0001| SENATE BILL 607 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| BEN D. ALTAMIRANO | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO GAMBLING; PROVIDING FOR CERTAIN CHARITABLE GAMBLING | 0013| ACTIVITIES AND THE REGULATION OF THOSE ACTIVITIES; MAKING AN | 0014| APPROPRIATION; AMENDING, REPEALING AND ENACTING SECTIONS OF THE | 0015| NMSA 1978. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. Section 60-2B-1 NMSA 1978 (being Laws 1981, | 0019| Chapter 259, Section 1) is amended to read: | 0020| "60-2B-1. SHORT TITLE.--~~[This act]~~ Chapter 60, Article | 0021| 2B NMSA 1978 may be cited as the ~~["Bingo and Raffle Act"]~~ | 0022| "Charitable Gaming Act"." | 0023| Section 2. Section 60-2B-2 NMSA 1978 (being Laws 1981, | 0024| Chapter 259, Section 2) is amended to read: | 0025| "60-2B-2. FINDINGS--PURPOSE OF ACT.-- | 0001| A. The legislature finds that: | 0002| (1) lack of economic growth and lack of growth | 0003| in job opportunities continue to affect New Mexicans adversely | 0004| and limit the expansion of the tax base and the state's ability | 0005| to increase tax revenues; | 0006| (2) there is a continuing and expanding need | 0007| for more social services in New Mexico; | 0008| (3) in times of slow economic growth or | 0009| economic contraction, tax revenues are not available to provide | 0010| programs to assist those New Mexicans who fall through the | 0011| safety net; | 0012| (4) nonprofit institutions are a major source | 0013| of assistance for needy people who do not receive state or | 0014| federal public assistance; | 0015| (5) nonprofit institutions must be afforded | 0016| every opportunity to raise funds for the purpose of caring for | 0017| elderly, infirm, sick and indigent persons, veterans and victims | 0018| of broken families; and | 0019| (6) to the extent that care is provided by | 0020| private charities, the burden on the taxpayer is less and the | 0021| care may be provided without many burdensome governmental | 0022| restrictions. | 0023| B. The ~~[purpose]~~ purposes of the ~~[Bingo and~~ | 0024| ~~Raffle]~~ Charitable Gaming Act ~~[is]~~ are to: | 0025| (1) make lawful and regulate the conducting | 0001| of certain games of chance by certain nonprofit organizations; | 0002| (2) prevent organized crime from influencing | 0003| charitable gaming; and | 0004| (3) provide maximum opportunity for charitable | 0005| fundraising, ensure proper accounting and administration of such | 0006| fundraising." | 0007| Section 3. Section 60-2B-3 NMSA 1978 (being Laws 1981, | 0008| Chapter 259, Section 3, as amended) is repealed and a new | 0009| Section 60-2B-3 NMSA 1978 is enacted to read: | 0010| "60-2B-3. [NEW MATERIAL] DEFINITIONS.--As used in the | 0011| Charitable Gaming Act: | 0012| A. "active member" means an individual who has | 0013| qualified for membership in a qualified organization pursuant to | 0014| its charter, articles of incorporation, bylaws, rules or other | 0015| written document; | 0016| B. "adjusted gross income" means all gross income | 0017| derived from the operation of games of chance pursuant to the | 0018| Charitable Gaming Act after prizes paid to winners, including an | 0019| accrual for progressive games, have been deducted; | 0020| C. "alternate game manager" means a person who is | 0021| twenty-one years of age or older and has been an active member | 0022| in good standing of a qualified organization for at least six | 0023| months prior to making application for the alternate game | 0024| manager position and who has never been convicted of a felony; | 0025| D. "assistant game manager" means a person who is | 0001| twenty-one years of age or older and has been an active member | 0002| in good standing of a qualified organization for at least six | 0003| months immediately prior to making application for the assistant | 0004| game manager position and who has never been convicted of a | 0005| felony; | 0006| E. "authorized fundraising expense" means an expense | 0007| authorized by the Charitable Gaming Act in conjunction with the | 0008| operation of games of chance under that act; | 0009| F. "bingo" means a game of chance played on paper | 0010| cards, rigid cards or through the utilization of an electronic, | 0011| computer or other technological aids displays; | 0012| G. "building lessor" means any person owning or | 0013| operating a building that is rented, leased or used by qualified | 0014| organizations licensed under the Charitable Gaming Act for the | 0015| conduct of authorized games of chance. Building lessors may | 0016| rent or lease equipment only to tenants of the rented or leased | 0017| premises; | 0018| H. "care organization" means any qualified | 0019| organization within the state, not organized for pecuniary | 0020| profit, whose primary purpose is the care of children, the aged | 0021| and infirm or the mentally or physically handicapped, primary | 0022| care for the destitute and homeless, assistance to youth, | 0023| instruction or assistance in combating drugs or disease, | 0024| assistance to battered and abused men, women or children or any | 0025| other assistance to the needy; | 0001| I. "charitable organization" means any qualified | 0002| organization within the state, not organized for pecuniary | 0003| profit, that is operated for the relief of poverty, distress or | 0004| other condition of public concern; | 0005| J. "chartered branch, post, lodge or chapter of a | 0006| national or state organization" means any qualified branch, | 0007| post, lodge or chapter that is a civic or service organization, | 0008| not organized for pecuniary profit and authorized by its written | 0009| constitution, charter, articles of incorporation or bylaws to | 0010| engage in a fraternal, civic or service purpose; | 0011| K. "deal" for the purpose of electronic pull tab | 0012| gaming or paper pull tab gaming, means a finite number of plays | 0013| or tickets having a predetermined number of winners and losers, | 0014| so that the selection by a player of a winning play or ticket | 0015| reduces the total pool of winning plays or tickets available; | 0016| L. "drawing or door prize" means a prize awarded by | 0017| random selection of admission slips or similar means, for which | 0018| no additional consideration has been paid, which prize is not | 0019| included in the total prizes paid on each session by the | 0020| licensee; | 0021| M. "distributor" means a person who rents, leases, | 0022| sells, offers for sale or otherwise furnishes to any person | 0023| gaming materials or supplies for use in the conduct of any game | 0024| of chance; | 0025| N. "double session" means two sessions played | 0001| consecutively by the same qualified organization; | 0002| O. "educational organization" means any qualified | 0003| organization within the state, not organized for pecuniary | 0004| profit, whose primary purpose is educational in nature and that | 0005| is designed to develop the capabilities of individuals through | 0006| instruction; | 0007| P. "electronic pull tab gaming" means gaming on any | 0008| electronic pull tab machine; | 0009| Q. "electronic pull tab machine" means any pull tab | 0010| machine that is electronically operated and uses any number, | 0011| letter or symbol, or combination of numbers, letters or symbols, | 0012| to play a pull tab game. The electronic pull tab machine shall | 0013| not dispense cash payments. The machine will be configured to | 0014| allow the player to insert cash into the machine and the cash | 0015| will be converted into credits of equal value. The player may | 0016| activate the machine to display numbers, letters or symbols, or | 0017| a combination or sequence of numbers, letters or symbols, to | 0018| display the winning or losing plays. Each play reduces the | 0019| number of credits. A winning play will award additional | 0020| credits. The player may redeem the credit balance for cash at | 0021| any time or may choose to continue to play on the same machine. | 0022| At the end of play on the machine, the machine will produce a | 0023| "valid credit voucher", which shall be redeemed by the qualified | 0024| organization. Each play is subtracted or deducted from the deal | 0025| until the deal is exhausted. The electronic pull tab machine | 0001| shall be capable of providing remote dial-up access by the | 0002| licensing authority to monitor the following: | 0003| (1) the name of the qualified organization; | 0004| (2) the location of the machine; | 0005| (3) the time of day in hours and minutes in | 0006| which the machine is in play; | 0007| (4) the machine serial number; | 0008| (5) the serial number of the deal in play; and | 0009| (6) the size of the deal; | 0010| R. "environmental organization" means any qualified | 0011| organization, not organized for pecuniary profit, primarily | 0012| concerned with the protection and preservation of the natural | 0013| environment; | 0014| S. "equipment" means, with respect to bingo and pull | 0015| tabs, the receptacle and numbered objects drawn from it; the | 0016| master board upon which such objects are placed; the cards | 0017| bearing numbers or other designations to be covered; the boards | 0018| or signs, however operated, used to announce or display the | 0019| numbers or designations as they are drawn; television monitors; | 0020| tables and chairs; public address systems; and electronic, | 0021| computer or other technologic aids or displays, including master | 0022| programs, controllers and machines to display electronic bingo | 0023| and pull tabs. "Equipment" includes all other similar articles | 0024| essential to the operation of bingo or pull tabs, but it does | 0025| not include gaming materials or supplies; | 0001| T. "fraternal organization" means any qualified | 0002| organization within this state, except for college and high | 0003| school fraternities, not organized for pecuniary profit, that is | 0004| a chartered branch, post, lodge or chapter of a national or | 0005| state organization and exists for the common business, | 0006| brotherhood or other interests of its members; | 0007| U. "game manager" means a person who is twenty-one | 0008| years of age or older and has been an active member in good | 0009| standing of a qualified organization for at least six months | 0010| immediately prior to making application for the game manager | 0011| position and who has never been convicted of a felony; | 0012| V. "game of chance" means: | 0013| (1) bingo; | 0014| (2) pull tabs, jar raffles or electronic pull | 0015| tab gaming; | 0016| (3) raffles; | 0017| (4) drawings; | 0018| (5) door prizes; or | 0019| (6) video bingo; | 0020| W. "gaming materials and supplies" means: | 0021| (1) bingo sheets, commonly referred to as | 0022| "paper" or "specials", or hard cards bearing numbers or other | 0023| designations to be covered and the daubers or markers used to | 0024| cover them; | 0025| (2) gaming programs that are periodically | 0001| completed and replaced; | 0002| (3) software for generating plays for | 0003| electronic pull tab gaming; or | 0004| (4) pull tabs or jar raffle cards, whether of | 0005| paper or cardboard construction, with one or more tabs that may | 0006| be pulled off as opened or with seals that may be broken to | 0007| uncover a series of numbers, figures or symbols that by their | 0008| arrangement indicate either a winning or losing combination of | 0009| numbers, figures or symbols; | 0010| X. "immediate family" means a person's spouse or | 0011| children; | 0012| Y. "labor organization" means any qualified | 0013| organization, not organized for pecuniary profit, within this | 0014| state that exists for the purpose, in whole or in part, of | 0015| dealing with employers concerning grievances, labor disputes, | 0016| wages, rates of pay, hours of employment or conditions of work; | 0017| Z. "licensee" means any qualified organization, | 0018| distributor or building lessor to which a license has been | 0019| issued by the licensing authority; | 0020| AA. "licensing authority" means the regulation and | 0021| licensing department; | 0022| BB. "minor" means any individual less than twenty- | 0023| one years of age; | 0024| CC. "person" means a natural person, firm, limited | 0025| liability company, partnership, joint venture, association, | 0001| corporation or other legal entity; | 0002| DD. "premises" means any building, room, hall, | 0003| enclosure or outdoor area used for the purpose of playing a game | 0004| of chance, including a multi-user building in which more than | 0005| one licensee operates games of chance; | 0006| EE. "progressive bingo" means bingo played and | 0007| structured in a way that no more than five hundred dollars | 0008| ($500) per session may be contributed to a fund or account that | 0009| accumulates until a player wins the accumulated amount; | 0010| FF. "qualified organization" means any entity within | 0011| the state, not organized for pecuniary profit, that has been so | 0012| engaged for two years immediately prior to making application | 0013| for license under the Charitable Gaming Act and that has been | 0014| granted an exemption from federal income taxation by the United | 0015| States commissioner of internal revenue as an organization | 0016| described in Section 501 of the United States Internal Revenue | 0017| Code of 1986; | 0018| GG. "raffle" means the selling of tickets or similar | 0019| products with winners to be determined by a drawing of tickets | 0020| on a random basis for predetermined prizes; | 0021| HH. "religious organization" means any qualified | 0022| organization that is a church, body of communicants or group, | 0023| not organized for pecuniary profit, gathered in common | 0024| membership for mutual support and edification in piety, worship | 0025| and religious observances or a society, not for pecuniary | 0001| profit, of individuals united for religious purposes at a | 0002| definite place; | 0003| II. "session" or "occasion" means a single gathering | 0004| at which a series of successive bingo games are played; | 0005| JJ. "veterans' organization" means any qualified | 0006| organization within the state or any branch, post, lodge or | 0007| chapter of a national or state organization within the state, | 0008| not organized for pecuniary profit, the membership of which | 0009| consists of individuals who were members of the armed services | 0010| or forces of the United States; | 0011| KK. "video bingo" means any bingo game utilizing a | 0012| computer-generated card image to display and track numbers and | 0013| letters as they are called; and | 0014| LL. "voluntary firemen's organization" means any | 0015| qualified organization for firefighting within the state, not | 0016| organized for pecuniary profit, established by the state or any | 0017| of its political subdivisions." | 0018| Section 4. Section 60-2B-4 NMSA 1978 (being Laws 1981, | 0019| Chapter 259, Section 4, as amended) is amended to read: | 0020| "60-2B-4. LICENSING AUTHORITY--POWERS--DUTIES.-- | 0021| A. The regulation and licensing department is | 0022| designated as the "licensing authority" of the ~~[Bingo and~~ | 0023| ~~Raffle]~~ Charitable Gaming Act. The superintendent of | 0024| regulation and licensing is the executive in charge of enforce- | 0025| ment of the terms and provisions of that act and, as the state | 0001| licensing authority, has the powers and duties as follows: | 0002| (1) to grant or refuse licenses under the | 0003| ~~[Bingo and Raffle]~~ Charitable Gaming Act ~~[In addition, the~~ | 0004| ~~licensing authority has the power, on its own motion based on~~ | 0005| ~~reasonable grounds or on complaint made and after investigation~~ | 0006| ~~by the special investigations division of the public safety~~ | 0007| ~~department and public hearing at which the licensee shall be~~ | 0008| ~~afforded an opportunity to be heard, to assess administrative~~ | 0009| ~~fines to the licensee and to suspend or revoke any license~~ | 0010| ~~issued by the licensing authority for any violation by the~~ | 0011| ~~licensee or any officer, director, agent, member or employee of~~ | 0012| ~~the licensee of the provisions of that act or any rule or~~ | 0013| ~~regulation authorized under that act. Notice of suspension or~~ | 0014| ~~revocation, as well as notice of the hearing, shall be given by~~ | 0015| ~~certified mail to the licensee at the address contained in the~~ | 0016| ~~license. Any license may be temporarily suspended for a period~~ | 0017| ~~not to exceed thirty days pending any prosecution, investigation~~ | 0018| ~~or public hearing]~~; | 0019| (2) to supervise the administration of the | 0020| ~~[Bingo and Raffle]~~ Charitable Gaming Act and to adopt, amend | 0021| and repeal rules and regulations governing the ~~[holding,~~ | 0022| ~~operating and conducting]~~ operation of games of chance, the | 0023| rental of premises and the purchase of equipment to the end that | 0024| games of chance shall be held, operated and conducted only by | 0025| licensees for the purposes and in conformity with the | 0001| constitution of New Mexico and the provisions of that act; | 0002| (3) to hear and determine at public hearings | 0003| all complaints against any licensee and to administer oaths and | 0004| issue subpoenas to require the presence of persons and | 0005| production of papers, books and records necessary to the | 0006| determination of any hearing so held; | 0007| (4) to keep records of all actions and | 0008| transactions of the licensing authority; | 0009| (5) to assess administrative fines on a | 0010| licensee and to suspend or revoke any license issued by the | 0011| licensing authority for any violation by the licensee or any | 0012| officer, director, agent, member or employee of the licensee of | 0013| any provision of the Charitable Gaming Act or any rule or | 0014| regulation authorized under that act; | 0015| ~~[(5)]~~ (6) to prepare and transmit annually, | 0016| in the form and manner prescribed by the licensing authority | 0017| pursuant to the provisions of law, a report accounting to the | 0018| governor and the legislature for the efficient discharge of all | 0019| responsibilities assigned by law or directive to the licensing | 0020| authority; and | 0021| ~~[(6)]~~ (7) to issue publications of the | 0022| licensing authority intended for circulation in quantity outside | 0023| the executive branch in accordance with fiscal rules promulgated | 0024| by the licensing authority. | 0025| B. Proceedings brought against a licensee for a | 0001| violation of the ~~[Bingo and Raffle]~~ Charitable Gaming Act | 0002| shall be brought by the licensing authority by serving, in the | 0003| manner provided in the rules of civil procedure, a complaint | 0004| upon the licensee and notifying the licensee of the place and | 0005| date, not less than twenty days after the date of service, at | 0006| which a hearing shall be held. The complaint shall set forth, | 0007| in the manner of complaints in civil action, the violations of | 0008| the ~~[Bingo and Raffle]~~ Charitable Gaming Act or the rules | 0009| and regulations of the licensing authority ~~[which]~~ that the | 0010| licensing authority alleges the licensee has committed. The | 0011| licensing authority ~~[or the public safety department]~~ may | 0012| ~~[stop]~~ halt the operation of a game of chance pending | 0013| hearing, ~~[in which case the hearing shall be held within ten~~ | 0014| ~~days after notice]~~ pursuant to rules and regulations adopted | 0015| pursuant to the Administrative Procedures Act. | 0016| C. The licensing authority shall cause the notice of | 0017| hearing to be served personally upon an officer of the licensee | 0018| or the ~~[member in charge of the conduct of the game of chance]~~ | 0019| game manager or to be sent by registered or certified mail to | 0020| the licensee at the address shown in the license. | 0021| D. When proceedings are brought against a licensee | 0022| for a violation of the ~~[Bingo and Raffle]~~ Charitable Gaming | 0023| Act, the licensing authority shall hear the matter and make | 0024| written findings in support of its decision. The licensee shall | 0025| be informed immediately of the decision and, in the event of a | 0001| suspension or revocation, the effective date of the suspension | 0002| or revocation. | 0003| E. For petty violations by a licensee of the | 0004| Charitable Gaming Act, the licensing authority may assess an | 0005| administrative fine not to exceed one hundred dollars ($100) per | 0006| violation. The superintendent of regulation and licensing shall | 0007| adopt regulations defining what constitutes petty violations. | 0008| ~~[E.]~~ F. For the first violation by a licensee of | 0009| the ~~[Bingo and Raffle]~~ Charitable Gaming Act the licensing | 0010| authority may assess an administrative fine of not to exceed | 0011| ~~[one thousand dollars ($1,000)]~~ two hundred fifty dollars | 0012| ($250). For a second or subsequent violation by the licensee | 0013| of that act, for other than a petty violation, the licensing | 0014| authority may assess an administrative fine of not to exceed two | 0015| thousand five hundred dollars ($2,500) ~~[The amount of the~~ | 0016| ~~administrative fine shall be determined by the severity and~~ | 0017| ~~nature of the violation of the Bingo and Raffle Act and by the~~ | 0018| ~~number of prior violations of that act]~~ and suspension of | 0019| license in accordance with rules and regulations to be adopted | 0020| by the licensing authority. | 0021| G. For violation of the provisions of the | 0022| Charitable Gaming Act or any regulation promulgated pursuant to | 0023| that act, no suspension or revocation shall take place until the | 0024| licensee has been given written notice of the violation and | 0025| proposed penalty and provided a reasonable period of time to | 0001| cure or correct the violation. | 0002| ~~[F.]~~ H. When a license is ordered suspended or | 0003| revoked, the licensee shall surrender the license to the | 0004| licensing authority on or before the effective date of the | 0005| suspension or revocation. No license is valid beyond the | 0006| effective date of the suspension or revocation, whether | 0007| surrendered or not. | 0008| ~~[G.]~~ I. Upon ~~[the finding of a violation of the~~ | 0009| ~~Bingo and Raffle Act or the rules and regulations, or both, that~~ | 0010| ~~would warrant the suspension or]~~ revocation of a license, the | 0011| licensing authority, in addition to any other penalties | 0012| ~~[which]~~ that may be imposed, may declare the violator | 0013| ineligible to conduct a game of chance and to apply for a li- | 0014| cense under ~~[that]~~ the Charitable Gaming Act for a period | 0015| not exceeding ~~[twelve]~~ twenty-four months. The declaration | 0016| of ineligibility may be extended to include, in addition to the | 0017| violator, any of its subsidiary organizations, its parent | 0018| organization or an organization otherwise affiliated with the | 0019| violator when, in the opinion of the licensing authority, the | 0020| circumstances of the violation warrant that action. | 0021| ~~[H.]~~ J. Upon receipt by a licensee of a | 0022| complaint signed by the licensing authority and notice of a | 0023| hearing, the licensee shall answer, in the manner of civil | 0024| actions, the complaint and inform the licensing authority | 0025| whether oral argument is desired and whether the licensee | 0001| desires to produce witnesses. | 0002| ~~[I.]~~ K. At the request of any party and for good | 0003| cause shown, the licensing authority or the department of | 0004| public safety ~~[department]~~ shall issue subpoenas for the | 0005| attendance of witnesses and the production of books, records and | 0006| other documents ~~[but in no case shall a subpoena be made~~ | 0007| ~~returnable more than five days after service]~~. | 0008| ~~[J.]~~ L. Whenever oral testimony of witnesses is | 0009| taken at the hearing, the licensing authority ~~[or]~~, the | 0010| department of public safety ~~[department shall have]~~ or the | 0011| licensee may request, at the expense of the requesting party, a | 0012| certified reporter to be present to prepare a record of the | 0013| proceedings. The original transcript shall be ~~[filed with the~~ | 0014| ~~licensing authority]~~ the property of the party paying for the | 0015| record. Any party is entitled to secure a copy from the | 0016| reporter at his own expense. | 0017| ~~[K.]~~ M. Hearings may be convened by the | 0018| licensing authority from time to time at the request of any | 0019| party, but only for good cause shown. Hearings shall be held | 0020| and concluded with reasonable dispatch and without unnecessary | 0021| delay. The licensing authority shall decide any matter within | 0022| thirty days of the hearing. | 0023| ~~[L.]~~ N. Upon the determination of any matter | 0024| heard, the licensing authority shall state its findings. All | 0025| parties shall be notified by the licensing authority of the | 0001| action of the licensing authority and shall be furnished a copy | 0002| of the findings. | 0003| ~~[M.]~~ O. Licensees and applicants for a license | 0004| or the licensee may be represented by counsel. | 0005| ~~[N.]~~ P. Any person appearing before the | 0006| licensing authority in a representative capacity shall be | 0007| required to show his authority to act in that capacity. | 0008| ~~[O.]~~ Q. No person shall be excused from | 0009| testifying or producing any book or document pertaining to the | 0010| charges made in any investigation or hearing when ordered to do | 0011| so by the licensing authority upon the ground that testimony or | 0012| documentary evidence required of him may tend to incriminate or | 0013| subject him to penalty or forfeiture, but no ~~[person may be~~ | 0014| ~~prosecuted, punished or subjected to any penalty or forfeiture~~ | 0015| ~~on account of any matter or thing concerning which he, under~~ | 0016| ~~oath, testified or produced documentary evidence]~~ person's | 0017| testimony or production of any book or document may be used in a | 0018| criminal proceeding, except that he shall not be exempt from | 0019| prosecution or punishment for any perjury committed by him in | 0020| his testimony. | 0021| ~~[P.]~~ R. If a person subpoenaed to attend in any | 0022| investigation or hearing fails to obey the command of the | 0023| subpoena without reasonable cause or if a person in attendance | 0024| in any investigation or hearing refuses, without lawful cause, | 0025| to be examined or to answer a legal or pertinent question or to | 0001| exhibit any book, account, record or other document pertaining | 0002| directly to the investigation when ordered to do so by the | 0003| representative of the licensing authority holding the hearing or | 0004| by the department of public safety ~~[department]~~ performing | 0005| the investigation, the licensing authority or the department | 0006| of public safety ~~[department]~~ may apply to any judge of the | 0007| district court, upon proof by affidavit of the facts, for an | 0008| order returnable in not less than five nor more than ten days | 0009| directing the person to show cause before the judge why he | 0010| should not comply with the subpoena or order. | 0011| ~~[Q.]~~ S. Upon return of the order, the judge | 0012| before whom the matter comes for hearing shall examine the | 0013| person under oath. If the judge determines after giving the | 0014| person an opportunity to be heard that he refused without lawful | 0015| excuse to comply with the subpoena or the order of the licensing | 0016| authority or the department of public safety ~~[department]~~ | 0017| holding the investigation, the judge may order the person to | 0018| comply with the subpoena or order forthwith, and any failure to | 0019| obey the order of the judge may be punished as a contempt of the | 0020| district court. | 0021| ~~[R.]~~ T. Every witness is entitled to be paid for | 0022| attendance or attendance and travel by the party on whose behalf | 0023| he is subpoenaed, at the rates prescribed by law for witnesses | 0024| in the district court, before being required to testify. | 0025| ~~[S.]~~ U. The decision of the licensing authority | 0001| ~~[in suspending or revoking]~~ to suspend or revoke any license | 0002| under the ~~[Bingo and Raffle]~~ Charitable Gaming Act shall be | 0003| subject to review. Any licensee aggrieved by a decision, within | 0004| thirty days after ~~[receipt of a copy]~~ entry of the order of | 0005| the licensing authority, may file a petition in the district | 0006| court. ~~[of Santa Fe county. That]~~ The court has ju- | 0007| risdiction, after notice to the licensing authority, to hear and | 0008| determine the petition and to affirm, reverse, vacate or modify | 0009| the order of the licensing authority complained of if, upon con- | 0010| sideration of the record, the court is of the opinion that the | 0011| order was unlawful or unreasonable. | 0012| ~~[T.]~~ V. Upon any petition being filed, a copy | 0013| shall be served upon the licensing authority by delivery of a | 0014| copy to the licensing authority. ~~[In the petition, the~~ | 0015| ~~petitioner shall be denominated as respondent.]~~ The petition | 0016| shall set forth the errors complained of. | 0017| ~~[U.]~~ W. Upon service of a petition, the | 0018| licensing authority, within twenty days or within such further | 0019| time as the court may grant, shall file an answer to the | 0020| petition in the office of the clerk of the court. With its | 0021| answer, the licensing authority shall file a transcript of the | 0022| records and orders of the licensing authority and a transcript | 0023| of all papers and of all evidence adduced upon the hearing be- | 0024| fore the licensing authority in the proceedings complained of. | 0025| The | 0001| court shall hear and determine the matter upon the petition, | 0002| answer and transcripts. | 0003| ~~[V.]~~ X. No proceeding to vacate, reverse or | 0004| modify any final order rendered by the licensing authority shall | 0005| operate to stay the execution or effect of any final order | 0006| unless the district court, on application and three days' notice | 0007| to the licensing authority, allows the stay. In the event a | 0008| stay is ordered, the petitioner shall be required to execute his | 0009| bond in a sum the court may prescribe, with sufficient surety to | 0010| be approved by the judge or clerk of the court, which bond shall | 0011| be conditioned upon the faithful performance by the petitioner | 0012| of his obligation as a licensee and upon the prompt payment of | 0013| all damages arising from or caused by the delay in the taking | 0014| effect or enforcement of the order complained of and for all | 0015| costs that may be assessed or required to be paid in connection | 0016| with the proceedings." | 0017| Section 5. Section 60-2B-5 NMSA 1978 (being Laws 1981, | 0018| Chapter 259, Section 5) is repealed and a new Section 60-2B-5 | 0019| NMSA 1978 is enacted to read: | 0020| "60-2B-5. [NEW MATERIAL] AUTHORITY OF THE DEPARTMENT OF | 0021| PUBLIC SAFETY.--The department of public safety has authority | 0022| over all investigations and enforcement activities required | 0023| pursuant to the Charitable Gaming Act, except for those | 0024| provisions relating to the issuance, denial, suspension or | 0025| revocation of licenses unless its assistance is requested by the | 0001| superintendent of regulation and licensing." | 0002| Section 6. Section 60-2B-6 NMSA 1978 (being Laws 1981, | 0003| Chapter 259, Section 6) is repealed and a new Section 60-2B-6 | 0004| NMSA 1978 is enacted to read: | 0005| "60-2B-6. [NEW MATERIAL] ORGANIZATIONS ENTITLED TO | 0006| LICENSES--FEES.-- | 0007| A. The licenses provided under the Charitable Gaming | 0008| Act shall be issued by the licensing authority to applicants | 0009| qualified under that act upon payment of a fee as follows for: | 0010| (1) bingo and pull tabs, including machines, | 0011| five hundred dollars ($500); | 0012| (2) raffle, one hundred fifty dollars ($150); | 0013| (3) distributor, five thousand dollars | 0014| ($5,000); and | 0015| (4) building lessor, five hundred dollars | 0016| ($500). | 0017| B. The licenses shall expire at the end of the | 0018| calendar year in which they are issued by the licensing | 0019| authority and may be renewed by the licensing authority upon the | 0020| filing of an application for renewal provided by the licensing | 0021| authority and the payment of a fee in accordance with the | 0022| schedule in Subsection A of this section. No license or renewal | 0023| granted under the Charitable Gaming Act shall be transferable. | 0024| C. No licensee shall be eligible to have more than | 0025| one charitable gaming license of the same type, and no bingo, | 0001| pull tab or raffle licensee shall have more than one licensed | 0002| gaming location, except that a fraternal or any organization | 0003| defined in Subsection J, T or KK of Section 60-2B-3 NMSA 1978, | 0004| or a veterans' organization operating under a national or state | 0005| charter, may apply for a separate pull tab license, including | 0006| electronic finite pull tab machines, for its post, chapter or | 0007| club but only if that post, chapter or club is restricted to | 0008| members and guests of the licensed organization. This does not | 0009| preclude the auxiliary of the licensee, if the licensing | 0010| requirements have been met, from applying for and receiving a | 0011| license to operate games of chance under the provisions of the | 0012| Charitable Gaming Act. | 0013| D. Except as otherwise provided in Section 60-2B-7 | 0014| NMSA 1978, no bingo, pull tab or raffle licensee shall lease, | 0015| rent or purchase any gaming materials, supplies or equipment, | 0016| including electronic aids, from any source, except a distributor | 0017| licensed under the Charitable Gaming Act. | 0018| E. When an amendment is made to a license, a fee of | 0019| twenty-five dollars ($25.00) shall be remitted to the licensing | 0020| authority prior to the acceptance of the amendment. | 0021| F. The revenue collected from all fees is | 0022| appropriated to the licensing department to be used for the | 0023| administration of the Charitable Gaming Act only." | 0024| Section 7. Section 60-2B-7 NMSA 1978 (being Laws 1981, | 0025| Chapter 259, Section 7) is repealed and a new Section 60-2B-7 | 0001| NMSA 1978 is enacted to read: | 0002| "60-2B-7. [NEW MATERIAL] APPLICATION FOR GAMING | 0003| LICENSES.-- | 0004| A. Each applicant for a bingo, pull tab or raffle | 0005| license to be issued under the provisions of this section shall | 0006| file with the licensing authority a written application in the | 0007| form prescribed by the licensing authority, duly executed and | 0008| verified, and in which shall be included: | 0009| (1) the name and address of the applicant; | 0010| (2) except for a veterans' organization, a | 0011| state charter or other similar evidences evidencing that the | 0012| organization has been in existence in the state for two | 0013| consecutive years prior to making application under the | 0014| Charitable Gaming Act; | 0015| (3) a certificate of good standing current to | 0016| within sixty days of the date of application; | 0017| (4) if the organization is a veterans' | 0018| organization or a chartered branch, post, lodge or chapter of a | 0019| national or state organization, a copy of the national or state | 0020| roster that evidences all branches, posts, lodges or chapters in | 0021| good standing shall suffice as a written application if the | 0022| branch, post, lodge or chapter has been in continuous operation | 0023| for a period of not less than two years immediately prior to | 0024| making application under the Charitable Gaming Act; | 0025| (5) a letter of exemption from the internal | 0001| revenue service evidencing that the applying organization has | 0002| been granted a federal tax exemption under one or more of the | 0003| sections of the Internal Revenue Code of 1986, except for those | 0004| organizations qualifying under Paragraph (4) of this subsection; | 0005| (6) a notarized statement from the applying | 0006| organization signed by its chief executive officer and by its | 0007| treasurer or chief financial officer stating that all net | 0008| profits derived from the operation of any games of chance under | 0009| the Charitable Gaming Act after those profits have been paid | 0010| over to its general, corporate or operating account shall be | 0011| utilized in compliance with Section 501 of the Internal Revenue | 0012| Code of 1986, and with all the rules and regulations promulgated | 0013| under that section under which the letter of exemption has been | 0014| granted to the organization; | 0015| (7) if an exemption from federal taxes is | 0016| acquired through a national or state organization, or a diocese | 0017| or similar governing body in the case of a church or religious | 0018| organization, a copy of that exemption and sufficient data to | 0019| show that exemption extends to the applying organization, except | 0020| for those organizations qualifying under Paragraph (4) of this | 0021| subsection; | 0022| (8) any additional information required by the | 0023| licensing authority relating to the organization to prove to the | 0024| licensing authority that it is a qualified organization; | 0025| (9) the names and addresses of the applying | 0001| organization's officers; | 0002| (10) a listing of the membership of the | 0003| organization; | 0004| (11) the specific kind of games of chance | 0005| intended to be operated by the applying organization under the | 0006| license applied for; and | 0007| (12) the place where the games of chance are | 0008| intended to be operated by the applying organization under the | 0009| license applied for, and, if the premises are to be rented or | 0010| leased, a copy of the lease specifying rental rates for the | 0011| building and equipment. | 0012| B. In each application, there shall be members | 0013| designated to operate the games of chance for which application | 0014| is being made, and those members shall have been active members | 0015| of the applying organization for no less than six months prior | 0016| to the application being made by the applying organization. | 0017| These designated persons shall be the game manager, the | 0018| assistant game manager and the alternate game manager. The | 0019| alternate game manager is authorized to act as the member in | 0020| charge only in the absence of the game manager and assistant | 0021| game manager. Attached to the application shall be a statement | 0022| executed by the applicant, the game manager, the assistant game | 0023| manager and the alternate game manager stating that they will be | 0024| responsible for the operation of games of chance in accordance | 0025| with the terms of the license and provisions of the Charitable | 0001| Gaming Act. | 0002| C. If any officer or pastor of the applicant | 0003| organization is submitted as game manager, assistant game | 0004| manager or alternate game manager, the executive committee, | 0005| board of directors or primary governing body of the applicant | 0006| organization shall submit a statement, duly signed by all | 0007| members of the governing body, authorizing those officers to be | 0008| so appointed and stating that all proceeds from operating games | 0009| of chance under the Charitable Gaming Act shall be utilized in | 0010| compliance with Section 501 of the Internal Revenue Code of 1986 | 0011| and with the provisions of the charter of the applying | 0012| organization." | 0013| Section 8. A new Section 60-2B-7.1 NMSA 1978 is enacted to | 0014| read: | 0015| "60-2B-7.1. [NEW MATERIAL] DISPLAY OF LICENSE.--Each | 0016| license issued for the conduct of any games of chance shall be | 0017| conspicuously displayed at all times during the conduct of the | 0018| games and for at least thirty minutes after the last game has | 0019| been concluded or after the premises have been vacated, | 0020| whichever comes first." | 0021| Section 9. Section 60-2B-8 NMSA 1978 (being Laws 1981, | 0022| Chapter 259, Section 8) is amended to read: | 0023| "60-2B-8. PERSONS PERMITTED TO CONDUCT GAMES--PREMISES--EQUIPMENT--EXPENSES ~~[COMPENSATION]~~.-- | 0024| A. No person shall ~~[hold]~~ operate ~~[or conduct]~~ | 0025| any ~~[games]~~ game of chance under any license issued under | 0001| the ~~[Bingo and Raffle]~~ Charitable Gaming Act except ~~[an~~ | 0002| ~~active member of the organization to which the license is~~ | 0003| ~~issued, and no person shall assist in the holding, operating or~~ | 0004| ~~conducting of any games of chance under that license except an~~ | 0005| ~~active member or a member of an organization or association~~ | 0006| ~~which is an auxiliary to the licensee, a member of an~~ | 0007| ~~organization or association of which the licensee is an~~ | 0008| ~~auxiliary or a member of an organization or association which is~~ | 0009| ~~affiliated with the licensee by being, with it, auxiliary to~~ | 0010| ~~another organization or association and except bookkeepers or~~ | 0011| ~~accountants as provided in this section. No item of expense~~ | 0012| ~~shall be incurred or paid in connection with the holding,~~ | 0013| ~~operating or conducting of any game of chance held, operated or~~ | 0014| ~~conducted pursuant to any license issued under that act except~~ | 0015| ~~bona fide expenses in reasonable amount for goods, wares and~~ | 0016| ~~merchandise furnished or services rendered, reasonably necessary~~ | 0017| ~~for the holding, operating or conducting thereof. No games of~~ | 0018| ~~chance shall be conducted with any equipment except that which~~ | 0019| ~~is owned or leased by the licensee]~~ the game manager, | 0020| assistant game manager or alternate game manager. | 0021| B. The ~~[officers]~~ governing body of a licensee | 0022| shall designate ~~[a bona fide]~~ three active ~~[member]~~ | 0023| members of the licensee, ~~[to]~~ any of whom shall be in | 0024| charge of and primarily responsible for the conduct of the | 0025| games of ~~[bingo or lotto on]~~ chance in each ~~[occasion]~~ | 0001| session. The ~~[member in charge]~~ game manager, assistant | 0002| game manager or alternate game manager shall supervise all | 0003| activities ~~[on the occasion]~~ for the session for which he is | 0004| in charge and be responsible for the making of the required | 0005| report. The member in charge shall be familiar with the | 0006| provisions of the state laws, the rules and regulations of the | 0007| licensing authority and the provisions of the license. He shall | 0008| be present on the premises continuously during the games and for | 0009| a period of at least thirty minutes after the last game | 0010| ~~[C. The officers of a licensee shall designate an~~ | 0011| ~~officer to be in full charge and primarily responsible for the~~ | 0012| ~~proper utilization of the entire net proceeds of any game in~~ | 0013| ~~accordance with state law.~~ | 0014| ~~D. The entire net proceeds of any game shall be~~ | 0015| ~~devoted to a lawful use or uses.~~ | 0016| ~~E. Each license issued for the conduct of games of~~ | 0017| ~~chance shall be conspicuously displayed at the place where any~~ | 0018| ~~game is being conducted at all times during the conduct of the~~ | 0019| ~~game and for at least thirty minutes after the last game has~~ | 0020| ~~been concluded.~~ | 0021| ~~F. The premises where any game of chance is being~~ | 0022| ~~held, operated or conducted or where it is intended that any~~ | 0023| ~~equipment be used shall at all times be open to inspection by~~ | 0024| ~~the licensing authority, its agents and employees and by peace~~ | 0025| ~~officers of any political subdivision of the state.~~ | 0001| ~~G. No licensee may hold, operate or conduct a game~~ | 0002| ~~of bingo or lotto more often than on two hundred sixty occasions~~ | 0003| ~~in any calendar year.~~ | 0004| ~~H. When any merchandise prize is awarded in a game~~ | 0005| ~~of bingo, its value shall be its current retail price. No~~ | 0006| ~~merchandise prize shall be redeemable or convertible into cash~~ | 0007| ~~directly or indirectly.~~ | 0008| ~~I. Equipment, prizes and supplies for games of bingo~~ | 0009| ~~shall not be purchased or sold at prices in excess of the usual~~ | 0010| ~~price thereof.~~ | 0011| ~~J. The aggregate amount of all prizes offered or~~ | 0012| ~~given in all games played on a single occasion shall not exceed~~ | 0013| ~~one thousand five hundred dollars ($1,500), which shall be~~ | 0014| ~~exclusive of pull tabs.~~ | 0015| ~~K. No games shall be conducted more than five times~~ | 0016| ~~in any one calendar week, with no game lasting more than four~~ | 0017| ~~hours on each occasion and not more than two occasions in one~~ | 0018| ~~calendar day by any one licensee.~~ | 0019| ~~L. The net profits derived from the holding of games~~ | 0020| ~~of chance must be devoted to the lawful purposes of the~~ | 0021| ~~organization permitted to conduct the games. Any organization~~ | 0022| ~~desiring to hold the net profits of games of chance for a period~~ | 0023| ~~longer than one year must apply to the licensing authority for~~ | 0024| ~~special permission, and, upon good cause shown, the authority~~ | 0025| ~~shall grant the request.~~ | 0001| ~~M. Any licensee which does not report, during any~~ | 0002| ~~one-year period, net profits will be required to show cause~~ | 0003| ~~before the licensing authority why its right to conduct games of~~ | 0004| ~~bingo should not be revoked.~~ | 0005| ~~N. No person shall assist in the holding, operating~~ | 0006| ~~or conducting of a bingo game under any license except bona fide~~ | 0007| ~~active members of the licensee, active members of any~~ | 0008| ~~organization which is an auxiliary to the licensee or active~~ | 0009| ~~members of an organization which is affiliated with the licensee~~ | 0010| ~~by being, with it, auxiliary to another organization.~~ | 0011| ~~O. The equipment used in the playing of bingo and~~ | 0012| ~~the method of play shall be such that each card has an equal~~ | 0013| ~~opportunity to be a winner. The objects or balls to be drawn~~ | 0014| ~~shall be essentially the same as to size, shape, weight, balance~~ | 0015| ~~and all other characteristics that may influence their~~ | 0016| ~~selection. All objects or balls shall be present in the~~ | 0017| ~~receptacle before each game is begun. All numbers announced~~ | 0018| ~~shall be plainly and clearly audible to all the players present.~~ | 0019| ~~Where more than one room is used for any one game, the~~ | 0020| ~~receptacle and the caller must be present in the room where the~~ | 0021| ~~greatest number of players are present, and all numbers~~ | 0022| ~~announced shall be plainly audible to the players in the~~ | 0023| ~~aforesaid room and also audible to the players in the other~~ | 0024| ~~rooms. A fair and equal chance shall be given to all~~ | 0025| ~~participants, and any licensee, its representative, agent or~~ | 0001| ~~employees whose acts or action may tend to negate the "right of~~ | 0002| ~~equal chance" shall constitute grounds for revoking such~~ | 0003| ~~license.~~ | 0004| ~~P. The receptacle the caller who removes the objects~~ | 0005| ~~or balls from the receptacle must be visible to all the players~~ | 0006| ~~at all times except where more than one room is used for any one~~ | 0007| ~~game, in which case the provisions of Subsection O of this~~ | 0008| ~~section shall prevail.~~ | 0009| ~~Q. The particular arrangement of numbers required to~~ | 0010| ~~be covered in order to win the game and the amount of the prize~~ | 0011| ~~shall be clearly and audibly described and announced to the~~ | 0012| ~~players immediately before each game is begun.~~ | 0013| ~~R. Any player is entitled to call for a verification~~ | 0014| ~~of all numbers drawn at the time a winner is determined and for~~ | 0015| ~~a verification of the objects or balls remaining in the~~ | 0016| ~~receptacle and not yet drawn. The verification shall be made in~~ | 0017| ~~the immediate presence of the member designated to be in charge~~ | 0018| ~~of the occasion but, if such member is also the caller, then in~~ | 0019| ~~the immediate presence of any officer of the licensee.~~ | 0020| ~~S. In the playing of bingo, no person who is not~~ | 0021| ~~physically present on the premises where the game is actually~~ | 0022| ~~conducted shall be allowed to participate as a player in the~~ | 0023| ~~game.~~ | 0024| ~~T. No person shall act as a caller in the conduct of~~ | 0025| ~~any game of bingo unless he has been a member in good standing~~ | 0001| ~~of the licensee conducting the game or one of its licensed~~ | 0002| ~~auxiliaries for at least six months immediately prior to the~~ | 0003| ~~date of such game, is of good moral character and has never been~~ | 0004| ~~convicted of a felony.~~ | 0005| ~~U. No owner, co-owner or lessee of the premises or,~~ | 0006| ~~if a corporation is the owner of the premises, any officer,~~ | 0007| ~~director or stockholder owning more than ten percent of the~~ | 0008| ~~outstanding stock shall be a person responsible for or assisting~~ | 0009| ~~in the holding, operating or conducting of any game of bingo]~~ | 0010| or until the premises are vacated, whichever comes first." | 0011| Section 10. Section 60-2B-9 NMSA 1978 (being Laws 1981, | 0012| Chapter 259, Section 9, as amended) is amended to read: | 0013| "60-2B-9. REPORTS REQUIRED--CRITERIA--DEFINITIONS--TAX | 0014| IMPOSED.-- | 0015| A. On ~~[April 15, July 15, October 15 and January~~ | 0016| ~~15]~~ or before the fifteenth day of each ~~[year]~~ month, the | 0017| licensee shall file with the licensing authority upon forms | 0018| prescribed by the licensing authority a duly verified statement | 0019| covering the preceding calendar ~~[quarter]~~ month showing the | 0020| amount of the gross ~~[receipts]~~ income and adjusted gross | 0021| income derived during that period from games of chance, ~~[the~~ | 0022| ~~expenses incurred or paid and a brief description of the~~ | 0023| ~~classification of the expenses]~~ the name and address of each | 0024| person to whom has been paid ~~[two hundred fifty dollars~~ | 0025| ~~($250)]~~ one thousand two hundred dollars ($1,200) or more in | 0001| gross prizes and the ~~[purpose of the expenditure]~~ nature of | 0002| those prizes and the net proceeds derived from each game of | 0003| chance ~~[and the uses to which the net proceeds have been or are~~ | 0004| ~~to be applied]~~. It is the duty of each licensee to maintain | 0005| and keep the books and records necessary to substantiate the | 0006| particulars of each report. | 0007| B. If a licensee fails to file reports within the | 0008| time required or if the reports are not properly verified or not | 0009| fully, accurately and truthfully completed, any existing license | 0010| may be suspended until the default has been corrected. | 0011| C. If a licensee fails to file reports within the | 0012| time required, a two hundred fifty dollar ($250) penalty shall | 0013| be assessed. In addition, the licensee may be levied the sum of | 0014| twenty-five dollars ($25.00) for each day the report is filed | 0015| late, up to a maximum of seven hundred fifty dollars ($750). | 0016| D. The revenue collected from any penalty assessed | 0017| in Subsection C of this section shall be used for the | 0018| administration of the Charitable Gaming Act. | 0019| ~~[C.]~~ E. All money collected or received from the | 0020| sale of admission, ~~[extra]~~ regular cards, extra cards, paper | 0021| special game cards, video bingo machines, bingo machines, pull | 0022| tabs, electronic pull tab machines, raffles, the sale of | 0023| supplies and all other receipts from the games of ~~[bingo]~~ | 0024| chance shall be deposited in a special account of the licensee | 0025| ~~[which shall contain only such money]~~ entitled "bingo | 0001| account". All expenses for the ~~[game]~~ games of chance | 0002| shall be withdrawn from the bingo account by consecutively | 0003| numbered checks duly signed by ~~[specified officers]~~ the game | 0004| manager, assistant game manager or alternate game manager of | 0005| the licensee and payable to a specific person or organization. | 0006| There shall be written on the check the nature of the expense | 0007| for which the check is drawn. No check shall be drawn to "cash" | 0008| or a fictitious payee. | 0009| ~~[D. No part of the net profits, after they have~~ | 0010| ~~been given over to another organization, shall be used by the~~ | 0011| ~~donee organization to pay any person for services rendered or~~ | 0012| ~~materials purchased in connection with the conducting of games~~ | 0013| ~~of bingo by the donor organization.~~ | 0014| ~~E. No item of expense shall be incurred or paid in~~ | 0015| ~~connection with holding, operating or conducting any game of~~ | 0016| ~~chance pursuant to any license except bona fide expenses of a~~ | 0017| ~~reasonable amount.]~~ | 0018| F. All net proceeds shall be deposited in the | 0019| corporate, general or operating account of the qualified | 0020| organization. | 0021| G. Expenses may be incurred only for the following | 0022| operational purposes: | 0023| (1) the purchase of goods, wares and | 0024| merchandise furnished players as prizes and gaming materials, | 0025| such as bingo paper forms, pull tabs, video programs, software | 0001| programs, tickets and any material incidental or necessary to | 0002| the operation or conduct of bingo, pull tabs, electronic pull | 0003| tab gaming, bingo or raffle games of chance; | 0004| (2) payment for services rendered ~~[that are~~ | 0005| ~~reasonably necessary for repairs of equipment]~~ in operating | 0006| or conducting the ~~[game of bingo]~~ games of chance; | 0007| (3) ~~[for rent if the premises are rented or~~ | 0008| ~~for]~~ janitorial services if not ~~[rented]~~ included in the | 0009| rental agreement or lease for the rented premises; | 0010| (4) ~~[for]~~ accountant's fees; | 0011| (5) ~~[for]~~ license fees; ~~[and]~~ | 0012| (6) ~~[for]~~ utilities, including telephone | 0013| expenses; | 0014| (7) rental, repair and building maintenance | 0015| allowance; | 0016| (8) advertising; | 0017| (9) legal fees; | 0018| (10) bank and check verification charges, | 0019| liability insurance, workers' compensation insurance, employer | 0020| taxes, federal and state taxes and other required and necessary | 0021| insurance and taxes; | 0022| (11) equipment rental; and | 0023| (12) security services and equipment. | 0024| H. All net profits in the bingo account shall be | 0025| transferred to the corporate, general or operating account of | 0001| the qualified organization on a weekly basis, except for an | 0002| amount to be retained in the bingo account as reserve for taxes | 0003| to be paid to the licensing authority and a reserve in the | 0004| amount reasonably necessary to cover anticipated prizes. All | 0005| expenditures of the qualified organization in compliance with | 0006| the Internal Revenue Code of 1986 are to be paid from the | 0007| corporate, general or operating fund of the qualified | 0008| organization, as the bingo account is to be used solely for the | 0009| operation of games of chance. | 0010| I. Authorized expenses paid from the qualified | 0011| organization's bingo account are the only expenses that may be | 0012| incurred in conjunction with the operation of any game of | 0013| chance, and no other money may be used regardless of source, | 0014| including funds or donations to or from the qualified | 0015| organization or auxiliary. | 0016| ~~[F.]~~ J. For the purposes enumerated in | 0017| Subsection ~~[E]~~ I of this section, | 0018| ~~[(1) "goods, wares and merchandise" means~~ | 0019| ~~prizes, equipment as defined in Section 60-2B-3 NMSA 1978,~~ | 0020| ~~articles of a minor nature such as pencils, crayons, tickets,~~ | 0021| ~~envelopes, paper clips and coupons necessary to the conduct of~~ | 0022| ~~games of chance;~~ | 0023| ~~(2)]~~ "services rendered" means: | 0024| (1) repair to owned equipment; | 0025| ~~[reasonable compensation to bookkeepers or accountants, not~~ | 0001| ~~more than two in the aggregate, for services in preparing~~ | 0002| ~~financial reports for an amount not exceeding the total amount~~ | 0003| ~~of thirty dollars ($30.00) for each occasion, rental of premises~~ | 0004| ~~not exceeding the amount of fifty dollars ($50.00) for each~~ | 0005| ~~occasion except upon prior approval of a greater amount by the~~ | 0006| ~~licensing authority, a reasonable amount for janitorial service~~ | 0007| ~~not exceeding a total amount of fifty dollars ($50.00) for each~~ | 0008| ~~occasion, a reasonable amount for assisting in the operation not~~ | 0009| ~~exceeding a total amount of two hundred fifty dollars ($250),~~ | 0010| ~~and not exceeding twenty-five dollars ($25.00) for any one~~ | 0011| ~~employee, for each occasion and a reasonable amount for security~~ | 0012| ~~expense based on established need as determined by the licensing~~ | 0013| ~~authority]~~ | 0014| (2) amounts for other services of not more | 0015| than five hundred twenty-five dollars ($525) per session for | 0016| total payroll or not more than thirty-five dollars ($35.00) for | 0017| any employee; seventy-five dollars ($75.00) for the game | 0018| manager; fifty dollars ($50.00) for the assistant game manager; | 0019| or fifty dollars ($50.00) for the alternate game manager in the | 0020| absence of the game manager or assistant game manager; and | 0021| (3) a reasonable amount for pack preparation | 0022| not to exceed ten cents ($.10) per pack. | 0023| ~~[G.]~~ K. There shall be paid to the licensing | 0024| authority a tax equal to ~~[three]~~ six percent of the ~~[net~~ | 0025| ~~proceeds]~~ adjusted gross income of any game of chance held, | 0001| operated or conducted under the provisions of the ~~[Bingo and~~ | 0002| ~~Raffle]~~ Charitable Gaming Act. ~~[and]~~ No other state or | 0003| local gross receipts tax shall apply to the gross receipts of | 0004| any such game of chance. The revenue from the tax, | 0005| administrative receipts, license fees and civil fines and | 0006| penalties collected pursuant to the Charitable Gaming Act shall | 0007| be deposited in the general fund. | 0008| L. An amount equal to twenty percent of taxes | 0009| collected by the state under Subsection K of this section shall | 0010| be transferred to the municipal treasurer of the municipality in | 0011| which the premises generating the revenue are located or to the | 0012| county treasurer of the county in which the premises are located | 0013| if the premises are not within the boundaries of a municipality | 0014| for expenditure by the municipality or county in providing | 0015| additional services." | 0016| Section 11. A new Section 60-2B-9.1 NMSA 1978 is enacted | 0017| to read: | 0018| "60-2B-9.1. [NEW MATERIAL] RENTAL AGREEMENTS--VENDING | 0019| AND ENTERTAINMENT MACHINES.--Any income realized from vending or | 0020| entertainment machines installed in a building used for bingo, | 0021| except for those gaming machines specifically authorized in the | 0022| Charitable Gaming Act, may accrue to the bingo building lessor | 0023| or to the organizations, but that income shall not be used for | 0024| any licensed activity or for promotion of any licensed | 0025| activity." | 0001| Section 12. Section 60-2B-10 NMSA 1978 (being Laws 1981, | 0002| Chapter 259, Section 10) is repealed and a new Section 60-2B-10 | 0003| NMSA 1978 is enacted to read: | 0004| "60-2B-10. [NEW MATERIAL] EXAMINATION OF BOOKS, | 0005| RECORDS, OPERATIONS AND PREMISES.-- | 0006| A. At any time, without advance notice, any | 0007| authorized employee of the licensing authority may enter any | 0008| premises where any game of chance is being conducted, or where | 0009| it is intended that any game of chance will be conducted, or | 0010| where any equipment being used or intended to be used in the | 0011| conduct of a game of chance is found, for the purpose of | 0012| inspecting the operation, premises, equipment or the license | 0013| issued under the Charitable Gaming Act. | 0014| B. Any authorized employee of the licensing | 0015| authority may examine the bingo and pull tab books, papers, | 0016| records, equipment and dates of business of any licensee, in | 0017| order to verify the accuracy of required reports or the | 0018| expenditures of proceeds from the bingo account of any licensee. | 0019| C. Any refusal by a licensee to permit an | 0020| examination or inspection of the premises where games of chance | 0021| are conducted, license, equipment, books or papers or any other | 0022| type of record pertaining to the operation of games of chance | 0023| held or kept by the licensed organization, its game manager, | 0024| assistant game manager, alternate game manager or his officers | 0025| and directors is sufficient grounds for suspension of its | 0001| license pending a hearing to be conducted by the licensing | 0002| authority to show cause why the license issued under the | 0003| Charitable Gaming Act should not be revoked." | 0004| Section 13. Section 60-2B-11 NMSA 1978 (being Laws 1981, | 0005| Chapter 259, Section 11) is amended to read: | 0006| "60-2B-11. FORFEITURE OF LICENSE--INELIGIBILITY TO APPLY | 0007| FOR LICENSE.--Any person who makes any false statement in any | 0008| application for any license or in any statement annexed | 0009| ~~[thereto]~~ to an application, fails to keep sufficient books | 0010| and records to substantiate the quarterly reports required under | 0011| Section ~~[8 of the Bingo and Raffle Act]~~ 60-2B-9 NMSA 1978, | 0012| falsifies any books or records insofar as they relate to any | 0013| transaction connected with the holding, operating and conducting | 0014| of any game of chance under any ~~[such]~~ license or violates any | 0015| of the provisions of the ~~[Bingo and Raffle]~~ Charitable | 0016| Gaming Act or of any term of the license, if convicted, in | 0017| addition to suffering any other penalties ~~[which]~~ that may | 0018| be imposed shall forfeit any license issued to him under that | 0019| act and shall be ineligible to apply for a license under that | 0020| act for at least ~~[one year thereafter]~~ two years after | 0021| conviction." | 0022| Section 14. Section 60-2B-12 NMSA 1978 (being Laws 1981, | 0023| Chapter 259, Section 12, as amended) is amended to read: | 0024| "60-2B-12. ENFORCEMENT.--It is the duty of all sheriffs | 0025| and police officers to enforce the provisions of the ~~[Bingo and~~ | 0001| ~~Raffle]~~ Charitable Gaming Act. It is the duty of the district | 0002| attorney of the county in which a violation is committed to | 0003| prosecute such violation of that act in the manner and form as | 0004| is now provided by law for the prosecutions of crimes and | 0005| misdemeanors." | 0006| Section 15. Section 60-2B-13 NMSA 1978 (being Laws 1981, | 0007| Chapter 259, Section 13) is amended to read: | 0008| "60-2B-13. EXEMPTIONS.--Nothing in the ~~[Bingo and~~ | 0009| ~~Raffle]~~ Charitable Gaming Act shall be construed to apply to: | 0010| A. any drawing or any prize at any fair or fiesta | 0011| held in New Mexico under the sponsorship or authority of the | 0012| state or any of its political subdivisions, or for the benefit | 0013| of any church situated ~~[and being]~~ in this state or for | 0014| charitable purposes when all the proceeds of the sale or drawing | 0015| shall be expended within New Mexico for the benefit of that | 0016| church or charitable purpose, provided ~~[such]~~ the fair or | 0017| fiesta must have been held on an annual basis for not less than | 0018| two years immediately preceding and for a period of not more | 0019| than fourteen consecutive calendar days in each year; or | 0020| B. any bingo or raffle held by any group or | 0021| organization as defined in Section ~~[3 of the Bingo and Raffle~~ | 0022| ~~Act which]~~ 60-2B-3 NMSA 1978 that holds a bingo or raffle | 0023| only once during three consecutive calendar months and not | 0024| exceeding four occasions in one calendar year." | 0025| Section 16. Section 60-2B-14 NMSA 1978 (being Laws 1981, | 0001| Chapter 259, Section 14) is amended to read: | 0002| "60-2B-14. PENALTIES.--Every licensee and every officer, | 0003| agent or employee of the licensee and every other person or | 0004| corporation who willfully violates or who procures, aids or | 0005| abets in the willful violation of the ~~[Bingo and Raffle]~~ | 0006| Charitable Gaming Act is guilty of a misdemeanor and ~~[upon~~ | 0007| ~~conviction thereof shall be punished by a fine of not more than~~ | 0008| ~~one thousand dollars ($1,000) or by imprisonment in the county~~ | 0009| ~~jail for not more than six months, or by both such fine and~~ | 0010| ~~imprisonment]~~ shall be sentenced pursuant to the provisions of | 0011| Section 31-19-1 NMSA 1978." | 0012| Section 17. A new Section 60-2B-15 NMSA 1978 is enacted to | 0013| read: | 0014| "60-2B-15. [NEW MATERIAL] PRIZES.-- | 0015| A. When any merchandise prize is awarded in a game | 0016| of chance, its value shall be its current retail price. No | 0017| merchandise prize shall be redeemable or convertible into cash | 0018| directly or indirectly by the awarding organization. | 0019| B. The aggregate amount of all prizes offered or | 0020| given in all games played on a single occasion, including door | 0021| prizes and drawings, shall not exceed three thousand dollars | 0022| ($3,000), which shall be exclusive of pull tabs, electronic pull | 0023| tab gaming, video bingo, raffles and amounts paid from | 0024| accumulated progressive bingo funds or accounts. However, | 0025| amounts contributed to progressive bingo funds or accounts shall | 0001| be included in this limit at the time of contribution. | 0002| C. The conduct of all raffles, including the total | 0003| amount of prizes offered, shall be subject to the prior approval | 0004| of the licensing authority. | 0005| D. In progressive bingo, no more than five hundred | 0006| dollars ($500) per session may be contributed from the allowable | 0007| limit of three thousand dollars ($3,000) to a fund or account | 0008| that can accumulate until a player wins the accumulated amount. | 0009| E. Door prizes and drawings up to one thousand | 0010| dollars ($1,000) per session shall not require approval from the | 0011| licensing authority and shall not be included in the total | 0012| amount of prizes paid on each session held by the licensed | 0013| organization. Playing materials or discounts on playing | 0014| materials may be awarded in lieu of cash." | 0015| Section 18. A new Section 60-2B-16 NMSA 1978 is enacted to | 0016| read: | 0017| "60-2B-16. [NEW MATERIAL] NET PROCEEDS.-- | 0018| A. The net proceeds derived from the holding of | 0019| games of chance shall be utilized according to Section 501 of | 0020| the Internal Revenue Code of 1986 and all rules and regulations | 0021| promulgated under that section. The internal revenue service is | 0022| the agency authorized to determine compliance with that section | 0023| under which a letter of exemption has been granted to the | 0024| organization. | 0025| B. Any licensee that does not report net proceeds | 0001| from its licensed activities during any one-quarter period will | 0002| be required to show cause before the licensing authority why its | 0003| right to conduct games of chance should not be revoked. A newly | 0004| licensed or relocated organization shall not be required to | 0005| report any amount of net proceeds in compliance with this | 0006| subsection for the first quarter of operations. | 0007| C. "Net proceeds", for the purpose of this section, | 0008| shall be the adjusted gross income less all authorized expenses | 0009| as those terms are defined in the Charitable Gaming Act." | 0010| Section 19. A new Section 60-2B-17 NMSA 1978 is enacted to | 0011| read: | 0012| "60-2B-17. [NEW MATERIAL] BINGO--OPERATION OF GAMES.-- | 0013| A. No bingo games shall be conducted by any one | 0014| qualified organization more than six times in any one calendar | 0015| week, with no game lasting more than eight hours on each session | 0016| and not more than one session in one calendar day by any one | 0017| licensee. No game shall begin earlier than 9:00 a.m. or last | 0018| later than midnight. | 0019| B. In bingo games, the particular arrangement of | 0020| numbers required to be covered in order to win the game and the | 0021| amount of the prize shall be clearly and audibly described and | 0022| announced to the players immediately before each game is begun. | 0023| C. The equipment used in the playing of bingo and | 0024| the method of play shall be such that all players have an equal | 0025| opportunity to be winners. The objects or balls to be drawn | 0001| shall be essentially the same in size, shape, weight, balance | 0002| and all other characteristics that may influence their | 0003| selection. All objects or balls shall be present in the | 0004| receptacle before each game is begun. All numbers announced | 0005| shall be plainly and clearly audible to all the players present. | 0006| Where more than one room is used for any one game, the | 0007| receptacle and the caller must be present in the room where the | 0008| greatest number of players are present, and all numbers | 0009| announced shall be plainly audible to the players in that room | 0010| and also audible to the players in the other rooms. Any | 0011| licensee, its representative, agent or employees whose acts may | 0012| tend to negate the opportunity for an equal chance to win shall | 0013| constitute grounds for revoking its license. | 0014| D. In bingo games, the receptacle and removal of the | 0015| objects or balls from the receptacle shall be visible to all the | 0016| players at all times, except where more than one room is used | 0017| for any one game, in which case the provisions of Subsection C | 0018| of this section shall prevail. | 0019| E. In operating progressive bingo, the amount of | 0020| prize money contributed to the progressive pot per session shall | 0021| be deemed to have been paid whether it is actually paid out to a | 0022| winner as part of the total prize or, in case there is no | 0023| winner, is allowed to accumulate. The progressive pot may be | 0024| awarded, in whole or in part, in any session or game held by any | 0025| participating organization and may be combined with any other | 0001| prize awarded in that game or session. | 0002| F. Any player is entitled to call for a verification | 0003| of all numbers drawn at the time a winner is determined and for | 0004| a verification of the objects or balls remaining in the | 0005| receptacle and not yet drawn. The verification shall be made in | 0006| the immediate presence of the member designated to be in charge | 0007| of the session, but if that member is also the caller, then in | 0008| the immediate presence of any two randomly selected bingo | 0009| players. | 0010| G. No person shall act as a caller in the conduct of | 0011| any game of bingo unless he has been a member in good standing | 0012| of the licensee operating the game or one of its licensed | 0013| auxiliaries for at least six months immediately prior to the | 0014| date of the game and has never been convicted of a felony. | 0015| H. No person who is not physically present on the | 0016| premises where games of chance are operated shall be allowed to | 0017| participate as a player in the game. | 0018| I. No bingo building lessor shall be allowed to | 0019| assist in the operation of any game of chance whether on a paid | 0020| or volunteer basis. | 0021| J. No member of the immediate family of any active | 0022| member working during any session or occasion during which any | 0023| game of chance is being operated shall compete in that game of | 0024| chance." | 0025| Section 20. A new Section 60-2B-18 NMSA 1978 is enacted to | 0001| read: | 0002| "60-2B-18. [NEW MATERIAL] PULL TABS--OPERATION OF | 0003| GAMES.-- | 0004| A. A qualified veterans' organization may apply for | 0005| a separate pull tab license as defined in Section 60-2B-6 NMSA | 0006| 1978 for a branch, post, lodge or chapter that is operated by | 0007| the qualified organization. | 0008| B. Pull tabs may be operated no more than six times | 0009| in any one calendar week, with no game being operated more than | 0010| eight hours during each session and not more than one session in | 0011| one calendar day by one qualified organization. No game shall | 0012| begin earlier than 9:00 a.m. or last later than midnight. | 0013| C. A paper deal is a package of paper pull tabs with | 0014| a given number of pull tabs in a series. Each pull tab in a | 0015| paper deal shall bear a printed serial number placed by the | 0016| manufacturer, clearly identifying the deal from which the pull | 0017| tab originated. | 0018| D. Electronic pull tab machines may be operated | 0019| continuously from 9:00 a.m. to midnight. | 0020| E. In operating electronic pull tab machines, once | 0021| the master program has been activated, it shall not be withdrawn | 0022| or discontinued but shall be operated until the program is | 0023| completed and all prizes in the program have been paid. In the | 0024| event of machine malfunction or program failure, the master | 0025| program may be de-activated, in which event the profit or loss | 0001| for accounting purposes of the deal shall be based upon the | 0002| audit period to date of failure. | 0003| F. Pull tabs may be sold on the floor of the bingo | 0004| building or premises during bingo operations provided that the | 0005| entire deal is available for inspection to players and a flare | 0006| providing information on the deal is displayed by the individual | 0007| selling on the floor." | 0008| Section 21. A new Section 60-2B-19 NMSA 1978 is enacted to | 0009| read: | 0010| "60-2B-19. [NEW MATERIAL] RAFFLES--OPERATION OF GAMES.--One or more raffles may be operated during any game of chance | 0011| and shall mean the selling of tickets or similar products, | 0012| consecutively numbered, that contain the price of tickets sold | 0013| to participants of the raffle, date, location and time where and | 0014| when the drawing is to be held and sufficient information to | 0015| identify the item or items being raffled, including the awarding | 0016| of cash as a prize. The winners are to be determined by a | 0017| drawing of tickets on a random basis. All raffles shall be | 0018| individually authorized by the licensing authority." | 0019| Section 22. A new Section 60-2B-20 NMSA 1978 is enacted to | 0020| read: | 0021| "60-2B-20. [NEW MATERIAL] SPECIAL GAMING PERMIT.--Any | 0022| group or organization that holds a game of chance only once | 0023| during three consecutive calendar months and not exceeding four | 0024| sessions in one calendar year shall, prior to holding the event, | 0025| apply for a special gaming license on an application form | 0001| provided by the licensing authority and submit a fee of twenty-five dollars ($25.00) with that application. This license shall | 0002| authorize the organization or group for which it is issued to | 0003| hold an authorized game of chance. The special gaming permit | 0004| shall conform to all applicable provisions of the Charitable | 0005| Gaming Act and its regulations." | 0006| Section 23. A new Section 60-2B-21 NMSA 1978 is enacted to | 0007| read: | 0008| "60-2B-21. [NEW MATERIAL] DISTRIBUTOR OR BUILDING | 0009| LESSOR LICENSE.-- | 0010| A. A distributor license or building lessor license | 0011| issued under the Charitable Gaming Act: | 0012| (1) is an annual license that expires December | 0013| 31 of each year, unless suspended or revoked by the licensing | 0014| authority; | 0015| (2) is effective for a single business entity; | 0016| (3) vests no property or right to the | 0017| distributor or building lessor, except to conduct the licensed | 0018| business during the period the license is in effect; | 0019| (4) is nontransferable, nonassignable and not | 0020| subject to execution; and | 0021| (5) terminates upon the death of an individual | 0022| licensee or upon the dissolution of any sole proprietorship, | 0023| partnership or corporation that is a licensed distributor or | 0024| building lessor. | 0025| B. An application for the renewal of a distributor | 0001| or building lessor license shall be made to the licensing | 0002| authority upon forms prescribed by the licensing authority no | 0003| less than one month prior to expiration of a distributor or | 0004| building lessor license. | 0005| C. When a license issued to a distributor or | 0006| building lessor terminates because of the death of an individual | 0007| licensee, the dissolution of a corporation or partnership or as | 0008| a result of receivership or bankruptcy, the licensing authority | 0009| may permit the successor, upon application, to operate the | 0010| business under the same license throughout the remainder of the | 0011| licensed year, provided that the successor is a qualified person | 0012| under the Charitable Gaming Act. The license is subject to | 0013| suspension or revocation under the same provisions as is any | 0014| other license issued under the Charitable Gaming Act. An | 0015| original license application is required upon expiration of the | 0016| extension." | 0017| Section 24. A new Section 60-2B-22 NMSA 1978 is enacted to | 0018| read: | 0019| "60-2B-22. [NEW MATERIAL] APPLICATION FOR DISTRIBUTOR | 0020| OR BUILDING LESSOR LICENSE.-- | 0021| A. Except for building lessors, each distributor | 0022| shall obtain a license from the licensing authority to rent, | 0023| lease, sell or otherwise distribute: | 0024| (1) bingo equipment, materials and supplies; | 0025| (2) pull tab equipment, materials and supplies; | 0001| (3) electronic pull tab gaming machines, | 0002| hardware and programs; and | 0003| (4) video bingo hardware and programs. | 0004| B. Each distributor shall file with the licensing | 0005| authority a written application on a form prescribed by the | 0006| licensing authority, duly executed and verified that includes | 0007| but is not limited to the following information: | 0008| (1) the full name and address of the applicant | 0009| to distribute, including any branches or auxiliary operations | 0010| within the state; | 0011| (2) if the applicant to distribute is a | 0012| partnership or a corporate distributor, the names and addresses | 0013| of all partners, officers, directors and stockholders; and | 0014| (3) if the applicant to distribute is a foreign | 0015| corporation, the name, business name, business address and home | 0016| address of its registered agent for service in this state. | 0017| C. Persons convicted of criminal fraud, illegal | 0018| gambling or any felony are not eligible for a license under this | 0019| section. | 0020| D. No distributor may hold any interest, either | 0021| direct or indirect, in any organization that is licensed to | 0022| conduct bingo or pull tabs in the state." | 0023| Section 25. A new Section 60-2B-23 NMSA 1978 is enacted to | 0024| read: | 0025| "60-2B-23. [NEW MATERIAL] PROHIBITED FINANCIAL | 0001| TRANSACTIONS--CREDIT TRANSACTIONS.-- | 0002| A. It is unlawful for a person who has a financial | 0003| interest in the licensed distributor's business to limit in any | 0004| way any other party's right to secure gaming supplies and | 0005| equipment from any source. | 0006| B. It is unlawful for a licensed distributor or his | 0007| agents to secure or attempt to secure a contract of lease or | 0008| bailment of gaming equipment by coercion, threats or | 0009| intimidation, through the commission of or threats to commit any | 0010| act prohibited by the criminal statutes of the state or the | 0011| Charitable Gaming Act. Whoever commits a violation of this | 0012| subsection is guilty of a fourth degree felony and shall be | 0013| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0014| 1978. | 0015| C. Any licensed distributor may make an extension of | 0016| credit to a licensee under the Charitable Gaming Act for gaming | 0017| supplies and equipment for business or commercial purposes | 0018| subject to the following terms and conditions: | 0019| (1) before making the first such extension of | 0020| credit, the distributor shall first notify the licensing | 0021| authority of the intent of that distributor to make extensions | 0022| of credit in the conduct of the licensee's business; | 0023| (2) the consideration for these extensions of | 0024| credit shall be based on reasonable and commercial terms; | 0025| (3) on any credit extension, other than normal | 0001| thirty-day net transactions using dates of purchase as effective | 0002| dates, no extension of credit shall be made unless evidenced by | 0003| a written agreement signed by the parties, specifying the amount | 0004| of excess credit extended and the consideration for the | 0005| extension of credit and the terms on which the credit is to be | 0006| repaid; | 0007| (4) each licensed distributor making extensions | 0008| of credit shall keep books and records, which shall be | 0009| consistent with accepted accounting and auditing practices | 0010| relating to all extensions of credit authorized by the | 0011| Charitable Gaming Act sufficient to enable the licensing | 0012| authority to determine whether the licensed distributor is | 0013| complying with the provisions of this section. Such records | 0014| shall be preserved for three years from the date of the | 0015| transactions to which they relate or two years from the date of | 0016| the final entry made with regard to that transaction, whichever | 0017| is later; and | 0018| (5) at such times as the licensing authority | 0019| may deem necessary, the licensing authority may examine the | 0020| place of business of each licensed distributor and may inquire | 0021| into and examine the transactions, books, accounts, papers, | 0022| correspondence and other records. The licensing authority may, | 0023| during the course of the examination, administer oaths and | 0024| examine any person under oath upon any subject pertinent to any | 0025| matter about which the licensing authority is authorized or | 0001| required by this section to consider, investigate or secure | 0002| information. Any licensed distributor who fails or refuses to | 0003| let the licensing authority examine or make copies of such books | 0004| or other relevant documents shall be in violation of this | 0005| section. The information obtained may be used in criminal, | 0006| civil or administrative procedures." | 0007| Section 26. A new Section 60-2B-24 NMSA 1978 is enacted to | 0008| read: | 0009| "60-2B-24. [NEW MATERIAL] GENERAL PROVISIONS.-- | 0010| A. The licensing authority may examine the books and | 0011| records of any applicant for a license. | 0012| B. An unlicensed person who sells or attempts to | 0013| induce the sale of bingo and pull tab equipment, devices or | 0014| supplies to a person licensed to conduct bingo games is subject | 0015| to the penalties set forth in Section 60-2B-14 NMSA 1978. | 0016| C. An applicant for a license shall, during pendency | 0017| of the application, notify the licensing authority within ten | 0018| days of any change regarding any facts set forth in the | 0019| application. Failure to give a required notice is cause for | 0020| denial of a pending application. | 0021| D. No minor shall participate in any gaming | 0022| activity." | 0023| Section 27. A new Section 60-2B-25 NMSA 1978 is enacted to | 0024| read: | 0025| "60-2B-25. [NEW MATERIAL] PROHIBITED PRACTICES.-- | 0001| A. A distributor shall not, by express or implied | 0002| agreement with another distributor, fix or attempt to fix the | 0003| price at which equipment, devices or supplies may be sold. | 0004| B. No distributor shall rent or lease equipment to | 0005| qualified organizations under the Charitable Gaming Act on an | 0006| income-sharing basis or on a percentage-of-income-sharing | 0007| basis." | 0008| Section 28. A new Section 60-2B-26 NMSA 1978 is enacted to | 0009| read: | 0010| "60-2B-26. [NEW MATERIAL] REPORTS REQUIRED--LICENSE | 0011| FEES.-- | 0012| A. Each month the licensed distributor shall file | 0013| with the licensing authority upon forms prescribed by the | 0014| licensing authority a duly verified statement reflecting the | 0015| sales or rentals of equipment or machines and the sale of cards | 0016| and supplies to qualified organizations in this state. | 0017| B. The report shall be filed each quarter on or | 0018| before the fifteenth day of the month following the end of the | 0019| quarter. | 0020| C. The report shall contain the customer's name and | 0021| license number and total sales of: | 0022| (1) bingo cards, sheets, pads and electronic | 0023| programs or aids; | 0024| (2) pull tabs and jar raffles, either paper or | 0025| electronic; | 0001| (3) all other gaming equipment; and | 0002| (4) any other types of supplies or merchandise | 0003| sold to the qualified organization. | 0004| D. The distributor shall retain a copy of the report | 0005| and the supporting invoices and documentation for each | 0006| individual transaction in his records for at least three years | 0007| after the date on which the report is filed. | 0008| E. All deliveries or sales shall be accompanied by a | 0009| consecutively numbered invoice that is prepared in at least two | 0010| parts, one for the distributor and one for the qualified | 0011| organization, which clearly and accurately show the date, | 0012| purchasing organization's name, address, license number, price, | 0013| distributor's name, distributor's license number, the quantity | 0014| and sales price of each individual item of merchandise sold or | 0015| delivered and the serial numbers of all pull tabs or jar | 0016| raffles. | 0017| F. The distributor and the qualified organization | 0018| shall retain a copy of the invoice for a period of not less than | 0019| three years from the date of transaction. The invoices shall be | 0020| open for inspection and examination by the licensing authority | 0021| during all usual business hours or at any reasonable time if the | 0022| licensed distributor does not maintain regular business hours, | 0023| and credit sales or memoranda shall be prepared in the same | 0024| detail as if they were sales invoices. | 0025| G. Each deal of pull tabs shall have the stamp of | 0001| the distributor conspicuously placed on the box." | 0002| Section 29. EFFECTIVE DATE.--The effective date of the | 0003| provisions of this act is July 1, 1996. | 0004| | 0005| | 0006| | 0007| FORTY-SECOND LEGISLATURE | 0008| SECOND SESSION, 1996 | 0009| | 0010| | 0011| JANUARY 31, 1996 | 0012| | 0013| Mr. President: | 0014| | 0015| Your COMMITTEES' COMMITTEE, to whom has been referred | 0016| | 0017| SENATE BILL 607 | 0018| | 0019| has had it under consideration and finds same to be GERMANE, PURSUANT | 0020| TO CONSTITUTIONAL PROVISIONS, and thence referred to the COMMITTEE | 0021| OF THE WHOLE. | 0022| | 0023| Respectfully submitted, | 0024| | 0025| | 0001| | 0002| | 0003| __________________________________ | 0004| SENATOR MANNY M. ARAGON, Chairman | 0005| | 0006| | 0007| | 0008| Adopted_______________________ Not Adopted_______________________ | 0009| (Chief Clerk) (Chief Clerk) | 0010| | 0011| | 0012| Date ________________________ | 0013| | 0014| | 0015| | 0016| S0607CC1 | 0017| | 0018| FORTY-SECOND LEGISLATURE | 0019| SECOND SESSION, 1996 | 0020| | 0021| | 0022| February 2, 1996 | 0023| | 0024| Mr. President: | 0025| | 0001| Your COMMITTEE OF THE WHOLE, to whom has been referred | 0002| | 0003| SENATE BILL 607 | 0004| | 0005| has had it under consideration and reports same WITHOUT | 0006| RECOMMENDATION, and thence placed on the President's | 0007| Table. | 0008| | 0009| Respectfully submitted, | 0010| | 0011| | 0012| | 0013| __________________________________ | 0014| Manny M. Aragon, Chairman | 0015| | 0016| | 0017| | 0018| Adopted_______________________ Not Adopted_______________________ | 0019| (Chief Clerk) (Chief Clerk) | 0020| | 0021| | 0022| | 0023| Date ________________________ | 0024| | 0025| | 0001| The roll call vote was by voice vote | 0002| | 0003| | 0004| | 0005| S0607WS1 | 0006| |