0001|                        SENATE BILL 380
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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|                       JOHN ARTHUR SMITH
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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; ENACTING THE VIDEO GAMING ACT; PROVIDING FOR
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0013|     VIDEO MACHINE GAMING AT RACETRACKS, LICENSED RESORTS, LICENSED
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0014|     LIQUOR ESTABLISHMENTS AND LICENSED CLUBS; CREATING A FUND AND
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0015|     PROVIDING FOR DISTRIBUTION OF REVENUE; PROVIDING FOR A DEDUCTION
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0016|     AGAINST GROSS RECEIPTS FROM RECEIPTS FROM THE OPERATION OF VIDEO
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0017|     GAMING MACHINES; PROVIDING FOR LOCAL OPTION REFERENDA ON CERTAIN
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0018|     VIDEO GAMING; PROVIDING PENALTIES; AMENDING AND ENACTING
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0019|     SECTIONS OF THE NMSA 1978; MAKING APPROPRIATIONS.
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0020|     
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0021|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0022|       Section 1.  [<u>NEW MATERIAL</u>]  SHORT TITLE.--Sections 1
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0023|     through 43 of this act may be cited as the "Video Gaming Act".
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0024|       Section 2.  [<u>NEW MATERIAL</u>]  PURPOSE.--The purpose of the
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0025|     Video Gaming Act is to:
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0001|            A.  establish video gaming to provide revenue that
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0002|     will benefit the state and its citizens;
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0003|            B.  regulate the use and operation of video gaming
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0004|     machines in the state; and
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0005|            C.  take all actions necessary to ensure the
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0006|     integrity, reliability and security of all games of chance not
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0007|     otherwise subject to regulation by another agency or authority
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0008|     created by state or federal law.
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0009|       Section 3.  [<u>NEW MATERIAL</u>]  PUBLIC POLICY OF STATE
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0010|     CONCERNING GAMING.--The legislature finds and declares it to be
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0011|     the public policy of this state that:
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0012|            A.  regulation of video gaming is critical to ensure
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0013|     that it is conducted honestly and uniformly throughout New
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0014|     Mexico;
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0015|            B.  the public's confidence and trust in the conduct
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0016|     of permitted video gaming activities can be obtained and
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0017|     maintained only through strict regulation of all persons,
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0018|     locations, practices, associations and activities related
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0019|     directly or indirectly to nontribal video gaming conducted in
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0020|     the state; and
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0021|            C.  a holder of a license issued pursuant to the
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0022|     Video Gaming Act to conduct permitted gaming activities does not
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0023|     acquire any vested interest or right in or under the license and
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0024|     has only a revocable privilege.
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0025|       Section 4.  [<u>NEW MATERIAL</u>]  DEFINITIONS.--As used in the
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0001|     Video Gaming Act:
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0002|            A.  "associated equipment" means any proprietary
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0003|     device, machine or part used in the manufacture or maintenance
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0004|     of a video gaming machine, including but not limited to
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0005|     integrated circuit chips, printed wired assembly, printed wire
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0006|     boards, printing mechanisms, video display monitors and metering
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0007|     devices;
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0008|            B.  "committee" means the legislative lottery and
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0009|     gaming oversight committee that oversees the operation of video
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0010|     gaming in the state and is created in the Video Gaming Act;   
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0011|            C.  "director" means the director of the division;
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0012|            D.  "distributor" means any person who distributes or
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0013|     sells video gaming machines or associated equipment in New
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0014|     Mexico;
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0015|            E.  "division" means the alcohol and gaming division
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0016|     of the regulation and licensing department;
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0017|            F.  "gaming administration personnel" means those
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0018|     employees of the division who administer the provisions of the
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0019|     Video Gaming Act and the regulations and rules adopted pursuant
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0020|     to that act.  "Gaming administration personnel" does not include
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0021|     security division personnel;
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0022|            G.  "licensed club" means a nonprofit organization
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0023|     that has been licensed pursuant to the Video Gaming Act;
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0024|            H.  "licensed liquor establishment" means a liquor
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0025|     establishment that has been issued a license pursuant to the
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0001|     Video Gaming Act as a video gaming licensee to permit the
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0002|     conduct of video gaming on the premises of the liquor
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0003|     establishment;
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0004|            I.  "licensed resort" means a resort that has been
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0005|     issued a license pursuant to the Video Gaming Act as a video
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0006|     gaming licensee to permit the conduct of video gaming on the
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0007|     premises of the resort;
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0008|            J.  "licensee" means any person who is granted a
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0009|     license pursuant to the Video Gaming Act;
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0010|            K.  "liquor establishment" means a person who has
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0011|     been issued a dispenser's license or a restaurant license
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0012|     pursuant to the Liquor Control Act, whose licensed premises has
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0013|     a permanent seating capacity for more than thirty patrons and
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0014|     whose premises has a permanent physical barrier creating an age-restricted area if persons under the age of twenty-one are
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0015|     permitted on the licensed premises;
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0016|            L.  "lottery" means the New Mexico state lottery;
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0017|            M.  "major procurement" means any procurement or
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0018|     contract for the purchase or lease of facilities, equipment,
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0019|     goods or services used primarily for the regulation and control
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0020|     of video gaming, the value of which is in excess of twenty
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0021|     thousand dollars ($20,000), including computer equipment,
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0022|     accounting, consulting or other procurements deemed necessary by
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0023|     the superintendent;
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0024|            N.  "manufacturer" means any person who assembles or
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0025|     produces video gaming machines or associated equipment to be
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0001|     sold or used in New Mexico;
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0002|            O.  "net take" means the total of all cash received
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0003|     from patrons for the play of video gaming machines less the
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0004|     total of all cash paid out in prizes;
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0005|            P.  "nonprofit organization" means any organization,
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0006|     described in Section 501(c)(3) of the federal Internal Revenue
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0007|     Code of 1986, exempt from federal income taxation pursuant to
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0008|     Section 501(a) of that code and that has been issued a license
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0009|     pursuant to Section 60-6A-5 NMSA 1978;
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0010|            Q.  "operator" means any person who sells, services
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0011|     or places video gaming machines or associated equipment for sale
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0012|     or use in this state;
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0013|            R.  "person" means an individual or any legal entity,
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0014|     including a partnership, joint venture, limited partnership,
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0015|     limited liability company or corporation;
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0016|            S.  "racetrack" means a horse racetrack in New Mexico
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0017|     licensed pursuant to the Horse Racing Act;
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0018|            T.  "regulation" means a rule, regulation, order,
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0019|     standard or statement of policy issued or adopted by the
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0020|     superintendent regarding the regulation or operation of video
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0021|     gaming in the state;
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0022|            U.  "resort" means a house or complex of buildings
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0023|     that has available for public lodging at least one hundred fifty
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0024|     guest rooms and that has on the same premises an affiliated
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0025|     restaurant that has seating for and can serve meals to at least
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0001|     two hundred patrons at one time;
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0002|            V.  "security division" means the gaming security
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0003|     division of the regulation and licensing department;
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0004|            W.  "security director" means the director of the
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0005|     security division;
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0006|            X.  "superintendent" means the superintendent of
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0007|     regulation and licensing;
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0008|            Y.  "vendor" means any person who provides a major
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0009|     procurement under contract with the division or security
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0010|     division;
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0011|            Z.  "video amusement machine" means an electronic or
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0012|     electromechanical device, contrivance or machine that may be
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0013|     available for play upon the payment of consideration and when
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0014|     played may, by reason of the skill of the player accompanied by
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0015|     some chance, entitle the player to receive additional play on
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0016|     the same or a similar video amusement machine or a voucher or
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0017|     credit slip that may be exchanged for merchandise of
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0018|     insignificant value;
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0019|            AA.  "video game" means a game of chance played on a
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0020|     video gaming machine;
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0021|            BB.  "video gaming licensee" means a racetrack, a
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0022|     nonprofit organization, a resort or a liquor establishment that
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0023|     has obtained a license pursuant to the Video Gaming Act to have
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0024|     video gaming machines in operation on the licensee's premises;
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0025|            CC.  "video gaming machine" means any electronic or
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0001|     electromechanical device, contrivance or machine that is
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0002|     available for play upon the payment of consideration and when
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0003|     played may entitle the player to receive or may deliver to the
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0004|     player something of value, including cash, coins, premiums,
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0005|     merchandise, credits, tokens or a voucher, whether by reason of
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0006|     the skill of the player or application of the element of chance,
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0007|     or both; "video gaming machine" does not include video amusement
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0008|     machines; and
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0009|            DD.  "voucher" means a receipt, credit slip or other
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0010|     tangible evidence printed out by a video gaming machine that
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0011|     entitles the holder to receive something of value for having
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0012|     played the machine and won its game.
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0013|       Section 5.  [<u>NEW MATERIAL</u>]  SUPERINTENDENT--DUTIES.--
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0014|            A.  The superintendent shall employ the director and
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0015|     the security director, who shall report to and serve at the
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0016|     pleasure of the superintendent.
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0017|            B.  The superintendent shall adopt all rules and
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0018|     regulations necessary to administer the Video Gaming Act and to
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0019|     assure the honest and secure operation of video gaming in the
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0020|     state. 
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0021|            C.  The superintendent shall clearly delegate areas
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0022|     of authority to the director and to the security director to
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0023|     prevent duplication of staff effort or confusion, but retains
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0024|     the ultimate decision-making authority in all areas of operation
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0025|     or administration of the Video Gaming Act.     
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0001|            D.  The superintendent shall oversee and review all
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0002|     actions taken by the director or the security director.
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0003|       Section 6.  [<u>NEW MATERIAL</u>]  LOTTERY AND GAMING OVERSIGHT
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0004|     COMMITTEE--DUTIES--COMPENSATION.--
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0005|            A.  There is created a joint interim legislative
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0006|     oversight committee, which shall be known as the "lottery and
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0007|     gaming oversight committee".  The committee shall function from
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0008|     the date of its appointment until the first day of December
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0009|     prior to the second session of the forty-fifth legislature.
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0010|            B.  The committee shall be composed of ten members. 
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0011|     Five members of the house of representatives shall be appointed
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0012|     by the speaker of the house of representatives, and five members
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0013|     of the senate shall be appointed by the committees' committee of
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0014|     the senate or, if the senate appointments are made in the
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0015|     interim, by the president pro tempore of the senate after
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0016|     consultation with and agreement of a majority of the members of
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0017|     the committees' committee.  Members shall be appointed so that
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0018|     there is a member from each of the major political parties from
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0019|     each house.  No person who has or later acquires an ownership
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0020|     interest in any vendor or licensee shall serve on the committee.
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0021|            C.  The committee shall oversee the start-up,
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0022|     operations and regulation of video gaming, as well as
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0023|     periodically review and evaluate the success with which the
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0024|     superintendent is accomplishing his duties and regulating video
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0025|     gaming activity pursuant to the Video Gaming Act.  The committee
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0001|     may conduct any independent audit or investigation of the gaming
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0002|     functions of the regulation and licensing department it deems
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0003|     necessary.
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0004|            D.  Members of the committee may receive per diem and
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0005|     mileage in accordance with the provisions of the Per Diem and
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0006|     Mileage Act when the legislature is not in session and shall
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0007|     receive no other compensation, perquisite or allowance.
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0008|            E.  The committee shall report its findings and
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0009|     recommendations on video gaming to each regular session of the
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0010|     legislature.
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0011|            F.  The committee shall perform duties as required by
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0012|     the New Mexico Lottery Act.
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0013|       Section 7.  [<u>NEW MATERIAL</u>]  DIRECTOR--EMPLOYMENT--QUALIFICATIONS.--
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0014|            A.  The director shall be employed by and serve at
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0015|     the pleasure of the superintendent.
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0016|            B.  The director shall have had at least five years
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0017|     of responsible administrative experience in public or business
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0018|     administration.
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0019|            C.  A background investigation shall be conducted on

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0020|     each applicant for the position of director who has reached the
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0021|     final selection process.  The superintendent may contract with
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0022|     and pay the department of public safety for the performance of
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0023|     the investigations.  Such background investigations shall
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0024|     include, but not be limited to, credit checks, police record
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0025|     checks, conviction record checks, national and statewide
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0001|     criminal records clearinghouse checks and fingerprint checks. 
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0002|     All information obtained through a background investigation
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0003|     shall be confidential, except that the superintendent may
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0004|     exchange such confidential information with state, federal and
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0005|     local law enforcement agencies.
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0006|            D.  Any individual convicted of a felony or any crime
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0007|     involving gambling, moral turpitude, fraud or theft shall not be
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0008|     eligible for the position of director.  The director shall
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0009|     report his arrest for or conviction of a felony or any crime
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0010|     involving gambling, moral turpitude, fraud or theft to the
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0011|     superintendent within three days of such arrest or conviction.
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0012|       Section 8.  [<u>NEW MATERIAL</u>]  DIRECTOR--POWERS--DUTIES.--
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0013|            A.  The director has authority and shall exercise
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0014|     strict control and close supervision over video gaming conducted
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0015|     in this state to promote and ensure integrity, security, honesty
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0016|     and fairness in the operation, administration and regulation of
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0017|     video gaming and to maximize revenue to the state.
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0018|            B.  The director has authority to contract for,
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0019|     purchase or lease equipment, goods or services, including
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0020|     consultants, marketing representatives, financial services,
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0021|     technical services and advertisers necessary for effectuating
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0022|     the purposes of the Video Gaming Act.
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0023|            C.  The director shall regulate the operation of
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0024|     video games.  The director may approve new technologies in video
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0025|     games and video gaming as it becomes available.  The director
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0001|     may approve new video games for play in the state.  The director
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0002|     may exclude any game that is unfair or misleading or that is not
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0003|     financially beneficial to the state.
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0004|            D.  The director shall authorize video gaming
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0005|     licensees to begin to operate video games by February 1, 1997,
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0006|     unless the superintendent determines in his sole discretion that
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0007|     implementation by that date will compromise the secure operation
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0008|     of video gaming in New Mexico.
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0009|            E.  The director shall implement all regulations
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0010|     necessary to administer the Video Gaming Act.
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0011|            F.  The director has authority to determine the prize
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0012|     structure for each game, including the authority to authorize
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0013|     the payment of prizes in installments and to administer the
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0014|     regulation of payment of video game prizes.  However, any prize
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0015|     paid in excess of two hundred fifty thousand dollars ($250,000)
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0016|     shall be paid with an annuity, the term of which shall be
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0017|     determined by the director.
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0018|            G.  The director shall make a continuous study of the
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0019|     Video Gaming Act, the regulations adopted pursuant to that act,
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0020|     similar existing laws in other states and the concerns of
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0021|     citizens regarding existing and potential features of video
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0022|     gaming to ascertain any improvement and operational efficiencies
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0023|     beneficial to the state or its residents.  The director shall
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0024|     report his findings to the superintendent and the committee for
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0025|     the purposes of making recommendations for improving the Video
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0001|     Gaming Act, the regulations adopted pursuant to that act or the
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0002|     regulation of video gaming in the state.
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0003|            H.  The director shall supervise the gaming
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0004|     administration personnel.
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0005|            I.  The director shall cooperate and coordinate the
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0006|     gaming administration activities of the division with the
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0007|     security director whenever necessary and appropriate. 
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0008|            J.  The director shall exercise the authority and
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0009|     perform all duties delegated to him by the superintendent and
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0010|     the Video Gaming Act.
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0011|       Section 9.  [<u>NEW MATERIAL</u>]  REGULATIONS.--
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0012|            A.  The regulations adopted by the superintendent and
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0013|     administered by the director and the security director pursuant
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0014|     to the Video Gaming Act shall include but are not limited to
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0015|     regulations governing:
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0016|                 (1)  security for video games;
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0017|                 (2)  application requirements for licensees,
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0018|     including disclosure requirements related to the ownership and
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0019|     control of licensees and other disclosures necessary to evaluate
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0020|     the competence, background, integrity or character of the
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0021|     licensee;
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0022|                 (3)  the manner and schedule of implementation
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0023|     of video gaming authorized by and consistent with the Video
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0024|     Gaming Act;
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0025|                 (4)  enforcement of prohibitions on the playing
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0001|     of video games by or for an individual younger than twenty-one
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0002|     years of age;
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0003|                 (5)  the specific games to be conducted within
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0004|     the categories of video games to ensure that no specific game is
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0005|     operated that is unfair or misleading;
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0006|                 (6)  the percentage payout for video gaming
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0007|     machines and how it should be calculated, provided that at least
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0008|     eighty-seven percent of the amount played or bet computed on a
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0009|     regular and systematic basis shall be paid or awarded in cash or
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0010|     credits;
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0011|                 (7)  the number, types of locations and hours at
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0012|     which video gaming machines may be operated;
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0013|                 (8)  the procedures to be followed by a video
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0014|     gaming licensee in payment of valid prizes, including annuities;
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0015|                 (9)  the procedures to ensure that only valid
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0016|     vouchers are paid;
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0017|                 (10)  procedures for ensuring that winners of
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0018|     substantial prizes owe no money for delinquent child support or
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0019|     taxes;
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0020|                 (11)  methods and limitations on marketing and
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0021|     advertising;
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0022|                 (12)  the qualifications of vendors or
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0023|     licensees;
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0024|                 (13)  minimum standards for video gaming
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0025|     machines;
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0001|                 (14)  the operations of distributors and
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0002|     operators to ensure their compliance with the Video Gaming Act;
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0003|                 (15)  insurance and bonding requirements for
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0004|     vendors or licensees;
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0005|                 (16)  any other matter necessary or desirable as
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0006|     determined by the superintendent to promote and ensure:
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0007|                      (a)  the integrity, security, honesty and
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0008|     fairness of the operation and administration of video gaming;
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0009|     and
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0010|                      (b)  the convenience of players;  
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0011|                 (17)  grievance procedures for gaming
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0012|     administration personnel and security division personnel and for
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0013|     video gaming patrons; and
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0014|                 (18)  the registration of persons offering video
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0015|     amusement machines for play and the periodic inspections of the
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0016|     premises where video amusement machines are available for play.
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0017|            B.  The regulations adopted pursuant to this section
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0018|     shall be valid for no longer than a period of ten years
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0019|     following adoption unless earlier reviewed and approved by the
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0020|     superintendent.
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0021|       Section 10.  [<u>NEW MATERIAL</u>]  ADMINISTRATION--HEARING--REGULATIONS.--
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0022|            A.  Regulations shall be adopted, amended or repealed
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0023|     only after a public hearing by the superintendent.  Notice of
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0024|     the hearing shall be given at least twenty days in advance in a
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0025|     newspaper of general circulation in the state and shall set
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0001|     forth the proposed regulation, amendment or the regulation
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0002|     proposed to be repealed.  The superintendent shall either
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0003|     approve or disapprove the proposed regulation, amendment or
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0004|     repeal of the regulations within ten days following the hearing.
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0005|            B.  Certified copies of any approved regulations
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0006|     shall be submitted to the committee and, as required, to the
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0007|     records center pursuant to the State Rules Act.  Copies of the
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0008|     regulations in force shall be made available to any person upon
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0009|     request.
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0010|            C.  The superintendent shall adopt and promulgate
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0011|     regulations to implement this section and for the conduct of all
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0012|     hearings.
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0013|       Section 11.  [<u>NEW MATERIAL</u>]  ADMINISTRATIVE PERSONNEL.--
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0014|            A.  The director shall appoint all gaming
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0015|     administration personnel necessary but shall not appoint
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0016|     security division personnel.  The gaming administration
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0017|     personnel appointed by the director shall serve at the will of
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0018|     the director.  In no event shall the gaming administration
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0019|     personnel appointed by the director exceed forty-five people,
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0020|     without the consent of the superintendent and after notifying
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0021|     the committee.
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0022|            B.  Gaming administration personnel are specifically
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0023|     exempted from the Personnel Act.  The director, subject to the
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0024|     approval of the superintendent, shall set the salaries of the
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0025|     gaming administration personnel.
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0001|            C.  Personnel of the security division shall conduct
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0002|     background investigations of all individuals seeking employment
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0003|     with the director.  The background investigations shall include
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0004|     credit checks, police record checks, conviction record checks,
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0005|     national and statewide criminal records clearinghouse checks and
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0006|     fingerprint checks. 
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0007|            D.  Any individual convicted of a felony or any crime
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0008|     involving gambling, moral turpitude, fraud or theft shall not be
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0009|     eligible for employment.
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0010|            E.  An individual employee of the gaming
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0011|     administration personnel shall report his arrest for or
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0012|     conviction of a felony or any crime involving gambling, moral
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0013|     turpitude, fraud or theft to the director within three days of
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0014|     such arrest or conviction.
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0015|       Section 12.  [<u>NEW MATERIAL</u>]  SECURITY.--
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0016|            A.  The security director shall be employed by and
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0017|     serve at the pleasure of the superintendent.  He shall
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0018|     administer the security division.  The security director shall
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0019|     be qualified by training and experience in law enforcement or
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0020|     security to supervise, direct and administer the activities of
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0021|     the security division.  The security director shall report
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0022|     directly to the superintendent.  The security director shall
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0023|     cooperate and coordinate the activities of the security division
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0024|     with the director in order to resolve security issues raised by
    |
0025|     the director to the greatest extent possible.  The security
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0001|     director shall exercise the authority and perform the duties
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0002|     delegated to him by the superintendent.
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0003|            B.  The security director may employ security
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0004|     division personnel as he considers necessary and shall ensure
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0005|     that security division personnel are commissioned as peace
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0006|     officers.  Security division personnel are specifically exempt
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0007|     from the Personnel Act.  Security division personnel serve at
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0008|     the pleasure of the security director.  The security director,
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0009|     subject to approval of the superintendent, shall set the
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0010|     salaries of the security division personnel.
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0011|            C.  The department of public safety shall perform a
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0012|     full criminal background investigation of a prospective security
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0013|     director, investigators or any other security division personnel
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0014|     deemed to require background investigations by the security
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0015|     director.  The department of public safety shall report the
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0016|     findings to the security director except for background
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0017|     information on the security director, which shall be reported to
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0018|     the superintendent.  The background investigations shall
    |
0019|     include, but not be limited to, credit checks, police record
    |
0020|     checks, conviction record checks, national and statewide
    |
0021|     criminal records clearinghouse checks and fingerprint checks. 
    |
0022|     The security division shall reimburse the department of public
    |
0023|     safety for the actual costs of an investigation.  All
    |
0024|     information obtained through a background investigation shall be
    |
0025|     confidential, except that the security director may exchange
    |
0001|     such confidential information with state, federal and local law
    |
0002|     enforcement agencies.
    |
0003|            D.  Any individual convicted of a felony or any crime
    |
0004|     involving gambling, moral turpitude, fraud or theft shall not be
    |
0005|     eligible for the position of security director or other
    |
0006|     employment in the security division.
    |
0007|            E.  An individual employee of the security division
    |
0008|     personnel shall report his arrest for or conviction of a felony
    |
0009|     or any crime involving gambling, moral turpitude, fraud or theft
    |
0010|     to the security director within three days of such arrest or
    |
0011|     conviction.
    |
0012|            F.  By January 1, 1998 and at least once every two
    |
0013|     years thereafter, the superintendent shall employ an independent
    |
0014|     firm that is experienced in security, including computer
    |
0015|     security and systems security, to conduct a comprehensive
    |
0016|     confidential study of all aspects of video gaming security,
    |
0017|     including:
    |
0018|                 (1)  regulation and licensing department
    |
0019|     personnel security;
    |
0020|                 (2)  vendor, licensee and racetrack security;
    |
0021|                 (3)  security against fraudulent winning;
    |
0022|                 (4)  computer system security, data
    |
0023|     communications, database and systems security;
    |
0024|                 (5)  gaming administration and security premises
    |
0025|     security;
    |
0001|                 (6)  security of payment procedures;
    |
0002|                 (7)  security of video gaming machines; and
    |
0003|                 (8)  other security aspects of video gaming
    |
0004|     regulatory operations.
    |
0005|            G.  The security director shall provide the governor,
    |
0006|     the committee and the superintendent with a copy of the
    |
0007|     confidential security study.
    |
0008|            H.  The security director, after consultation with
    |
0009|     the committee, shall develop a plan to improve the security of
    |
0010|     video gaming based upon the recommendations of the confidential
    |
0011|     security study;  however, nothing in this section requires the
    |
0012|     security director to implement any of the recommendations made
    |
0013|     in the security study.
    |
0014|            I.  The security director shall keep files that he
    |
0015|     deems necessary for the secure and efficient operation of the
    |
0016|     security division.
    |
0017|            J.  If at any time the volume of background
    |
0018|     investigations required exceeds the capacity for the security
    |
0019|     division to complete the investigations in a timely or effective
    |
0020|     manner, the security director or superintendent may contract
    |
0021|     with the department of public safety for completion of
    |
0022|     background investigations as needed.
    |
0023|       Section 13.  [<u>NEW MATERIAL</u>]  INFORMATION AND DATA--CONFIDENTIALITY--DISCLOSURE.--
    |
0024|            A.  All of the following information and data are
    |
0025|     confidential and may be revealed in whole or in part only in the
    |
0001|     course of the necessary administration of the Video Gaming Act
    |
0002|     or upon the lawful order of a court of competent jurisdiction,
    |
0003|     except that the security director may reveal confidential
    |
0004|     information and data to an authorized agent of any governmental
    |
0005|     agency pursuant to a reciprocal agreement with the other
    |
0006|     governmental agency to share information and maintain
    |
0007|     confidentiality of the information as provided in this section:
    |
0008|                 (1)  security measures and internal security
    |
0009|     reports;
    |
0010|                 (2)  information and data provided by a
    |
0011|     governmental agency required by that agency's governing law to
    |
0012|     be kept confidential;
    |
0013|                 (3)  trade secrets and proprietary information
    |
0014|     of any applicant, licensee or vendor;
    |
0015|                 (4)  personal data, including personal financial
    |
0016|     data, not otherwise public and not directly related to the
    |
0017|     license or major procurement contract; and 
    |
0018|                 (5)  data or information as otherwise authorized
    |
0019|     by law.
    |
0020|            B.  Notice of the content of any information or data
    |
0021|     furnished or released pursuant to Paragraphs (3) and (4) of
    |
0022|     Subsection A of this section shall be given to any applicant or
    |
0023|     licensee in a manner prescribed by regulations adopted pursuant
    |
0024|     to the Video Gaming Act.
    |
0025|       Section 14.  [<u>NEW MATERIAL</u>]  DIVISION--RECORDS--REQUIREMENTS.--
    |
0001|            A.  The director shall make and keep records that
    |
0002|     accurately and fairly reflect transactions of video gaming
    |
0003|     conducted pursuant to the Video Gaming Act, including the
    |
0004|     receipt of funds, prize claims, prizes paid, expenses and all
    |
0005|     other activities and financial transactions involving revenue
    |
0006|     generated by video gaming, to permit preparation of financial
    |
0007|     statements in conformity with generally accepted accounting
    |
0008|     principles and to maintain daily accountability.
    |
0009|            B.  The director shall maintain a file of all
    |
0010|     applications for licenses pursuant to the Video Gaming Act,
    |
0011|     together with a record of all action taken with respect to those
    |
0012|     applications.  The file and record are open to public
    |
0013|     inspection, except those portions declared by law to be
    |
0014|     confidential.
    |
0015|            C.  The director may maintain such other files and
    |
0016|     records as he deems desirable.
    |
0017|            D.  The superintendent may examine the records or
    |
0018|     files maintained by the director at any time.
    |
0019|       Section 15.  [<u>NEW MATERIAL</u>]  AUDITS.--
    |
0020|            A.  The superintendent shall provide for a certified
    |
0021|     public accountant to conduct an independent audit for each
    |
0022|     fiscal year of all accounts and transactions related to video
    |
0023|     gaming.  The independent audit shall be reviewed by the state
    |
0024|     auditor.  The certified public accountant shall not have an
    |
0025|     ownership interest in a vendor or licensee and shall report any
    |
0001|     conflict of interest to the superintendent.  The certified
    |
0002|     public accountant shall present an audit report to the
    |
0003|     superintendent, the governor and the committee not later than
    |
0004|     December 31 of the year following the fiscal year for which the
    |
0005|     audit was performed.  The report shall contain recommendations
    |
0006|     to improve the efficiency of video gaming regulatory operations.
    |
0007|            B.  Each vendor's or licensee's records relating to
    |
0008|     the Video Gaming Act are subject to audit.
    |
0009|            C.  The superintendent, after consultation with the
    |
0010|     committee, shall develop a plan to improve the efficiency of the
    |
0011|     regulation of video gaming based upon the recommendations of the
    |
0012|     certified public accountant; however, nothing in this section
    |
0013|     requires the superintendent to implement any of the
    |
0014|     recommendations made by the certified public accountant.
    |
0015|            D.  All records, accounts and transactions relating
    |
0016|     to video gaming are exempt from the Audit Act.
    |
0017|       Section 16.  [<u>NEW MATERIAL</u>]  INVESTIGATORY POWERS.--The
    |
0018|     superintendent, director and security director have the power
    |
0019|     to:
    |
0020|            A.  examine, under oath, any person or any officer,
    |
0021|     employee or agent of any organization or corporation;
    |
0022|            B.  compel by subpoena the production of records;  
    |
0023|            C.  compel by subpoena the attendance of any person
    |
0024|     in this state to testify before the superintendent, director or
    |
0025|     security director when such investigation is necessary to the
    |
0001|     proper administration of the Video Gaming Act; and
    |
0002|            D.  inspect the premises and records of any person
    |
0003|     licensed pursuant to the Video Gaming Act without prior notice
    |
0004|     during regular work hours.
    |
0005|       Section 17.  [<u>NEW MATERIAL</u>]  ATTORNEY GENERAL--OTHER LAW
    |
0006|     ENFORCEMENT AUTHORITY--POWERS AND DUTIES.--
    |
0007|            A.  The superintendent, security director or director
    |
0008|     may confer with the attorney general as deemed necessary and
    |
0009|     advisable for the proper administration of the Video Gaming Act. 
    |
0010|     Upon request of the superintendent, it is the duty of the
    |
0011|     attorney general and any other law enforcement authority to whom
    |
0012|     a violation is reported to investigate and cause appropriate
    |
0013|     proceedings to be instituted without delay.
    |
0014|            B.  The attorney general and the department of public
    |
0015|     safety shall furnish to the superintendent any information that
    |
0016|     they may have in their possession as may be necessary to ensure
    |
0017|     security, honesty, fairness and integrity in the operation and
    |
0018|     administration of video gaming conducted pursuant to the Video
    |
0019|     Gaming Act.  The security division shall be considered to be a
    |
0020|     criminal justice agency and shall be furnished that information
    |
0021|     without charge upon proper written request from the
    |
0022|     superintendent or security director.
    |
0023|       Section 18.  [<u>NEW MATERIAL</u>]  CONFLICTS OF INTEREST--COMPLIANCE WITH OTHER LAWS--VIOLATION--REMOVAL FROM OFFICE.--
    |
0024|            A.  The superintendent, the committee, the director,
    |
0025|     gaming administration personnel, the security director, security
    |
0001|     division personnel or other restricted persons shall not,
    |
0002|     directly or indirectly:
    |
0003|                 (1)  knowingly hold a financial interest or
    |
0004|     acquire stocks, bonds or any other interest in any entity that
    |
0005|     is a licensee or vendor; or 
    |
0006|                 (2)  have a financial interest in the ownership
    |
0007|     or leasing of property used in the conduct or regulation of
    |
0008|     video gaming.
    |
0009|            B.  The superintendent, the committee, the director,
    |
0010|     gaming administration personnel, the security director, security
    |
0011|     division personnel or other restricted persons shall not ask
    |
0012|     for, offer to accept or receive any gift, gratuity or other
    |
0013|     thing of value that would inure to that person's benefit from:
    |
0014|                 (1)  any entity seeking to supply equipment,
    |
0015|     materials or services for use in the conduct or regulation of
    |
0016|     video gaming;
    |
0017|                 (2)  any applicant for a license; or 
    |
0018|                 (3)  any vendor or licensee.
    |
0019|            C.  No person seeking to supply equipment, materials
    |
0020|     or services for use in the conduct or regulation of video
    |
0021|     gaming, no applicant for a license and no vendor or licensee
    |
0022|     shall offer or give to the superintendent, the committee, the
    |
0023|     director, gaming administration personnel, the security
    |
0024|     director, security division personnel or other restricted
    |
0025|     persons, any gift, gratuity or other thing of value that would
    |
0001|     inure to the recipient's personal benefit.
    |
0002|            D.  For purposes of this section:
    |
0003|                 (1)  "gift, gratuity or other thing of value"
    |
0004|     does not include the provision of a breakfast, luncheon, dinner
    |
0005|     or other refreshment consisting of food and beverage provided
    |
0006|     for immediate consumption; and
    |
0007|                 (2)  "other restricted person" means anyone
    |
0008|     living in the same household as the superintendent, the
    |
0009|     director, a member of the committee, any gaming administration
    |
0010|     personnel, the security director or security division personnel.
    |
0011|            E.  The superintendent, the director, gaming
    |
0012|     administration personnel, the security director and security
    |
0013|     division personnel shall comply with all state laws applicable
    |
0014|     to ethics in government, conflict of interest and financial
    |
0015|     disclosure.
    |
0016|            F.  If the director, the security director or any
    |
0017|     gaming administration or security division personnel violates
    |
0018|     this section, he may be removed from his position after notice
    |
0019|     and a hearing before the superintendent.
    |
0020|       Section 19.  [<u>NEW MATERIAL</u>]  APPLICATION OF STATE
    |
0021|     REVENUES FROM VIDEO GAMES--STATE GAMING FUND ESTABLISHED--
    |
0022|     DISTRIBUTIONS.--
    |
0023|            A.  The "state gaming fund" is established as a fund
    |
0024|     within the state treasury.  The fund consists of all revenue
    |
0025|     received from video gaming, interest accrued on that money,
    |
0001|     license and application fees charged pursuant to the Video
    |
0002|     Gaming Act and all money credited to the fund from any other
    |
0003|     fund or source pursuant to law.
    |
0004|            B.  Money in the state gaming fund may be used only
    |
0005|     for the following purposes and shall be distributed as follows:
    |
0006|                 (1)  for the payment of costs incurred in the
    |
0007|     operation and administration of the Video Gaming Act, including
    |
0008|     any fees paid to a vendor;
    |
0009|                 (2)  to a reserve account established within the
    |
0010|     state gaming fund in order to ensure that adequate money exists
    |
0011|     for the payment of expenses for the administration and operation
    |
0012|     of video gaming regulation;
    |
0013|                 (3)  five percent of the balance, after creation
    |
0014|     of the reserve account:
    |
0015|                      (a)  among municipalities in the same
    |
0016|     proportion as the state's share of revenue raised from video
    |
0017|     gaming operations located within the municipality bears to the
    |
0018|     total of the state's share of revenue raised throughout the
    |
0019|     state from all video gaming operations in the state, including
    |
0020|     the share raised in the municipalities; and 
    |
0021|                      (b)  among counties in the same proportion
    |
0022|     as the state's share of revenue raised from video gaming located
    |
0023|     in a county outside of the boundaries of any municipality bears
    |
0024|     to the total of the state's share of the revenue raised from all
    |
0025|     video gaming operations in the state, including those raised
    |
0001|     within the counties and municipalities;
    |
0002|                 (4)  one-fourth of one percent of the revenue
    |
0003|     raised from the net take of video gaming machine operation shall
    |
0004|     be dedicated to providing treatment and prevention programs and
    |
0005|     services for compulsive gamblers; and
    |
0006|                 (5)  the balance, after distributions as
    |
0007|     required by this section are made, shall be paid into the public
    |
0008|     school capital outlay fund to be expended pursuant to the Public
    |
0009|     School Capital Outlay Act.
    |
0010|            C.  Money received pursuant to the sale of personal
    |
0011|     tangible property, the use of which is to aid in the regulation
    |
0012|     of gaming, with limited or no application in any other activity
    |
0013|     and that is owned by the division or the security division shall
    |
0014|     be deposited in the state gaming fund.
    |
0015|       Section 20.  [<u>NEW MATERIAL</u>]  PROCUREMENT OF GOODS OR
    |
0016|     SERVICES--DIRECTOR--POWERS--LIMITATION.--All procurements shall
    |
0017|     be subject to the Video Gaming Act and shall be exempt from the
    |
0018|     Procurement Code and any other state law concerning the purchase
    |
0019|     of any goods or services.  The director, subject to the approval
    |
0020|     of the superintendent, shall enter into all contracts for
    |
0021|     procurement.
    |
0022|       Section 21.  [<u>NEW MATERIAL</u>]  MAJOR PROCUREMENT--VENDOR--DISCLOSURES REQUIRED--CONTRACT APPROVAL--REQUIREMENTS.--
    |
0023|            A.  The director shall request proposals for major
    |
0024|     procurements for effectuating the purpose of the Video Gaming
    |
0025|     Act.  In awarding contracts in response to requests for
    |
0001|     proposals, the director shall award contracts to the responsible
    |
0002|     party who submits the best proposal that maximizes the benefits
    |
0003|     to the state in relation to the cost in the areas of security,
    |
0004|     competence, quality of product, capability, timely performance
    |
0005|     and maximization of net revenue.  No contract for a major
    |
0006|     procurement may be assigned by a vendor except by a written
    |
0007|     agreement approved and signed by the director.
    |
0008|            B.  The director may require persons making major
    |
0009|     procurement proposals to disclose information to enable him to
    |
0010|     review and evaluate the responses to the requests for proposals
    |
0011|     on the basis of competence, background, integrity, character and
    |
0012|     nature of the ownership and control of vendors and to ensure
    |
0013|     compliance with the provisions of the Video Gaming Act.
    |
0014|            C.  The director shall investigate, as part of the
    |
0015|     process for analyzing responses to requests for proposals for
    |
0016|     any major procurement, the financial responsibility, security
    |
0017|     and integrity of any party whose proposal is under final
    |
0018|     consideration.  The director shall require a background
    |
0019|     investigation to be conducted by the security division of any
    |
0020|     person with a substantial interest, as defined by the director,
    |
0021|     in a party whose proposal is under final consideration.  A
    |
0022|     background investigation shall include credit checks, police
    |
0023|     record checks, conviction record checks, national and statewide
    |
0024|     criminal records clearinghouse checks and fingerprint checks. 
    |
0025|     Each party whose proposal is under final consideration shall pay
    |
0001|     the costs of that party's background investigation.
    |
0002|            D.  No major procurement shall be entered into if any
    |
0003|     person with a substantial interest, as defined by the director,
    |
0004|     in the person making a major procurement proposal has been
    |
0005|     convicted of a felony or a crime involving gambling, moral
    |
0006|     turpitude, fraud or theft.
    |
0007|            E.  A vendor shall report any arrest for or
    |
0008|     conviction of a felony or any crime or gambling, moral
    |
0009|     turpitude, fraud or theft for any person with a substantial
    |
0010|     interest in that vendor to the director within three days of
    |
0011|     such arrest or conviction.
    |
0012|            F.  No major procurement proposal shall be approved
    |
0013|     by the director if the person making the proposal makes a
    |
0014|     material misrepresentation of fact in his proposal or during the
    |
0015|     proposal review process, or if the person making the proposal
    |
0016|     fails to comply with this section.  Any contract entered into
    |
0017|     with a vendor who has made a material misrepresentation of fact
    |
0018|     or has failed to comply with this section shall be void.
    |
0019|            G.  This section shall be construed broadly and
    |
0020|     liberally to achieve the end of full disclosure of all
    |
0021|     information necessary to allow for a full, complete and ongoing
    |
0022|     evaluation by the director of the competence, integrity,
    |
0023|     background, character and nature of the ownership and control of
    |
0024|     vendors.
    |
0025|       Section 22.  [<u>NEW MATERIAL</u>]  MAJOR PROCUREMENT--VENDOR--PERFORMANCE BOND.--Each vendor shall post a performance bond
    |
0001|     with the director, using a surety acceptable to the director, in
    |
0002|     consultation with the superintendent of insurance in an amount
    |
0003|     equal to the full amount estimated to be paid annually to the
    |
0004|     vendor under the contract.  Nothing in the Video Gaming Act
    |
0005|     shall be construed to restrict the authority of the director to
    |
0006|     specify liquidated or other damages in contracts with vendors.
    |
0007|       Section 23.  [<u>NEW MATERIAL</u>]  LICENSING.--
    |
0008|            A.  No person may sell, service, install or allow
    |
0009|     play on video gaming machines or sell, service or install
    |
0010|     associated equipment without first obtaining a video gaming
    |
0011|     license pursuant to the Video Gaming Act from the director.
    |
0012|            B.  The director shall adopt regulations concerning
    |
0013|     licensing criteria.  The regulations shall require that he
    |
0014|     consider an applicant's financial responsibility, the security
    |
0015|     of the applicant's place of business or activity and the
    |
0016|     integrity and reputation of the applicant.  It is unlawful to
    |
0017|     consider political affiliation, activities or monetary
    |
0018|     contributions to political organizations or candidates for any
    |
0019|     public office.
    |
0020|            C.  Video gaming licensees shall be granted a license
    |
0021|     to operate a specific number of machines on premises identified
    |
0022|     in the license application consistent with the Video Gaming Act. 
    |
0023|     In the event that a video gaming licensee desires to change the
    |
0024|     number of machines in operation on his premises, the licensee
    |
0025|     shall apply to the director for an amendment to his license
    |
0001|     authorizing a change in the number of machines.
    |
0002|            D.  Applicants for licensure, renewal or amendment
    |
0003|     shall pay a fee to the division to be submitted with the
    |
0004|     application not to exceed the following:
    |
0005|                 (1)  video gaming licensees, five hundred
    |
0006|     dollars ($500) for each video gaming machine;
    |
0007|                 (2)  operators, seven thousand five hundred
    |
0008|     dollars ($7,500);
    |
0009|                 (3)  distributors, ten thousand dollars
    |
0010|     ($10,000); and
    |
0011|                 (4)  manufacturers, twenty thousand dollars
    |
0012|     ($20,000).
    |
0013|            E.  Licenses issued pursuant to the Video Gaming Act
    |
0014|     shall be valid for one year.  Upon application for renewal, the
    |
0015|     director may require such additional information as he deems
    |
0016|     necessary to evaluate the renewal application.
    |
0017|            F.  The director shall require background
    |
0018|     investigations of any person with a substantial interest, as
    |
0019|     defined by the director, in an applicant.  Background
    |
0020|     investigations to be conducted by the security division may
    |
0021|     include, but not be limited to, credit checks, police record
    |
0022|     checks, conviction record checks, national and statewide
    |
0023|     criminal records clearinghouse checks and fingerprint checks. 
    |
0024|     The applicant shall pay the costs of the background
    |
0025|     investigation.
    |
0001|            G.  No license shall be granted to an applicant if
    |
0002|     any person with a substantial interest, as defined by the
    |
0003|     director, in the applicant has been convicted of a felony or any
    |
0004|     crime involving gambling, moral turpitude, fraud or theft within
    |
0005|     ten years prior to the application.
    |
0006|            H.  The licensee shall report his arrest for or
    |
0007|     conviction of a felony or any crime involving gambling, moral
    |
0008|     turpitude, fraud or theft for any person with a substantial
    |
0009|     interest in that licensee to the director within three days of
    |
0010|     his arrest or conviction.
    |
0011|            I.  No license shall be granted by the director if
    |
0012|     the applicant makes a material misrepresentation of fact in his
    |
0013|     application or during the application process, or if the
    |
0014|     applicant fails to comply with this section.  Any license
    |
0015|     granted to an applicant who has made a material
    |
0016|     misrepresentation of fact or has failed to comply with this
    |
0017|     section shall be void.  The director may deny any application
    |
0018|     for or limit or condition any license.
    |
0019|            J.  The burden of proving qualifications for
    |
0020|     licensure is on the applicant.
    |
0021|            K.  If an application is denied, the director shall
    |
0022|     prepare and make available to the applicant a written decision
    |
0023|     upon which the order denying the application is based.
    |
0024|            L.  No video gaming licensee shall engage in business
    |
0025|     primarily to operate video gaming machines.
    |
0001|            M.  No licensee may transfer a license to another
    |
0002|     person.  For purposes of this section, "transfer" means a change
    |
0003|     in ownership or control of the licensee involving five percent
    |
0004|     or more of the ownership or control interest of the licensee.  A
    |
0005|     licensee shall notify the director of any transfer.
    |
0006|            N.  The holder of any license does not acquire any
    |
0007|     vested interest or right in or under the license, and a license
    |
0008|     issued pursuant to the Video Gaming Act is a revocable
    |
0009|     privilege.
    |
0010|            O.  This section shall be construed broadly and
    |
0011|     liberally to achieve the end of full disclosure of all
    |
0012|     information necessary to allow for a full and complete
    |
0013|     evaluation by the director of an applicant's fitness.
    |
0014|       Section 24.  [<u>NEW MATERIAL</u>]  LICENSURE--LICENSED CLUBS--VIDEO GAMING--NET TAKE DISTRIBUTIONS.--
    |
0015|            A.  A nonprofit organization that is licensed
    |
0016|     pursuant to Section 60-6A-5 NMSA 1978 may apply for and may be
    |
0017|     issued a license as a video gaming licensee by the director to
    |
0018|     offer video gaming on its club premises pursuant to the Video
    |
0019|     Gaming Act and the regulations adopted to implement and enforce
    |
0020|     that act.  A nonprofit organization that is a video licensee is
    |
0021|     a licensed club.
    |
0022|            B.  No more than twenty-five video gaming machines,
    |
0023|     including those commonly known as slot machines, may be offered
    |
0024|     for operation and play on the premises of a licensed club. 
    |
0025|            C.  No video gaming machine on the premises of a
    |
0001|     licensed club may pay out a prize that exceeds one thousand
    |
0002|     dollars ($1,000).
    |
0003|            D.  Licensed clubs shall pay:
    |
0004|                 (1)  twenty percent of the net take of each
    |
0005|     video gaming machine, of which one-fourth of one percent shall
    |
0006|     be used for compulsive gambling education and prevention
    |
0007|     programs, to the state gaming fund in a manner specified by the
    |
0008|     director; and
    |
0009|                 (2)  a minimum of twenty percent of the net take
    |
0010|     of each video gaming machine to organizations that are described
    |
0011|     in Section 501(c)(3) of the Internal Revenue Code of 1986 and
    |
0012|     have received an exemption from payment of federal income taxes
    |
0013|     pursuant to Section 501(a) of that act.
    |
0014|            E.  Licensed clubs shall submit an accounting of
    |
0015|     distributions made pursuant to Paragraph (2) of Subsection D of
    |
0016|     this section to the director by December 31 of each calendar
    |
0017|     year. 
    |
0018|            F.  No video gaming machine shall be played on the
    |
0019|     premises of a licensed club during the hours that the licensed
    |
0020|     club is prohibited from selling or serving alcoholic beverages.
    |
0021|       Section 25.  [<u>NEW MATERIAL</u>]  LICENSURE--RACETRACKS--VIDEO
    |
0022|     GAMING--NET TAKE DISTRIBUTIONS.--
    |
0023|            A.  A racetrack licensed by the state racing
    |
0024|     commission pursuant to the Horse Racing Act to conduct live
    |
0025|     horse races or simulcast races may apply for and be issued a
    |
0001|     license as a video gaming licensee by the director to offer
    |
0002|     video gaming on its clubhouse premises pursuant to the Video
    |
0003|     Gaming Act and the rules and regulations adopted to implement
    |
0004|     and enforce the Video Gaming Act.  No racetrack located on
    |
0005|     property owned by the state may apply for or be issued a license
    |
0006|     as a video gaming licensee.  
    |
0007|            B.  A racetrack's video gaming license to operate
    |
0008|     video gaming machines shall automatically become void if:
    |
0009|                      (1)  the racetrack no longer holds an active
    |
0010|     license to conduct pari-mutuel wagering; or 
    |
0011|                 (2)  the racetrack fails to maintain ninety
    |
0012|     percent of the number of racing days and conduct ninety percent
    |
0013|     of the number of live horse races as it did in the 1994 calendar
    |
0014|     year, unless otherwise approved by the director in consultation
    |
0015|     with the state racing commission. 
    |
0016|            C.  The video gaming license of any racetrack that
    |
0017|     did not conduct live racing in 1994 shall automatically become
    |
0018|     void if:
    |
0019|                 (1)  the racetrack no longer holds an active
    |
0020|     license to conduct pari-mutuel wagering; or 
    |
0021|                 (2)  the racetrack fails to conduct that number
    |
0022|     of live horse races on that number of racing days that would
    |
0023|     represent the minimum number of the horse races and racing days
    |
0024|     conducted by any racetrack in New Mexico in the 1994 calendar
    |
0025|     year, unless otherwise approved by the director in consultation
    |
0001|     with the state racing commission.
    |
0002|            D.  No license shall be issued to a racetrack that
    |
0003|     has dismantled or removed any part of the facilities required
    |
0004|     for the operation of the track, including offices, stables,
    |
0005|     sheds or patron seating or shelter, prior to the date on which
    |
0006|     the Video Gaming Act becomes effective.
    |
0007|            E.  A video gaming licensee that is a racetrack may
    |
0008|     have an unlimited number of video gaming machines, including
    |
0009|     those machines commonly known as slot machines; provided,
    |
0010|     however, that the number of video gaming machines to be located
    |
0011|     on the licensee's premises is specified in the licensee's video
    |
0012|     gaming license.  
    |
0013|            F.  A video gaming licensee that is a racetrack is
    |
0014|     not subject to limitations regarding maximum prize amounts;
    |
0015|     provided, however, video gaming licensees that are racetracks
    |
0016|     shall comply with all prize and payout requirements of the Video
    |
0017|     Gaming Act, except those that specifically apply to licensed
    |
0018|     clubs, and all regulations adopted pursuant to that act.
    |
0019|            G.  Video gaming licensees that are racetracks shall
    |
0020|     pay:
    |
0021|                 (1)  twenty-five percent of the net take of each
    |
0022|     video gaming machine, of which one-fourth of one percent shall
    |
0023|     be used for compulsive gambling education and prevention
    |
0024|     programs, to the state gaming fund in a manner specified by the
    |
0025|     director; and
    |
0001|                 (2)  twenty percent of the net take of each
    |
0002|     video gaming machine to the horsemen and breeders who had horses
    |
0003|     racing at the video gaming licensee's facility during that
    |
0004|     calendar year.  The method of distribution among the video
    |
0005|     gaming licensees and the horsemen and breeders shall be
    |
0006|     determined by an agreement among the parties.  The agreement
    |
0007|     shall be presented to the director for approval.
    |
0008|            G.  Video gaming licensees that are racetracks shall
    |
0009|     submit an accounting of distributions made pursuant to Paragraph
    |
0010|     (2) of Subsection F of this section to the director by December
    |
0011|     31 of each calendar year.
    |
0012|       Section 26.  [<u>NEW MATERIAL</u>]  LICENSURE--LIQUOR
    |
0013|     ESTABLISHMENTS--NET TAKE DISTRIBUTIONS.--
    |
0014|            A.  A liquor establishment may apply for and be
    |
0015|     issued a license as a video gaming licensee by the director to
    |
0016|     offer video gaming on its premises pursuant to the Video Gaming
    |
0017|     Act and the regulations adopted to implement and enforce that
    |
0018|     act.
    |
0019|            B.  No more than five video gaming machines,
    |
0020|     including those commonly known as slot machines, may be offered
    |
0021|     for play on the premises of a licensed liquor establishment.
    |
0022|            C.  No video gaming machine located on the premises
    |
0023|     of a licensed liquor establishment shall pay out a prize that
    |
0024|     exceeds one thousand dollars ($1,000).
    |
0025|            D.  No video gaming machines shall be played during
    |
0001|     the hours that the licensed liquor establishment is prohibited
    |
0002|     from selling or serving alcoholic beverages.
    |
0003|            E.  Licensed liquor establishments shall pay thirty-four percent of the net take of each video gaming machine
    |
0004|     located on its premises, of which one-fourth of one percent is
    |
0005|     appropriated for use in compulsive gaming education, prevention
    |
0006|     or treatment programs, to the state gaming fund in a manner
    |
0007|     prescribed by the director.
    |
0008|            F.  The license issued to a liquor establishment
    |
0009|     pursuant to the Video Gaming Act becomes automatically void on
    |
0010|     the date that a video licensee:
    |
0011|                 (1)  no longer holds an active dispenser's
    |
0012|     license to sell alcoholic beverages;
    |
0013|                 (2)  transfers the liquor establishment to a new
    |
0014|     location; or
    |
0015|                 (3)  transfers the entire ownership interest in
    |
0016|     the license issued pursuant to the Liquor Control Act or in the
    |
0017|     premises licensed pursuant to that act or transfers any
    |
0018|     ownership interest regardless of how small to a person on whom a
    |
0019|     background check has not been completed by the security
    |
0020|     division. 
    |
0021|            G.  If the license issued pursuant to the Video
    |
0022|     Gaming Act becomes void due to a transfer of ownership, the
    |
0023|     owner shall not apply for or be issued a license to operate
    |
0024|     video gaming machines pursuant to the Video Gaming Act on the
    |
0025|     liquor establishment's premises for a period of two years from
    |
0001|     the date of the transfer of ownership of the liquor license.
    |
0002|       Section 27.  [<u>NEW MATERIAL</u>]  LICENSURE--RESORTS--NET TAKE
    |
0003|     DISTRIBUTIONS.--
    |
0004|            A.  A resort may apply for and be issued a license as
    |
0005|     a video gaming licensee by the director to offer video gaming on
    |
0006|     its premises pursuant to the Video Gaming Act and the rules and
    |
0007|     regulations adopted to implement and enforce that act.
    |
0008|            B.  A licensed resort may have an unlimited number of
    |
0009|     video gaming machines, including those machines commonly known
    |
0010|     as slot machines, provided that the number of video gaming
    |
0011|     machines to be located on the licensee's premises is specified
    |
0012|     in the licensee's video gaming license.
    |
0013|            C.  A licensed resort is not subject to limitations
    |
0014|     regarding maximum prize amounts; provided, however a licensed
    |
0015|     resort shall comply with all prize and payout requirements of
    |
0016|     the Video Gaming Act and all rules and regulations adopted
    |
0017|     pursuant to that act, except those that specifically apply to
    |
0018|     licensed clubs and liquor establishments.
    |
0019|            D.  Video gaming machines may be played on the
    |
0020|     premises of a licensed resort from Monday through Sunday from
    |
0021|     7:00 a.m. until midnight and from Tuesday through Sunday from
    |
0022|     midnight to 2:00 a.m.
    |
0023|            E.  Licensed resorts shall pay thirty-four percent of
    |
0024|     the net take of each video gaming machine located on its
    |
0025|     premises, of which one-fourth of one percent is appropriated for
    |
0001|     use in compulsive gaming education, prevention or treatment
    |
0002|     programs, to the state gaming fund in a manner prescribed by the
    |
0003|     director.
    |
0004|       Section 28.  [<u>NEW MATERIAL</u>]  VIDEO GAMING LICENSEES--GENERAL RESTRICTIONS--PLAYER AGE LIMIT--RULES FOR PLACEMENT.--
    |
0005|            A.  No person under twenty-one years of age may play
    |
0006|     a video gaming machine licensed pursuant to the Video Gaming
    |
0007|     Act.
    |
0008|            B.  Video gaming machines may only be available for
    |
0009|     play in an area restricted to persons twenty-one years of age or
    |
0010|     older.  A video gaming licensee may erect "permanent physical
    |
0011|     barrier" to allow for multiple uses of the premises by persons
    |
0012|     of all ages.  For purposes of this section, "permanent physical
    |
0013|     barrier" means a floor-to-ceiling wall separating the general
    |
0014|     areas from the restricted areas.  The entrance to the area where
    |
0015|     video gaming machines are located shall display a sign that the
    |
0016|     premises are restricted to persons twenty-one years or older. 
    |
0017|     Persons under the age of twenty-one shall not enter the premises
    |
0018|     where video gaming machines are located.
    |
0019|            C.  A person who violates the provisions of this
    |
0020|     section is guilty of a misdemeanor and upon conviction shall be
    |
0021|     sentenced pursuant to the provisions of Section 31-19-1 NMSA
    |
0022|     1978.
    |
0023|            D.  Nothing in the Video Gaming Act shall prevent a
    |
0024|     video gaming licensee from owning the video gaming machines
    |
0025|     located on that licensee's premises provided that the machines
    |
0001|     comply with the Video Gaming Act and regulations adopted
    |
0002|     pursuant to that act.
    |
0003|            E.  A video gaming licensee shall report any transfer
    |
0004|     of ownership interest in the licensed premises to the director
    |
0005|     within fifteen days following the date of transfer.  Any
    |
0006|     transfer of ownership interest that might affect the status of
    |
0007|     the license issued to the video gaming licensee shall be
    |
0008|     reported prior to the transfer so that a background
    |
0009|     investigation may be completed on the new owner prior to the
    |
0010|     date of the transfer.
    |
0011|       Section 29.  [<u>NEW MATERIAL</u>]  LOCAL OPTION.--
    |
0012|            A.  In any county or municipality in which the local
    |
0013|     option provision of the Video Gaming Act has been accepted by
    |
0014|     the voters, the use of video gaming machines is prohibited or
    |
0015|     permitted in accordance with the outcome of the referendum.
    |
0016|            B.  Placement or use of video gaming machines on the
    |
0017|     premises of a racetrack clubhouse is not subject to prohibition
    |
0018|     by a local option referendum.
    |
0019|       Section 30.  [<u>NEW MATERIAL</u>]  LOCAL OPTION ELECTION--NONPROFIT ORGANIZATIONS--LICENSED LIQUOR ESTABLISHMENTS--RESORTS--PROCEDURE.--
    |
0020|            A.  A county, not including incorporated
    |
0021|     municipalities within its boundaries, or an incorporated
    |
0022|     municipality, becomes a local option district if:
    |
0023|                 (1)  the option of prohibiting video gaming on
    |
0024|     the premises of nonprofit organizations or liquor establishments
    |
0025|     in that county or incorporated municipality is adopted by the
    |
0001|     registered voters of that county or municipality; or
    |
0002|                 (2)  the option of permitting video gaming in
    |
0003|     resorts in that county or incorporated municipality is adopted
    |
0004|     by the registered voters of that county or municipality.
    |
0005|            B.  An incorporated municipality may have a local
    |
0006|     option referendum in that municipality, even if the county in
    |
0007|     which the incorporated municipality is located has had a
    |
0008|     referendum and resolved the local option question for the
    |
0009|     county.
    |
0010|            C.  Based on the content of the petition, a local
    |
0011|     governing body of a proposed local option district shall place
    |
0012|     one or both of the following questions on the ballot:
    |
0013|                 (1)  "Shall video gaming that is now permitted
    |
0014|     at certain nonprofit clubs and liquor establishments be
    |
0015|     prohibited in (name of proposed local option district),
    |
0016|     effective July 1, 19__?  _____YES _____NO"; or
    |
0017|                 (2)  "Shall video gaming be permitted at resorts
    |
0018|     in (name of proposed local option district), effective July 1,
    |
0019|     19__?  ______YES ______NO".
    |
0020|            D.  The procedures for adopting the local option
    |
0021|     regarding video gaming are:
    |
0022|                 (1)  at any time from the effective date of the
    |
0023|     Video Gaming Act, the registered voters of any proposed local
    |
0024|     option district may petition the governing body by filing one or
    |
0025|     more petitions in the appropriate office to hold a referendum to
    |
0001|     determine whether the proposed local option district shall adopt
    |
0002|     a local option provision of the Video Gaming Act.  Each petition
    |
0003|     shall state the question that will be present on the ballot.  If
    |
0004|     the aggregate of the signatures of the registered voters on all
    |
0005|     the petitions equals or exceeds five percent of the number of
    |
0006|     registered voters of the proposed local option district at the
    |
0007|     time of the last general election, the governing body shall call
    |
0008|     an election within seventy-five days of the verification of the
    |
0009|     petition.  The date of the filing of the petition shall be three
    |
0010|     months after the date on which the first signature was obtained;
    |
0011|                 (2)  the election shall be called and conducted
    |
0012|     and votes shall be counted and canvassed substantially in the
    |
0013|     manner provided by law for general elections within the county
    |
0014|     or pursuant to the Municipal Election Code for an incorporated
    |
0015|     municipality except as otherwise provided in this section;
    |
0016|                 (3)  except as otherwise provided in this
    |
0017|     section, contests, recounts and rechecks shall be permitted as
    |
0018|     provided for in the case of candidates for county offices in
    |
0019|     general elections or as provided for in the Municipal Election
    |
0020|     Code for candidates for municipal office.  Applications for
    |
0021|     contests, recounts or rechecks may be filed by any person who
    |
0022|     voted in the election, and service shall be made upon the county
    |
0023|     clerk or municipal clerk.  The payment of the costs and expenses
    |
0024|     of the contest, recount or recheck shall be assessed in the
    |
0025|     manner provided by the Election Code for contests in a general
    |
0001|     election of candidates for county offices or pursuant to the
    |
0002|     Municipal Election Code for candidates for municipal office;
    |
0003|                 (4)  if a majority of all the votes cast at an
    |
0004|     election: 
    |
0005|                      (a)  seeking to prohibit video gaming on
    |
0006|     the premises of nonprofit organizations and liquor
    |
0007|     establishments is in favor of the local option provision to
    |
0008|     prohibit video gaming in the local option district, the chairman
    |
0009|     of the governing body shall declare by order entered upon the
    |
0010|     records of the local option district that the local option
    |
0011|     district has adopted the local option provision of the Video
    |
0012|     Gaming Act prohibiting video gaming on the premises of nonprofit
    |
0013|     organizations and liquor establishments and shall notify the
    |
0014|     superintendent of the results; or
    |
0015|                      (b)  seeking to permit video gaming at
    |
0016|     resorts is in favor of the local option provision to permit
    |
0017|     video gaming machines in the local option district, the chairman
    |
0018|     of the governing body shall declare by order entered upon the
    |
0019|     records of the local option district that the local option
    |
0020|     district has adopted the local option provision of the Video
    |
0021|     Gaming Act permitting video gaming machines to be operated on
    |
0022|     the premises of licensed resorts and shall notify the
    |
0023|     superintendent of the results; and
    |
0024|                 (5)  no election shall be held pursuant to this
    |

0025|     section within forty-two days of any primary, general, municipal
    |
0001|     or school district election unless the election is held on the
    |
0002|     day of any primary, general, municipal or school district
    |
0003|     election.
    |
0004|       Section 31.  [<u>NEW MATERIAL</u>]  RESUBMISSION OF LOCAL OPTION
    |
0005|     QUESTION.--
    |
0006|            A.  In a local option district in which a local
    |
0007|     option provision of the Video Gaming Act has been rejected by
    |
0008|     the voters, it is permissible after the expiration of three
    |
0009|     years from the date of the election at which the local option
    |
0010|     provision was rejected to have another local option election in
    |
0011|     the district by following the procedure provided for in the
    |
0012|     Video Gaming Act.
    |
0013|            B.  In a local option district in which a local
    |
0014|     option provision of the Video Gaming Act has been accepted by
    |
0015|     the voters, it is permissible after the expiration of twelve
    |
0016|     years from the date of election at which the local option
    |
0017|     provision was accepted to have another local option election
    |
0018|     that may allow voters to rescind the local option previously
    |
0019|     adopted in the county or municipality by following the
    |
0020|     procedures provided for in the Video Gaming Act. 
    |
0021|       Section 32.  [<u>NEW MATERIAL</u>]  MULTIPLE TYPES OF LICENSES
    |
0022|     PROHIBITED.--
    |
0023|            A.  Except as set forth in Subsection B of this
    |
0024|     section, a manufacturer, distributor or operator shall not be
    |
0025|     licensed as or own, manage or control a video gaming licensee. 
    |
0001|     A manufacturer shall not be licensed as or own, manage or
    |
0002|     control an operator.
    |
0003|            B.  Nothing in the Video Gaming Act shall prevent an
    |
0004|     applicant that is otherwise eligible for a license as a video
    |
0005|     gaming licensee and that is owned, in whole or in part, by a
    |
0006|     manufacturer on the date of passage of that act from applying
    |
0007|     for a license as a video gaming licensee.  However, no more than
    |
0008|     thirty-five percent of the video gaming machines or associated
    |
0009|     equipment operated by the video gaming licensee may be
    |
0010|     manufactured by the manufacturer that owns the licensee.  If a
    |
0011|     video gaming licensee operates or uses any video gaming machines
    |
0012|     or associated equipment that are manufactured by the
    |
0013|     manufacturer that owns the video gaming licensee, the
    |
0014|     manufacturer shall not qualify as a vendor of equipment or
    |
0015|     communications systems that regulates or audits video gaming
    |
0016|     operations in the state.
    |
0017|       Section 33.  [<u>NEW MATERIAL</u>]  REVOCATION--CONTRACT--LICENSE.--
    |
0018|            A.  Failure by a licensee to comply with any
    |
0019|     provision of the Video Gaming Act or the rules and regulations
    |
0020|     adopted pursuant to that act shall be sufficient cause for
    |
0021|     suspension or termination of a procurement contract; provided,
    |
0022|     however, suspension or termination of a procurement contract
    |
0023|     shall not relieve the vendor from prosecution for any of the
    |
0024|     alleged violations or from imposition of fines and penalties.
    |
0025|            B.  If a licensee fails to respond to a written
    |
0001|     request from the director or the security director or violates
    |
0002|     any provision of the Video Gaming Act or any regulation adopted
    |
0003|     pursuant to that act, the license of the offending licensee may
    |
0004|     be suspended, canceled or revoked by the superintendent;
    |
0005|     provided, however, the licensee shall have reasonable notice and
    |
0006|     opportunity to be heard before the superintendent before
    |
0007|     suspension, cancellation, limitation or revocation; and
    |
0008|     provided, further, the suspension, cancellation, limitation or
    |
0009|     revocation of any license does not relieve the licensee from
    |
0010|     prosecution for any of the alleged violations or from imposition
    |
0011|     of fines and penalties.
    |
0012|            C.  The superintendent may levy a fine against a
    |
0013|     vendor or licensee for violation of the provisions of the Video
    |
0014|     Gaming Act or rules or regulations adopted pursuant to that act,
    |
0015|     not to exceed one hundred thousand dollars ($100,000) per
    |
0016|     violation; provided, however, the licensee has a reasonable
    |
0017|     opportunity to be heard by the superintendent before the
    |
0018|     imposition of the fine.  Nothing in this section limits the
    |
0019|     superintendent from pursuing contractual remedies, including
    |
0020|     assessing penalties, pursuant to the terms of a contract with a
    |
0021|     vendor.
    |
0022|       Section 34.  [<u>NEW MATERIAL</u>]  EMERGENCY ORDERS OF
    |
0023|     SUPERINTENDENT.--
    |
0024|            A.  The superintendent may issue an emergency order
    |
0025|     for suspension or limitation of a license.
    |
0001|            B.  An emergency order may be issued only when the
    |
0002|     superintendent finds that:
    |
0003|                 (1)  a licensee has failed to report, pay or
    |
0004|     truthfully account for and remit any fee or money imposed by or
    |
0005|     owed under the provisions of the Video Gaming Act or attempted
    |
0006|     in any manner to evade or defeat a fee or debt or required
    |
0007|     payment;
    |
0008|                 (2)  a licensee has violated any provision of
    |
0009|     the Video Gaming Act and the violation impairs the security of
    |
0010|     video gaming activities; or
    |
0011|                 (3)  a licensee is convicted of a crime
    |
0012|     involving a felony or gambling, moral turpitude, fraud or theft.
    |
0013|            C.  The emergency order shall set forth the grounds
    |
0014|     upon which it is issued, including a statement of facts
    |
0015|     constituting the alleged emergency necessitating the action.
    |
0016|            D.  An emergency order may be issued only with the
    |
0017|     approval of and upon signature of the superintendent.
    |
0018|            E.  The emergency order is effective immediately upon
    |
0019|     issuance and service upon the licensee or resident agent of the
    |
0020|     licensee.  The emergency order remains effective until further
    |
0021|     order of the superintendent or final disposition of the case.
    |
0022|            F.  The licensee may request that a hearing be held
    |
0023|     by the superintendent regarding the issuance and maintenance of
    |
0024|     the emergency order.  The superintendent shall then hold a
    |
0025|     hearing within twenty days.
    |
0001|       Section 35.  [<u>NEW MATERIAL</u>]  COMMUNICATIONS SYSTEM.--Each
    |
0002|     video gaming machine and voucher validation system shall be
    |
0003|     linked to a central communications system to provide auditing
    |
0004|     program and financial information as required by the director. 
    |
0005|     No communications system required by the director shall limit
    |
0006|     participation to only one manufacturer of video gaming machines
    |
0007|     by either cost of implementing the necessary program
    |
0008|     modifications to communicate or the inability to communicate
    |
0009|     with the communications system.
    |
0010|       Section 36.  [<u>NEW MATERIAL</u>]  ADVERTISEMENT--LIMITATIONS.--No licensee may use a name or trade name that contains the
    |
0011|     words casino, gambling, names of traditional casino style games,
    |
0012|     including poker, blackjack or keno, or the name of any city
    |
0013|     outside this state in which a casino exists unless the name has
    |
0014|     been used by the licensee for one year prior to the effective
    |
0015|     date of the Video Gaming Act.  However, the director may
    |
0016|     authorize vendors or licensees whose physical location is in San
    |
0017|     Miguel county to use the words "Las Vegas" in their names.
    |
0018|       Section 37.  [<u>NEW MATERIAL</u>]  VIDEO GAMING LICENSEE--STATE
    |
0019|     REVENUE--DEPOSITS--PROHIBITIONS--DELINQUENT CHILD SUPPORT.--
    |
0020|            A.  The director may require each video gaming
    |
0021|     licensee to deposit all money owed to the state into financial
    |
0022|     institutions designated by the director for credit to the state
    |
0023|     gaming fund.
    |
0024|            B.  The director may authorize the electronic
    |
0025|     transfer of money from the accounts of video gaming licensees to
    |
0001|     the state gaming fund.
    |
0002|            C.  No video gaming machine shall be played by and no
    |
0003|     prize shall be awarded to any video gaming licensee or business
    |
0004|     that is engaged in supplying associated equipment, supplies or
    |
0005|     services being used in the operation of video gaming machines or
    |
0006|     any officer, member of the board of directors, employee or owner
    |
0007|     of a licensee or associated equipment business unless authorized
    |
0008|     in writing by the director for research purposes.  However, no
    |
0009|     prize may be awarded as a result of play for research purposes.  
    |
0010|            D.  The director shall investigate the feasibility of
    |
0011|     implementing a policy to recover delinquent child support
    |
0012|     payments or outstanding state tax liability from payment of
    |
0013|     video gaming prizes in excess of six hundred dollars ($600).  If
    |
0014|     the director determines that the policy is feasible, the
    |
0015|     director shall implement a policy to credit any video gaming
    |
0016|     prize first against any delinquent child support owed by the
    |
0017|     winner and second against any outstanding state tax liability
    |
0018|     owed by the winner and shall pay the balance of the prize to the
    |
0019|     winner.  The policy shall ensure that any person who
    |
0020|     investigates the money owed by the prizewinner shall have no
    |
0021|     liability to a person to whom a delinquent child support payment
    |
0022|     may be owed, the human services department or the taxation and
    |
0023|     revenue department if the investigator fails to discover that a
    |
0024|     winner owes money that is to be applied according to the policy.
    |
0025|       Section 38.  [<u>NEW MATERIAL</u>]  REQUIREMENTS FOR LICENSED 
    |
0001|     VIDEO GAMING MACHINES.--
    |
0002|            A.  Each video gaming machine licensed pursuant to
    |
0003|     the Video Gaming Act:
    |
0004|                 (1)  shall offer only games authorized by the
    |
0005|     director;
    |
0006|                 (2)  shall not have any means of manipulation
    |
0007|     that affects the random probabilities of winning;
    |
0008|                 (3)  shall have nonresettable meters that keep a
    |
0009|     permanent record of all cash inserted into the machine and all
    |
0010|     awards of prizes, whether in cash or by voucher; and
    |
0011|                 (4)  shall be linked to a central communications
    |
0012|     system to provide auditing program information as required by
    |
0013|     the director.
    |
0014|            B.  The department shall, on or before January 1,
    |
0015|     1997, adopt by regulation mechanical and electronic standards
    |
0016|     for video gambling machines and slot machines, ensuring the
    |
0017|     integrity, honesty and security of the machines, which standards
    |
0018|     shall not be more lenient than those applied to similar machines
    |
0019|     in lawful use within the United States by any other jurisdiction
    |
0020|     regulating the conduct of video machine and slot machine
    |
0021|     gambling.
    |
0022|            C.  The director shall examine prototypes of video
    |
0023|     gaming machines of licensed manufacturers.  The director shall
    |
0024|     require the manufacturer seeking the examination and approval of
    |
0025|     a video gaming machine or associated equipment to pay the
    |
0001|     anticipated actual costs of the examination in advance and,
    |
0002|     after the completion of the examination, shall refund
    |
0003|     overpayments or charge and collect amounts sufficient to
    |
0004|     reimburse the director for underpayments of actual costs.  The
    |
0005|     director may contract for the examination of video gaming
    |
0006|     machines and associated equipment as required by this section.
    |
0007|            D.  Each video gaming machine shall be licensed by
    |
0008|     the director before placement or operation on the premises of a
    |
0009|     video gaming licensee.  Each machine shall have the license
    |
0010|     prominently displayed on it in such a way that an attempt at
    |
0011|     alteration will result in a mutilation of the license.  Any
    |
0012|     machine that does not display the license required by this
    |
0013|     section is contraband and a public nuisance subject to
    |
0014|     confiscation by any law enforcement or peace officer.
    |
0015|        Section 39.  [<u>NEW MATERIAL</u>]  PROHIBITED ACTS--VIOLATIONS--PENALTIES.--
    |
0016|            A.  It is a misdemeanor for a video gaming licensee
    |
0017|     to fail to make available to the director all records pertaining
    |
0018|     to accounts maintained for revenue derived from the operation of
    |
0019|     video gaming machines.
    |
0020|            B.  It is a misdemeanor for any video gaming licensee
    |
0021|     to knowingly allow any person under twenty-one years of age to
    |
0022|     play a video gaming machine.
    |
0023|            C.  It is a misdemeanor for a person under twenty-one
    |
0024|     years of age to play a video gaming machine.
    |
0025|            D.  It is a misdemeanor to release any information
    |
0001|     obtained through a background investigation performed by the
    |
0002|     security division or the department of public safety without the
    |
0003|     prior written consent of the subject of the investigation except
    |
0004|     as provided otherwise in the Video Gaming Act.
    |
0005|            E.  It is a fourth degree felony to tamper with a
    |
0006|     video gaming machine with intent to interfere with the proper
    |
0007|     operation and reporting of the video gaming machine.
    |
0008|            F.  It is a fourth degree felony to tamper with or
    |
0009|     falsify a voucher or to tamper with a video gaming machine with
    |
0010|     intent to manipulate the outcome or payoff of the video gaming
    |
0011|     machine.
    |
0012|            G.  It is a fourth degree felony to possess an
    |
0013|     unlicensed video gaming machine.
    |
0014|            H.  It is a fourth degree felony to provide false
    |
0015|     information or to intentionally make a material
    |
0016|     misrepresentation of fact to the director or the security
    |
0017|     director for purposes of applying for a contract or a license or
    |
0018|     for purposes of completing a background investigation pursuant
    |
0019|     to the Video Gaming Act.
    |
0020|            I.  Any person convicted of a violation of
    |
0021|     Subsections A through D of this section shall be sentenced
    |
0022|     pursuant to the provisions of Section 31-19-1 NMSA 1978.  Any
    |
0023|     person convicted of a violation of Subsections E through H of
    |
0024|     this section shall be sentenced pursuant to the provisions of
    |
0025|     Section 31-18-15 NMSA 1978.
    |
0001|       Section 40.  [<u>NEW MATERIAL</u>]  DISTRICT COURT OF SANTA FE
    |
0002|     COUNTY--JURISDICTION--APPEAL.--The district court of Santa Fe
    |
0003|     county has exclusive original jurisdiction of all legal
    |
0004|     proceedings, except criminal actions, related to the
    |
0005|     administration, enforcement or fulfillment of the
    |
0006|     responsibilities, duties or functions performed pursuant to the
    |
0007|     Video Gaming Act.  An aggrieved party, including a party subject
    |
0008|     to a fine, may seek review of an order or decision of the
    |
0009|     superintendent by filing an appeal with the district court of
    |
0010|     Santa Fe county within thirty days after the date of the order
    |
0011|     or decision.
    |
0012|       Section 41.  [<u>NEW MATERIAL</u>]  EXEMPTION FROM LOCAL TAXES.--Video gaming machines licensed and operated pursuant to the
    |
0013|     Video Gaming Act are exempt from any local tax assessed by any
    |
0014|     political subdivision of the state having the power to levy,
    |
0015|     assess or collect such a tax.
    |
0016|       Section 42.  [<u>NEW MATERIAL</u>]  LOCAL LAWS PREEMPTED--APPLICABILITY OF OTHER LAWS.--The Video Gaming Act shall be
    |
0017|     applied uniformly throughout the state and to all political
    |
0018|     subdivisions of the state, and no local authority shall enact
    |
0019|     any ordinances, rules or regulations that expand or conflict
    |
0020|     with the provisions of that act. 
    |
0021|       Section 43.  [<u>NEW MATERIAL</u>]  VIDEO AMUSEMENT MACHINES--REGISTRATION.--
    |
0022|            A.  Video amusement machines are not subject to the
    |
0023|     licensure provisions of the Video Gaming Act.
    |
0024|            B.  A person who offers video amusement machines for
    |
0025|     use by the public shall:
    |
0001|                 (1)  register with the division; and
    |
0002|                 (2)  be subject to inspection by the director or
    |
0003|     the security director.
    |
0004|       Section 44.  Section 6-24-9 NMSA 1978 (being Laws 1995,
    |
0005|     Chapter 155, Section 9) is amended to read:
    |
0006|       "6-24-9.  LOTTERY OVERSIGHT COMMITTEE--<s>[BIPARTISAN]</s>
    |
0007|     DUTIES.--
    |
0008|            <s>[A.  There is created a joint interim legislative
</s>    |
<s></s>0009| <s>    committee, which shall be known as the "lottery oversight
</s>    |
<s></s>0010| <s>    committee".
</s>    |
<s></s>0011| <s>           B.  The lottery oversight committee shall be composed
</s>    |
<s></s>0012| <s>    of four members.  Two members of the house of representatives
</s>    |
<s></s>0013| <s>    shall be appointed by the speaker of the house of
</s>    |
<s></s>0014| <s>    representatives, and two members of the senate shall be
</s>    |
<s></s>0015| <s>    appointed by the committees' committee of the senate or, if the
</s>    |
<s></s>0016| <s>    senate appointments are made in the interim, by the president
</s>    |
<s></s>0017| <s>    pro tempore of the senate after consultation with and agreement
</s>    |
<s></s>0018| <s>    of a majority of the members of the committees' committee.
</s>    |
<s></s>0019| <s>    Members shall be appointed so that there is a member from each
</s>    |
<s></s>0020| <s>    of the major political parties from each house.  No member who
</s>    |
<s></s>0021| <s>    has a financial interest in any lottery contractor, lottery
</s>    |
<s></s>0022| <s>    retailer or lottery vendor shall be appointed to the committee.
</s>    |
<s></s>0023| <s>           C.]</s> <u>A.</u>  The lottery <u>and gaming</u> oversight
    |
0024|     committee shall oversee the operations of the authority, as well
    |
0025|     as periodically review and evaluate the success with which the
    |
0001|     authority is accomplishing its duties and operating the lottery
    |
0002|     pursuant to the New Mexico Lottery Act.  The committee may
    |
0003|     conduct any independent audit or investigation of the lottery or
    |
0004|     the authority it deems necessary. 
    |
0005|            <s>[D.]</s> <u>B.</u>  The lottery <u>and gaming</u> oversight
    |
0006|     committee shall report annually its findings and recommendations
    |
0007|     on the lottery and the operation of the authority to each
    |
0008|     regular session of the legislature."
    |
0009|       Section 45.  Section 6-24-27 NMSA 1978 (being Laws 1995,
    |
0010|     Chapter 155, Section 27) is amended to read:
    |
0011|       "6-24-27.  REVENUE AND BUDGET REPORTS--RECORDS--INDEPENDENT
    |
0012|     AUDITS.--
    |
0013|            A.  The board shall:
    |
0014|                 (l)  submit quarterly and annual reports to the
    |
0015|     governor, legislative finance committee and lottery <u>and gaming</u>
    |
0016|     oversight committee disclosing the total lottery revenue,
    |
0017|     prizes, commissions, ticket costs, operating expenses and net
    |
0018|     revenues of the authority during the reporting period and, in
    |
0019|     the annual report, describe the organizational structure of the
    |
0020|     authority and summarize the functions performed by each
    |
0021|     organizational division within the authority;
    |
0022|                 (2)  maintain weekly or more frequent records of
    |
0023|     lottery transactions, including the distribution of lottery
    |
0024|     tickets to retailers, revenue received, claims for prizes,
    |
0025|     prizes paid, prizes forfeited and other financial transactions
    |
0001|     of the authority; and
    |
0002|                 (3)  use the state government fiscal year.
    |
0003|            B.  The board shall provide, for informational
    |
0004|     purposes, to the department of finance and administration and
    |
0005|     the legislative finance committee, by December 1 of each year, a
    |
0006|     copy of the annual proposed operating budget for the authority
    |
0007|     for the succeeding fiscal year.  This budget proposal shall also
    |
0008|     be accompanied by an estimate of the net revenues to be
    |
0009|     deposited in the public school capital outlay fund and the
    |
0010|     lottery tuition fund for the current and succeeding fiscal
    |
0011|     years.  
    |
0012|            C.  The board shall contract with an independent
    |
0013|     certified public accountant or firm for an annual financial
    |
0014|     audit of the authority.  The certified public accountant or firm
    |
0015|     shall have no financial interest in any lottery contractor.  The
    |
0016|     certified public accountant or firm shall present an audit
    |
0017|     report no later than March 1 for the prior fiscal year.  The
    |
0018|     certified public accountant or firm shall evaluate the internal
    |
0019|     auditing controls in effect during the audit period.  The cost
    |
0020|     of this financial audit shall be an operating expense of the
    |
0021|     authority.  The legislative finance committee may, at any time,
    |
0022|     order an audit of any phase of the operations of the authority,
    |
0023|     at the expense of the authority, and shall receive a copy of the
    |
0024|     annual independent financial audit.  A copy of any audit
    |
0025|     performed by the certified public accountant or ordered by the
    |
0001|     legislative finance committee shall be transmitted to the
    |
0002|     governor, the speaker of the house of representatives, the
    |
0003|     president pro tempore of the senate, the legislative finance
    |
0004|     committee and the lottery <u>and gaming</u> oversight committee."
    |
0005|       Section 46.  Section 6-24-28 NMSA 1978 (being Laws 1995,
    |
0006|     Chapter 155, Section 28) is amended to read:
    |
0007|       "6-24-28.  INTERNAL AUDITOR--APPOINTMENT--DUTIES.--
    |
0008|            A.  The board, with the recommendation and assistance
    |
0009|     of the chief executive officer, shall employ an internal
    |
0010|     auditor.  The internal auditor, who shall be an employee of the
    |
0011|     authority, shall be qualified by training and experience as an
    |
0012|     auditor and management analyst and have at least five years of
    |
0013|     auditing experience.  The internal auditor shall take direction
    |
0014|     as needed from the chief executive officer and be accountable to
    |
0015|     the board. 
    |
0016|            B.  The internal auditor shall conduct and coordinate
    |
0017|     comprehensive audits for all aspects of the lottery, provide
    |
0018|     management analysis expertise and carry out any other duties
    |
0019|     specified by the board and by law.  The internal auditor shall
    |
0020|     specifically:
    |
0021|                 (1)  conduct, or provide for through a
    |
0022|     competitive bid process, an annual financial audit and
    |
0023|     observation audits of drawings;
    |
0024|                 (2)  create an annual audit plan to be approved
    |
0025|     by the board;
    |
0001|                 (3)  search for means of better efficiency and
    |
0002|     cost savings and waste prevention;
    |
0003|                 (4)  examine the policy and procedure needs of
    |
0004|     the lottery and determine compliance;
    |
0005|                 (5)  ensure that proper internal controls exist;
    |
0006|                 (6)  perform audits that meet or exceed
    |
0007|     governmental audit standards; and
    |
0008|                 (7)  submit audit reports on a quarterly basis
    |
0009|     to the board, the chief executive officer, the state auditor,
    |
0010|     the lottery <u>and gaming</u> oversight committee and the legislative
    |
0011|     finance committee.
    |
0012|            C.  The internal auditor shall conduct audits as
    |
0013|     needed in the areas of:
    |
0014|                 (1)  personnel security;
    |
0015|                 (2)  lottery retailer security;
    |
0016|                 (3)  lottery contractor security;
    |
0017|                 (4)  security of manufacturing operations of
    |
0018|     lottery contractors;
    |
0019|                 (5)  security against lottery ticket
    |
0020|     counterfeiting and alteration and other means of fraudulently
    |
0021|     winning;
    |
0022|                 (6)  security of drawings among entries or
    |
0023|     finalists;
    |
0024|                 (7)  computer security;
    |
0025|                 (8)  data communications security;
    |
0001|                 (9)  database security;
    |
0002|                 (10)  systems security;
    |
0003|                 (11)  lottery premises and warehouse security;
    |
0004|                 (12)  security in distribution;
    |
0005|                 (13)  security involving validation and payment
    |
0006|     procedures;
    |
0007|                 (14)  security involving unclaimed prizes;
    |
0008|                 (15)  security aspects applicable to each
    |
0009|     particular lottery game;
    |
0010|                 (16)  security of drawings in games whenever
    |
0011|     winners are determined by drawings;
    |
0012|                 (17)  the completeness of security against
    |
0013|     locating winners in lottery games with preprinted winners by
    |
0014|     persons involved in their production, storage, distribution,
    |
0015|     administration or sales; and
    |
0016|                 (18)  any other aspects of security applicable
    |
0017|     to any particular lottery game and to the lottery and its
    |
0018|     operations.
    |
0019|            D.  Specific audit findings related to security
    |
0020|     invasion techniques are confidential and may be reported only to
    |
0021|     the chief executive officer or his designee, the board, the
    |
0022|     governor and the attorney general."
    |
0023|       Section 47.  Section 6-24-33 NMSA 1978 (being Laws 1995,
    |
0024|     Chapter 155, Section 33) is amended to read:
    |
0025|       "6-24-33.  UNLAWFUL PURCHASE OF LOTTERY TICKET--PENALTY.--
    |
0001|            A.  It is unlawful for the following persons to
    |
0002|     purchase a lottery ticket or to share knowingly in the lottery
    |
0003|     winnings of another person:
    |
0004|                 (1)  the chief executive officer, a board
    |
0005|     member, a member of the lottery <u>and gaming</u> oversight committee
    |
0006|     or an employee of the authority; or
    |
0007|                 (2)  an owner, officer or employee of a lottery
    |
0008|     vendor or, in the case of a corporation, an owner of five
    |
0009|     percent or more of the corporate stock of a lottery vendor.
    |
0010|            B.  Notwithstanding the provisions of Subsection A of
    |
0011|     this section, the chief executive officer may authorize in
    |
0012|     writing any employee of the authority and any employee of a
    |
0013|     lottery contractor to purchase a lottery ticket for the purposes
    |
0014|     of verifying the proper operation of the lottery with respect to
    |
0015|     security, systems operation and lottery retailer contract
    |
0016|     compliance.  Any prize awarded as a result of such ticket
    |
0017|     purchase shall become the property of the authority and shall be
    |
0018|     added to the prize pools of subsequent lottery games.
    |
0019|            C.  Nothing in this section shall prohibit lottery
    |
0020|     retailers or their employees from purchasing lottery tickets or
    |
0021|     from being paid a prize for a winning ticket.
    |
0022|            D.  Certain classes of persons who, because of the
    |
0023|     unique nature of the supplies or services they provide for use
    |
0024|     directly in the operation of the lottery, may be prohibited, in
    |
0025|     accordance with rules adopted by the board, from participating
    |
0001|     in any lottery in which such supplies or services are used.
    |
0002|            E.  Any person who violates any provision of this
    |
0003|     section for the first time is guilty of a misdemeanor and shall
    |
0004|     be sentenced pursuant to the provisions of Section 31-19-1 NMSA
    |
0005|     1978.
    |
0006|            F.  Any person who violates any provision of this
    |
0007|     section for a second or subsequent time is guilty of a fourth
    |
0008|     degree felony and shall be sentenced pursuant to the provisions
    |
0009|     of Section 31-18-15 NMSA 1978."
    |
0010|       Section 48.  A new section of the Gross Receipts and
    |
0011|     Compensating Tax Act is enacted to read:
    |
0012|       "[<u>NEW MATERIAL</u>]  DEDUCTION--GROSS RECEIPTS TAX.--Receipts
    |
0013|     of video gaming licensees from the operation of video gaming
    |
0014|     machines pursuant to the Video Gaming Act may be deducted from
    |
0015|     gross receipts."
    |
0016|       Section 49.  Section 9-16-4 NMSA 1978 (being Laws 1983,
    |
0017|     Chapter 297, Section 20, as amended) is amended to read:
    |
0018|       "9-16-4.  DEPARTMENT ESTABLISHED.--There is created in the
    |
0019|     executive branch the "regulation and licensing department".  The
    |
0020|     department shall not be a cabinet department.  The department
    |
0021|     shall consist of but not be limited to <s>[five]</s> <u>seven</u>
    |
0022|     divisions as follows:
    |
0023|            A.  the administrative services division;
    |
0024|            B.  the construction industries division;
    |
0025|            C.  the financial institutions division;
    |
0001|            D.  the securities division; <s>[and]</s>
    |
0002|            E.  the manufactured housing division;
    |
0003|            <u>F.  the alcohol and gaming division; and</u>
    |
0004|            <u>G.  the gaming security division</u>."
    |
0005|       Section 50.  Section 10-15-1 NMSA 1978 (being Laws 1974,
    |
0006|     Chapter 91, Section 1, as amended) is amended to read:
    |
0007|       "10-15-1.  FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN
    |
0008|     MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.--
    |
0009|            A.  In recognition of the fact that a representative
    |
0010|     government is dependent upon an informed electorate, it is
    |
0011|     declared to be public policy of this state that all persons are
    |
0012|     entitled to the greatest possible information regarding the
    |
0013|     affairs of government and the official acts of those officers
    |
0014|     and employees who represent them.  The formation of public
    |
0015|     policy or the conduct of business by vote shall not be conducted
    |
0016|     in closed meeting.  All meetings of any public body except the
    |
0017|     legislature and the courts shall be public meetings, and all
    |
0018|     persons so desiring shall be permitted to attend and listen to
    |
0019|     the deliberations and proceedings.  Reasonable efforts shall be
    |
0020|     made to accommodate the use of audio and video recording
    |
0021|     devices.
    |
0022|            B.  All meetings of a quorum of members of any board,
    |
0023|     commission, administrative adjudicatory body or other
    |
0024|     policymaking body of any state agency, any agency or authority
    |
0025|     of any county, municipality, district or any political
    |
0001|     subdivision, held for the purpose of formulating public policy,
    |
0002|     including the development of personnel policy, rules,
    |
0003|     regulations or ordinances, discussing public business or for the
    |
0004|     purpose of taking any action within the authority of or the
    |
0005|     delegated authority of any board, commission or other
    |
0006|     policymaking body are declared to be public meetings open to the
    |
0007|     public at all times, except as otherwise provided in the
    |
0008|     constitution of New Mexico or the Open Meetings Act.  No public
    |
0009|     meeting once convened that is otherwise required to be open
    |
0010|     pursuant to the Open Meetings Act shall be closed or dissolved
    |
0011|     into small groups or committees for the purpose of permitting
    |
0012|     the closing of the meeting.
    |
0013|            C.  If otherwise allowed by law or rule of the public
    |
0014|     body, a member of a public body may participate in a meeting of
    |
0015|     the public body by means of a conference telephone or other
    |
0016|     similar communications equipment when it is otherwise difficult
    |
0017|     or impossible for the member to attend the meeting in person,
    |
0018|     provided that each member participating by conference telephone
    |
0019|     can be identified when speaking, all participants are able to
    |
0020|     hear each other at the same time and members of the public
    |
0021|     attending the meeting are able to hear any member of the public
    |
0022|     body who speaks during the meeting.
    |
0023|            D.  Any meetings at which the discussion or adoption
    |
0024|     of any proposed resolution, rule, regulation or formal action
    |
0025|     occurs and at which a majority or quorum of the body is in
    |
0001|     attendance, and any closed meetings, shall be held only after
    |
0002|     reasonable notice to the public.  The affected body shall
    |
0003|     determine at least annually in a public meeting what notice for
    |
0004|     a public meeting is reasonable when applied to that body.  That
    |
0005|     notice shall include broadcast stations licensed by the federal
    |
0006|     communications commission and newspapers of general circulation
    |
0007|     that have provided a written request for such notice.
    |
0008|            E.  A public body may recess and reconvene a meeting
    |
0009|     to a day subsequent to that stated in the meeting notice if,
    |
0010|     prior to recessing, the public body specifies the date, time and
    |
0011|     place for continuation of the meeting, and, immediately
    |
0012|     following the recessed meeting, posts notice of the date, time
    |
0013|     and place for the reconvened meeting on or near the door of the
    |
0014|     place where the original meeting was held and in at least one
    |
0015|     other location appropriate to provide public notice of the
    |
0016|     continuation of the meeting.  Only matters appearing on the
    |
0017|     agenda of the original meeting may be discussed at the
    |
0018|     reconvened meeting.
    |
0019|            F.  Meeting notices shall include an agenda
    |
0020|     containing a list of specific items of business to be discussed
    |
0021|     or transacted at the meeting or information on how the public
    |
0022|     may obtain a copy of such an agenda.  Except in the case of an
    |
0023|     emergency, the agenda shall be available to the public at least
    |
0024|     twenty-four hours prior to the meeting.  Except for emergency
    |
0025|     matters, a public body shall take action only on items appearing
    |
0001|     on the agenda.  For purposes of this subsection, an "emergency"
    |
0002|     refers to unforeseen circumstances that, if not addressed
    |
0003|     immediately by the public body, will likely result in injury or
    |
0004|     damage to persons or property or substantial financial loss to
    |
0005|     the public body.
    |
0006|            G.  The board, commission or other policymaking body
    |
0007|     shall keep written minutes of all its meetings.  The minutes
    |
0008|     shall include at a minimum the date, time and place of the
    |
0009|     meeting, the names of members in attendance and those absent,
    |
0010|     the substance of the proposals considered and a record of any
    |
0011|     decisions and votes taken that show how each member voted.  All
    |
0012|     minutes are open to public inspection.  Draft minutes shall be
    |
0013|     prepared within ten working days after the meeting and shall be
    |
0014|     approved, amended or disapproved at the next meeting where a
    |
0015|     quorum is present.  Minutes shall not become official until
    |
0016|     approved by the policymaking body.
    |
0017|            H.  The provisions of Subsections A, B and G of this
    |
0018|     section do not apply to:
    |
0019|                 (1)  meetings pertaining to issuance,
    |
0020|     suspension, renewal or revocation of a license, except that a
    |
0021|     hearing at which evidence is offered or rebutted shall be open. 
    |
0022|     All final actions on the issuance, suspension, renewal or
    |
0023|     revocation of a license shall be taken at an open meeting;
    |
0024|                 (2)  limited personnel matters; provided that
    |
0025|     for purposes of the Open Meetings Act, "limited personnel
    |
0001|     matters" means the discussion of hiring, promotion, demotion,
    |
0002|     dismissal, assignment or resignation of or the investigation or
    |
0003|     consideration of complaints or charges against any individual
    |
0004|     public employee; provided further that this subsection is not to
    |
0005|     be construed as to exempt final actions on personnel from being
    |
0006|     taken at open public meetings, nor does it preclude an aggrieved
    |
0007|     public employee from demanding a public hearing.  Judicial
    |
0008|     candidates interviewed by any commission shall have the right to
    |
0009|     demand an open interview;
    |
0010|                 (3)  deliberations by a public body in
    |
0011|     connection with an administrative adjudicatory proceeding.  For
    |
0012|     purposes of this paragraph, an "administrative adjudicatory
    |
0013|     proceeding" means a proceeding brought by or against a person
    |
0014|     before a public body in which individual legal rights, duties or
    |
0015|     privileges are required by law to be determined by the public
    |
0016|     body after an opportunity for a trial-type hearing.  Except as
    |
0017|     otherwise provided in this section, the actual administrative
    |
0018|     adjudicatory proceeding at which evidence is offered or rebutted
    |
0019|     and any final action taken as a result of the proceeding shall
    |
0020|     occur in an open meeting;
    |
0021|                 (4)  the discussion of personally identifiable
    |
0022|     information about any individual student, unless the student,
    |
0023|     his parent or guardian requests otherwise;
    |
0024|                 (5)  meetings for the discussion of bargaining
    |
0025|     strategy preliminary to collective bargaining negotiations
    |
0001|     between the policymaking body and a bargaining unit representing
    |
0002|     the employees of that policymaking body and collective
    |
0003|     bargaining sessions at which the policymaking body and the
    |
0004|     representatives of the collective bargaining unit are present;
    |
0005|                 (6)  that portion of meetings at which a
    |
0006|     decision concerning purchases in an amount exceeding two
    |
0007|     thousand five hundred dollars ($2,500) that can be made only
    |
0008|     from one source, <u>that portion of a meeting dealing with
</u>    |
<u></u>0009| <u>    confidential or proprietary information regarding procurement
</u>    |
<u></u>0010| <u>    made pursuant to the Video Gaming Act</u> and that portion of
    |
0011|     meetings at which the contents of competitive sealed proposals
    |
0012|     solicited pursuant to the Procurement Code are discussed during
    |
0013|     the contract negotiation process.  The actual approval of
    |
0014|     purchase of the item or final action regarding the selection of
    |
0015|     a contractor shall be made in an open meeting;
    |
0016|                 (7)  meetings subject to the attorney-client
    |
0017|     privilege pertaining to threatened or pending litigation in
    |
0018|     which the public body is or may become a participant;
    |
0019|                 (8)  meetings for the discussion of the
    |
0020|     purchase, acquisition or disposal of real property or water
    |
0021|     rights by the public body; and
    |
0022|                 (9)  those portions of meetings of committees or
    |
0023|     boards of public hospitals that receive less than fifty percent
    |
0024|     of their operating budget from direct public funds and
    |
0025|     appropriations where strategic and long-range business plans are
    |
0001|     discussed.
    |
0002|            I.  If any meeting is closed pursuant to the
    |
0003|     exclusions contained in Subsection H of this section, the
    |
0004|     closure:
    |
0005|                 (1)  if made in an open meeting, shall be
    |
0006|     approved by a majority vote of a quorum of the policymaking
    |
0007|     body; the authority for the closure and the subject to be
    |
0008|     discussed shall be stated with reasonable specificity in the
    |
0009|     motion calling for the vote on a closed meeting; the vote shall
    |
0010|     be taken in an open meeting; and the vote of each individual
    |
0011|     member shall be recorded in the minutes.  Only those subjects
    |
0012|     announced or voted upon prior to closure by the policymaking
    |
0013|     body may be discussed in a closed meeting; and
    |
0014|                 (2)  if called for when the policymaking body is
    |
0015|     not in an open meeting, shall not be held until public notice,
    |
0016|     appropriate under the circumstances, stating the specific
    |
0017|     provision of the law authorizing the closed meeting and stating
    |
0018|     with reasonable specificity the subject to be discussed is given
    |
0019|     to the members and to the general public.
    |
0020|            J.  Following completion of any closed meeting, the
    |
0021|     minutes of the open meeting that was closed or the minutes of
    |
0022|     the next open meeting if the closed meeting was separately
    |
0023|     scheduled shall state that the matters discussed in the closed
    |
0024|     meeting were limited only to those specified in the motion for
    |
0025|     closure or in the notice of the separate closed meeting.  This
    |
0001|     statement shall be approved by the public body under Subsection
    |
0002|     G of this section as part of the minutes."
    |
0003|       Section 51.  Section 13-1-98 NMSA 1978 (being Laws 1984,
    |
0004|     Chapter 65, Section 71, as amended) is amended to read:
    |
0005|       "13-1-98.  EXEMPTIONS FROM THE PROCUREMENT CODE.--The
    |
0006|     provisions of the Procurement Code <s>[shall]</s> <u>do</u> not apply to:
    |
0007|            A.  procurement of items of tangible personal
    |
0008|     property or services by a state agency or a local public body
    |
0009|     from a state agency, a local public body or external procurement
    |
0010|     unit except as otherwise provided in Sections 13-1-135 through
    |
0011|     13-1-137 NMSA 1978;
    |
0012|            B.  procurement of tangible personal property or
    |
0013|     services for the governor's mansion and grounds;
    |
0014|            C.  printing and duplicating contracts involving
    |
0015|     materials <s>[which]</s> <u>that</u> are required to be filed in
    |
0016|     connection with proceedings before administrative agencies or
    |
0017|     state or federal courts;
    |
0018|            D.  purchases of publicly provided or publicly
    |
0019|     regulated gas, electricity, water, sewer and refuse collection
    |
0020|     services;
    |
0021|            E.  purchases of books and periodicals from the
    |
0022|     publishers or copyright holders thereof;
    |
0023|            F.  travel or shipping by common carrier or by
    |
0024|     private conveyance or to meals and lodging;
    |
0025|            G.  purchase of livestock at auction rings or to the
    |
0001|     procurement of animals to be used for research and
    |
0002|     experimentation or exhibit; 
    |
0003|            H.  contracts with businesses for public school
    |
0004|     transportation services;
    |
0005|            I.  procurement of tangible personal property or
    |
0006|     services, as defined by Sections 13-l-87 and 13-l-93 NMSA 1978,
    |
0007|     by the corrections industries division of the corrections
    |
0008|     department pursuant to regulations adopted by the corrections
    |
0009|     <s>[industries]</s> commission, which shall be reviewed by the
    |
0010|     purchasing division of the general services department prior to
    |
0011|     adoption;
    |
0012|            J.  minor purchases consisting of magazine
    |
0013|     subscriptions, conference registration fees and other similar
    |
0014|     purchases where prepayments are required;
    |
0015|            K.  municipalities having adopted home rule charters
    |
0016|     and having enacted their own purchasing ordinances;
    |
0017|            L.  the issuance, sale and delivery of public
    |
0018|     securities pursuant to the applicable authorizing statute, with
    |
0019|     the exception of bond attorneys and general financial
    |
0020|     consultants; 
    |
0021|            M.  contracts entered into by a local public body
    |
0022|     with a private independent contractor for the operation, or
    |
0023|     provision and operation, of a jail pursuant to Sections 33-3-26
    |
0024|     and 33-3-27 NMSA 1978; 
    |
0025|            N.  contracts for maintenance of grounds and
    |
0001|     facilities at highway rest stops and other employment
    |
0002|     opportunities, excluding those intended for the direct care and
    |
0003|     support of persons with handicaps, entered into by state
    |
0004|     agencies with private, nonprofit, independent contractors who
    |
0005|     provide services to persons with handicaps; 
    |
0006|            O.  contracts and expenditures for services to be
    |
0007|     paid or compensated by money or other property transferred to
    |
0008|     New Mexico law enforcement agencies by the United States
    |
0009|     department of justice drug enforcement administration;
    |
0010|            P.  contracts for retirement and other benefits
    |
0011|     pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978;
    |
0012|     <s>[and]</s>
    |
0013|            Q.  contracts with professional entertainers; <u>and</u>
    |
0014|            <u>R.  any procurement made pursuant to the Video
</u>    |
<u></u>0015| <u>    Gaming Act</u>."
    |
0016|       Section 52.  Section 30-19-1 NMSA 1978 (being Laws 1963,
    |
0017|     Chapter 303, Section 19-1, as amended) is amended to read:
    |
0018|       "30-19-1.  DEFINITIONS RELATING TO GAMBLING.--As used in
    |
0019|     Chapter 30, Article 19 NMSA 1978:
    |
0020|            A.  "antique gambling device" means a gambling device
    |
0021|     twenty-five years of age or older and substantially in original
    |
0022|     condition that is not used for gambling or commercial gambling
    |
0023|     or located in a gambling place; 
    |
0024|            B.  "bet" means a bargain in which the parties agree
    |
0025|     that, dependent upon chance, even though accompanied by some
    |
0001|     skill, one stands to win or lose anything of value specified in
    |
0002|     the agreement.  A "bet" does not include:
    |
0003|                 (1)  bona fide business transactions that are
    |
0004|     valid under the law of contracts, including <s>[without
</s>    |
<s></s>0005| <s>    limitation]</s>:
    |
0006|                      (a)  contracts for the purchase or sale,
    |
0007|     at a future date, of securities or other commodities; and
    |
0008|                      (b)  agreements to compensate for loss
    |
0009|     caused by the happening of the chance, including <s>[without
</s>    |
<s></s>0010| <s>    limitation]</s> contracts for indemnity or guaranty and life or
    |
0011|     health and accident insurance;
    |
0012|                 (2)  offers of purses, prizes or premiums to the
    |
0013|     actual contestants in any bona fide contest for the
    |
0014|     determination of skill, speed, strength or endurance or to the
    |
0015|     bona fide owners of animals or vehicles entered in such contest;
    |
0016|                 (3)  a lottery as defined in this section; or
    |
0017|                 (4)  betting otherwise permitted by law;
    |
0018|            C.  "lottery" means an enterprise <s>[other than the
</s>    |
<s></s>0019| <s>    New Mexico state lottery established and operated pursuant to
</s>    |
<s></s>0020| <s>    the New Mexico Lottery Act]</s> wherein, for a consideration, the
    |
0021|     participants are given an opportunity to win a prize, the award
    |
0022|     of which is determined by chance, even though accompanied by
    |
0023|     some skill.  <u>"Lottery" does not include the New Mexico state
</u>    |
<u></u>0024| <u>    lottery established and operated pursuant to the New Mexico
</u>    |
<u></u>0025| <u>    Lottery Act or video gaming that is licensed and operated
</u>    |
<u></u>0001| <u>    pursuant to the Video Gaming Act</u>.  As used in this subsection,
    |
0002|     "consideration" means anything of pecuniary value required to be
    |
0003|     paid to the promoter in order to participate in such enterprise;
    |
0004|            D.  "gambling device" means a contrivance other than
    |
0005|     an antique gambling device that, for a consideration, affords
    |
0006|     the player an opportunity to obtain anything of value, the award
    |
0007|     of which is determined by chance, even though accompanied by
    |
0008|     some skill, <s>[and]</s> whether or not the prize is automatically
    |
0009|     paid by the device <u>and that is not licensed for use pursuant to
</u>    |
<u></u>0010| <u>    the Video Gaming Act</u>; and
    |
0011|            E.  "gambling place" means <s>[any]</s> <u>a</u> building or
    |
0012|     tent, <s>[any]</s> <u>a</u> vehicle, whether self-propelled or not, or
    |
0013|     <s>[any]</s> <u>a</u> room within any of them, <u>that is not within the
</u>    |
<u></u>0014| <u>    premises of a person licensed as a lottery retailer or to
</u>    |
<u></u>0015| <u>    provide video gaming pursuant to the New Mexico Lottery Act or
</u>    |
<u></u>0016| <u>    the Video Gaming Act and</u> one of whose principal uses is:
    |
0017|                 (1)  making and settling of bets;
    |
0018|                 (2)  receiving, holding, recording or forwarding
    |
0019|     bets or offers to bet;
    |
0020|                 (3)  conducting lotteries; or
    |
0021|                 (4)  playing gambling devices."
    |
0022|       Section 53.  Section 30-19-6 NMSA 1978 (being Laws 1963,
    |
0023|     Chapter 303, Section 19-6, as amended) is amended to read:
    |
0024|       "30-19-6.  PERMISSIVE LOTTERY.--
    |
0025|            A.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0001| <u>    19</u> NMSA 1978 shall be construed to apply to any sale or drawing
    |
0002|     of any prize at any fair held in this state for the benefit of
    |
0003|     any church, public library or religious society situate or being
    |
0004|     in this state, or for charitable purposes when all the proceeds
    |
0005|     of <s>[such]</s> <u>the</u> fair shall be expended in this state for the
    |
0006|     benefit of <s>[such]</s> <u>the</u> church, public library, religious
    |
0007|     society or charitable purposes.
    |
0008|       A lottery shall be operated for the benefit of the
    |
0009|     organization or charitable purpose only when the entire proceeds
    |
0010|     of the lottery go to the organization or charitable purpose and
    |
0011|     no part of such proceeds go to any individual member or employee
    |
0012|     thereof.
    |
0013|            B.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0014| <u>    19</u> NMSA 1978 shall be held to prohibit any bona fide motion
    |
0015|     picture theater from offering prizes of cash or merchandise for
    |
0016|     advertising purposes, in connection with such business or for
    |
0017|     the purpose of stimulating business, whether or not any
    |
0018|     consideration other than a monetary consideration in excess of
    |
0019|     the regular price of admission is exacted for participation in
    |
0020|     drawings for prizes.
    |
0021|            C.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0022| <u>    19</u> NMSA 1978 shall be held to apply to any bona fide county
    |
0023|     fair, including fairs for more than one county, which shall have
    |
0024|     been held annually at the same location for at least two years
    |
0025|     and which shall offer prizes of livestock or poultry in
    |
0001|     connection with <s>[such]</s> <u>the</u> fair when the proceeds of
    |
0002|     <s>[such]</s> <u>the</u> drawings shall be used for the benefit of
    |
0003|     <s>[said]</s> <u>the</u> fair.
    |
0004|            D.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0005| <u>    19</u> NMSA 1978 shall be construed to apply to any lottery
    |
0006|     operated by an organization exempt from the state income tax
    |
0007|     pursuant to Subsection <s>[C]</s> <u>B</u> of Section 7-2-4 NMSA 1978 and
    |
0008|     not subject to the provisions of Subsection A of this section;
    |
0009|     provided that:
    |
0010|                 (1)  no more than two lotteries shall be
    |
0011|     operated in any year by such an organization;
    |
0012|                 (2)  all the gross proceeds less the reasonable
    |
0013|     cost of prizes of any lottery operated by such an organization
    |
0014|     shall be expended in the state for the benefit of the
    |
0015|     organization or public purposes; and
    |
0016|                 (3)  no part of the proceeds of any lottery
    |
0017|     shall go to any individual member or employee of any
    |
0018|     organization except as payment for the purchase of prizes at no
    |
0019|     more than the reasonable retail price.
    |
0020|            <u>E.  Nothing in Chapter 30, Article 19 NMSA 1978
</u>    |
<u></u>0021| <u>    prohibits or applies to gaming activities permitted and licensed
</u>    |
<u></u>0022| <u>    pursuant to the New Mexico Lottery Act or the Video Gaming Act.
</u>    |
<u></u>0023| <u>           F.  As used in Subsections A and D of this section,
</u>    |
<u></u>0024| <u>    "lottery" means a paper lottery, a raffle, paper pull tabs or
</u>    |
<u></u>0025| <u>    other games of chance, not including any electronic facsimile of
</u>    |
<u></u>0001| <u>    a game of chance played on a video gaming machine</u>."
    |
0002|       Section 54.  SEVERABILITY.--If any part or application of
    |
0003|     the Video Gaming Act is held invalid, the remainder or its
    |
0004|     application to other situations or persons shall not be
    |
0005|     affected.
    |
0006|       Section 55.  EFFECTIVE DATE.--The effective date of the
    |
0007|     provisions of this act shall be the date on which tribal-state
    |
0008|     gaming compacts negotiated pursuant to the provisions of the
    |
0009|     federal Indian Gaming Regulatory Act are approved by the
    |
0010|     legislature, the governor and the pueblos of Taos, San Juan,
    |
0011|     Santa Clara, San Ildefonso, Nambe, Pojoaque, Tesuque, Santo
    |
0012|     Domingo, San Felipe, Santa Ana, Sandia, Isleta, Laguna and Acoma
    |
0013|     and the Mescalero Apache and Jicarilla Apache tribes.
    |
0014|                                    
    |
0015|   
    |
0016|                    FORTY-SECOND LEGISLATURE
    |
0017|                      SECOND SESSION, 1996
    |
0018|   
    |
0019|   
    |
0020|                                              JANUARY 27, 1996
    |
0021|   
    |
0022|   Mr. President:
    |
0023|   
    |
0024|     Your COMMITTEES' COMMITTEE, to whom has been referred
    |
0025|   
    |
0001|                           SENATE BILL 380
    |
0002|   
    |
0003|   has had it under consideration and finds same to be GERMANE, PURSUANT
    |
0004|   TO CONSTITUIONAL PROVISIONS, and thence referred to the COMMITTEE OF
    |
0005|   THE WHOLE.
    |
0006|   
    |
0007|                              Respectfully submitted,
    |
0008|   
    |
0009|   
    |
0010|   
    |
0011|   
    |
0012|                              __________________________________
    |
0013|                              SENATOR MANNY M. ARAGON, Chairman 
    |
0014|   
    |
0015|   
    |
0016|   
    |
0017|   Adopted_______________________ Not Adopted_______________________
    |
0018|             (Chief Clerk)                        (Chief Clerk)
    |
0019|   
    |
0020|   
    |
0021|                     Date ________________________
    |
0022|   
    |
0023|   
    |
0024|   
    |
0025|     S0380CC1  
    |
0001|   
    |
0002|                      FORTY-SECOND LEGISLATURE
    |
0003|                        SECOND  SESSION, 1996
    |
0004|   
    |
0005|   
    |
0006|                                                   February 2, 1996
    |
0007|   
    |
0008|   Mr. President:
    |
0009|   
    |
0010|     Your COMMITTEE OF THE WHOLE, to whom has been referred
    |
0011|   
    |
0012|                           SENATE BILL 380
    |
0013|   
    |
0014|   has had it under consideration and reports same WITHOUT
    |
0015|   RECOMMENDATION, and thence placed on the President's
    |
0016|   Table.
    |
0017|   
    |
0018|                              Respectfully submitted,
    |
0019|   
    |
0020|   
    |
0021|   
    |
0022|                              __________________________________
    |
0023|                              Manny M. Aragon, Chairman 
    |
0024|   
    |
0025|   
    |
0001|   
    |
0002|   Adopted_______________________ Not Adopted_______________________
    |
0003|             (Chief Clerk)                          (Chief Clerk)
    |
0004|   
    |
0005|   
    |
0006|   
    |
0007|                     Date ________________________
    |
0008|   
    |
0009|   
    |
0010|   The roll call vote was <u> 28 </u> For <u> 5 </u> Against
    |
0011|   Yes:  28
    |
0012|   No:        Donisthorpe, Kidd, Kysar, Rawson, Scott
    |
0013|   Excused:   Benavides, Carraro, E. Jennings, T. Jennings, McKibben,
    |
0014|                Naranjo, Stefanics, Vernon, Wiener
    |
0015|   Absent:    None
    |
0016|   
    |
0017|   
    |
0018|   S0380WS1
    |
0019|   
    |