the game or
    |
0013|     other event that is the subject of the bet, including pinching
    |
0014|     bets; or
    |
0015|                 (7)  manipulates, with the intent to cheat, any
    |
0016|     component of a gaming device in a manner contrary to the
    |
0017|     designed and normal operational purpose for the component,
    |
0018|     including, but not limited to, varying the pull of the handle of
    |
0019|     a slot machine, with knowledge that the manipulation affects the
    |
0020|     outcome of the game or with knowledge of any event that affects
    |
0021|     the outcome of the game.
    |
0022|            B.  An offense under this section is a fourth degree
    |
0023|     felony, and upon conviction a person shall be sentenced pursuant
    |
0024|     to the provisions of Section 31-18-15 NMSA 1978.
    |
0025|       Section 36.  [<u>NEW MATERIAL</u>]  USE OF DEVICE FOR
    |
0001|     CALCULATING PROBABILITIES.--
    |
0002|            A.  A person commits an offense who, at a licensed
    |
0003|     gaming establishment, uses or possesses with the intent to use
    |
0004|     any device to assist:
    |
0005|                 (1)  in projecting the outcome of the game;
    |
0006|                 (2)  in keeping track of the cards played;
    |
0007|                 (3)  in analyzing the probability of the
    |
0008|     occurrence of an event relating to the game; or
    |
0009|                 (4)  in analyzing the strategy for playing or
    |
0010|     betting to be used in the game.
    |
0011|            B.  An offense under this section is a misdemeanor,
    |
0012|     and upon conviction a person shall be sentenced pursuant to the
    |
0013|     provisions of Section 31-19-1 NMSA 1978.
    |
0014|       Section 37.  [<u>NEW MATERIAL</u>]  USE OF COUNTERFEIT OR
    |
0015|     UNAPPROVED CHIPS OR TOKENS OR UNLAWFUL COINS OR DEVICES--POSSESSION OF CERTAIN DEVICES, EQUIPMENT, PRODUCTS OR
    |
0016|     MATERIALS.--
    |
0017|            A.  A person commits an offense who knowingly uses
    |
0018|     counterfeit chips in a gambling game.
    |
0019|            B.   A person commits an offense who, in playing or
    |
0020|     using any gambling game designed to be played with, receive or
    |
0021|     be operated by chips or tokens approved by the board or by
    |
0022|     lawful currency of the United States knowingly uses chips or
    |
0023|     tokens other than those approved by the authority, uses currency
    |
0024|     that is not lawful currency of the United States or uses
    |
0025|     currency not of the same denomination as the currency intended
    |
0001|     to be used in that gambling game.
    |
0002|            C.  A person other than a duly authorized employee of
    |
0003|     a gaming establishment licensee or of the authority acting in
    |
0004|     furtherance of his employment within a licensed establishment
    |
0005|     commits an offense who knowingly has on his person or in his
    |
0006|     possession on or off the premises of any licensed gaming
    |
0007|     establishment any device intended to be used by him to violate
    |
0008|     the provisions of the Gaming Control Act.
    |
0009|            D.  A person other than a duly authorized employee of
    |
0010|     a gaming establishment licensee acting in furtherance of his
    |
0011|     employment within a licensed establishment commits an offense
    |
0012|     who knowingly has on his person or in his possession on or off
    |
0013|     the premises of any licensed gaming establishment any key or
    |
0014|     device known by him to have been designed for the purpose of and
    |
0015|     suitable for opening, entering or affecting the operation of any
    |
0016|     gambling game, drop box or any electronic or mechanical device
    |
0017|     connected thereto, or for removing money or other contents
    |
0018|     therefrom.
    |
0019|            E.  A person commits an offense who knowingly and
    |
0020|     with intent to use them for cheating has on his person or in his
    |
0021|     possession any paraphernalia for manufacturing slugs.  As used
    |
0022|     in this subsection, "paraphernalia for manufacturing slugs"
    |
0023|     means the equipment, products and materials that are intended
    |
0024|     for use or designed for use in manufacturing, producing,
    |
0025|     fabricating, preparing, testing, analyzing, packaging, storing
    |
0001|     or concealing a counterfeit facsimile of the chips or tokens
    |
0002|     approved by the board or a lawful coin of the United States, the
    |
0003|     use of which is unlawful pursuant to the Gaming Control Act. 
    |
0004|     The term includes but is not limited to:
    |
0005|                 (1)  lead or lead alloys;
    |
0006|                 (2)  molds, forms or similar equipment capable
    |
0007|     of producing a likeness of a gaming token or coin;
    |
0008|                 (3)  melting pots or other receptacles;
    |
0009|                 (4)  torches; and
    |
0010|                 (5)  tongs, trimming tools or other similar
    |
0011|     equipment.
    |
0012|            F.  Possession of more than two items of the
    |
0013|     equipment, products or material described in Subsection E of
    |
0014|     this section permits a rebuttable inference that the possessor
    |
0015|     intended to use them for cheating.
    |
0016|            G.  An offense under this section is a third degree
    |
0017|     felony and upon conviction a person shall be sentenced pursuant
    |
0018|     to the provisions of Section 31-18-15 NMSA 1978.
    |
0019|       Section 38.  [<u>NEW MATERIAL</u>]  CHEATING.--
    |
0020|            A.  A person commits an offense who knowingly cheats
    |
0021|     at any gambling game.
    |
0022|            B.  An offense under this section is a fourth degree
    |
0023|     felony and upon conviction a person shall be sentenced pursuant
    |
0024|     to the provisions of Section 31-18-15 NMSA 1978.
    |
0025|       Section 39.  [<u>NEW MATERIAL</u>]  PENALTY FOR POSSESSION OF
    |
0001|     DEVICE, EQUIPMENT OR MATERIAL MANUFACTURED, SOLD OR DISTRIBUTED
    |
0002|     IN VIOLATION OF LAW.--
    |
0003|            A.  A person commits an offense who knowingly
    |
0004|     possesses any gaming device that has been manufactured, sold or
    |
0005|     distributed in violation of the Gaming Control Act.
    |
0006|            B.  An offense under this section is a fourth degree
    |
0007|     felony and upon conviction a person shall be sentenced pursuant
    |
0008|     to the provisions of Section 31-18-15 NMSA 1978.
    |
0009|       Section 40.  [<u>NEW MATERIAL</u>]  UNLAWFUL MANUFACTURE, SALE,
    |
0010|     DISTRIBUTION, MARKING, ALTERING OR MODIFICATION OF EQUIPMENT AND
    |
0011|     DEVICES ASSOCIATED WITH GAMING--UNLAWFUL INSTRUCTION.--
    |
0012|            A.  A person commits an offense who manufactures,
    |
0013|     sells or distributes any cards, chips, dice, game or device that
    |
0014|     is intended by him to be used to violate any provision of the
    |
0015|     Gaming Control Act.
    |
0016|            B.  A person commits an offense who marks, alters or
    |
0017|     otherwise modifies any associated equipment or gaming device in
    |
0018|     a manner that:
    |
0019|                 (1)  affects the result of a wager by
    |
0020|     determining win or loss; or
    |
0021|                 (2)  alters the normal criteria of random
    |
0022|     selection, which affects the operation of a game or which
    |
0023|     determines the outcome of a game.
    |
0024|            C.  A person commits an offense who instructs another
    |
0025|     in cheating or in the use of any device for that purpose with
    |
0001|     the knowledge or intent that the information or use so conveyed
    |
0002|     may be employed to violate any provision of the Gaming Control
    |
0003|     Act.
    |
0004|            D.  An offense under this section is a fourth degree
    |
0005|     felony, and upon conviction a person shall be sentenced pursuant
    |
0006|     to the provisions of Section 31-18-15 NMSA 1978.
    |
0007|       Section 41.  [<u>NEW MATERIAL</u>]  REPORTING AND RECORD
    |
0008|     VIOLATIONS--PENALTY.--
    |
0009|            A.  A person commits an offense if the person, in a
    |
0010|     license application, in a book or record required to be
    |
0011|     maintained by the Gaming Control Act or by a regulation adopted
    |
0012|     under that act, or in a report required to be submitted by that
    |
0013|     act:
    |
0014|                 (1)  knowingly makes a statement or entry that
    |
0015|     the person knows to be false or misleading; or
    |
0016|                 (2)  fails to maintain or make an entry the
    |
0017|     person knows is required to be maintained or made.
    |
0018|            B.  A person commits an offense if the person
    |
0019|     knowingly refuses to produce for inspection by the authority a
    |
0020|     book, record or document required to be maintained or made by
    |
0021|     the Gaming Control Act or a regulation adopted under that act.
    |
0022|            C.  An offense under this section is a fourth degree
    |
0023|     felony, and upon conviction a person shall be sentenced pursuant
    |
0024|     to the provisions of Section 31-18-15 NMSA 1978.
    |
0025|       Section 42.  [<u>NEW MATERIAL</u>]  GAMING BY INDIVIDUAL UNDER
    |
0001|     TWENTY-ONE YEARS OF AGE.--
    |
0002|            A.  A person commits an offense if the person
    |
0003|     knowingly permits an individual whom the person knows is younger
    |
0004|     than twenty-one years of age to participate in gaming.
    |
0005|            B.  An individual commits an offense if the
    |
0006|     individual participates in gaming and the individual is younger
    |
0007|     than twenty-one years of age at the time of participation.
    |
0008|            C.  An offense under this section is a misdemeanor,
    |
0009|     and upon conviction a person shall be sentenced pursuant to the
    |
0010|     provisions of Section 31-19-1 NMSA 1978.
    |
0011|       Section 43.  [<u>NEW MATERIAL</u>]  GENERAL PENALTIES FOR
    |
0012|     VIOLATION OF ACT.--
    |
0013|            A.  A person commits an offense who willfully
    |
0014|     violates, attempts to violate or conspires to violate any of the
    |
0015|     provisions of the Gaming Control Act specifying prohibited acts.
    |
0016|            B.  Any offense under the Gaming Control Act, the
    |
0017|     classification of which is not specifically stated in that act,
    |
0018|     is a misdemeanor, and upon conviction a person shall be
    |
0019|     sentenced pursuant to the provisions of Section 31-19-1 NMSA
    |
0020|     1978.
    |
0021|       Section 44.  [<u>NEW MATERIAL</u>]  DETENTION AND QUESTIONING OF
    |
0022|     PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON LIABILITY--POSTING OF NOTICE.--
    |
0023|            A.  Any gaming establishment licensee or its
    |
0024|     officers, employees or agents may question any person in its
    |
0025|     establishment suspected of violating any of the provisions of
    |
0001|     the Gaming Control Act.  No gaming establishment licensee or any
    |
0002|     of its officers, employees or agents is criminally or civilly
    |
0003|     liable:
    |
0004|                 (1)  on account of any such questioning; or
    |
0005|                 (2)  for reporting to the authority or law
    |
0006|     enforcement authorities the person suspected of the violation.
    |
0007|            B.  Any gaming establishment licensee or any of its
    |
0008|     officers, employees or agents who has reasonable cause for
    |
0009|     believing that there has been a violation of the Gaming Control
    |
0010|     Act in its establishment by any person may take that person into
    |
0011|     custody and detain him in the establishment in a reasonable
    |
0012|     manner and for a reasonable length of time.  Such a taking into
    |
0013|     custody and detention does not render the licensee or his
    |
0014|     officers, employees or agents criminally or civilly liable
    |
0015|     unless it is established by clear and convincing evidence that
    |
0016|     the taking into custody and detention are unreasonable under all
    |
0017|     the circumstances.
    |
0018|            C.  No gaming establishment licensee or its officers,
    |
0019|     employees or agents is entitled to the immunity from liability
    |
0020|     provided for in Subsection B of this section unless there is
    |
0021|     displayed in a conspicuous place in the establishment a notice
    |
0022|     in boldface type clearly legible and in substantially this form:
    |
0023|       "Any gaming establishment licensee or any of his officers,
    |
0024|           employees or agents who has reasonable cause for believing
    |
0025|           that any person has violated any provision of the Gaming
    |
0001|           Control Act prohibiting cheating in gaming may detain that
    |
0002|           person in the establishment.".
    |
0003|       Section 45.  [<u>NEW MATERIAL</u>]  ADMINISTRATIVE APPEAL OF
    |
0004|     AUTHORITY ACTION.--
    |
0005|            A.  Any person aggrieved by an action taken by the
    |
0006|     authority may request and receive a hearing for the purpose of
    |
0007|     reviewing the action.  To obtain a hearing, the aggrieved person
    |
0008|     shall file a request for hearing with the authority within
    |
0009|     thirty days after the date the action is taken.  Failure to file
    |
0010|     the request within the specified time is an irrevocable waiver
    |
0011|     of the right to a hearing, and the action complained of shall be
    |
0012|     final with no further right to review, either administratively
    |
0013|     or by a court.
    |
0014|            B.  The authority shall adopt procedural regulations
    |
0015|     to govern the procedures to be followed in administrative
    |
0016|     hearings pursuant to the provisions of this section.  As a
    |
0017|     minimum, the regulations shall provide:
    |
0018|                 (1)  for the hearings to be public;
    |
0019|                 (2)  for the appointment of a hearing officer to
    |
0020|     conduct the hearing and make his recommendation to the board not
    |
0021|     more than ten days after the completion of the hearing;
    |
0022|                 (3)  procedures for discovery;
    |
0023|                 (4)  assurance that procedural due process
    |
0024|     requirements are satisfied;
    |
0025|                 (5)  for the maintenance of a record of the
    |
0001|     hearing proceedings and assessment of costs of any transcription
    |
0002|     of testimony that is required for judicial review purposes; and
    |
0003|                 (6)  for the place of the hearing to be in Santa
    |
0004|     Fe for hearings on actions of statewide application and for
    |
0005|     enforcement hearings on actions of statewide application and for
    |
0006|     enforcement hearings and for hearings on actions of limited
    |
0007|     local concern to be held in the place or area affected.
    |
0008|            C.  Actions taken by the authority after a hearing
    |
0009|     pursuant to the provisions of this section shall be:
    |
0010|                 (1)  written and shall state the reasons for the
    |
0011|     action;
    |
0012|                 (2)  made public when taken;
    |
0013|                 (3)  communicated to all persons that have made
    |
0014|     a written request for notification of the action taken; and
    |
0015|                 (4)  taken within not more than thirty days
    |
0016|     after the submission of the hearing officer's report to the
    |
0017|     authority.
    |
0018|       Section 46.  [<u>NEW MATERIAL</u>]  JUDICIAL REVIEW OF
    |
0019|     ADMINISTRATIVE ACTIONS.--
    |
0020|            A.  Any person adversely affected by an action taken
    |
0021|     by the board after review pursuant to the provisions of Section
    |
0022|     45 of the Gaming Control Act may appeal the action to the court
    |
0023|     of appeals.  The appeal shall be on the record made at the
    |
0024|     hearing.  To support his appeal, the appellant shall make
    |
0025|     arrangements with the board for a sufficient number of
    |
0001|     transcripts of the record of the hearing on which the appeal is
    |
0002|     based.  The appellant shall pay for the preparation of the
    |
0003|     transcripts.
    |
0004|            B.  On appeal, the court of appeals shall set aside
    |
0005|     the administrative action only if it is found to be:
    |
0006|                 (1)  arbitrary, capricious or an abuse of
    |
0007|     discretion;
    |
0008|                 (2)  not supported by substantial evidence in
    |
0009|     the whole record; or
    |
0010|                 (3)  otherwise not in accordance with law.
    |
0011|       Section 47.  Section 7-1-2 NMSA 1978 (being Laws 1965,
    |
0012|     Chapter 248, Section 2, as amended) is amended to read:
    |
0013|       "7-1-2.  APPLICABILITY.--The Tax Administration Act applies
    |
0014|     to and governs:
    |
0015|            A.  The administration and enforcement of the
    |
0016|     following taxes or tax acts as they now exist or may hereafter
    |
0017|     be amended:
    |
0018|                 (1)  Income Tax Act;
    |
0019|                 (2)  Withholding Tax Act;
    |
0020|                 (3)  Gross Receipts and Compensating Tax Act and
    |
0021|     any state gross receipts tax;
    |
0022|                 (4)  Liquor Excise Tax Act;
    |
0023|                 (5)  Local Liquor Excise Tax Act;
    |
0024|                 <s>[(6)  Banking and Financial Corporations Tax
</s>    |
<s></s>0025| <s>    Act;
</s>    |
<s></s>0001| <s>                (7)]</s> <u>(6)</u>  any municipal local option gross
    |
0002|     receipts tax;
    |
0003|                 <s>[(8)]</s> <u>(7)</u>  any county local option gross
    |
0004|     receipts tax;
    |
0005|                 <s>[(9)]</s> <u>(8)</u>  Special Fuels Supplier Tax Act;
    |
0006|                 <s>[(10)]</s> <u>(9)</u>  Gasoline Tax Act;
    |
0007|                 <s>[(11)]</s> <u>(10)</u>  petroleum products loading fee,
    |
0008|     which fee shall be considered a tax for the purpose of the Tax
    |
0009|     Administration Act;
    |
0010|                 <s>[(12)]</s> <u>(11)</u>  Cigarette Tax Act;
    |
0011|                 <s>[(13)]</s> <u>(12)</u>  Estate Tax Act;
    |
0012|                 <s>[(14)]</s> <u>(13)</u>  Railroad Car Company Tax Act;
    |
0013|                 <s>[(15)]</s> <u>(14)</u>  Investment Credit Act;
    |
0014|                 <s>[(16)]</s> <u>(15)</u>  Corporate Income Tax Act;
    |
0015|                 <s>[(17)]</s> <u>(16)</u>  Corporate Income and Franchise
    |
0016|     Tax Act;
    |
0017|                 <s>[(18)]</s> <u>(17)</u>  Uniform Division of Income for
    |
0018|     Tax Purposes Act;
    |
0019|                 <s>[(19)]</s> <u>(18)</u>  Multistate Tax Compact; 
    |
0020|                 <s>[(20)]</s> <u>(19)</u>  Tobacco Products Tax Act;
    |
0021|                 <s>[(21)]</s> <u>(20)</u>  Filmmaker's Credit Act; and
    |
0022|                 <s>[(22)]</s> <u>(21)</u>  the telecommunications relay
    |
0023|     service surcharge imposed by Section 63-9F-11 NMSA 1978, which
    |
0024|     surcharge shall be considered a tax for the purposes of the Tax
    |
0025|     Administration Act;
    |
0001|            B.  the administration and enforcement of the
    |
0002|     following taxes, surtaxes, advanced payments or tax acts as they
    |
0003|     now exist or may hereafter be amended:
    |
0004|                 (1)  Resources Excise Tax Act;
    |
0005|                 (2)  Severance Tax Act;
    |
0006|                 (3)  any severance surtax;
    |
0007|                 (4)  Oil and Gas Severance Tax Act;
    |
0008|                 (5)  Oil and Gas Conservation Tax Act;
    |
0009|                 (6)  Oil and Gas Emergency School Tax Act;
    |
0010|                 (7)  Oil and Gas Ad Valorem Production Tax Act;
    |
0011|                 (8)  Natural Gas Processors Tax Act;
    |
0012|                 (9)  Oil and Gas Production Equipment Ad Valorem
    |
0013|     Tax Act; 
    |
0014|                 (10)  Copper Production Ad Valorem Tax Act; and
    |
0015|                 (11)  any advance payment required to be made by
    |
0016|     any act specified in this subsection, which advance payment
    |
0017|     shall be considered a tax for the purposes of the Tax
    |
0018|     Administration Act;
    |
0019|            C.  the administration and enforcement of the
    |
0020|     following taxes, surcharges, fees or acts as they now exist or
    |
0021|     may hereafter be amended:
    |
0022|                 (1)  Weight Distance Tax Act;
    |
0023|                 (2)  Special Fuels Tax Act;
    |
0024|                 (3)  the workers' compensation fee authorized by
    |
0025|     Section 52-5-19 NMSA 1978, which fee shall be considered a tax
    |
0001|     for purposes of the Tax Administration Act;
    |
0002|                 (4)  Controlled Substance Tax Act;
    |
0003|                 (5)  Uniform Unclaimed Property Act;
    |
0004|                 (6)  911 emergency surcharge and the network and
    |
0005|     database surcharge, which surcharges shall be considered taxes
    |
0006|     for purposes of the Tax Administration Act;
    |
0007|                 (7)  the solid waste assessment fee authorized
    |
0008|     by the Solid Waste Act, which fee shall be considered a tax for
    |
0009|     purposes of the Tax Administration Act; <s>[and]</s>
    |
0010|                 (8)  the water conservation fee imposed by
    |
0011|     Section 74-1-13 NMSA 1978, which fee shall be considered a tax
    |
0012|     for the purposes of the Tax Administration Act; and
    |
0013|                 <u>(9)  the gaming tax imposed pursuant to the
</u>    |
<u></u>0014| <u>    Gaming Control Act</u>.
    |
0015|            D.  the administration and enforcement of all other
    |
0016|     laws, with respect to which the department is charged with
    |
0017|     responsibilities pursuant to the Tax Administration Act, but
    |
0018|     only to the extent that such other laws do not conflict with the
    |
0019|     Tax Administration Act."
    |
0020|       Section 48.  A new section of the Tax Administration Act is
    |
0021|     enacted to read:
    |
0022|       "[<u>NEW MATERIAL</u>]  DISTRIBUTION OF GAMING TAX.--A
    |
0023|     distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made
    |
0024|     to the gaming fund of the net receipts attributable to the 
    |
0025|     gaming tax."
    |
0001|       Section 49.  Section 10-15-1 NMSA 1978 (being Laws 1974,
    |
0002|     Chapter 91, Section 1, as amended) is amended to read:
    |
0003|       "10-15-1.  FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN
    |
0004|     MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED
    |
0005|     MEETINGS.--
    |
0006|            A.  In recognition of the fact that a representative
    |
0007|     government is dependent upon an informed electorate, it is
    |
0008|     declared to be public policy of this state that all persons are
    |
0009|     entitled to the greatest possible information regarding the
    |
0010|     affairs of government and the official acts of those officers
    |
0011|     and employees who represent them.  The formation of public
    |
0012|     policy or the conduct of business by vote shall not be conducted
    |
0013|     in closed meeting.  All meetings of any public body except the
    |
0014|     legislature and the courts shall be public meetings, and all
    |
0015|     persons so desiring shall be permitted to attend and listen to
    |
0016|     the deliberations and proceedings.  Reasonable efforts shall be
    |
0017|     made to accommodate the use of audio and video recording
    |
0018|     devices.
    |
0019|            B.  All meetings of a quorum of members of any board,
    |
0020|     commission, administrative adjudicatory body or other
    |
0021|     policymaking body of any state agency, any agency or authority
    |
0022|     of any county, municipality, district or any political
    |
0023|     subdivision, held for the purpose of formulating public policy,
    |
0024|     including the development of personnel policy, rules,
    |
0025|     regulations or ordinances, discussing public business or for the
    |
0001|     purpose of taking any action within the authority of or the
    |
0002|     delegated authority of any board, commission or other
    |
0003|     policymaking body are declared to be public meetings open to the
    |
0004|     public at all times, except as otherwise provided in the
    |
0005|     constitution of New Mexico or the Open Meetings Act.  No public
    |
0006|     meeting once convened that is otherwise required to be open
    |
0007|     pursuant to the Open Meetings Act shall be closed or dissolved
    |
0008|     into small groups or committees for the purpose of permitting
    |
0009|     the closing of the meeting.
    |
0010|            C.  If otherwise allowed by law or rule of the public
    |
0011|     body, a member of a public body may participate in a meeting of
    |
0012|     the public body by means of a conference telephone or other
    |
0013|     similar communications equipment when it is otherwise difficult
    |
0014|     or impossible for the member to attend the meeting in person,
    |
0015|     provided that each member participating by conference telephone
    |
0016|     can be identified when speaking, all participants are able to
    |
0017|     hear each other at the same time and members of the public
    |
0018|     attending the meeting are able to hear any member of the public
    |
0019|     body who speaks during the meeting.
    |
0020|            D.  Any meetings at which the discussion or adoption
    |
0021|     of any proposed resolution, rule, regulation or formal action
    |
0022|     occurs and at which a majority or quorum of the body is in
    |
0023|     attendance, and any closed meetings, shall be held only after
    |
0024|     reasonable notice to the public.  The affected body shall
    |
0025|     determine at least annually in a public meeting what notice for
    |
0001|     a public meeting is reasonable when applied to that body.  That
    |
0002|     notice shall include broadcast stations licensed by the federal
    |
0003|     communications commission and newspapers of general circulation
    |
0004|     that have provided a written request for such notice.
    |
0005|            E.  A public body may recess and reconvene a meeting
    |
0006|     to a day subsequent to that stated in the meeting notice if,
    |
0007|     prior to recessing, the public body specifies the date, time and
    |
0008|     place for continuation of the meeting, and, immediately
    |
0009|     following the recessed meeting, posts notice of the date, time
    |
0010|     and place for the reconvened meeting on or near the door of the
    |
0011|     place where the original meeting was held and in at least one
    |
0012|     other location appropriate to provide public notice of the
    |
0013|     continuation of the meeting.  Only matters appearing on the
    |
0014|     agenda of the original meeting may be discussed at the
    |
0015|     reconvened meeting.
    |
0016|            F.  Meeting notices shall include an agenda
    |
0017|     containing a list of specific items of business to be discussed
    |
0018|     or transacted at the meeting or information on how the public
    |
0019|     may obtain a copy of such an agenda.  Except in the case of an
    |
0020|     emergency, the agenda shall be available to the public at least
    |
0021|     twenty-four hours prior to the meeting.
    |
0022|     Except for emergency matters, a public body shall take action
    |
0023|     only on items appearing on the agenda.  For purposes of this
    |
0024|     subsection, an "emergency" refers to unforeseen circumstances
    |
0025|     that, if not addressed immediately by the public body, will
    |
0001|     likely result in injury or damage to persons or property or
    |
0002|     substantial financial loss to the public body.
    |
0003|            G.  The board, commission or other policymaking body
    |
0004|     shall keep written minutes of all its meetings.  The minutes
    |
0005|     shall include at a minimum the date, time and place of the
    |
0006|     meeting, the names of members in attendance and those absent,
    |
0007|     the substance of the proposals considered and a record of any
    |
0008|     decisions and votes taken that show how each member voted.  All
    |
0009|     minutes are open to public inspection.  Draft minutes shall be
    |
0010|     prepared within ten working days after the meeting and shall be
    |
0011|     approved, amended or disapproved at the next meeting where a
    |
0012|     quorum is present.  Minutes shall not become official until
    |
0013|     approved by the policymaking body.
    |
0014|            H.  The provisions of Subsections A, B and G of this
    |
0015|     section do not apply to:
    |
0016|                 (1)  meetings pertaining to issuance,
    |
0017|     suspension, renewal or revocation of a license, except that a
    |
0018|     hearing at which evidence is offered or rebutted shall be open. 
    |
0019|     All final actions on the issuance, suspension, renewal or
    |
0020|     revocation of a license shall be taken at an open meeting;
    |
0021|                 (2)  limited personnel matters; provided that
    |
0022|     for purposes of the Open Meetings Act, "limited personnel
    |
0023|     matters" means the discussion of hiring, promotion, demotion,
    |
0024|     dismissal, assignment or resignation of or the investigation or
    |
0025|     consideration of complaints or charges against any individual
    |
0001|     public employee; provided further that this subsection is not to
    |
0002|     be construed as to exempt final actions on personnel from being
    |
0003|     taken at open public meetings, nor does it preclude an aggrieved
    |
0004|     public employee from demanding a public hearing.  Judicial
    |
0005|     candidates interviewed by any commission shall have the right to
    |
0006|     demand an open interview;
    |
0007|                 (3)  deliberations by a public body in
    |
0008|     connection with an administrative adjudicatory proceeding.  For
    |
0009|     purposes of this paragraph, an "administrative adjudicatory
    |
0010|     proceeding" means a proceeding brought by or against a person
    |
0011|     before a public body in which individual legal rights, duties or
    |
0012|     privileges are required by law to be determined by the public
    |
0013|     body after an opportunity for a trial-type hearing.  Except as
    |
0014|     otherwise provided in this section, the actual administrative
    |
0015|     adjudicatory proceeding at which evidence is offered or rebutted
    |
0016|     and any final action taken as a result of the proceeding shall
    |
0017|     occur in an open meeting;
    |
0018|                 (4)  the discussion of personally identifiable
    |
0019|     information about any individual student, unless the student,
    |
0020|     his parent or guardian requests otherwise;
    |
0021|                 (5)  meetings for the discussion of bargaining
    |
0022|     strategy preliminary to collective bargaining negotiations
    |
0023|     between the policymaking body and a bargaining unit representing
    |
0024|     the employees of that policymaking body and collective
    |
0025|     bargaining sessions at which the policymaking body and the
    |
0001|     representatives of the collective bargaining unit are present;
    |
0002|                 (6)  that portion of meetings at which a
    |
0003|     decision concerning purchases in an amount exceeding two
    |
0004|     thousand five hundred dollars ($2,500) that can be made only
    |
0005|     from one source and that portion of meetings at which the
    |
0006|     contents of competitive sealed proposals solicited pursuant to
    |
0007|     the Procurement Code are discussed during the contract
    |
0008|     negotiation process.  The actual approval of purchase of the
    |
0009|     item or final action regarding the selection of a contractor
    |
0010|     shall be made in an open meeting;
    |
0011|                 (7)  meetings subject to the attorney-client
    |
0012|     privilege pertaining to threatened or pending litigation in
    |
0013|     which the public body is or may become a participant;
    |
0014|                 (8)  meetings for the discussion of the
    |
0015|     purchase, acquisition or disposal of real property or water
    |
0016|     rights by the public body; <s>[and]</s>
    |
0017|                 (9)  those portions of meetings of committees or
    |
0018|     boards of public hospitals that receive less than fifty percent
    |
0019|     of their operating budget from direct public funds and
    |
0020|     appropriations where strategic and long-range business plans are
    |
0021|     discussed; <u>and</u>
    |
0022|                 <u>(10)  those portions of meetings of the gaming
</u>    |
<u></u>0023| <u>    authority held pursuant to the Gaming Control Act at which
</u>    |
<u></u>0024| <u>    security and investigative information is presented to the
</u>    |
<u></u>0025| <u>    board</u>.
    |
0001|            I.  If any meeting is closed pursuant to the
    |
0002|     exclusions contained in Subsection H of this section, the
    |
0003|     closure:
    |
0004|                 (1)  if made in an open meeting, shall be
    |
0005|     approved by a majority vote of a quorum of the policymaking
    |
0006|     body; the authority for the closure and the subject to be
    |
0007|     discussed shall be stated with reasonable specificity in the
    |
0008|     motion calling for the vote on a closed meeting; the vote shall
    |
0009|     be taken in an open meeting; and the vote of each individual
    |
0010|     member shall be recorded in the minutes.  Only those subjects
    |
0011|     announced or voted upon prior to closure by the policymaking
    |
0012|     body may be discussed in a closed meeting; and
    |
0013|                 (2)  if called for when the policymaking body is
    |
0014|     not in an open meeting, shall not be held until public notice,
    |
0015|     appropriate under the circumstances, stating the specific
    |
0016|     provision of the law authorizing the closed meeting and stating
    |
0017|     with reasonable specificity the subject to be discussed is given
    |
0018|     to the members and to the general public.
    |
0019|            J.  Following completion of any closed meeting, the
    |
0020|     minutes of the open meeting that was closed or the minutes of
    |
0021|     the next open meeting if the closed meeting was separately
    |
0022|     scheduled shall state that the matters discussed in the closed
    |
0023|     meeting were limited only to those specified in the motion for
    |
0024|     closure or in the notice of the separate closed meeting.  This
    |
0025|     statement shall be approved by the public body under Subsection
    |
0001|     G of this section as part of the minutes."
    |
0002|       Section 50.  Section 30-19-6 NMSA 1978 (being Laws 1963,
    |
0003|     Chapter 303, Section 19-6, as amended) is amended to read:
    |
0004|       "30-19-6.  PERMISSIVE LOTTERY--<u>EXEMPTIONS</u>.--
    |
0005|            A.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0006| <u>    19</u> NMSA 1978 shall be construed to apply to any sale or drawing
    |
0007|     of any prize at any fair held in this state for the benefit of
    |
0008|     any church, public library or religious society situate or being
    |
0009|     in this state, or for charitable purposes when all the proceeds
    |
0010|     of <s>[such]</s> <u>the</u> fair shall be expended in this state for the
    |
0011|     benefit of <s>[such]</s> <u>the</u> church, public library, religious
    |
0012|     society or charitable purposes.
    |
0013|       A lottery shall be operated for the benefit of the
    |
0014|     organization or charitable purpose only when the entire proceeds
    |
0015|     of the lottery go to the organization or charitable purpose and
    |
0016|     no part of such proceeds go to any individual member or employee
    |
0017|     thereof.
    |
0018|            B.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0019| <u>    19</u> NMSA 1978 shall be held to prohibit any bona fide motion
    |
0020|     picture theater from offering prizes of cash or merchandise for
    |
0021|     advertising purposes, in connection with such business or for
    |
0022|     the purpose of stimulating business, whether or not any
    |
0023|     consideration other than a monetary consideration in excess of
    |
0024|     the regular price of admission is exacted for participation in
    |
0025|     drawings for prizes.
    |
0001|            C.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0002| <u>    19</u> NMSA 1978 shall be held to apply to any bona fide county
    |
0003|     fair, including fairs for more than one county, which shall have
    |
0004|     been held annually at the same location for at least two years
    |
0005|     and which shall offer prizes of livestock or poultry in
    |
0006|     connection with <s>[such]</s> <u>the</u> fair when the proceeds of
    |
0007|     <s>[such]</s> <u>the</u> drawings shall be used for the benefit of
    |
0008|     <s>[said]</s> <u>the</u> fair.
    |
0009|            D.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0010| <u>    19</u> NMSA 1978 shall be construed to apply to any lottery
    |
0011|     operated by an organization exempt from the state income tax
    |
0012|     pursuant to Subsection <s>[C]</s> <u>B</u> of Section 7-2-4 NMSA 1978 and
    |
0013|     not subject to the provisions of Subsection A of this section;
    |
0014|     provided that:
    |
0015|                 (1)  no more than two lotteries shall be
    |
0016|     operated in any year by such an organization;
    |
0017|                 (2)  all the gross proceeds less the reasonable
    |
0018|     cost of prizes of any lottery operated by such an organization
    |
0019|     shall be expended in the state for the benefit of the
    |
0020|     organization or public purposes; and
    |
0021|                 (3)  no part of the proceeds of any lottery
    |
0022|     shall go to any individual member or employee of any
    |
0023|     organization except as payment for the purchase of prizes at no
    |
0024|     more than the reasonable retail price.
    |
0025|            <u>E.  Gaming activities and activities associated with
</u>    |
<u></u>0001| <u>    gaming permitted pursuant to the Gaming Control Act are neither
</u>    |
<u></u>0002| <u>    prohibited nor subject to prosecution pursuant to any provision
</u>    |
<u></u>0003| <u>    of Chapter 30, Article 19 NMSA 1978</u>."
    |
0004|       Section 51.  Section 60-7A-19 NMSA 1978 (being Laws 1981,
    |
0005|     Chapter 39, Section 96) is amended to read:
    |
0006|       "60-7A-19.  COMMERCIAL GAMBLING ON LICENSED PREMISES.--
    |
0007|            A.  It is a violation of the Liquor Control Act for a
    |
0008|     licensee to knowingly allow commercial gambling on the licensed
    |
0009|     premises.
    |
0010|            B.  In addition to any criminal penalties, any person
    |
0011|     who violates Subsection A of this section may have his license
    |
0012|     suspended or revoked or a fine imposed, or both, pursuant to the
    |
0013|     Liquor Control Act.
    |
0014|            C. <s>[For purposes of]</s> <u>As used in</u> this section:                     <u>(1)</u>  "commercial gambling" means:
    |
0015|                      <s>[(1)]</s> <u>(a)</u>  participating in the
    |
0016|     earnings of or operating a gambling place;
    |
0017|                      <s>[(2)]</s> <u>(b)</u>  receiving, recording or
    |
0018|     forwarding bets or offers to bet;
    |
0019|                      <s>[(3)]</s> <u>(c)</u>  possessing facilities with
    |
0020|     the intent to receive, record or forward bets or offers to bet;
    |
0021|                      <s>[(4)]</s> <u>(d)</u>  for gain, becoming a
    |
0022|     custodian of anything of value bet or offered to be bet;
    |
0023|                      <s>[(5)]</s> <u>(e)</u>  conducting a lottery where
    |
0024|     both the consideration and the prize are money or whoever with
    |
0025|     intent to conduct a lottery possesses facilities to do so; or
    |
0001|                      <s>[(6)]</s> <u>(f)</u>  setting up for use for the
    |
0002|     purpose of gambling, or collecting the proceeds of, any gambling
    |
0003|     device or game; <u>and</u>
    |
0004|            <u>    (2)  "commercial gambling" does not include
</u>    |
<u></u>0005| <u>    activities authorized pursuant to the New Mexico Lottery Act or
</u>    |
<u></u>0006| <u>    the Gaming Control Act</u>."<u>
</u>    |
<u></u>0007| <u>    </u> Section 52.  SEVERABILITY.--If any part or application of
    |
0008|     this act is held invalid, the remainder or its application to
    |
0009|     other situations or persons shall not be affected.
    |
0010|       Section 53.  EFFECTIVE DATE.--The effective date of the
    |
0011|     provisions of this act is July 1, 1996.
    |
0012|                              
    |
0013|                               
    |