0001| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0002| HOUSE BILL 399 | 0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO GAMING; ENACTING THE INDIAN GAMING COMPACT; | 0013| ENACTING A REVENUE-SHARING AGREEMENT TO PROVIDE FOR REVENUE | 0014| SHARING BETWEEN THE STATE AND AN INDIAN NATION, TRIBE OR PUEBLO | 0015| CONDUCTING GAMING PURSUANT TO THE COMPACT; ENACTING THE GAMING | 0016| CONTROL ACT TO PERMIT CERTAIN NONTRIBAL GAMING; PROVIDING | 0017| PENALTIES; IMPOSING A GAMING TAX AND FEES; AMENDING AND | 0018| ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION; | 0019| DECLARING AN EMERGENCY. | 0020| | 0021| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0022| Section 1. [NEW MATERIAL] INDIAN GAMING COMPACT ENTERED | 0023| INTO.--The Indian Gaming Compact is enacted into law and | 0024| entered into with all Indian nations, tribes and pueblos in the | 0025| state legally joining in it by enactment of a resolution | 0001| pursuant to the requirements of applicable tribal and federal | 0002| law. The compact is enacted and entered into in the form | 0003| substantially as follows: | 0004| "INDIAN GAMING COMPACT | 0005| INTRODUCTION | 0006| The State is a sovereign State of the United States of | 0007| America, having been admitted to the Union pursuant to the Act | 0008| of June 20, 1910, 36 Statutes at Large 557, Chapter 310, and is | 0009| authorized by its constitution to enter into contracts and | 0010| agreements, including this Compact, with the Tribe; | 0011| The Tribe is a sovereign federally recognized Indian tribe | 0012| and its governing body has authorized the officials of the | 0013| Tribe to enter into contracts and agreements of every | 0014| description, including this Compact, with the State; | 0015| The Congress of the United States has enacted the Indian | 0016| Gaming Regulatory Act of 1988, 25 U.S.C.  2701-2721 | 0017| (hereinafter "IGRA"), which permits Indian tribes to conduct | 0018| Class III Gaming on Indian Lands pursuant to a tribal-state | 0019| compact entered into for that purpose; | 0020| The Tribe owns or controls Indian Lands and by Ordinance | 0021| has adopted rules and regulations governing Class III games | 0022| played and related activities at any Gaming Facility; | 0023| The State and the Tribe, in recognition of the sovereign | 0024| rights of each party and in a spirit of cooperation to promote | 0025| the best interests of the citizens of the State and the members | 0001| of the Tribe, have engaged in good faith negotiations | 0002| recognizing and respecting the interests of each party and have | 0003| agreed to this Compact. | 0004| NOW, THEREFORE, the State and the Tribe agree as follows: | 0005| TERMS AND CONDITIONS | 0006| SECTION 1. Purpose and Objectives. | 0007| The purpose and objectives of the State and the Tribe in | 0008| making this Compact are as follows: | 0009| A. To evidence the good will and cooperative spirit between | 0010| the State and the Tribe; | 0011| B. To continue the development of an effective government- | 0012| to-government relationship between the State and the Tribe; | 0013| C. To provide for the regulation of Class III Gaming on | 0014| Indian Lands as required by the IGRA; | 0015| D. To fulfill the purpose and intent of the IGRA by | 0016| providing for tribal gaming as a means of generating tribal | 0017| revenues, thereby promoting tribal economic development, tribal | 0018| self-sufficiency, and strong tribal government; | 0019| E. To provide revenues to fund tribal government operations | 0020| or programs, to provide for the general welfare of the tribal | 0021| members and for other purposes allowed under the IGRA; | 0022| F. To provide for the effective regulation of Class III | 0023| Gaming in which the Tribe shall have the sole proprietary interest | 0024| and be the primary beneficiary; and | 0025| G. To address the State's interest in the establishment, by | 0001| the Tribe, of rules and procedures for ensuring that Class III | 0002| Gaming is conducted fairly and honestly by the owners, operators, | 0003| employees and patrons of any Class III Gaming enterprise on Indian | 0004| Lands. | 0005| SECTION 2. Definitions. | 0006| For purposes of this Compact, the following definitions | 0007| pertain: | 0008| A. "Class III Gaming" means all forms of gaming as defined | 0009| in 25 U.S.C.  2703(8), and 25 C.F.R.  502.4. | 0010| B. "Indian Lands" means: | 0011| 1. all lands within the exterior boundaries of the | 0012| Tribe's reservation and its confirmed grants from prior | 0013| sovereigns; or | 0014| 2. any other lands title to which is either held in | 0015| trust by the United States for the exclusive benefit of the Tribe | 0016| or a member thereof or is held by the Tribe or a member thereof | 0017| subject to restrictions against alienation imposed by the United | 0018| States, and over which the Tribe exercises jurisdiction and | 0019| governmental authority. | 0020| C. "Tribal Gaming Agency" means the tribal governmental | 0021| agency which will be identified to the State Gaming Representative | 0022| as the agency responsible for actions of the Tribe set out in the | 0023| Compact. It will be the single contact with the State and may be | 0024| relied upon as such by the State. | 0025| D. "State Gaming Representative" means that person | 0001| designated by the Governor of the State, who will be responsible | 0002| for actions of the State set out in the Compact. The | 0003| representative will be the single contact with the Tribe and may | 0004| be relied upon as such by the Tribe. If the State Legislature | 0005| enacts legislation to establish an agency of the State, such | 0006| agency may assume the duties of the State Gaming Representative. | 0007| E. "Compact" means this compact between the State and the | 0008| Tribe. | 0009| F. "Gaming Facility" means the buildings or structures in | 0010| which Class III Gaming is conducted on Indian Lands. | 0011| G. "Management Contract" means a contract within the | 0012| meaning of 25 U.S.C.  2710(d)(9) and 2711. | 0013| H. "Management Contractor" means any person or entity that | 0014| has entered into a Management Contract with the Tribe. | 0015| I. "Ordinance" means the gaming ordinance and any | 0016| amendments thereto adopted by the Tribal Council of the Tribe. | 0017| J. "Tribe" means any Indian Tribe or Pueblo located within | 0018| the State of New Mexico entering into this Compact as provided for | 0019| herein. | 0020| K. "State" means the State of New Mexico. | 0021| SECTION 3. Authorized Class III Gaming. | 0022| The Tribe may conduct, only on Indian Lands, subject to all | 0023| of the terms and conditions of this Compact, any or all forms of | 0024| casino-style gaming, including but not limited to slot machines | 0025| and other forms of electronic gaming devices; all forms of poker, | 0001| blackjack and other casino-style card games, both banked and | 0002| unbanked; roulette; craps; keno; wheel of fortune; pai gow; and | 0003| other games played in casino settings, and any form of a lottery. | 0004| Subject to the foregoing, the Tribe shall establish, in its | 0005| discretion, by tribal law, such limitations as it deems | 0006| appropriate on the number and type of Class III Gaming conducted, | 0007| the location of Class III Gaming on Indian Lands, the hours and | 0008| days of operation, and betting and pot limits, applicable to such | 0009| gaming. | 0010| SECTION 4. Regulation of Class III Gaming. | 0011| A. Tribal Gaming Agency. The Tribal Gaming Agency will | 0012| assure that the Tribe will: | 0013| 1. operate all Class III Gaming pursuant to this | 0014| Compact, tribal law, the IGRA and other applicable | 0015| Federal law; | 0016| 2. provide for the physical safety of patrons in any | 0017| Gaming Facility; | 0018| 3. provide for the physical safety of personnel | 0019| employed by the gaming enterprise; | 0020| 4. provide for the physical safeguarding of assets | 0021| transported to and from the Gaming Facility and | 0022| cashier's cage department; | 0023| 5. provide for the protection of the property of the | 0024| patrons and the gaming enterprise from illegal | 0025| activity; | 0001| 6. participate in licensing of primary management | 0002| officials and key employees of a Class III Gaming | 0003| enterprise; | 0004| 7. detain persons who may be involved in illegal acts | 0005| for the purpose of notifying law enforcement | 0006| authorities; and | 0007| 8. record and investigate any and all unusual | 0008| occurrences related to Class III Gaming within the | 0009| Gaming Facility. | 0010| B. Regulations. Without affecting the generality of the | 0011| foregoing, the Tribe shall adopt laws: | 0012| 1. prohibiting participation in any Class III Gaming | 0013| by any person under the age of twenty-one (21); | 0014| 2. prohibiting the employment of any person as a key | 0015| employee or primary management official in a | 0016| position that is directly involved in Class III | 0017| Gaming activities who is under the age of twenty- | 0018| one (21) or who has not been licensed in accordance | 0019| with Section 5, herein; | 0020| 3. providing to all employees of a gaming establisment | 0021| employment benefits, including, at a minimum, sick | 0022| leave, life insurnce, paid annual leave, medical | 0023| and dental insurance as well as providing | 0024| unemployment insurance and workers' compensation | 0025| insurance through participation in the state | 0001| programs offering those benefits; | 0002| 4. providing a grievance process for an employee in | 0003| cases of disciplinary or punitive action taken | 0004| against an employee that includes a process for | 0005| appeals to persons of greater authority than the | 0006| immediate supervisor of the employee; | 0007| 5. prohibiting a gaming enterprise from cashing any | 0008| paycheck or any type of government assistance | 0009| check, including Social Security, AFDC, pension and | 0010| other such checks, for any patron; | 0011| 6. requiring that, if feasible, automatic teller | 0012| machines on Gaming Facility premises be programmed | 0013| so that the machines will not accept cards issued | 0014| by the State to AFDC recipients for access to AFDC | 0015| benefits; | 0016| 7. providing that each electronic or electromechanical | 0017| gaming device in use at the Gaming Facility must | 0018| pay out a mathematically demonstrable percentage of | 0019| all amounts wagered, which must not be less than | 0020| seventy-five percent (75%); | 0021| 8. providing that no later than July 1, 1997, all | 0022| gaming machines on the premises of the Gaming | 0023| Facility will be connected to a central | 0024| computerized reporting and auditing system on the | 0025| Gaming Facility premises, which shall collect on a | 0001| continual basis the activity of each gaming machine | 0002| in use at the Gaming Facility, and that such data | 0003| shall be electronically accessible to the State | 0004| Gaming Representative upon entry of appropriate | 0005| security codes; | 0006| 9. enacting provisions that are at least as stringent | 0007| as the provisions of Section 41-11-1 NMSA 1978 that | 0008| provide that the gaming establishment shall be | 0009| liable if one of its employees sells or serves | 0010| alcohol to a person who is intoxicated and who is | 0011| the cause of injury, death or property damage while | 0012| intoxicated; | 0013| 10. prohibiting alcoholic beverages from being sold, | 0014| served, delivered or consumed in that part of a | 0015| Gaming Facility where gaming is allowed; | 0016| 11. requiring the gaming enterprise to spend an amount | 0017| that is no less than one-quarter of one percent | 0018| (.25%) of its net win as that term is defined | 0019| herein annually to fund or support programs for the | 0020| treatment and assistance of compulsive gamblers and | 0021| for the prevention of compulsive gambling; and | 0022| 12. governing any Management Contract regarding its | 0023| Class III Gaming activity such that it conforms to | 0024| the requirements of tribal law and the IGRA and the | 0025| regulations issued thereunder. | 0001| The Tribal Gaming Agency will provide true copies of all | 0002| tribal laws and regulations affecting Class III Gaming conducted | 0003| under the provisions of this Compact to the State Gaming | 0004| Representative within thirty (30) days after the effective date of | 0005| this Compact, and will provide true copies of any amendments | 0006| thereto or additional laws or regulations affecting gaming within | 0007| thirty (30) days after their enactment (or approval, if any). | 0008| C. Audit and Financial Statements. The Tribal Gaming | 0009| Agency shall require all books and records relating to Class III | 0010| Gaming to be maintained in accordance with generally accepted | 0011| accounting principles. All such books and records shall be | 0012| retained for a period of at least six (6) years from the date of | 0013| creation. Not less than annually, the Tribal Gaming Agency shall | 0014| require an audit and a certified financial statement covering all | 0015| financial activities of the gaming enterprise by an independent | 0016| certified public accountant licensed by the State. The financial | 0017| statement shall be prepared in accordance with generally accepted | 0018| accounting principles and shall be submitted to the Tribal Gaming | 0019| Agency within one hundred twenty (120) days of the close of the | 0020| Tribe's fiscal year. The Tribe will maintain the following | 0021| records for not less than six (6) years: | 0022| 1. revenues, expenses, assets, liabilities and equity | 0023| for each Gaming Facility; | 0024| 2. daily cash transactions for each Class III Gaming | 0025| activity at each Gaming Facility, including but not | 0001| limited to transactions relating to each gaming | 0002| table bank, game drop box and gaming room bank; | 0003| 3. all markers, IOU's, returned checks, hold check or | 0004| other similar credit instruments; | 0005| 4. individual and statistical game records (except | 0006| card games) to reflect statistical drop and | 0007| statistical win; for electronic, computer, or other | 0008| technologically assisted games, analytic reports | 0009| which show the total amount of cash wagered and the | 0010| total amount of prizes won; | 0011| 5. contracts, correspondence and other transaction | 0012| documents relating to all vendors and contractors; | 0013| 6. records of all tribal gaming enforcement | 0014| activities; | 0015| 7. audits prepared by or on behalf of the Tribe; and | 0016| 8. personnel information on all Class III Gaming | 0017| employees or agents, including rotation sheets, | 0018| hours worked, employee profiles and background | 0019| checks. | 0020| D. Violations. The agents of the Tribal Gaming Agency | 0021| shall have unrestricted access to the Gaming Facility during all | 0022| hours of Class III Gaming activity, and shall have immediate and | 0023| unrestricted access to any and all areas of the Gaming Facility | 0024| for the purpose of ensuring compliance with the provisions of this | 0025| Compact and the Ordinance. The agents shall report immediately to | 0001| the Tribal Gaming Agency any suspected violation of this Compact, | 0002| the Ordinance, or regulations of the Tribal Gaming Agency by the | 0003| gaming enterprise, Management Contractor, or any person, whether | 0004| or not associated with Class III Gaming. | 0005| E. State Gaming Representative. | 0006| 1. Upon written request by the State to the Tribe, the | 0007| Tribe will provide information on primary | 0008| management officials, key employees and suppliers, | 0009| sufficient to allow the State to conduct its own | 0010| background investigations, as it may deem | 0011| necessary, so that it may make an independent | 0012| determination as to the suitability of such | 0013| individuals, consistent with the standards set | 0014| forth in Section 5, hereinafter. The Tribe shall | 0015| consider any information or recommendations | 0016| provided to it by the State as to any such person | 0017| or entity, but the Tribe shall have the final say | 0018| with respect to the hiring or licensing of any such | 0019| person or entity. | 0020| 2. Notwithstanding that the Tribe has the primary | 0021| responsibility to administer and enforce the | 0022| regulatory requirements, the State Gaming | 0023| Representative authorized in writing by the | 0024| Governor of the State or by legislation duly | 0025| enacted by the State Legislature shall have the | 0001| right to inspect a Gaming Facility, Class III | 0002| Gaming activity, and all records relating to Class | 0003| III Gaming (including those set forth in Section 5, | 0004| hereinafter) of the Tribe, subject to the following | 0005| conditions: | 0006| (a) with respect to public areas of a Gaming | 0007| Facility, at any time without prior notice | 0008| during normal business hours; | 0009| (b) with respect to private areas of a Gaming | 0010| Facility not accessible to the public, at any | 0011| time during normal Gaming Facility business | 0012| hours, immediately after notifying the gaming | 0013| enterprise management of his or her presence on | 0014| the premises and presenting proper | 0015| identification, and requesting access to such | 0016| non-public areas of the Gaming Facility; | 0017| (c) with respect to inspection and copying of all | 0018| management records relating to Class III Gaming, | 0019| with forty-eight (48) hours prior written | 0020| notice, not including weekends. The reasonable | 0021| costs of copying will be borne by the State; and | 0022| (d) whenever the State Gaming Representative, or his | 0023| designee, enters the premises of the Gaming | 0024| Facility for any such inspection, such | 0025| Representative, or designee, shall identify | 0001| himself to security or supervisory personnel of | 0002| the Gaming Facility. | 0003| 3. The financial information, proprietary ideas, plans, | 0004| methods, data, development inventions or other | 0005| proprietary information regarding the gaming | 0006| enterprise of the Tribe, Class III Gaming conducted | 0007| by the Tribe, or the operation thereof, which is | 0008| provided to the State by the Tribe shall not be | 0009| deemed public records as a matter of state law, and | 0010| shall not be disclosed to any member of the public, | 0011| without the prior written approval of a duly | 0012| authorized representative of the Tribe. These | 0013| prohibitions shall not be construed to prohibit: | 0014| (a) the furnishing of any information to a law | 0015| enforcement or regulatory agency of the Federal | 0016| Government; | 0017| (b) the State from making known the names of | 0018| persons, firms, or corporations conducting Class | 0019| III Gaming pursuant to the terms of this | 0020| Compact, locations at which such activities are | 0021| conducted, or the dates on which such activities | 0022| are conducted; | 0023| (c) publishing the terms of this Compact; | 0024| (d) disclosing information as necessary to audit, | 0025| investigate, prosecute or arbitrate violations | 0001| of this Compact or other applicable laws or to | 0002| defend suits against the State; and | 0003| (e) complying with subpoenas or court orders issued | 0004| by courts of competent jurisdiction. | 0005| 4. To the fullest extent allowed by State law, the Tribe | 0006| shall have the right to inspect State records | 0007| concerning all Class III Gaming conducted by the | 0008| Tribe; the Tribe shall have the right to copy such | 0009| State records, with the Tribe bearing the reasonable | 0010| cost of copying. | 0011| 5. For every year or part thereof in which the Tribe is | 0012| actually engaged in Class III Gaming hereunder, the | 0013| Tribe shall reimburse the State for the actual costs | 0014| the State incurs in carrying out any functions | 0015| authorized by the terms of this Compact, in an amount | 0016| not to exceed twenty-five thousand dollars ($25,000) | 0017| per year. All calculations of amounts due shall be | 0018| based upon a fiscal year beginning October 1, and | 0019| ending September 30, unless the parties select a | 0020| different fiscal year. Payments due the State shall | 0021| be made no later than sixty (60) days after the | 0022| beginning of each fiscal year. Payments due the | 0023| State during any partial fiscal year this Compact is | 0024| in effect shall be adjusted to reflect only that | 0025| portion of the fiscal year. Within sixty (60) days | 0001| after each fiscal year in which this Compact is in | 0002| effect, the State shall submit to the Tribe an | 0003| accounting of actual costs incurred in carrying out | 0004| any functions authorized by the terms of this | 0005| Compact. Any amount of said twenty-five thousand | 0006| dollars ($25,000) not expended by the State on said | 0007| actual costs shall be returned to the Tribe by the | 0008| State within sixty (60) days after the fiscal year or | 0009| treated as a prepayment of the Tribe's obligation | 0010| during the subsequent fiscal year. | 0011| 6. In the event the State believes that the Tribe is not | 0012| administering and enforcing the regulatory | 0013| requirements set forth herein, it may invoke the | 0014| procedures set forth in Section 7 of this Compact. | 0015| F. The Tribe shall comply with all applicable provisions of | 0016| the Bank Secrecy Act, P.L. 91-508, October 26, 1970, 31 U.S.C. | 0017|  5311-5314, and all reporting requirements of the Internal | 0018| Revenue Service. | 0019| SECTION 5. Licensing Requirements. | 0020| A. License Required. The Gaming Facility operator, (but | 0021| not including the Tribe) including its principals, primary | 0022| management officials, and key employees, the Management Contractor | 0023| and its principals, primary management officials, and key | 0024| employees (if the Tribe hires a Management Contractor); any | 0025| person, corporation, or other entity that has supplied or proposes | 0001| to supply any gaming device to the Tribe or the Management | 0002| Contractor; and any person, corporation or other entity providing | 0003| gaming services within or without a Gaming Facility, shall apply | 0004| for and receive a license from the Tribal Gaming Agency before | 0005| participating in any way in the operation or conduct of any Class | 0006| III Gaming on Indian Lands. | 0007| B. License Application. Each applicant for a license shall | 0008| file with the Tribal Gaming Agency a written application in the | 0009| form prescribed by the Tribal Gaming Agency, along with the | 0010| applicant's fingerprint card, current photograph and the fee | 0011| required by the Tribal Gaming Agency. | 0012| 1. The following Notice ("Privacy Act Notice") shall be | 0013| placed on the application form for a principal, key | 0014| employee or a primary management official before that | 0015| form is filled out by an applicant: | 0016| "In compliance with the | 0017| Privacy Act of 1974, the | 0018| following information is | 0019| provided: Solicitation of the | 0020| information on this form is | 0021| authorized by 25 U.S.C. | 0022|  2701-2721. The purpose of | 0023| the requested information is | 0024| to determine the eligibility | 0025| of individuals to be employed | 0001| in a gaming enterprise. The | 0002| information will be used by | 0003| members and staff of the | 0004| Tribal Gaming Agency and the | 0005| National Indian Gaming | 0006| Commission who have need for | 0007| the information in the | 0008| performance of their official | 0009| duties. The information may | 0010| be disclosed to appropriate | 0011| federal, tribal, state, local | 0012| or foreign law enforcement and | 0013| regulatory agencies when | 0014| relevant to civil, criminal or | 0015| regulatory investigations or | 0016| prosecutions or when, pursuant | 0017| to a requirement by a Tribe, | 0018| or the National Indian Gaming | 0019| Commission, the information is | 0020| relevant to the hiring or | 0021| firing of an employee, the | 0022| issuance or revocation of a | 0023| gaming license or | 0024| investigations of activities | 0025| while associated with a Tribe | 0001| or a gaming enterprise. | 0002| Failure to consent to the | 0003| disclosures indicated in this | 0004| Notice will result in a Tribe | 0005| being unable to hire you in a | 0006| primary management official or | 0007| key employee position with a | 0008| tribal gaming enterprise. | 0009| The disclosure of your Social Security | 0010| Number (SSN) is voluntary. However, | 0011| failure to supply an SSN may result in | 0012| errors in processing your application." | 0013| 2. Existing principals, key employees and primary | 0014| management officials shall be notified, in writing, | 0015| that they shall either: | 0016| (a) complete a new application form that contains a | 0017| Privacy Act Notice; or | 0018| (b) sign a statement that contains the Privacy Act | 0019| Notice and consent to the routine uses described | 0020| in that Notice. | 0021| 3. The following Notice ("False Statement Notice") shall | 0022| be placed on the application form for a principal, | 0023| key employee or a primary management official before | 0024| that form is filled out by an applicant: | 0025| "A false statement on any part of your | 0001| application may be grounds for not hiring you or | 0002| for firing you after you begin work. Also, you | 0003| may be punished by fine or imprisonment. See 18 | 0004| U.S.C.  1001.". | 0005| 4. The Tribal Gaming Agency shall notify, in writing, | 0006| existing principals, key employees and primary | 0007| management officials that they shall either: | 0008| (a) complete a new application form that contains a | 0009| False Statement Notice; or | 0010| (b) sign a statement that contains the False | 0011| Statement Notice. | 0012| 5. The Tribal Gaming Agency shall request from each | 0013| applicant, and from each principal, primary | 0014| management official and key employee of each | 0015| applicant, all of the following information: | 0016| (a) full name, other names used (oral or written), | 0017| Social Security Number(s), birth date, place of | 0018| birth, citizenship, gender and all languages | 0019| spoken or written; | 0020| (b) currently, and for the previous ten (10) years, | 0021| business and employment positions held, | 0022| ownership interests in those businesses, | 0023| business and residence addresses and driver's | 0024| license numbers; provided, that any applicant | 0025| who is a principal, primary management official, | 0001| key employee, Management Contractor, | 0002| manufacturer or supplier of gaming devices, | 0003| and/or a person providing gaming services, must | 0004| provide such information currently, and from the | 0005| age of eighteen (18); | 0006| (c) the names and current addresses of at least | 0007| three (3) personal references, including one (1) | 0008| personal reference who was acquainted with the | 0009| applicant during each period of residence listed | 0010| in Paragraph B.5.(b) of this section; | 0011| (d) current business and residence telephone | 0012| numbers; | 0013| (e) a description of any existing and previous | 0014| business relationships with a Tribe, including | 0015| ownership interests in those businesses, and a | 0016| description of any potential or actual conflict | 0017| of interests between such businesses and a | 0018| Tribe; | 0019| (f) a description of any existing and previous | 0020| business relationships in the gaming industry, | 0021| including, but not limited to, ownership | 0022| interests in those businesses; | 0023| (g) the name and address of any licensing or | 0024| regulatory agency with which the applicant has | 0025| filed an application for a license or permit | 0001| related to gaming, whether or not such license | 0002| or permit was granted; | 0003| (h) for each felony for which there is an ongoing | 0004| prosecution or a conviction, the charge, the | 0005| date of the charge, the name and address of the | 0006| court involved and the disposition, if any; | 0007| (i) for each misdemeanor for which there is an | 0008| ongoing prosecution or conviction (excluding | 0009| minor traffic violations), the charge, the date | 0010| of the charge, the name and address of the court | 0011| involved, and the disposition, if any; | 0012| (j) for each criminal charge (excluding minor | 0013| traffic charges), whether or not there is a | 0014| conviction, if such criminal charge is not | 0015| otherwise listed pursuant to Paragraph B.5.(h) | 0016| or B.5.(i) of this Section, the criminal charge, | 0017| the date of the charge, the name and address of | 0018| the court involved and the disposition, if any; | 0019| (k) the name and address of any licensing or | 0020| regulatory agency with which the person has | 0021| filed an application for an occupational license | 0022| or permit, as an applicant, principal, primary | 0023| management official or key employee, and whether | 0024| or not such license or permit was granted; | 0025| (l) a current photograph; | 0001| (m) fingerprints, which shall be taken by officers | 0002| of the tribal police department. Pursuant to a | 0003| Memorandum of Understanding between the Tribe | 0004| and the National Indian Gaming Commission | 0005| ("Commission"), tribal police officers shall | 0006| forward the fingerprint cards directly to the | 0007| Commission; | 0008| (n) the fee required by the Tribal Gaming Agency; | 0009| and | 0010| (o) any other information the Tribal Gaming Agency | 0011| deems relevant. | 0012| C. Background Investigations. | 0013| 1. Upon receipt of a completed application and required | 0014| fee for licensing, the Tribal Gaming Agency shall | 0015| conduct or cause to be conducted a background | 0016| investigation to ensure that the applicant is | 0017| qualified for licensing. | 0018| 2. Background checks of applicants will be performed | 0019| pursuant to the following procedures: | 0020| (a) The Tribal Gaming Agency will provide | 0021| applications to potential applicants upon | 0022| request and shall collect and maintain the | 0023| applications. | 0024| (b) Pursuant to a Memorandum of Understanding | 0025| between the Tribe and the Commission, tribal | 0001| police officers will collect fingerprints from | 0002| all applicants and forward the fingerprint cards | 0003| directly to the Commission. The Commission will | 0004| obtain a criminal history record from the | 0005| Federal Bureau of Investigation on each | 0006| applicant and forward such information to the | 0007| Tribal Gaming Agency. | 0008| (c) The Tribal Gaming Agency shall investigate the | 0009| information provided in the applications. This | 0010| investigation shall include: | 0011| (1) contacting persons or entities identified | 0012| in the application and verifying by written | 0013| or oral communication that the information | 0014| contained in the application is accurate; | 0015| (2) interviewing a sufficient number of | 0016| knowledgeable people, such as former | 0017| employers, partners, business associates, | 0018| and others referred to in the application, | 0019| to provide a basis for the Tribal Gaming | 0020| Agency to make a determination concerning | 0021| whether the applicant meets applicable | 0022| eligibility requirements; | 0023| (3) reviewing relevant financial records of the | 0024| applicant for the three (3) years preceding | 0025| the application; and | 0001| (4) contacting any state, federal or other | 0002| government agency that is referred to in | 0003| the application. | 0004| (d) The Tribal Gaming Agency shall document any | 0005| information it obtains that calls into question | 0006| whether the applicant would meet the eligibility | 0007| requirements under the Ordinance. The Tribal | 0008| Gaming Agency shall then document in detail the | 0009| disposition of these problem areas, indicating | 0010| the follow-up investigations performed on the | 0011| problem areas and the result of such | 0012| investigations. | 0013| (e) The Tribal Gaming Agency will review the results | 0014| of the investigation. This review will include | 0015| a determination as to the scope of the | 0016| investigation and whether sufficient information | 0017| was obtained and verified. If such information | 0018| is found not sufficient, the Tribal Gaming | 0019| Agency will perform additional investigations. | 0020| (f) Once the investigation is complete, the Tribal | 0021| Gaming Agency will decide whether the applicant | 0022| meets the eligibility criteria under the | 0023| Ordinance. | 0024| 3. In conducting a background investigation, the Tribal | 0025| Gaming Agency and its agents shall keep confidential | 0001| the identity of each person interviewed in the course | 0002| of the investigation. | 0003| 4. Within twenty (20) days of the receipt of a completed | 0004| application for licensing, and upon request of an | 0005| applicant, the Tribal Gaming Agency may issue a | 0006| temporary license to the applicant, unless the | 0007| background investigation undertaken discloses that | 0008| the applicant has a criminal history, or unless other | 0009| grounds sufficient to disqualify the applicant are | 0010| apparent on the face of the application. The | 0011| temporary license shall become void and be of no | 0012| effect upon either: | 0013| (a) the issuance of the license; | 0014| (b) the issuance of a notice of denial; or | 0015| (c) ninety (90) days after the temporary license is | 0016| issued, whichever occurs first. | 0017| 5. The Tribal Gaming Agency shall review a person's | 0018| prior activities, criminal record, if any, and | 0019| reputation, habits and associations to make a finding | 0020| concerning the eligibility or suitability of an | 0021| applicant, or a principal, key employee or primary | 0022| management official of an applicant, for employment | 0023| or involvement in a gaming enterprise. After such | 0024| consultation, the Tribal Gaming Agency shall either | 0025| issue a license or deny the application. If the | 0001| Tribal Gaming Agency determines that employment or | 0002| involvement of the applicant poses a threat to the | 0003| public interest or to the effective regulation of | 0004| Class III Gaming or creates or enhances dangers of | 0005| unsuitable, unfair or illegal practices, methods or | 0006| activities in the conduct of Class III Gaming, the | 0007| Tribal Gaming Agency shall deny the application. | 0008| 6. The Tribal Gaming Agency shall retain the right to | 0009| conduct additional background investigations of any | 0010| person required to be licensed at any time while the | 0011| license is valid. | 0012| D. Procedure for Forwarding Applications and Reports. | 0013| Procedures for forwarding applications and investigative reports | 0014| to the Commission and State Gaming Representative. | 0015| 1. When a key employee or primary management official | 0016| begins work at a gaming enterprise authorized by this | 0017| Compact, the Tribal Gaming Agency shall forward to | 0018| the Commission and the State Gaming Representative a | 0019| completed application for employment. | 0020| 2. The Tribal Gaming Agency shall forward the report | 0021| referred to in Paragraph D.4. of this section to the | 0022| Commission and the State Gaming Representative within | 0023| sixty (60) days after an employee begins work, or | 0024| within sixty (60) days of the approval of this | 0025| Compact by the Secretary of the Interior. | 0001| 3. A key employee or primary management official who | 0002| does not have a license shall not be employed after | 0003| ninety (90) days. | 0004| 4. The Tribal Gaming Agency shall prepare and forward to | 0005| the Commission and the State Gaming Representative a | 0006| report on each background investigation | 0007| ("Investigative Report"). An Investigative Report | 0008| shall include all of the following: | 0009| (a) steps taken in conducting the background | 0010| investigation; | 0011| (b) results obtained; | 0012| (c) conclusions reached; and | 0013| (d) the basis for those conclusions. | 0014| 5. The Tribal Gaming Agency shall submit with the | 0015| Investigative Report a copy of the eligibility | 0016| determination made under Paragraph C.5. of this | 0017| section. | 0018| 6. If a license is not issued to an applicant, the | 0019| Tribal Gaming Agency shall notify the Commission and | 0020| the State Gaming Representative. | 0021| 7. With respect to principals, key employees and primary | 0022| management officials, the Tribal Gaming Agency shall | 0023| retain applications for employment and Investigative | 0024| Reports (if any) for no less than three (3) years | 0025| from the date of termination of employment. | 0001| E. Granting a Gaming License. | 0002| 1. If within thirty (30) days after it receives an | 0003| Investigative Report, neither the Commission nor the | 0004| State Gaming Representative has notified the Tribal | 0005| Gaming Agency that it has an objection to the | 0006| issuance of a license pursuant to a license | 0007| application filed by a principal, key employee or | 0008| primary management official, the Tribal Gaming Agency | 0009| may issue a license to such applicant. | 0010| 2. The Tribal Gaming Agency shall respond to any request | 0011| for additional information from the Commission or the | 0012| State Gaming Representative concerning a principal, | 0013| key employee or primary management official who is | 0014| the subject of an Investigative Report. Such a | 0015| request shall suspend the thirty-day (30-day) period | 0016| under Paragraph E.1. of this section until the | 0017| Commission or the State Gaming Representative | 0018| receives the additional information. | 0019| 3. If, within the thirty-day (30-day) period described | 0020| above, the Commission or the State Gaming | 0021| Representative provides the Tribal Gaming Agency with | 0022| a statement itemizing objections to the issuance of a | 0023| license to a principal, key employee or primary | 0024| management official for whom the Tribal Gaming Agency | 0025| has provided an application and Investigative Report, | 0001| the Tribal Gaming Agency shall reconsider the | 0002| application, taking into account the objections | 0003| itemized by the Commission and/or the State Gaming | 0004| Representative, and make a final decision whether to | 0005| issue a license to such applicant. | 0006| F. Management Contract. | 0007| 1. If the Tribe chooses to enter into a Management | 0008| Contract, the Tribal Gaming Agency shall require that | 0009| all principals, primary management officials and key | 0010| employees of the Management Contractor be licensed. | 0011| 2. The Tribe may enter into a Management Contract only | 0012| if the Management Contract: | 0013| (a) provides that all Class III Gaming covered by | 0014| the Management Contract will be conducted in | 0015| accordance with the IGRA, the Ordinance and this | 0016| Compact; | 0017| (b) enumerates the responsibilities of each of the | 0018| parties for each identifiable function, | 0019| including: | 0020| (1) maintaining and improving the Gaming | 0021| Facility; | 0022| (2) providing operating capital; | 0023| (3) establishing operating days and hours; | 0024| (4) hiring, firing, training and promoting | 0025| employees; | 0001| (5) maintaining the gaming enterprise's books | 0002| and records; | 0003| (6) preparing the gaming enterprise's financial | 0004| statements and reports; | 0005| (7) paying for the services of the independent | 0006| auditor engaged pursuant to 25 C.F.R. | 0007|  571.12; | 0008| (8) hiring and supervising security personnel; | 0009| (9) providing fire protection services; | 0010| (10) setting an advertising budget and placing | 0011| advertising; | 0012| (11) paying bills and expenses; | 0013| (12) establishing and administering employment | 0014| practices; | 0015| (13) obtaining and maintaining insurance | 0016| coverage, including coverage of public | 0017| liability and property loss or damage; | 0018| (14) complying with all applicable provisions of | 0019| the Internal Revenue Code of 1986, as | 0020| amended; | 0021| (15) paying the cost of public safety services; | 0022| and | 0023| (16) if applicable, supplying the Commission | 0024| with all information necessary for the | 0025| Commission to comply with the National | 0001| Environmental Policy Act of 1969. | 0002| (c) provides for the establishment and maintenance | 0003| of satisfactory accounting systems and | 0004| procedures that shall, at a minimum: | 0005| (1) include an adequate system of internal | 0006| controls; | 0007| (2) permit the preparation of financial | 0008| statements in accordance with generally | 0009| accepted accounting principles; | 0010| (3) be susceptible to audit; | 0011| (4) permit the calculation and payment of the | 0012| Management Contractor's fee; and | 0013| (5) provide for the allocation of operating | 0014| expenses or overhead expenses among the | 0015| Tribe, the Management Contractor and any | 0016| other user of a shared Gaming Facility and | 0017| services; | 0018| (d) requires the Management Contractor to provide | 0019| the Tribe, not less frequently than monthly, | 0020| verifiable financial reports or all information | 0021| necessary to prepare such reports; | 0022| (e) requires the Management Contractor to provide | 0023| immediate access to the Gaming Facility, | 0024| including its books and records, by appropriate | 0025| officials of the Tribe, who shall have: | 0001| (1) the right to verify the daily gross | 0002| revenues and income from the gaming | 0003| enterprise; and | 0004| (2) access to any other gaming-related | 0005| information the Tribe deems appropriate; | 0006| (f) provides for a minimum guaranteed monthly | 0007| payment to the Tribe in a sum certain that has | 0008| preference over the retirement of development | 0009| and construction costs; | 0010| (g) provides an agreed upon maximum dollar amount | 0011| for the recoupment of development and | 0012| construction costs; | 0013| (h) provides for a term not to exceed the period | 0014| allowed by the IGRA; | 0015| (i) details the method of compensating and | 0016| reimbursing the Management Contractor. If a | 0017| Management Contract provides for a percentage | 0018| fee, such fee shall be either: | 0019| (1) not more than thirty percent (30%) of the | 0020| net revenues of the gaming enterprise if | 0021| the Chairman of the Commission determines | 0022| that such percentage is reasonable | 0023| considering the circumstances; or | 0024| (2) not more than forty percent (40%) of the | 0025| net revenues if the Chairman of the | 0001| Commission is satisfied that the capital | 0002| investment required and income projections | 0003| for the gaming enterprise require the | 0004| additional fee; | 0005| (j) provides the grounds and mechanisms for | 0006| modifying or terminating the Management | 0007| Contract; | 0008| (k) contains a mechanism to resolve disputes | 0009| between: | 0010| (1) the Management Contractor and customers, | 0011| consistent with the procedures in the | 0012| Ordinance; | 0013| (2) the Management Contractor and the Tribe; | 0014| and | 0015| (3) the Management Contractor and the gaming | 0016| enterprise employees; | 0017| (l) indicates whether and to what extent contract | 0018| assignments and subcontracting are permissible; | 0019| (m) indicates whether and to what extent changes in | 0020| the ownership interest in the Management | 0021| Contract require advance approval by the Tribe; | 0022| and | 0023| (n) states that the Management Contract shall not be | 0024| effective unless and until it is approved by the | 0025| Chairman of the Commission, date of signature of | 0001| the parties notwithstanding. | 0002| 3. The Tribe shall not enter into any Management | 0003| Contract if the Tribal Gaming Agency determines that | 0004| the Management Contractor or any principal, primary | 0005| management official or key employee of the Management | 0006| Contractor is not licensed or is ineligible to be | 0007| licensed. | 0008| G. Confidentiality of Records. Any and all background | 0009| investigative reports on employees or contractors, supporting | 0010| documents acquired or generated in connection therewith, and any | 0011| other investigative reports or documents acquired or generated in | 0012| the course of investigations performed by the Tribe or the Tribal | 0013| Gaming Agency, that are provided to the State Gaming | 0014| Representative or any other agency or official of the State by the | 0015| Tribal Gaming Agency or the Tribe pursuant to the provisions of | 0016| this Compact, shall not be deemed public records of the State and | 0017| shall not be disclosed to any member of the public without the | 0018| prior express written authorization of an authorized | 0019| representative of the Tribe; provided, that nothing herein shall | 0020| preclude any State agency or official from providing information | 0021| to a federal agency or official having responsibility relative to | 0022| Indian Gaming or from compliance with any valid order of a court | 0023| having jurisdiction. | 0024| SECTION 6. Providers of Class III Gaming Equipment or Devices or | 0025| Supplies. | 0001| A. Within thirty (30) days after the effective date of this | 0002| Compact, if it has not already done so, the Tribal Gaming Agency | 0003| will adopt standards for any and all Class III Gaming equipment, | 0004| devices or supplies to be purchased, leased or otherwise acquired | 0005| by the Tribe after the effective date of this Compact for use in | 0006| any Gaming Facility, which standards shall be at least as strict | 0007| as the comparable standards applicable to Class III Gaming | 0008| equipment, devices or supplies within the State of Nevada. Any | 0009| and all Class III Gaming equipment, devices or supplies acquired | 0010| by the Tribe after the date of this Compact shall meet or exceed | 0011| the standards thereby adopted, and any and all Class III Gaming | 0012| equipment, devices or supplies used by the Tribe in its Gaming | 0013| Facilities as of the effective date of this Compact shall be | 0014| upgraded or replaced, if necessary, so as to comply with such | 0015| standards, by no later than one (1) year after the effective date | 0016| of this Compact. | 0017| B. Prior to entering into any future lease or purchase | 0018| agreement for Class III Gaming equipment, devices or supplies, the | 0019| Tribe shall obtain sufficient information and identification from | 0020| the proposed seller or lessor and all persons holding any direct | 0021| or indirect financial interest in the lessor or the lease/purchase | 0022| agreement to permit the Tribe to license those persons in | 0023| accordance with Section 5, hereof. | 0024| C. The seller, lessor, manufacturer or distributor shall | 0025| provide, assemble and install all Class III Gaming equipment, | 0001| devices or supplies in a manner approved and licensed by the | 0002| Tribe. | 0003| SECTION 7. Dispute Resolution. | 0004| A. In the event either party believes that the other party | 0005| has failed to comply with or has otherwise breached any provision | 0006| of this Compact, such party may invoke the following procedure: | 0007| 1. The party asserting noncompliance shall serve written | 0008| notice on the other party. The notice shall identify | 0009| the specific Compact provision believed to have been | 0010| violated and shall specify the factual and legal | 0011| basis for the alleged noncompliance. The notice | 0012| shall specifically identify the date, time and nature | 0013| of the alleged noncompliance. Representatives of the | 0014| State and Tribe shall thereafter meet within thirty | 0015| (30) days in an effort to resolve the dispute. | 0016| 2. In the event an allegation by the complaining party | 0017| is not resolved to the satisfaction of such party | 0018| within ninety (90) days after service of the notice | 0019| set forth in Paragraph (A)(1) of this section, the | 0020| complaining party may serve upon the other party a | 0021| notice to cease conduct of the particular game(s) or | 0022| activities alleged by the complaining party to be in | 0023| noncompliance. Upon receipt of such notice, the | 0024| responding party may elect to stop the game(s) or | 0025| activities specified in the notice or invoke | 0001| arbitration and continue the game(s) or activities | 0002| pending the results of arbitration. The responding | 0003| party shall act upon one of the foregoing options | 0004| within thirty (30) days of receipt of notice from the | 0005| complaining party. | 0006| 3. Arbitration under this authority shall be conducted | 0007| under the Commercial Arbitration Rules of the | 0008| American Arbitration Association, except that the | 0009| arbitrators shall be attorneys who are licensed | 0010| members in good standing of the State Bar of New | 0011| Mexico or of the bar of another state. The State | 0012| will select one arbitrator, the Tribe a second | 0013| arbitrator, and the two so chosen shall select a | 0014| third arbitrator. If the third arbitrator is not | 0015| chosen in this manner within ten (10) days after the | 0016| second arbitrator is selected, the third arbitrator | 0017| will be chosen in accordance with the rules of the | 0018| American Arbitration Association. | 0019| 4. All parties shall bear their own costs of arbitration | 0020| and attorney fees. | 0021| 5. The results of arbitration shall be enforceable by an | 0022| action for injunctive or mandatory injunctive relief | 0023| against the State and the Tribe in any court of | 0024| competent jurisdiction. For purposes of any such | 0025| action, the State and the Tribe acknowledge that any | 0001| action or failure to act on the part of any agent or | 0002| employee of the State or the Tribe, contrary to a | 0003| decision of the arbitrators in an arbitration | 0004| proceeding conducted under the provisions of this | 0005| section, occurring after such decision, shall be | 0006| wholly unauthorized and ultra vires acts, not | 0007| protected by the sovereign immunity of the State or | 0008| the Tribe. | 0009| B. Nothing in Subsection 7(A) shall be construed to waive, | 0010| limit or restrict any remedy that is otherwise available to either | 0011| party to enforce or resolve disputes concerning the provisions of | 0012| this Compact. Nothing in this Compact shall be deemed a waiver of | 0013| the Tribe's sovereign immunity. Nothing in this Compact shall be | 0014| deemed a waiver of the State's sovereign immunity. | 0015| SECTION 8. Protection of Patrons. | 0016| A. Liability to Patrons. To ensure the personal safety and | 0017| protection of patrons and other invitees of a Tribe's Gaming | 0018| Facility operated under the provisions of this Compact, the Tribe | 0019| shall at all times maintain in effect a policy of public liability | 0020| insurance, insuring the Tribe, its agents and employees against | 0021| any claims, demands or liability that may arise as a result of | 0022| personal injury to any person (other than an employee of the | 0023| gaming establishment) occurring anywhere on the premises of any | 0024| gaming establishment operated by the Tribe under the provisions of | 0025| this Compact, or as a result of any act or omission of any agent | 0001| or employee of such gaming establishment while in the course of | 0002| his or her employment, which policy shall provide personal injury | 0003| coverage of no less than one million dollars ($1,000,000) per | 0004| injured person and ten million dollars ($10,000,000) aggregate per | 0005| policy year. | 0006| The Tribe agrees that in the event of any claim made against | 0007| it or its gaming enterprise, or any agent or employee thereof, | 0008| arising out of any personal injury as described above, neither the | 0009| Tribe nor its insurer will assert any defense of immunity from | 0010| suit as to such claim for compensatory damages up to the amount of | 0011| one million dollars ($1,000,000) per injured person, and ten | 0012| million dollars ($10,000,000) aggregate per policy year, in any | 0013| action filed in a court of competent jurisdiction to be tried to | 0014| the court; provided, however, that this agreement not to assert | 0015| such defense shall be strictly limited as provided herein, and | 0016| shall not apply to any claim for punitive damages, or to any claim | 0017| for which a jury trial is demanded, or to any claim for any loss | 0018| or damage other than that arising from actual bodily injury or | 0019| death, or to any claim for damages in excess of the amount set | 0020| forth herein. Nothing herein shall be construed as stating or | 0021| implying that the Tribe has waived or agreed not to assert its | 0022| immunity from suit for any other purpose or in any other | 0023| circumstance other than the limited purposes and circumstances | 0024| expressly set forth herein, and nothing herein shall be construed | 0025| as an admission of liability as to any claim for damages or as an | 0001| agreement or indication of willingness to pay any amount as | 0002| damages absent a judicial determination of fault, and the Tribe or | 0003| its insurer, or both, shall in every instance have the right to | 0004| defend any such claim fully on the merits. | 0005| The Tribe shall provide to the State Gaming Representative | 0006| annually a certificate of insurance showing that its gaming | 0007| enterprise and its agents and employees engaged therein are | 0008| insured to the extent and in the circumstances required by this | 0009| section, or that it is self-insured to such extent and in such | 0010| circumstances. If the State Gaming Representative so requests in | 0011| writing, the certificate of insurance may be furnished directly to | 0012| the State Gaming Representative from the insurance carrier or the | 0013| insuring agency for the insured Tribe. | 0014| B. Public Health and Safety. The Tribe shall establish for | 0015| its Gaming Facility health, safety and construction standards that | 0016| are at least as stringent as the current editions of the National | 0017| Electrical Code, the Uniform Building Code, the Uniform Mechanical | 0018| Code, the Uniform Fire Code and the Uniform Plumbing Code, and any | 0019| and all gaming facilities or additions thereto constructed by the | 0020| Tribe hereafter shall be constructed and all facilities shall be | 0021| maintained so as to comply with such standards. Inspections will | 0022| be conducted with respect to these standards at least annually. | 0023| If the State Gaming Representative requests sufficiently in | 0024| advance of an annual inspection, the State Gaming Representative | 0025| may be present during such inspection. The Tribe agrees to | 0001| correct any deficiencies noted in such inspections within a | 0002| reasonable period of time. The Tribal Gaming Agency will provide | 0003| copies of such inspection reports to the State Gaming | 0004| Representative, if requested to do so in writing. | 0005| SECTION 9. Effective Date. This Compact shall be effective | 0006| immediately upon the occurrence of the last of the following: | 0007| A. execution by the Tribe's Governor after approval of the | 0008| Tribal Council; | 0009| B. execution by the Governor of the State; | 0010| C. approval by the Secretary of the Interior; and | 0011| D. publication in the Federal Register. | 0012| The Governor is authorized to execute compacts with an | 0013| individual Tribe that has also entered into revenue-sharing | 0014| agreements and has passed resolutions described herein, in | 0015| substantially the same form as set forth herein. Upon signature | 0016| by the Governor and the Tribe, the Compact shall be transmitted to | 0017| the Secretary of the Interior for approval. | 0018| SECTION 10. Criminal Jurisdiction. | 0019| The Tribe and the State acknowledge that under the | 0020| provisions of  23 of the IGRA, especially that portion codified | 0021| at 18 U.S.C.  1166(d), jurisdiction to prosecute violations of | 0022| State gambling laws made applicable by that section to Indian | 0023| country is vested exclusively within the United States, unless the | 0024| Tribe and the State agree in a compact entered into the IGRA to | 0025| transfer such jurisdiction to the State. The Tribe and the State | 0001| hereby agree that, in the event of any violation of any State | 0002| gambling law within the Indian Lands by any person who is not a | 0003| member of the Tribe, the State shall have and may exercise | 0004| jurisdiction, concurrent with that of the United States, to | 0005| prosecute such person, under its laws and in its courts; provided, | 0006| however, that this concurrent jurisdiction shall (1) not take | 0007| effect unless and until the State, the Tribe and the Office of the | 0008| United States Attorney for the District of New Mexico shall have | 0009| entered into a Memorandum of Understanding with respect to the | 0010| manner in which State, federal and tribal law enforcement agencies | 0011| shall cooperate in the detection of violations, apprehension and | 0012| detention of any suspected violator and the investigation and | 0013| prosecution of any charges brought by the State pursuant to this | 0014| section and (2) continue so long as the Memorandum of | 0015| Understanding remains in effect. | 0016| SECTION 11. Binding Effect and Duration. | 0017| A. This Compact shall be binding upon the State and Tribe | 0018| for a term of fifteen (15) years from the date it becomes | 0019| effective and will automatically renew for an additional five-year | 0020| (5-year) period. | 0021| B. Before the date that is one (1) year prior to the | 0022| expiration of the fifteen-year (15-year) initial term, and/or | 0023| before the date that is one year prior to the expiration of the | 0024| five-year (5-year) renewal period, either party may serve written | 0025| notice on the other of its desire to renegotiate this Compact. | 0001| C. In the event that either party gives written notice to | 0002| the other of its desire to renegotiate this Compact pursuant to | 0003| Subsection (B) of this section, the Tribe may, pursuant to the | 0004| procedures of the IGRA, request the State to enter into | 0005| negotiations for a new compact governing the conduct of Class III | 0006| Gaming. If the parties are unable to conclude a successor | 0007| compact, this Compact shall remain in full force and effect in | 0008| accordance with its terms pending exhaustion of the administrative | 0009| and judicial remedies set forth in the IGRA and any other | 0010| applicable federal law. | 0011| D. Notwithstanding the foregoing, at any time while this | 0012| Compact remains in effect, either party may, by written notice to | 0013| the other party, request reopening of negotiations with respect to | 0014| any provision of this Compact, or with respect to any issue not | 0015| addressed in the Compact, specifying such provision or issue in | 0016| such notice. No such request shall be unreasonably refused, but | 0017| neither party shall be required to agree to any change in the | 0018| Compact, and no agreement to supplement or amend this Compact in | 0019| any respect shall have any validity until the same shall have been | 0020| approved in writing by the Tribe, the State and the Secretary of | 0021| the Interior and notice of such approval published in the Federal | 0022| Register. | 0023| E. The Tribe may operate Class III Gaming only while this | 0024| Compact or any renegotiated compact is in effect. | 0025| SECTION 12. Notice to Parties. | 0001| Unless otherwise indicated, all notices, payments, requests, | 0002| reports, information or demand that any party hereto may desire or | 0003| may be required to give to the other party hereto, shall be in | 0004| writing and shall be personally delivered or sent by first-class | 0005| mail sent to the other party at the address provided in writing by | 0006| the other party. Every notice, payment, request, report, | 0007| information or demand so given shall be deemed effective upon | 0008| receipt or, if mailed, upon receipt or the expiration of the third | 0009| day following the day of mailing, whichever occurs first, except | 0010| that any notice of change of address shall be effective only upon | 0011| receipt by the party to whom said notice is addressed. | 0012| SECTION 13. Entire Agreement. | 0013| This Compact is the entire agreement between the parties and | 0014| supersedes all prior agreements, whether written or oral, with | 0015| respect to the subject matter hereof. Neither this Compact nor | 0016| any provision herein may be changed, waived, discharged or | 0017| terminated orally, but only by an instrument, in writing, signed | 0018| by the Tribe and the State and approved by the Secretary of the | 0019| Interior. | 0020| SECTION 14. Filing of Compact with State Records Center. | 0021| Upon the effective date of this Compact, a copy shall be | 0022| filed by the Governor with the New Mexico Records Center. Any | 0023| subsequent amendment or modification of this Compact shall be | 0024| filed with the New Mexico Records Center. | 0025| SECTION 15. Counterparts. | 0001| This Compact may be executed by the parties in any number of | 0002| separate counterparts with the same effect as if the signatures | 0003| were upon the same instrument. All such counterparts shall | 0004| together constitute one and the same document." | 0005| Section 2. [NEW MATERIAL] REVENUE SHARING OF TRIBAL GAMING | 0006| REVENUE.--The governor is authorized to execute a revenue-sharing | 0007| agreement in the form substantially set forth in this section with | 0008| any New Mexico Indian nation, tribe or pueblo that has also | 0009| entered into an Indian gaming compact as provided by law. | 0010| Execution of an Indian gaming compact is conditioned upon | 0011| execution of a revenue-sharing agreement. The consideration for | 0012| the Indian entity entering into the revenue-sharing agreement is | 0013| the condition of the agreement providing limited exclusivity of | 0014| gaming activities to the tribal entity. The revenue-sharing | 0015| agreement shall be in substantially the following form and is | 0016| effective when executed by the governor on behalf of the state and | 0017| the appropriate official of the Indian entity: | 0018| "REVENUE-SHARING AGREEMENT | 0019| 1. Summary and consideration. The Tribe shall agree to | 0020| contribute certain of its Class III Gaming revenues, as described | 0021| below. | 0022| 2. Revenue to State. The parties agree that, after the | 0023| effective date hereof, the Tribe shall make semi-annual payments | 0024| to the General Fund of the State ("State General Fund"). | 0025| 3. Calculation of Revenue to State. | 0001| A. The parties agree that, as used herein, "net win" is | 0002| defined as the total amount wagered at each Gaming Facility on | 0003| Class III Gaming, which is protected by the limitations in | 0004| Paragraph 5, below, and elsewhere herein, minus the total amount | 0005| paid as prizes (including noncash prizes) and winning wagers at | 0006| said games, and minus all tribal regulatory fees and expenses, | 0007| supported by reasonable, adequate documentation, not to exceed Two | 0008| Hundred Fifty Thousand Dollars ($250,000) per year and minus | 0009| federal and State regulatory fees and expenses, and taxes. | 0010| B. The tribe shall pay the state fifteen percent of the | 0011| net win of each Gaming Facility. | 0012| C. For purposes of these payments, all calculations of | 0013| amounts due shall be based upon a calendar year beginning January | 0014| 1 and ending December 31, unless the parties agree on a different | 0015| fiscal year. The semiannual payments due to the State pursuant to | 0016| these terms shall be paid no later than twenty-five (25) days | 0017| after December 31 and June 30 of each year (or commensurate dates | 0018| if the fiscal year agreed upon is different from the calendar | 0019| year). Any payments due and owing from the Tribe in the year the | 0020| Compact is approved, or the final year the Compact is in force, | 0021| shall reflect the net win, but only for the portion of the year | 0022| the Compact is in effect. | 0023| 4. Limitations. The Tribe's obligation to make the | 0024| payments provided for in Paragraphs 2 and 3 of this section shall | 0025| apply and continue only so long as there is a binding Indian | 0001| Gaming Compact in effect between the Tribe and the State, which | 0002| Compact provides for the play of Class III Gaming, but shall | 0003| terminate in the event of any of the following conditions: | 0004| A. If the State passes, amends, or repeals any law, or | 0005| takes any other action, which would directly or indirectly attempt | 0006| to restrict, or has the effect of restricting, the scope of Indian | 0007| gaming. | 0008| B. If the State permits any expansion of nontribal | 0009| Class III Gaming in the State. Notwithstanding this general | 0010| prohibition against permitted expansion of gaming activities, the | 0011| State may permit: (1) the enactment of a State lottery, (2) any | 0012| fraternal, veterans or other nonprofit membership organization to | 0013| operate such electronic gaming devices lawfully, but only for the | 0014| benefit of such organization's members, (3) limited fundraising | 0015| activities conducted by nonprofit tax exempt organizations | 0016| pursuant to Section 30-19-6 NMSA 1978, and (4) any horse | 0017| racetracks to operate electronic gaming devices on days on which | 0018| live or simulcast horse racing occurs. | 0019| 5. Effect of Variance. | 0020| A. In the event the acts or omissions of the State | 0021| cause the Tribe's obligation to make payments under Paragraph 3 of | 0022| this section to terminate under the provisions of Paragraph 4 of | 0023| this section, such cessation of obligation to pay will not | 0024| adversely affect the validity of the Compact, but the maximum | 0025| amount that the Tribe agrees to reimburse the State for actual | 0001| documented regulatory costs under the Compact shall automatically | 0002| increase to one hundred thousand dollars ($100,000) per year. | 0003| | 0004| B. In the event a Tribe's revenue-sharing payment to | 0005| the State is less than one hundred thousand dollars ($100,000) per | 0006| year, the maximum amount that the Tribe agrees to reimburse the | 0007| State for actual documented regulatory costs under the Compact | 0008| shall automatically increase to one hundred thousand dollars | 0009| ($100,000) per year less the amount of the revenue-sharing | 0010| payment. 6. Third-Party Beneficiaries. This Agreement is not | 0011| intended to create any third-party beneficiaries and is entered | 0012| into solely for the benefit of the Tribe and the State." | 0013| Section 3. [NEW MATERIAL] SHORT TITLE.--Sections 3 through | 0014| 63 of this act may be cited as the "Gaming Control Act". | 0015| Section 4. [NEW MATERIAL] POLICY.--It is the state's | 0016| policy on gaming that: | 0017| A. limited gaming activities should be allowed in the | 0018| state if those activities are strictly regulated to ensure honest | 0019| and competitive gaming that is free from criminal and corruptive | 0020| elements and influences; and | 0021| B. the holder of any license issued by the state in | 0022| connection with the regulation of gaming activities has a | 0023| revocable privilege only and has no property right or vested | 0024| interest in the license. | 0025| Section 5. [NEW MATERIAL] DEFINITIONS.--As used in the | 0001| Gaming Control Act: | 0002| A. "affiliate" means a person who, directly or | 0003| indirectly through one or more intermediaries, controls, is | 0004| controlled by or is under common control with a specified person; | 0005| B. "affiliated company" means a company that: | 0006| (1) controls, is controlled by or is under common | 0007| control with a company licensee; and | 0008| (2) is involved in gaming activities or involved | 0009| in the ownership of property on which gaming is conducted; | 0010| C. "applicant" means a person who has applied for a | 0011| license or for approval of an act or transaction for which | 0012| approval is required or allowed pursuant to the provisions of the | 0013| Gaming Control Act; | 0014| D. "application" means a request for the issuance of a | 0015| license or for approval of an act or transaction for which | 0016| approval is required or allowed pursuant to the provisions of the | 0017| Gaming Control Act, but "application" does not include a | 0018| supplemental form or information that may be required with the | 0019| application; | 0020| E. "associated equipment" means equipment or a | 0021| mechanical, electromechanical or electronic contrivance, component | 0022| or machine used in connection with gaming; | 0023| F. "board" means the gaming control board; | 0024| G. "certification" means a notice of approval by the | 0025| board of a person required to be certified by the board; | 0001| H. "company" means a corporation, partnership, limited | 0002| partnership, trust, association, joint stock company, joint | 0003| venture, limited liability company or other form of business | 0004| organization that is not a natural person; | 0005| I. "distributor" means a person who supplies gaming | 0006| devices to a gaming operator but does not manufacture gaming | 0007| devices; | 0008| J. "equity security" means an interest in a company | 0009| that is evidenced by: | 0010| (1) voting stock or similar security; | 0011| (2) a security convertible into voting stock or | 0012| similar security, with or without consideration, or a security | 0013| carrying a warrant or right to subscribe to or purchase voting | 0014| stock or similar security; | 0015| (3) a warrant or right to subscribe to or purchase | 0016| voting stock or similar security; or | 0017| (4) a security having a direct or indirect | 0018| participation in the profits of the issuer; | 0019| K. "executive director" means the chief administrative | 0020| officer appointed by the board pursuant to Section 7 of the Gaming | 0021| Control Act; | 0022| L. "finding of suitability" means a certification of | 0023| approval issued by the board permitting a person to be involved | 0024| directly or indirectly with a licensee, relating only to the | 0025| specified involvement for which it is made; | 0001| M. "game" means an activity in which, upon payment of | 0002| consideration, a player receives a prize or other thing of value, | 0003| the award of which is determined by chance even though accompanied | 0004| by some skill; "game" does not include an activity played in a | 0005| private residence in which no person makes money for operating the | 0006| activity except through winnings as a player; | 0007| N. "gaming" means offering a game for play; | 0008| O. "gaming activity" means any endeavor associated | 0009| with the manufacture or distribution of gaming devices or the | 0010| conduct of gaming; | 0011| P. "gaming device" means associated equipment or a | 0012| gaming machine and includes a system for processing information | 0013| that can alter the normal criteria of random selection that | 0014| affects the operation of a game or determines the outcome of a | 0015| game; "gaming device" does not include a system or device that | 0016| affects a game solely by stopping its operation so that the | 0017| outcome remains undetermined; | 0018| Q. "gaming employee" means a person connected directly | 0019| with a gaming activity; "gaming employee" does not include: | 0020| (1) bartenders, cocktail servers or other persons | 0021| engaged solely in preparing or serving food or beverages; | 0022| (2) secretarial or janitorial personnel; | 0023| (3) stage, sound and light technicians; or | 0024| (4) other nongaming personnel; | 0025| R. "gaming establishment" means the premises on or in | 0001| which gaming is conducted; | 0002| S. "gaming machine" means a mechanical, | 0003| electromechanical or electronic contrivance or machine that, upon | 0004| insertion of a coin, token or similar object, or upon payment of | 0005| any consideration, is available to play or operate a game, whether | 0006| the payoff is made automatically from the machine or in any other | 0007| manner; | 0008| T. "gaming operator" means a person who conducts | 0009| gaming; | 0010| U. "holding company" means a company that directly or | 0011| indirectly owns or has the power or right to control a company | 0012| that is an applicant or licensee, but a company that does not have | 0013| a beneficial ownership of more than ten percent of the equity | 0014| securities of a publicly traded corporation is not a holding | 0015| company; | 0016| V. "immediate family" means natural persons who are | 0017| related to a specified natural person by affinity or consanguinity | 0018| in the first through the third degree; | 0019| W. "institutional investor" means a state or federal | 0020| government pension plan or a person that meets the requirements of | 0021| a qualified institutional buyer as defined in Rule 144A of the | 0022| federal Securities Act of 1933, and is: | 0023| (1) a bank as defined in Section 3(a)(6) of the | 0024| federal Securities Exchange Act of 1934; | 0025| (2) an insurance company as defined in Section | 0001| 2(a)(17) of the federal Investment Company Act of 1940; | 0002| (3) an investment company registered under Section | 0003| 8 of the federal Investment Company Act of 1940; | 0004| (4) an investment adviser registered under Section | 0005| 203 of the federal Investment Advisers Act of 1940; | 0006| (5) collective trust funds as defined in Section | 0007| 3(c)(11) of the federal Investment Company Act of 1940; | 0008| (6) an employee benefit plan or pension fund that | 0009| is subject to the federal Employee Retirement Income Security Act | 0010| of 1974, excluding an employee benefit plan or pension fund | 0011| sponsored by a publicly traded corporation registered with the | 0012| board; or | 0013| (7) a group comprised entirely of persons | 0014| specified in Paragraphs (1) through (6) of this subsection; | 0015| X. "intermediary company" means a company that: | 0016| (1) is a holding company with respect to a company | 0017| that is an applicant or licensee; and | 0018| (2) is a subsidiary with respect to any holding | 0019| company; | 0020| Y. "key executive" means an executive of a licensee | 0021| having the power to exercise significant influence over decisions | 0022| concerning any part of the licensed operations of the licensee or | 0023| whose compensation exceeds an amount established by the board in a | 0024| regulation; | 0025| Z. "license" means an authorization required by the | 0001| board for engaging in gaming activities; | 0002| AA. "licensee" means a person to whom a valid license | 0003| has been issued; | 0004| BB. "manufacturer" means a person who manufactures, | 0005| fabricates, assembles, produces, programs or makes modifications | 0006| to any gaming device for use or play in New Mexico or for sale, | 0007| lease or distribution outside New Mexico from any location within | 0008| New Mexico; | 0009| CC. "net take" means the total of the following, less | 0010| the total of all cash paid out as losses to winning patrons and | 0011| those amounts paid to purchase annuities to fund losses paid to | 0012| winning patrons over several years by independent administrators: | 0013| (1) cash received from patrons for playing a game; | 0014| (2) cash received in payment for credit extended | 0015| by a licensee to a patron for playing a game; and | 0016| (3) compensation received for conducting a game in | 0017| which the licensee is not a party to a wager; | 0018| DD. "nonprofit organization" means an organization | 0019| that: | 0020| (1) is described in Section 501(c)(8), (10), (19) | 0021| or (23) of the federal Internal Revenue Code of 1986 and that is | 0022| exempt from federal income taxation pursuant to Section 501(a) of | 0023| that code; | 0024| (2) has been issued a license pursuant to Section | 0025| 60-6A-5 NMSA 1978 but does not have gaming as its primary | 0001| activity; and | 0002| (3) has been in continuous existence at the same | 0003| location since before January 1, 1987; | 0004| EE. "person" means a legal entity; | 0005| FF. "premises" means land, together with all | 0006| buildings, improvements and personal property located on the land; | 0007| GG. "progressive jackpot" means a prize that increases | 0008| over time or as gaming machines that are linked to a progressive | 0009| system are played and upon conditions established by the board may | 0010| be paid by an annuity; | 0011| HH. "progressive system" means one or more gaming | 0012| machines linked to one or more common progressive jackpots; | 0013| II. "publicly traded corporation" means a corporation | 0014| that: | 0015| (1) has one or more classes of securities | 0016| registered pursuant to the securities laws of the United States or | 0017| New Mexico; | 0018| (2) is an issuer subject to the securities laws of | 0019| the United States or New Mexico; or | 0020| (3) has one or more classes of securities | 0021| registered or is an issuer pursuant to applicable foreign laws | 0022| that the board finds provide protection for institutional | 0023| investors that is comparable to or greater than the stricter of | 0024| the securities laws of the United States or New Mexico; | 0025| JJ. "registration" means a board action that | 0001| authorizes a company to be a holding company with respect to a | 0002| company that holds or applies for a license or that relates to | 0003| other persons required to be registered pursuant to the Gaming | 0004| Control Act; | 0005| KK. "subsidiary" means a company, all or a part of | 0006| whose outstanding equity securities are owned, subject to a power | 0007| or right of control or held, with power to vote, by a holding | 0008| company or intermediary company; and | 0009| LL. "work permit" means a card, certificate or permit | 0010| issued by the board, whether denominated as a work permit, | 0011| registration card or otherwise, authorizing the employment of the | 0012| holder as a gaming employee. | 0013| Section 6. [NEW MATERIAL] LIMITED GAMING ACTIVITY | 0014| PERMITTED.--Gaming activity is permitted in New Mexico only if it | 0015| is conducted in compliance with and pursuant to: | 0016| A. the Gaming Control Act; or | 0017| B. a state or federal law other than the Gaming | 0018| Control Act that expressly permits the activity or exempts it from | 0019| the application of the state criminal law, or both. | 0020| Section 7. [NEW MATERIAL] GAMING CONTROL BOARD CREATED.- | 0021| - | 0022| A. The "gaming control board" is created and | 0023| consists of five members appointed by the governor with the | 0024| advice and consent of the senate. All members of the board | 0025| shall be residents of New Mexico and citizens of the United | 0001| States. At least one member of the board shall have a minimum | 0002| of five years of previous employment in a supervisory and | 0003| administrative position in a law enforcement agency; at least | 0004| one member of the board shall be a certified public accountant | 0005| in New Mexico who has had at least five years of experience in | 0006| public accountancy; at least one member of the board shall be an | 0007| attorney who has been admitted to practice before the supreme | 0008| court of New Mexico; and at least one member of the board shall | 0009| have at least five years of previous employment in a top-level | 0010| supervisory and administrative position in a governmental gaming | 0011| regulatory agency. | 0012| B. The members of the board shall be appointed for | 0013| terms of five years, except, of the members who are first | 0014| appointed, one member with law enforcement experience and one | 0015| member who is a certified public accountant shall be appointed | 0016| for terms of five years; one member who is an attorney and one | 0017| member who has gaming regulatory experience shall be appointed | 0018| for terms of four years; and the fifth member shall be appointed | 0019| for a term of three years. Thereafter, all members shall be | 0020| appointed for terms of five years. No person shall serve as a | 0021| board member for more than two consecutive terms or ten years | 0022| total. | 0023| C. No person appointed to the board may be employed | 0024| in any other capacity or shall in any manner receive | 0025| compensation for services rendered to any person or entity other | 0001| than the board while a member of the board. | 0002| D. A vacancy on the board shall be filled within | 0003| thirty days by the governor with the advice and consent of the | 0004| senate for the unexpired portion of the term in which the | 0005| vacancy occurs. A person appointed to fill a vacancy shall meet | 0006| all qualification requirements of the office established in this | 0007| section. | 0008| E. The governor shall choose a chairman annually | 0009| from the board's membership. | 0010| F. No more than three members of the board shall be | 0011| from the same political party. | 0012| G. The members of the board shall be full-time state | 0013| officials and shall receive a salary set by the governor. | 0014| H. The department of public safety shall conduct | 0015| background investigations of all members of the board prior to | 0016| confirmation by the senate. To assist the department in the | 0017| background investigation, a prospective board member shall | 0018| furnish a disclosure statement to the department on a form | 0019| provided by the department containing that information deemed by | 0020| the department as necessary for completion of a detailed and | 0021| thorough background investigation. The required information | 0022| shall include at least: | 0023| (1) a full set of fingerprints made by a law | 0024| enforcement agency on forms supplied by the department; | 0025| (2) complete information and details with | 0001| respect to the prospective board member's antecedents, habits, | 0002| immediate family, character, criminal record, business | 0003| activities, financial affairs and business associates covering | 0004| at least a ten-year period immediately preceding the date of | 0005| submitting the disclosure statement; | 0006| (3) complete disclosure of any equity interest | 0007| held by the prospective board member or a member of his | 0008| immediate family in a business connected with gaming; and | 0009| (4) the names and addresses of members of the | 0010| immediate family of the prospective board member. | 0011| I. No person may be appointed or confirmed as a | 0012| member of the board if that person or member of his immediate | 0013| family holds an equity interest in a business connected with | 0014| gaming. | 0015| J. A prospective board member shall provide | 0016| assistance and information requested by the department of public | 0017| safety or the governor and shall cooperate in any inquiry or | 0018| investigation of the prospective board member's fitness or | 0019| qualifications to hold the office to which he is appointed. The | 0020| senate shall not confirm a prospective board member if it has | 0021| reasonable cause to believe that the prospective board member | 0022| has: | 0023| (1) knowingly misrepresented or omitted a | 0024| material fact required in a disclosure statement; | 0025| (2) been convicted of a felony, a gaming | 0001| related offense or a crime involving fraud, theft or moral | 0002| turpitude within ten years immediately preceding the date of | 0003| submitting a disclosure statement required pursuant to the | 0004| provisions of Subsection H of this section; | 0005| (3) exhibited a history of willful disregard | 0006| for the gaming laws of this or any other state or the United | 0007| States; or | 0008| (4) had a permit or license issued pursuant to | 0009| the gaming laws of this or any other state or the United States | 0010| permanently suspended or revoked for cause. | 0011| K. The senate may in its discretion not confirm a | 0012| prospective board member. | 0013| L. At the time of taking office, each board member | 0014| shall file with the secretary of state a sworn statement that he | 0015| is not disqualified under the provisions of Subsection I of | 0016| this section. | 0017| Section 8. [NEW MATERIAL] BOARD--MEETINGS--QUORUM-- | 0018| RECORDS.-- | 0019| A. A majority of the qualified membership of the | 0020| board then in office constitutes a quorum. No action may be | 0021| taken by the board unless at least three members concur. | 0022| B. Written notice of the time and place of each | 0023| board meeting shall be given to each member of the board at | 0024| least ten days prior to the meeting. | 0025| C. Meetings of the board shall be open and public in | 0001| accordance with the Open Meetings Act, except that the board may | 0002| close a meeting to hear confidential security and investigative | 0003| information and other information made confidential by the | 0004| provisions of the Gaming Control Act. | 0005| D. All proceedings of the board shall be recorded by | 0006| audiotape or other equivalent verbatim audio recording device. | 0007| E. The chairman of the board, the executive director | 0008| or a majority of the members of the board then in office may | 0009| call a special meeting of the board upon at least five days' | 0010| prior written notice to all members of the board and the | 0011| executive director. | 0012| Section 9. [NEW MATERIAL] BOARD'S POWERS AND DUTIES.-- | 0013| A. The board shall implement the state's policy on | 0014| gaming consistent with the provisions of the Gaming Control Act. | 0015| It has the duty to fulfill all responsibilities assigned to it | 0016| pursuant to that act, and it has all authority necessary to | 0017| carry out those responsibilities. It may delegate authority to | 0018| the executive director, but it retains accountability. The | 0019| board is an adjunct agency. | 0020| B. The board shall: | 0021| (1) employ the executive director; | 0022| (2) make the final decision on issuance, | 0023| denial, suspension and revocation of all licenses pursuant to | 0024| and consistent with the provisions of the Gaming Control Act; | 0025| (3) develop, adopt and promulgate all | 0001| regulations necessary to implement and administer the provisions | 0002| of the Gaming Control Act; | 0003| (4) conduct itself, or employ a hearing officer | 0004| to conduct, all hearings required by the provisions of the | 0005| Gaming Control Act and other hearings it deems appropriate to | 0006| fulfill its responsibilities; | 0007| (5) meet at least once each month; and | 0008| (6) prepare and submit an annual report in | 0009| December of each year to the governor and the legislature, | 0010| covering activities of the board in the most recently completed | 0011| fiscal year, a summary of gaming activities in the state and any | 0012| recommended changes in or additions to the laws relating to | 0013| gaming in the state. | 0014| C. The board may: | 0015| (1) impose civil fines not to exceed twenty- | 0016| five thousand dollars ($25,000) for the first violation and | 0017| fifty thousand dollars ($50,000) for subsequent violations of | 0018| any prohibitory provision of the Gaming Control Act or any | 0019| prohibitory provision of a regulation adopted pursuant to that | 0020| act; | 0021| (2) conduct investigations; | 0022| (3) subpoena persons and documents to compel | 0023| access to or the production of documents and records, including | 0024| books and memoranda, in the custody or control of any licensee; | 0025| (4) compel the appearance of employees of a | 0001| licensee or persons for the purpose of ascertaining compliance | 0002| with provisions of the Gaming Control Act or a regulation | 0003| adopted pursuant to its provisions; | 0004| (5) administer oaths and take depositions to | 0005| the same extent and subject to the same limitations as would | 0006| apply if the deposition were pursuant to discovery rules in a | 0007| civil action in the district court; | 0008| (6) sue and be sued subject to the limitations | 0009| of the Tort Claims Act; | 0010| (7) contract for the provision of goods and | 0011| services necessary to carry out its responsibilities; | 0012| (8) conduct audits of applicants, licensees and | 0013| persons affiliated with licensees; | 0014| (9) inspect, examine, photocopy and audit all | 0015| documents and records of an applicant or licensee relevant to | 0016| his gaming activities in the presence of the applicant or | 0017| licensee or his agent; | 0018| (10) require verification of income and all | 0019| other matters pertinent to the gaming activities of an applicant | 0020| or licensee affecting the enforcement of any provision of the | 0021| Gaming Control Act; | 0022| (11) inspect all places where gaming activities | 0023| are conducted and inspect all property connected with gaming in | 0024| those places; | 0025| (12) summarily seize, remove and impound from | 0001| places inspected any gaming devices, property connected with | 0002| gaming, documents or records for the purpose of examination or | 0003| inspection; | 0004| (13) inspect, examine, photocopy and audit all | 0005| documents and records of any affiliate of an applicant or | 0006| licensee who the board knows or reasonably suspects is involved | 0007| in the financing, operation or management of the applicant or | 0008| licensee. The inspection, examination, photocopying and audit | 0009| shall be in the presence of a representative of the affiliate or | 0010| its agent when practicable; and | 0011| (14) except for the powers specified in | 0012| Paragraphs (1) and (4) of this subsection, carry out all or part | 0013| of the foregoing powers and activities through the executive | 0014| director. | 0015| Section 10. [NEW MATERIAL] BOARD REGULATIONS-- | 0016| DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.-- | 0017| A. The board may adopt any regulation: | 0018| (1) consistent with the provisions of the | 0019| Gaming Control Act; and | 0020| (2) it decides is necessary to implement the | 0021| provisions of the Gaming Control Act. | 0022| B. No regulation shall be adopted, amended or | 0023| repealed without a public hearing on the proposed action before | 0024| the board or a hearing officer designated by it. The public | 0025| hearing shall be held in Santa Fe. Notice of the subject matter | 0001| of the regulation, the action proposed to be taken, the time and | 0002| place of the hearing, the manner in which interested persons may | 0003| present their views and the method by which copies of the | 0004| proposed regulation, amendment or repeal may be obtained shall | 0005| be published once at least thirty days prior to the hearing date | 0006| in a newspaper of general circulation and mailed at least thirty | 0007| days prior to the hearing date to all persons who have made a | 0008| written request for advance notice of hearing. All regulations | 0009| and actions taken on regulations shall be filed in accordance | 0010| with the State Rules Act. | 0011| C. The board shall adopt regulations: | 0012| (1) prescribing the method and form of | 0013| application to be followed by an applicant; | 0014| (2) prescribing the information to be furnished | 0015| by an applicant or licensee concerning his antecedents, | 0016| immediate family, habits, character, associates, criminal | 0017| record, business activities and financial affairs, past or | 0018| present; | 0019| (3) prescribing the manner and procedure of all | 0020| hearings conducted by the board or a hearing officer; | 0021| (4) prescribing the manner and method of | 0022| collection and payment of fees; | 0023| (5) prescribing the manner and method of the | 0024| issuance of licenses, permits, registrations, certificates and | 0025| other actions of the board not elsewhere prescribed in the | 0001| Gaming Control Act; | 0002| (6) defining the area, games and gaming devices | 0003| allowed and the methods of operation of the games and gaming | 0004| devices for authorized gaming; | 0005| (7) prescribing under what conditions the | 0006| nonpayment of winnings is grounds for suspension or revocation | 0007| of a license of a gaming operator; | 0008| (8) governing the manufacture, sale, | 0009| distribution, repair and servicing of gaming devices; | 0010| (9) prescribing accounting procedures, | 0011| security, collection and verification procedures required of | 0012| licensees and matters regarding financial responsibility of | 0013| licensees; | 0014| (10) prescribing what shall be considered to be | 0015| an unsuitable method of operating gaming activities; | 0016| (11) restricting access to confidential | 0017| information obtained pursuant to the provisions of the Gaming | 0018| Control Act and ensuring that the confidentiality of that | 0019| information is maintained and protected; | 0020| (12) prescribing financial reporting and | 0021| internal control requirements for licensees; | 0022| (13) prescribing the manner in which winnings, | 0023| compensation from gaming activities and net take shall be | 0024| computed and reported by a gaming operator licensee; | 0025| (14) prescribing the frequency of and the | 0001| matters to be contained in audits of and periodic financial | 0002| reports from a gaming operator licensee consistent with | 0003| standards prescribed by the board; | 0004| (15) prescribing the procedures to be followed | 0005| by a gaming operator licensee for the exclusion of persons from | 0006| gaming establishments; | 0007| (16) establishing criteria and conditions for | 0008| the operation of progressive systems; | 0009| (17) establishing criteria and conditions for | 0010| approval of procurement by the board of personal property valued | 0011| in excess of twenty thousand dollars ($20,000), including | 0012| background investigation requirements for a person submitting a | 0013| bid or proposal; and | 0014| (18) establishing an applicant fee schedule for | 0015| processing applications that is based on costs of the | 0016| application review incurred by the board whether directly or | 0017| through payment by the board for costs charged for | 0018| investigations of applicants by state departments and agencies | 0019| other than the board, which regulation shall set a maximum fee | 0020| of one hundred thousand dollars ($100,000). | 0021| Section 11. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0022| EMPLOYMENT--QUALIFICATIONS.-- | 0023| A. The executive director shall be employed by, | 0024| report directly to and serve at the pleasure of the board. | 0025| B. The executive director shall have had at least | 0001| five years of responsible supervisory administrative experience | 0002| in a governmental gaming regulatory agency. | 0003| Section 12. [NEW MATERIAL] EXECUTIVE DIRECTOR--POWERS-- | 0004| DUTIES.-- | 0005| A. The executive director shall implement the | 0006| policies of the board. | 0007| B. The executive director shall employ all personnel | 0008| who work for the board. The employees shall be covered | 0009| employees pursuant to the provisions of the Personnel Act. | 0010| Among those personnel he shall employ and designate an | 0011| appropriate number of individuals as law enforcement officers | 0012| subject to proper certification pursuant to the Law Enforcement | 0013| Training Act. | 0014| C. The executive director shall establish | 0015| organizational units he determines are appropriate to administer | 0016| the provisions of the Gaming Control Act. | 0017| D. The executive director: | 0018| (1) may delegate authority to subordinates as | 0019| he deems necessary and appropriate, clearly delineating the | 0020| delegated authority and the limitations on it, if any; | 0021| (2) shall take administrative action by issuing | 0022| orders and instructions consistent with the Gaming Control Act | 0023| and regulations of the board to assure implementation of and | 0024| compliance with the provisions of that act and those | 0025| regulations; | 0001| (3) may conduct research and studies that will | 0002| improve the operations of the board and the provision of | 0003| services to the citizens of the state; | 0004| (4) may provide courses of instruction and | 0005| practical training for employees of the board and other persons | 0006| involved in the activities regulated by the board with the | 0007| objectives of improving operations of the board and achieving | 0008| compliance with the law and regulations; | 0009| (5) shall prepare an annual budget for the | 0010| board and submit it to the board for approval; and | 0011| (6) shall make recommendations to the board of | 0012| proposed regulations and any legislative changes needed to | 0013| provide better administration of the Gaming Control Act and fair | 0014| and efficient regulation of gaming activities in the state. | 0015| Section 13. [NEW MATERIAL] INVESTIGATION OF EXECUTIVE | 0016| DIRECTOR CANDIDATES AND EMPLOYEES.-- | 0017| A. A person who is under consideration in the final | 0018| selection process for appointment as the executive director | 0019| shall file a disclosure statement pursuant to the requirements | 0020| of this section, and the board shall not make an appointment of | 0021| a person as executive director until a background investigation | 0022| is completed by the department of public safety and a report is | 0023| made to the board. | 0024| B. A person who has reached the final selection | 0025| process for employment by the executive director shall file a | 0001| disclosure statement pursuant to the requirements of this | 0002| section if the executive director or the board has directed the | 0003| person do so. The person shall not be further considered for | 0004| employment until a background investigation is completed by the | 0005| department of public safety and a report is made to the | 0006| executive director. | 0007| C. Forms for the disclosure statements required by | 0008| this section shall be developed by the board in cooperation with | 0009| the department of public safety. At least the following | 0010| information shall be required of a person submitting a | 0011| statement: | 0012| (1) a full set of fingerprints made by a law | 0013| enforcement agency on forms supplied by the board; | 0014| (2) complete information and details with | 0015| respect to the person's antecedents, habits, immediate family, | 0016| character, criminal record, business activities and business | 0017| associates, covering at least a ten-year period immediately | 0018| preceding the date of submitting the disclosure statement; and | 0019| (3) a complete description of any equity | 0020| interest held in a business connected with the gaming industry. | 0021| D. In preparing an investigative report, the | 0022| department of public safety may request and receive criminal | 0023| history information from the federal bureau of investigation or | 0024| any other law enforcement agency or organization. The | 0025| department of public safety shall maintain confidentiality | 0001| regarding information received from a law enforcement agency | 0002| that may be imposed by the agency as a condition for providing | 0003| the information to the department. | 0004| E. A person required to file a disclosure statement | 0005| shall provide any assistance or information requested by the | 0006| department of public safety or the board and shall cooperate in | 0007| any inquiry or investigation. | 0008| F. If information required to be included in a | 0009| disclosure statement changes or if information is added after | 0010| the statement is filed, the person required to file it shall | 0011| provide that information in writing to the person requesting the | 0012| investigation. The supplemental information shall be provided | 0013| within thirty days after the change or addition. | 0014| G. The board shall not appoint a person as executive | 0015| director, and the executive director shall not employ a person, | 0016| if the board or the executive director has reasonable cause to | 0017| believe that the person has: | 0018| (1) knowingly misrepresented or omitted a | 0019| material fact required in a disclosure statement; | 0020| (2) been convicted of a felony, a gaming | 0021| related offense or a crime involving fraud, theft or moral | 0022| turpitude within ten years immediately preceding the date of | 0023| submitting a disclosure statement required pursuant to this | 0024| section; | 0025| (3) exhibited a history of willful disregard | 0001| for the gaming laws of this or any other state or the United | 0002| States; or | 0003| (4) had a permit or license issued pursuant to | 0004| the gaming laws of this or any other state or the United States | 0005| permanently suspended or revoked for cause. | 0006| H. Both the board and the executive director may | 0007| exercise absolute discretion in exercising their respective | 0008| appointing and employing powers. | 0009| Section 14. [NEW MATERIAL] CONFLICTS OF INTEREST--BOARD- | 0010| -EXECUTIVE DIRECTOR.-- | 0011| A. In addition to all other provisions of New Mexico | 0012| law regarding conflicts of interest of state officials and | 0013| employees, a member of the board, the executive director, or a | 0014| person in the immediate family of or residing in the household | 0015| of any of the foregoing persons, shall not | 0016| (1) directly or indirectly, as a proprietor or | 0017| as a member, stockholder, director or officer of a company, have | 0018| an interest in a business engaged in gaming activities in this | 0019| or another jurisdiction; or | 0020| (2) accept or agree to accept any economic | 0021| opportunity, gift, loan, gratuity, special discount, favor, | 0022| hospitality or service having an aggregate value of one hundred | 0023| dollars ($100) or more in any calendar year from a licensee or | 0024| applicant. | 0025| B. If a member of the board, the executive director | 0001| or a person in the immediate family of or residing in the | 0002| household of a member of the board or the executive director | 0003| violates a provision of this section, the member of the board or | 0004| executive director shall be removed from office. A board member | 0005| shall be removed by the governor, and the executive director | 0006| shall be removed from his position by the board. | 0007| Section 15. [NEW MATERIAL] ACTIVITIES REQUIRING | 0008| LICENSING.-- | 0009| A. A person shall not conduct gaming unless he is | 0010| licensed as a gaming operator. | 0011| B. A person shall not sell, supply or distribute any | 0012| gaming device or associated equipment for use or play in this | 0013| state or for use or play outside of this state from a location | 0014| within this state unless he is licensed as a distributor or | 0015| manufacturer, but a gaming operator licensee may sell or trade | 0016| in a gaming device or associated equipment to a gaming operator | 0017| licensee, distributor licensee or manufacturer licensee. | 0018| C. A person shall not manufacture, fabricate, | 0019| assemble, program or make modifications to a gaming device or | 0020| associated equipment for use or play in this state or for use or | 0021| play outside of this state from any location within this state | 0022| unless he is a manufacturer licensee. A manufacturer licensee | 0023| may sell, supply or distribute only the gaming devices or | 0024| associated equipment that he manufactures, fabricates, | 0025| assembles, programs or modifies. | 0001| D. A gaming operator licensee or a person other than | 0002| a manufacturer licensee or distributor licensee shall not | 0003| possess or control a place where there is an unlicensed gaming | 0004| machine. Any unlicensed gaming machine, except one in the | 0005| possession of a licensee while awaiting transfer to a gaming | 0006| operator licensee for licensure of the machine, is subject to | 0007| forfeiture and confiscation by any law enforcement agency or | 0008| peace officer. | 0009| E. A person shall not service or repair a gaming | 0010| device or associated equipment unless he is licensed as a | 0011| manufacturer or employed by a manufacturer licensee. | 0012| | 0013| F. A person shall not engage in any activity for | 0014| which the board requires a license or permit without obtaining | 0015| the license or permit. | 0016| G. Except as provided in Subsection B of this | 0017| section, a person shall not purchase, lease or acquire | 0018| possession of a gaming device or associated equipment except | 0019| from a licensed distributor or manufacturer. | 0020| H. A distributor licensee may receive a percentage | 0021| of the amount wagered, the net take or other measure related to | 0022| the operation of a gaming machine as a payment pursuant to a | 0023| lease or other arrangement for furnishing a gaming machine, but | 0024| the board shall adopt a regulation setting the maximum allowable | 0025| percentage. | 0001| Section 16. [NEW MATERIAL] LICENSURE--APPLICATION.-- | 0002| A. The board shall establish and issue the following | 0003| categories of licenses: | 0004| (1) manufacturer; | 0005| (2) distributor; | 0006| (3) gaming operator; and | 0007| (4) gaming machine. | 0008| B. The board shall issue certifications of findings | 0009| of suitability for key executives and other persons for whom | 0010| certification is required. | 0011| C. The board shall issue work permits for gaming | 0012| employees. | 0013| D. A licensee shall not be issued more than one type | 0014| of license, but this provision does not prohibit a licensee from | 0015| owning, leasing, acquiring or having in his possession licensed | 0016| gaming machines if that activity is otherwise allowed by the | 0017| provisions of the Gaming Control Act. A licensee shall not own a | 0018| majority interest in, manage or otherwise control a holder of | 0019| another type of license issued pursuant to the provisions of | 0020| that act. | 0021| E. Applicants shall apply on forms provided by the | 0022| board and furnish all information requested by the board. | 0023| Submission of an application constitutes consent to a credit | 0024| check of the applicant and all persons having a substantial | 0025| interest in the applicant and any other background | 0001| investigations required pursuant to the Gaming Control Act or | 0002| deemed necessary by the board. | 0003| F. All licenses issued by the board pursuant to the | 0004| provisions of this section shall be reviewed for renewal | 0005| annually unless revoked, suspended, canceled or terminated. | 0006| G. A license shall not be transferred or assigned. | 0007| H. The application for a license shall include: | 0008| (1) the name of the applicant; | 0009| (2) the location of the proposed operation; | 0010| (3) the gaming devices to be operated, | 0011| manufactured, distributed or serviced; | 0012| (4) the names of all persons having a direct or | 0013| indirect interest in the business of the applicant and the | 0014| nature of such interest; and | 0015| (5) such other information and details as the | 0016| board may require. | 0017| I. The board shall furnish to the applicant | 0018| supplemental forms that the applicant shall complete and file | 0019| with the application. Such supplemental forms shall require | 0020| complete information and details with respect to the applicant's | 0021| antecedents, habits, immediate family, character, criminal | 0022| record, business activities, financial affairs and business | 0023| associates, covering at least a ten-year period immediately | 0024| preceding the date of filing of the application. | 0025| Section 17. [NEW MATERIAL] LICENSE, CERTIFICATION AND | 0001| WORK PERMIT FEES.-- | 0002| A. License and other fees shall be established by | 0003| board regulation but shall not exceed the following amounts: | 0004| (1) manufacturer's license, twenty thousand | 0005| dollars ($20,000) for the initial license and five thousand | 0006| dollars ($5,000) for annual renewal; | 0007| (2) distributor's license, ten thousand dollars | 0008| ($10,000) for the initial license and one thousand dollars | 0009| ($1,000) for annual renewal; | 0010| (3) gaming operator's license for a racetrack, | 0011| fifty thousand dollars ($50,000) for the initial license and ten | 0012| thousand dollars ($10,000) for annual renewal; | 0013| (4) gaming operator's license for a nonprofit | 0014| organization, one thousand dollars ($1,000) for the initial | 0015| license and two hundred dollars ($200) for annual renewal; | 0016| (5) for each separate gaming machine licensed | 0017| to a person holding an operator's license, five hundred dollars | 0018| ($500) for the initial license and one hundred dollars ($100) | 0019| for annual renewal; and | 0020| (6) work permit, one hundred dollars ($100) | 0021| annually. | 0022| B. The board shall establish the fee for | 0023| certifications or other actions by regulation, but no fee | 0024| established by the board shall exceed one thousand dollars | 0025| ($1,000), except for fees established pursuant to Paragraph (18) | 0001| of Subsection C of Section 8 of the Gaming Control Act. | 0002| C. All license, certification or work permit fees | 0003| shall be paid to the board at the time and in the manner | 0004| established by regulations of the board. | 0005| Section 18. [NEW MATERIAL] ACTION BY BOARD ON | 0006| APPLICATIONS.-- | 0007| A. A person that the board determines is qualified | 0008| to receive a license pursuant to the provisions of the Gaming | 0009| Control Act may be issued a license. The burden of proving | 0010| qualifications is on the applicant. | 0011| B. A license shall not be issued unless the board is | 0012| satisfied that the applicant is: | 0013| (1) a person of good moral character, honesty | 0014| and integrity; | 0015| (2) a person whose prior activities, criminal | 0016| record, reputation, habits and associations do not pose a threat | 0017| to the public interest or to the effective regulation and | 0018| control of gaming or create or enhance the dangers of | 0019| unsuitable, unfair or illegal practices, methods and activities | 0020| in the conduct of gaming or the carrying on of the business and | 0021| financial arrangements incidental thereto; and | 0022| (3) in all other respects qualified to be | 0023| licensed consistent with the laws of this state. | 0024| C. A license shall not be issued unless the | 0025| applicant has satisfied the board that: | 0001| (1) the applicant has adequate business | 0002| probity, competence and experience in business and gaming; | 0003| (2) the proposed financing of the applicant is | 0004| adequate for the nature of the proposed license and from a | 0005| suitable source; any lender or other source of money or credit | 0006| that the board finds does not meet the standards set forth in | 0007| Subsection B of this section shall be deemed unsuitable; and | 0008| (3) the applicant is sufficiently capitalized | 0009| under standards set by the board to conduct the business covered | 0010| by the license. | 0011| D. An application to receive a license, | 0012| certification or work permit constitutes a request for a | 0013| determination of the applicant's general moral character, | 0014| integrity and ability to participate or engage in or be | 0015| associated with gaming. Any written or oral statement made in | 0016| the course of an official proceeding of the board or by a | 0017| witness testifying under oath that is relevant to the purpose of | 0018| the proceeding is absolutely privileged and does not impose | 0019| liability for defamation or constitute a ground for recovery in | 0020| any civil action. | 0021| E. The board shall not issue a license or | 0022| certification to an applicant who has been denied a license or | 0023| certification in this state or another state, who has had a | 0024| certification, permit or license issued pursuant to the gaming | 0025| laws of a state or the United States permanently suspended or | 0001| revoked for cause or who is currently under suspension or | 0002| subject to any other limiting action in this state or another | 0003| state involving gaming activities or licensure for gaming | 0004| activities. | 0005| F. The board shall investigate the qualifications of | 0006| each applicant before a license, certification or work permit is | 0007| issued by the board and shall continue to observe and monitor | 0008| the conduct of all licensees, work permit holders, persons | 0009| certified as being suitable and the persons having a material | 0010| involvement directly or indirectly with a licensee. | 0011| G. The board has the authority to deny an | 0012| application or limit, condition, restrict, revoke or suspend a | 0013| license, certification or permit for any cause. | 0014| H. After issuance, a license, certification or | 0015| permit shall continue in effect upon proper payment of the | 0016| initial and renewal fees, subject to the power of the board to | 0017| revoke, suspend, condition or limit licenses, certifications and | 0018| permits. | 0019| I. The board has full and absolute power and | 0020| authority to deny an application for any cause it deems | 0021| reasonable. If an application is denied, the board shall | 0022| prepare and file its written decision on which its order denying | 0023| the application is based. | 0024| Section 19. [NEW MATERIAL] INVESTIGATION FOR LICENSES, | 0025| CERTIFICATIONS AND PERMITS.--The board shall conduct an | 0001| investigation of the applicant within thirty days after an | 0002| application is filed and supplemental information that the board | 0003| may require is received. | 0004| Section 20. [NEW MATERIAL] ELIGIBILITY REQUIREMENTS FOR | 0005| COMPANIES.--In order to be eligible to receive a license, a | 0006| company shall: | 0007| A. be incorporated or otherwise organized and in | 0008| good standing in this state or incorporated or otherwise | 0009| organized in another state, qualified to do business in this | 0010| state and in good standing in this state and in the state of | 0011| incorporation; | 0012| B. comply with all of the requirements of the laws | 0013| of this state pertaining to the company; | 0014| C. maintain a ledger in the principal office of the | 0015| company in this state, which shall: | 0016| (1) at all times reflect the ownership | 0017| according to company records of every class of security issued | 0018| by the company; and | 0019| (2) be available for inspection by the board at | 0020| all reasonable times without notice; and | 0021| D. file notice of all changes of ownership of all | 0022| classes of securities issued by the company with the board | 0023| within thirty days of the change. | 0024| Section 21. [NEW MATERIAL] REGISTRATION WITH BOARD BY | 0025| COMPANY APPLICANTS--REQUIRED INFORMATION.--A company applicant | 0001| shall provide the following information to the board on forms | 0002| provided by the board: | 0003| A. the organization, financial structure and nature | 0004| of the business to be operated, including the names and personal | 0005| histories of all officers, directors and key executives; | 0006| B. the rights and privileges acquired by the holders | 0007| of different classes of authorized securities; | 0008| C. the terms and conditions of all outstanding | 0009| loans, mortgages, trust deeds, pledges or any other indebtedness | 0010| or security interest evidenced by a security instrument | 0011| pertaining to the proposed gaming operation or other licensed | 0012| activity in this state and the name and address of the person | 0013| who is servicing the loan, mortgage, trust deed, pledge or other | 0014| indebtedness or security interest; | 0015| D. remuneration to persons, other than directors, | 0016| officers and key executives, exceeding fifty thousand dollars | 0017| ($50,000) per year; | 0018| E. bonus and profit-sharing arrangements within the | 0019| company; | 0020| F. management and service contracts pertaining to | 0021| the proposed gaming activity in this state; | 0022| G. balance sheets and profit and loss statements for | 0023| at least the three preceding fiscal years, or, if the company | 0024| has not been in business for a period of three years, balance | 0025| sheets and profit and loss statements from the time of its | 0001| commencement of business operations and projected for three | 0002| years from the time of its commencement of business operations. | 0003| All balance sheets and profit and loss statements shall be | 0004| certified by independent certified public accountants; and | 0005| H. any further financial data that the board deems | 0006| necessary or appropriate. | 0007| Section 22. [NEW MATERIAL] INDIVIDUAL CERTIFICATION OF | 0008| OFFICERS, DIRECTORS AND OTHER PERSONS.--An officer, director, | 0009| equity security holder of five percent or more, partner, general | 0010| partner, limited partner, trustee or beneficiary of the company | 0011| that holds or has applied for a license shall be certified | 0012| individually, according to the provisions of the Gaming Control | 0013| Act, and if in the judgment of the board the public interest is | 0014| served by requiring any or all of the company's key executives | 0015| to be certified, the company shall require those persons to | 0016| apply for certification. A person who is required to be | 0017| certified pursuant to this section shall apply for certification | 0018| within thirty days after becoming an officer, director, equity | 0019| security holder of five percent or more, partner, general | 0020| partner, limited partner of five percent or more, trustee, | 0021| beneficiary or key executive. A person who is required to be | 0022| certified pursuant to a decision of the board shall apply for | 0023| certification within thirty days after the board so requests. | 0024| Section 23. [NEW MATERIAL] REQUIREMENTS IF COMPANY IS OR | 0025| BECOMES A SUBSIDIARY--INVESTIGATIONS--RESTRICTIONS ON UNSUITABLE | 0001| PERSONS--OTHER REQUIREMENTS.-- | 0002| A. If the company applicant or licensee is or | 0003| becomes a subsidiary, each nonpublicly traded holding company | 0004| and intermediary company with respect to the subsidiary company | 0005| shall: | 0006| (1) qualify to do business in New Mexico; and | 0007| (2) register with the board and furnish to the | 0008| board the following information: | 0009| (a) a complete list of all beneficial | 0010| owners of five percent or more of its equity securities, which | 0011| shall be updated within thirty days after any change; | 0012| (b) the names of all company officers and | 0013| directors within thirty days of their appointment or election; | 0014| (c) its organization, financial structure | 0015| and nature of the business it operates; | 0016| (d) the terms, position, rights and | 0017| privileges of the different classes of its outstanding | 0018| securities; | 0019| (e) the terms on which its securities are | 0020| to be, and during the preceding three years have been, offered; | 0021| (f) the holder of and the terms and | 0022| conditions of all outstanding loans, mortgages, trust deeds, | 0023| pledges or any other indebtedness or security interest | 0024| pertaining to the applicant or licensee; | 0025| (g) the extent of the securities holdings | 0001| or other interest in the holding company or intermediary company | 0002| of all officers, directors, key executives, underwriters, | 0003| partners, principals, trustees or any direct or beneficial | 0004| owners, and the amount of any remuneration paid them as | 0005| compensation for their services in the form of salary, wages, | 0006| fees or by contract pertaining to the licensee; | 0007| (h) remuneration to persons other than | 0008| directors, officers and key executives exceeding fifty thousand | 0009| dollars ($50,000) per year; | 0010| (i) bonus and profit-sharing arrangements | 0011| within the holding company or intermediary company; | 0012| (j) management and service contracts | 0013| pertaining to the licensee or applicant; | 0014| (k) options existing or to be created in | 0015| respect to the company's securities or other interests; | 0016| (l) balance sheets and profit and loss | 0017| statements, certified by independent certified public | 0018| accountants, for not more than the three preceding fiscal years, | 0019| or, if the holding company or intermediary company has not been | 0020| in existence more than three years, balance sheets and profit | 0021| and loss statements from the time of its establishment, together | 0022| with projections for three years from the time of its | 0023| establishment; | 0024| (m) any further financial statements | 0025| necessary or appropriate to assist the board in making its | 0001| determinations; and | 0002| (n) a current annual profit and loss | 0003| statement, a current annual balance sheet and a copy of the | 0004| company's most recent federal income tax return within thirty | 0005| days after the return is filed. | 0006| B. All holders of five percent or more of the equity | 0007| security of a holding company or intermediary company shall | 0008| apply for a finding of suitability. | 0009| C. The board may in its discretion perform the | 0010| investigations concerning the officers, directors, key | 0011| executives, underwriters, security holders, partners, | 0012| principals, trustees or direct or beneficial owners of any | 0013| interest in any holding company or intermediary company as it | 0014| deems necessary, either at the time of initial registration or | 0015| at any time thereafter. | 0016| D. If at any time the board finds that any person | 0017| owning, controlling or holding with power to vote all or any | 0018| part of any class of securities of, or any interest in, any | 0019| holding company or intermediary company is unsuitable to be | 0020| connected with a licensee, it shall so notify both the | 0021| unsuitable person and the holding company or intermediary | 0022| company. The unsuitable person shall immediately offer the | 0023| securities or other interest to the issuing company for | 0024| purchase. The company shall purchase the securities or interest | 0025| offered upon the terms and within the time period ordered by the | 0001| board. | 0002| E. Beginning on the date when the board serves | 0003| notice that a person has been found to be unsuitable pursuant to | 0004| Subsection D of this section, it is unlawful for the unsuitable | 0005| person to: | 0006| (1) receive any dividend or interest upon any | 0007| securities held in the holding company or intermediary company, | 0008| or any dividend, payment or distribution of any kind from the | 0009| holding company or intermediary company; | 0010| (2) exercise, directly or indirectly or through | 0011| a proxy, trustee or nominee, any voting right conferred by the | 0012| securities or interest; or | 0013| (3) receive remuneration in any form from the | 0014| licensee, or from any holding company or intermediary company | 0015| with respect to that licensee, for services rendered or | 0016| otherwise. | 0017| F. A holding company or intermediary company subject | 0018| to the provisions of Subsection A of this section shall not make | 0019| any public offering of any of its equity securities unless such | 0020| public offering has been approved by the board. | 0021| G. This section does not apply to a holding company | 0022| or intermediary company that is a publicly traded corporation, | 0023| the stock of which is traded on recognized stock exchanges, | 0024| which shall instead comply with the provisions of Section 22 of | 0025| the Gaming Control Act. | 0001| Section 24. [NEW MATERIAL] REGISTRATION AND | 0002| CERTIFICATION OF PUBLICLY TRADED CORPORATIONS.-- | 0003| A. If a company applicant or company licensee is or | 0004| becomes a publicly traded corporation, it shall register with | 0005| the board and provide the following information: | 0006| (1) as of the date the company became a | 0007| publicly traded corporation, and on any later date when the | 0008| information changes, the names of all stockholders of record who | 0009| hold five percent or more of the outstanding shares of any class | 0010| of equity securities issued by the publicly traded corporation; | 0011| (2) the names of all officers within thirty | 0012| days of their respective appointments; | 0013| (3) the names of all directors within thirty | 0014| days of their respective elections or appointments; | 0015| (4) the organization, financial structure and | 0016| nature of the businesses the publicly traded corporation | 0017| operates; | 0018| (5) the terms, position, rights and privileges | 0019| of the different classes of securities outstanding as of the | 0020| date the company became a publicly traded corporation; | 0021| (6) the terms on which the company's securities | 0022| were issued during the three years preceding the date on which | 0023| the company became a publicly traded corporation and the terms | 0024| on which the publicly traded corporation's securities are to be | 0025| offered to the public as of the date the company became a | 0001| publicly traded corporation; | 0002| (7) the terms and conditions of all outstanding | 0003| indebtedness and evidence of security pertaining directly or | 0004| indirectly to the publicly traded corporation; | 0005| (8) remuneration exceeding fifty thousand | 0006| dollars ($50,000) per year paid to persons other than directors, | 0007| officers and key executives who are actively and directly | 0008| engaged in the administration or supervision of the gaming | 0009| activities of the publicly traded corporation; | 0010| (9) bonus and profit-sharing arrangements | 0011| within the publicly traded corporation directly or indirectly | 0012| relating to its gaming activities; | 0013| (10) management and service contracts of the | 0014| corporation pertaining to its gaming activities; | 0015| (11) options existing or to be created pursuant | 0016| to its equity securities; | 0017| (12) balance sheets and profit and loss | 0018| statements, certified by independent certified public | 0019| accountants, for not less than the three fiscal years preceding | 0020| the date the company became a publicly traded corporation; | 0021| (13) any further financial statements deemed | 0022| necessary or appropriate by the board; and | 0023| (14) a description of the publicly traded | 0024| corporation's affiliated companies and intermediary companies | 0025| and gaming licenses, permits and approvals held by those | 0001| entities. | 0002| B. The board shall consider the following criteria | 0003| in determining whether to certify a publicly traded corporation: | 0004| (1) the business history of the publicly traded | 0005| corporation, including its record of financial stability, | 0006| integrity and success of its gaming operations in other | 0007| jurisdictions; | 0008| (2) the current business activities and | 0009| interests of the applicant, as well as those of its officers, | 0010| promoters, lenders and other sources of financing, or any other | 0011| persons associated with it; | 0012| (3) the current financial structure of the | 0013| publicly traded corporation as well as changes that could | 0014| reasonably be expected to occur to its financial structure as a | 0015| consequence of its proposed action; | 0016| (4) the present and proposed compensation | 0017| arrangements between the publicly traded corporation and its | 0018| directors, officers, key executives, securities holders, lenders | 0019| or other sources of financing; | 0020| (5) the equity investment, commitment or | 0021| contribution of present or prospective directors, key | 0022| executives, investors, lenders or other sources of financing; | 0023| and | 0024| (6) the dealings and arrangements, prospective | 0025| or otherwise, between the publicly traded corporation and its | 0001| investment bankers, promoters, finders or lenders and other | 0002| sources of financing. | 0003| C. The board may issue a certification upon receipt | 0004| of a proper application and consideration of the criteria set | 0005| forth in Subsection B of this section if it finds that the | 0006| certification would not be contrary to the public interest or | 0007| the policy set forth in the Gaming Control Act. | 0008| Section 25. [NEW MATERIAL] FINDING OF SUITABILITY | 0009| REQUIRED FOR DIRECTORS, OFFICERS AND KEY EXECUTIVES--REMOVAL | 0010| FROM POSITION IF FOUND UNSUITABLE--SUSPENSION OF SUITABILITY BY | 0011| BOARD.-- | 0012| A. Each officer, director and key executive of a | 0013| holding company, intermediary company or publicly traded | 0014| corporation that the board determines is or is to become | 0015| actively and directly engaged in the administration or | 0016| supervision of, or any other significant involvement with, the | 0017| activities of the subsidiary licensee or applicant shall apply | 0018| for a finding of suitability. | 0019| B. If any officer, director or key executive of a | 0020| holding company, intermediary company or publicly traded | 0021| corporation required to be found suitable pursuant to Subsection | 0022| A of this section fails to apply for a finding of suitability | 0023| within thirty days after being requested to do so by the board, | 0024| or is not found suitable by the board, or if his finding of | 0025| suitability is revoked after appropriate findings by the board, | 0001| the holding company, intermediary company or publicly traded | 0002| corporation shall immediately remove that officer, director or | 0003| key executive from any office or position in which the person is | 0004| engaged in the administration or supervision of, or any other | 0005| involvement with, the activities of the certified subsidiary | 0006| until the person is thereafter found to be suitable. If the | 0007| board suspends the finding of suitability of any officer, | 0008| director or key executive, the holding company, intermediary | 0009| company or publicly traded corporation shall immediately and for | 0010| the duration of the suspension suspend that officer, director or | 0011| key executive from performance of any duties in which he is | 0012| actively and directly engaged in the administration or | 0013| supervision of, or any other involvement with, the activities of | 0014| the subsidiary licensee. | 0015| Section 26. [NEW MATERIAL] SUITABILITY OF INDIVIDUALS | 0016| ACQUIRING BENEFICIAL OWNERSHIP OF VOTING SECURITY IN PUBLICLY | 0017| TRADED CORPORATION--REPORT OF ACQUISITION--APPLICATION-- | 0018| PROHIBITION.-- | 0019| A. Each person who, individually or in association | 0020| with others, acquires, directly or indirectly, beneficial | 0021| ownership of five percent or more of any voting securities in a | 0022| publicly traded corporation registered with the board may be | 0023| required to be found suitable if the board has reason to believe | 0024| that the acquisition of the ownership would otherwise be | 0025| inconsistent with the declared policy of this state. | 0001| B. Each person who, individually or in association | 0002| with others, acquires, directly or indirectly, beneficial | 0003| ownership of five percent or more of any class of voting | 0004| securities of a publicly traded corporation certified by the | 0005| board shall notify the board within ten days after acquiring | 0006| such interest. | 0007| C. Each person who, individually or in association | 0008| with others, acquires, directly or indirectly, the beneficial | 0009| ownership of more than ten percent of any class of voting | 0010| securities of a publicly traded corporation certified by the | 0011| board shall apply to the board for a finding of suitability | 0012| within thirty days after acquiring such interest. | 0013| D. Institutional investors that have been exempted | 0014| from or have received a waiver of suitability requirements | 0015| pursuant to regulations adopted by the board are not required to | 0016| comply with this section. | 0017| E. Any person required by the board or by the | 0018| provisions of this section to be found suitable shall apply for | 0019| a finding of suitability within thirty days after the board | 0020| requests that he do so. | 0021| F. Any person required by the board or the | 0022| provisions of this section to be found suitable who subsequently | 0023| is found unsuitable by the board shall not hold directly or | 0024| indirectly the beneficial ownership of any security of a | 0025| publicly traded corporation that is registered with the board | 0001| beyond that period of time prescribed by the board. | 0002| G. The board may, but is not required to, deem a | 0003| person qualified to hold a license or be found suitable as | 0004| required by this section if the person currently holds a valid | 0005| license issued by, or has been found suitable by, gaming | 0006| regulatory authorities in another jurisdiction, provided that | 0007| the board finds that the other jurisdiction has conducted a | 0008| thorough investigation of the applicant and has criteria | 0009| substantially similar to those of the board to determine when a | 0010| person is to be found suitable or to obtain a license. | 0011| Section 27. [NEW MATERIAL] REPORT OF PROPOSED ISSUANCE | 0012| OR TRANSFER OF SECURITIES--REPORT OF CHANGE IN CORPORATE | 0013| OFFICERS AND DIRECTORS--APPROVAL OF BOARD.-- | 0014| A. Before a company licensee, other than a publicly | 0015| traded corporation, may issue or transfer five percent or more | 0016| of its securities to any person, it shall file a report of its | 0017| proposed action with the board, which report shall request the | 0018| approval of the board. The board shall have ninety days within | 0019| which to approve or deny the request. If the board fails to act | 0020| in ninety days, the request is deemed approved. If the board | 0021| denies the request, the company shall not issue or transfer five | 0022| percent or more of its securities to the person about whom the | 0023| request was made. | 0024| B. A company licensee shall file a report of each | 0025| change of the corporate officers and directors with the board | 0001| within thirty days of the change. The board shall have ninety | 0002| days from the date the report is filed within which to approve | 0003| or disapprove such change. During the ninety-day period and | 0004| thereafter, if the board does not disapprove the change, an | 0005| officer or director is be entitled to exercise all powers of the | 0006| office to which he was elected or appointed. | 0007| C. A company licensee shall report to the board in | 0008| writing any change in company personnel who have been designated | 0009| as key executives. The report shall be made no later than | 0010| thirty days after the change. | 0011| D. The board may require that a company licensee | 0012| furnish the board with a copy of its federal income tax return | 0013| within thirty days after the return is filed. | 0014| Section 28. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0015| GENERAL PROVISIONS--PLAYER AGE LIMIT--RULES FOR PLACEMENT.-- | 0016| A. An applicant for licensure as a gaming operator | 0017| shall submit with the application a plan for assisting in the | 0018| prevention, education and treatment of compulsive gambling. The | 0019| plan shall include regular educational training sessions for | 0020| employees. Plan approval is a condition of issuance of the | 0021| license. | 0022| B. A gaming operator licensee shall be granted a | 0023| license to operate a specific number of machines at a gaming | 0024| establishment identified in the license application and shall be | 0025| granted a license for each gaming machine. | 0001| C. A gaming operator licensee who desires to change | 0002| the number of machines in operation at a gaming establishment | 0003| shall apply to the board for an amendment to his license | 0004| authorizing a change in the number of machines. | 0005| D. Gaming machines may be available for play only in | 0006| an area restricted to persons twenty-one years of age or older. | 0007| E. A gaming operator licensee shall erect a | 0008| permanent physical barrier to allow for multiple uses of the | 0009| premises by persons of all ages. For purposes of this | 0010| subsection, "permanent physical barrier" means a floor-to- | 0011| ceiling wall separating the general areas from the restricted | 0012| areas. The entrance to the area where gaming machines are | 0013| located shall display a sign that the premises are restricted to | 0014| persons twenty-one years of age or older. Persons under the age | 0015| of twenty-one shall not enter the area where gaming machines are | 0016| located. | 0017| F. A gaming operator licensee shall not have | 0018| automated teller machines on the premises. | 0019| G. A gaming operator licensee shall not provide, | 0020| allow, contract or arrange to provide alcohol or food for no | 0021| charge or at reduced prices as an incentive or enticement for | 0022| patrons to game. | 0023| Section 29. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0024| SPECIAL CONDITIONS FOR RACETRACKS--NUMBER OF GAMING MACHINES-- | 0025| DAYS AND HOURS OF OPERATIONS.-- | 0001| A. A racetrack licensed by the state racing | 0002| commission pursuant to the Horse Racing Act to conduct live | 0003| horse races or simulcast races may be issued a gaming operator's | 0004| license to operate gaming machines on its premises where live | 0005| racing is conducted. | 0006| B. A racetrack's gaming operator's license shall | 0007| automatically become void if: | 0008| (1) the racetrack no longer holds an active | 0009| license to conduct pari-mutuel wagering; or | 0010| (2) the racetrack fails to maintain a minimum | 0011| of four live race days a week during its licensed race meet | 0012| unless otherwise approved by the board. | 0013| C. A gaming operator licensee that is a racetrack | 0014| may have not more than three hundred licensed gaming machines, | 0015| but the number of gaming machines to be located on the | 0016| licensee's premises shall be specified in the gaming operator's | 0017| license. | 0018| D. Gaming machines on a racetrack gaming operator | 0019| licensee's premises may be played only on days when the | 0020| racetrack is either conducting live horse races or simulcasting | 0021| horse race meets and during times established by regulation of | 0022| the board, but the regulations shall provide for a maximum of | 0023| twelve hours a day. | 0024| E. Alcoholic beverages shall not be sold, served, | 0025| delivered or consumed in the area where gaming machines are | 0001| installed and operated on the premises of a racetrack gaming | 0002| operator licensee. | 0003| Section 30. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0004| SPECIAL CONDITIONS FOR NONPROFIT ORGANIZATIONS--NUMBER OF GAMING | 0005| MACHINES--DAYS AND HOURS OF OPERATIONS.-- | 0006| A. A nonprofit organization may be issued a gaming | 0007| operator's license to operate licensed gaming machines on its | 0008| premises. | 0009| B. No more than twenty-five gaming machines may be | 0010| offered for play on the premises of a nonprofit organization | 0011| gaming operator licensee. | 0012| C. No gaming machine on the premises of a nonprofit | 0013| organization gaming operator licensee may award a prize that | 0014| exceeds one thousand dollars ($1,000). | 0015| D. Gaming machines may be played on the premises of | 0016| a nonprofit organization gaming operator licensee from 12:00 | 0017| noon until 12:00 midnight every day. | 0018| E. Alcoholic beverages shall not be sold, served, | 0019| delivered or consumed in the area where gaming machines are | 0020| installed and operated on the premises of a nonprofit | 0021| organization gaming operator licensee. | 0022| Section 31. [NEW MATERIAL] LICENSING OF MANUFACTURERS OF | 0023| GAMING DEVICES--EXCEPTION--DISPOSITION OF GAMING DEVICES.-- | 0024| A. It is unlawful for any person to operate, carry | 0025| on, conduct or maintain any form of manufacturing of any gaming | 0001| device or associated equipment for use or play in New Mexico or | 0002| any form of manufacturing of any gaming device or associated | 0003| equipment in New Mexico for use or play outside of New Mexico | 0004| without first obtaining and maintaining a manufacturer's | 0005| license. | 0006| B. If the board revokes a manufacturer's license: | 0007| (1) no new gaming device manufactured by the | 0008| manufacturer may be approved for use in this state; | 0009| (2) any previously approved gaming device | 0010| manufactured by the manufacturer is subject to revocation of | 0011| approval if the reasons for the revocation of the license also | 0012| apply to that gaming device; | 0013| (3) no new gaming device or associated | 0014| equipment made by the manufacturer may be distributed, sold, | 0015| transferred or offered for use or play in New Mexico; and | 0016| (4) any association or agreement between the | 0017| manufacturer and a distributor licensee or gaming operator | 0018| licensee in New Mexico shall be terminated. | 0019| C. An agreement between a manufacturer licensee and | 0020| a distributor licensee or a gaming operator licensee in New | 0021| Mexico shall be deemed to include a provision for its | 0022| termination without liability for the termination on the part of | 0023| either party upon a finding by the board that either party is | 0024| unsuitable. Failure to include that condition in the agreement | 0025| is not a defense in any action brought pursuant to this section | 0001| to terminate the agreement. | 0002| D. A gaming device shall not be used and offered for | 0003| play by a gaming operator licensee unless it is identical in all | 0004| material aspects to a model that has been specifically tested | 0005| and approved by: | 0006| (1) the board; | 0007| (2) a laboratory selected by the board; or | 0008| (3) gaming officials in Nevada or New Jersey | 0009| after January 1, 1990. | 0010| E. The board may inspect every gaming device that is | 0011| manufactured: | 0012| (1) for use in New Mexico; or | 0013| (2) in New Mexico for use outside of New | 0014| Mexico. | 0015| F. The board may inspect every gaming device that is | 0016| offered for play within New Mexico by a gaming operator | 0017| licensee. | 0018| G. The board may inspect all associated equipment | 0019| that is manufactured and sold for use in New Mexico or | 0020| manufactured in New Mexico for use outside of New Mexico. | 0021| H. In addition to all other fees and charges imposed | 0022| pursuant to the Gaming Control Act, the board may determine, | 0023| charge and collect from each manufacturer an inspection fee, | 0024| which shall not exceed the actual cost of inspection and | 0025| investigation. | 0001| I. The board may prohibit the use of a gaming device | 0002| by a gaming operator licensee if it finds that the gaming device | 0003| does not meet the requirements of this section. | 0004| Section 32. [NEW MATERIAL] LICENSING OF DISTRIBUTORS OF | 0005| GAMING DEVICES.-- | 0006| A. It is unlawful for any person to operate, carry | 0007| on, conduct or maintain any form of distribution of any gaming | 0008| device for use or play in New Mexico without first obtaining and | 0009| maintaining a distributor's or manufacturer's license. | 0010| B. If the board revokes a distributor's license: | 0011| (1) no new gaming device distributed by the | 0012| person may be approved; | 0013| (2) any previously approved gaming device | 0014| distributed by the distributor is subject to revocation of | 0015| approval if the reasons for the revocation of the license also | 0016| apply to that gaming device; | 0017| (3) no new gaming device or associated | 0018| equipment distributed by the distributor may be distributed, | 0019| sold, transferred or offered for use or play in New Mexico; and | 0020| (4) any association or agreement between the | 0021| distributor and a gaming operator licensee shall be terminated. | 0022| An agreement between a distributor licensee and a gaming | 0023| operator licensee shall be deemed to include a provision for its | 0024| termination without liability on the part of either party upon a | 0025| finding by the board that the other party is unsuitable. | 0001| Failure to include that condition in the agreement is not a | 0002| defense in any action brought pursuant to this section to | 0003| terminate the agreement. | 0004| C. The board may inspect every gaming device that is | 0005| distributed for use in New Mexico. | 0006| D. In addition to all other fees and charges imposed | 0007| by the Gaming Control Act, the board may determine, charge and | 0008| collect from each distributor an inspection fee, which shall not | 0009| exceed the actual cost of inspection and investigation. | 0010| Section 33. [NEW MATERIAL] SUITABILITY OF CERTAIN | 0011| PERSONS FURNISHING SERVICES OR PROPERTY OR DOING BUSINESS WITH | 0012| GAMING OPERATORS--TERMINATION OF ASSOCIATION.-- | 0013| A. The board may determine the suitability of any | 0014| person who furnishes services or property to a gaming operator | 0015| licensee under any arrangement pursuant to which the person | 0016| receives compensation based on earnings, profits or receipts | 0017| from gaming. The board may require the person to comply with | 0018| the requirements of the Gaming Control Act and with the | 0019| regulations of the board. If the board determines that the | 0020| person is unsuitable, it may require the arrangement to be | 0021| terminated. | 0022| B. The board may require a person to apply for a | 0023| finding of suitability to be associated with a gaming operator | 0024| licensee if the person: | 0025| (1) does business on the premises of a gaming | 0001| establishment; or | 0002| (2) provides any goods or services to a gaming | 0003| operator licensee for compensation that the board finds to be | 0004| grossly disproportionate to the value of the goods or services. | 0005| C. If the board determines that a person is | 0006| unsuitable to be associated with a gaming operator licensee, the | 0007| association shall be terminated. Any agreement that entitles a | 0008| business other than gaming to be conducted on the premises of a | 0009| gaming establishment, or entitles a person other than a | 0010| licensee to conduct business with the gaming operator licensee, | 0011| is subject to termination upon a finding of unsuitability of the | 0012| person seeking association with a gaming operator licensee. | 0013| Every agreement shall be deemed to include a provision for its | 0014| termination without liability on the part of the gaming operator | 0015| licensee upon a finding by the board of the unsuitability of the | 0016| person seeking or having an association with the gaming operator | 0017| licensee. Failure to include that condition in the agreement is | 0018| not a defense in any action brought pursuant to this section to | 0019| terminate the agreement. If the application is not presented to | 0020| the board within thirty days following demand or the unsuitable | 0021| association is not terminated, the board may pursue any remedy | 0022| or combination of remedies provided in the Gaming Control Act. | 0023| Section 34. [NEW MATERIAL] REASONS FOR INVESTIGATIONS BY | 0024| BOARD--COMPLAINT BY BOARD--BOARD TO APPOINT HEARING EXAMINER-- | 0025| REVIEW BY BOARD--ORDER OF BOARD.-- | 0001| A. The board shall make appropriate investigations | 0002| to: | 0003| (1) determine whether there has been any | 0004| violation of the Gaming Control Act or of any regulations | 0005| adopted pursuant to that act; | 0006| (2) determine any facts, conditions, practices | 0007| or matters that it deems necessary or proper to aid in the | 0008| enforcement of the Gaming Control Act or regulations adopted | 0009| pursuant to that act; | 0010| (3) aid in adopting regulations; | 0011| (4) secure information as a basis for | 0012| recommending legislation relating to the Gaming Control Act; or | 0013| (5) determine whether a licensee is able to | 0014| meet its financial obligations, including all financial | 0015| obligations imposed by the Gaming Control Act, as they become | 0016| due. | 0017| B. If after an investigation the board is satisfied | 0018| that a license, registration, finding of suitability or prior | 0019| approval by the board of any transaction for which approval was | 0020| required by the provisions of the Gaming Control Act should be | 0021| limited, conditioned, suspended or revoked, or that a fine | 0022| should be levied, the board shall initiate a hearing by filing a | 0023| complaint and transmitting a copy of it to the licensee, | 0024| together with a summary of evidence in its possession bearing on | 0025| the matter and the transcript of testimony at any investigative | 0001| hearing conducted by or on behalf of the board. The complaint | 0002| shall be a written statement of charges that sets forth in | 0003| ordinary and concise language the acts or omissions with which | 0004| the respondent is charged. It shall specify the statutes or | 0005| regulations that the respondent is alleged to have violated but | 0006| shall not consist merely of charges raised in the language of | 0007| the statutes or regulations. The summary of the evidence shall | 0008| be confidential and made available only to the respondent until | 0009| such time as it is offered into evidence at any public hearing | 0010| on the matter. | 0011| C. The respondent shall file an answer within thirty | 0012| days after service of the complaint. | 0013| D. Upon filing the complaint the board shall appoint | 0014| a hearing examiner to conduct further proceedings. | 0015| E. The hearing examiner shall conduct proceedings in | 0016| accordance with the Gaming Control Act and the regulations | 0017| adopted by the board. At the conclusion of the proceedings, the | 0018| hearing examiner may recommend that the board take any | 0019| appropriate action, including revocation, suspension, limitation | 0020| or conditioning of a license or imposition of a fine not to | 0021| exceed fifty thousand dollars ($50,000) for each violation or | 0022| any combination or all of the foregoing actions. | 0023| F. The hearing examiner shall prepare a written | 0024| decision containing his recommendation to the board and shall | 0025| serve it on all parties. Any respondent who disagrees with the | 0001| hearing examiner's recommendation may request the board, within | 0002| ten days of service of the recommendation, to review the | 0003| recommendation. | 0004| G. Upon proper request, the board shall review the | 0005| recommendation. The board may remand the case to the hearing | 0006| examiner for the presentation of additional evidence upon a | 0007| showing of good cause why such evidence could not have been | 0008| presented at the previous hearing. | 0009| H. The board shall by a majority vote accept, reject | 0010| or modify the recommendation. | 0011| I. If the board limits, conditions, suspends or | 0012| revokes any license or imposes a fine or limits, conditions, | 0013| suspends or revokes any registration, finding of suitability or | 0014| prior approval, it shall issue a written order specifying its | 0015| action. | 0016| J. The board's order is effective unless and until | 0017| reversed upon judicial review, except that the board may stay | 0018| its order pending a rehearing or judicial review upon such terms | 0019| and conditions as it deems proper. | 0020| Section 35. [NEW MATERIAL] EMERGENCY ORDERS OF BOARD.-- | 0021| The board may issue an emergency order for suspension, | 0022| limitation or conditioning of a license, registration, finding | 0023| of suitability or work permit or may issue an emergency order | 0024| requiring a gaming operator licensee to exclude an individual | 0025| licensee from the premises of the gaming operator licensee's | 0001| gaming establishment or not to pay an individual licensee any | 0002| remuneration for services or any profits, income or accruals on | 0003| his investment in the licensed gaming establishment in the | 0004| following manner: | 0005| A. an emergency order may be issued only when the | 0006| board believes that: | 0007| (1) a licensee has willfully failed to report, | 0008| pay or truthfully account for and pay over any fee imposed by | 0009| the provisions of the Gaming Control Act or willfully attempted | 0010| in any manner to evade or defeat any fee or payment thereof; | 0011| (2) a licensee or gaming employee has cheated | 0012| at a game; or | 0013| (3) the emergency order is necessary for the | 0014| immediate preservation of the public peace, health, safety, | 0015| morals, good order or general welfare; | 0016| B. the emergency order shall set forth the grounds | 0017| upon which it is issued, including a statement of facts | 0018| constituting the alleged emergency necessitating such action; | 0019| C. the emergency order is effective immediately upon | 0020| issuance and service upon the licensee or resident agent of the | 0021| licensee or gaming employee or, in cases involving registration | 0022| or findings of suitability, upon issuance and service upon the | 0023| person or entity involved or resident agent of the entity | 0024| involved; the emergency order may suspend, limit, condition or | 0025| take other action in relation to the license of one or more | 0001| persons in an operation without affecting other individual | 0002| licensees or the gaming operator licensee. The emergency order | 0003| remains effective until further order of the board or final | 0004| disposition of the case; and | 0005| D. within five days after issuance of an emergency | 0006| order, the board shall cause a complaint to be filed and served | 0007| upon the person or entity involved; thereafter, the person or | 0008| entity against whom the emergency order has been issued and | 0009| served is entitled to a hearing before the board and to judicial | 0010| review of the decision and order of the board in accordance with | 0011| the provisions of the board's regulations. | 0012| Section 36. [NEW MATERIAL] EXCLUSION OR EJECTION OF | 0013| CERTAIN PERSONS FROM GAMING ESTABLISHMENTS--PERSONS INCLUDED.-- | 0014| A. The board shall by regulation provide for the | 0015| establishment of a list of persons who are to be excluded or | 0016| ejected from a gaming establishment. The list may include any | 0017| person whose presence in the gaming establishment is determined | 0018| by the board to pose a threat to the public interest or licensed | 0019| gaming activities. | 0020| B. In making the determination in Subsection A of | 0021| this section, the board may consider a: | 0022| (1) prior conviction for a crime that is a | 0023| felony under state or federal law, a crime involving moral | 0024| turpitude or a violation of the gaming laws of any jurisdiction; | 0025| (2) violation or conspiracy to violate the | 0001| provisions of the Gaming Control Act relating to: | 0002| (a) the failure to disclose an interest in | 0003| a gaming activity for which the person must obtain a license; or | 0004| (b) willful evasion of fees or taxes; | 0005| (3) notorious or unsavory reputation that would | 0006| adversely affect public confidence and trust that the gaming | 0007| industry is free from criminal or corruptive influences; or | 0008| (4) written order of any other governmental | 0009| agency in this state or any other state that authorizes the | 0010| exclusion or ejection of the person from an establishment at | 0011| which gaming is conducted. | 0012| C. A gaming operator licensee has the right, without | 0013| a list established by the board, to exclude or eject a person | 0014| from its gaming establishment who poses a threat to the public | 0015| interest or for any business reason. | 0016| D. Race, color, creed, national origin or ancestry, | 0017| age, disability or sex shall not be grounds for placing the name | 0018| of a person on the list or for exclusion or ejection under | 0019| Subsection A or C of this section. | 0020| Section 37. [NEW MATERIAL] INTERNAL CONTROL SYSTEMS.-- | 0021| A. Each gaming operator licensee shall adopt | 0022| internal control systems that shall include provisions for: | 0023| (1) safeguarding its assets and revenues, | 0024| especially the recording of cash and evidences of | 0025| indebtedness; | 0001| (2) making and maintaining reliable records, | 0002| accounts and reports of transactions, operations and events, | 0003| including reports to the board; and | 0004| (3) a system by which the amount wagered on | 0005| each gaming machine and the amount paid out by each gaming | 0006| machine is recorded on a daily basis, which results may be | 0007| obtained by the board by appropriate means as described in | 0008| regulations adopted by the board; all manufacturers are | 0009| required to have such a system available for gaming operators | 0010| for the gaming machines that it supplies for use in New | 0011| Mexico, and all distributors shall make such a system | 0012| available to gaming operators. | 0013| B. The internal control system shall be designed | 0014| to reasonably ensure that: | 0015| (1) assets are safeguarded; | 0016| (2) financial records are accurate and | 0017| reliable; | 0018| (3) transactions are performed only in | 0019| accordance with management's general or specific | 0020| authorization; | 0021| (4) transactions are recorded adequately to | 0022| permit proper reporting of gaming revenue and of fees and | 0023| taxes and to maintain accountability of assets; | 0024| (5) access to assets is allowed only in | 0025| accordance with management's specific authorization; | 0001| (6) recorded accountability for assets is | 0002| compared with actual assets at reasonable intervals and | 0003| appropriate action is taken with respect to any | 0004| discrepancies; and | 0005| (7) functions, duties and responsibilities | 0006| are appropriately segregated and performed in accordance with | 0007| sound accounting and management practices by competent, | 0008| qualified personnel. | 0009| C. A gaming operator licensee and an applicant for | 0010| a gaming operator's license shall describe, in the manner the | 0011| board may approve or require, its administrative and | 0012| accounting procedures in detail in a written system of | 0013| internal control. A gaming operator licensee and an | 0014| applicant for a gaming operator's license shall submit a copy | 0015| of its written system to the board. Each written system | 0016| shall include: | 0017| (1) an organizational chart depicting | 0018| appropriate segregation of functions and responsibilities; | 0019| (2) a description of the duties and | 0020| responsibilities of each position shown on the organizational | 0021| chart; | 0022| (3) a detailed, narrative description of the | 0023| administrative and accounting procedures designed to satisfy | 0024| the requirements of Subsection A of this section; | 0025| (4) a written statement signed by the | 0001| licensee's chief financial officer and either the licensee's | 0002| chief executive officer or a licensed owner attesting that | 0003| the system satisfies the requirements of this section; | 0004| (5) if the written system is submitted by an | 0005| applicant, a letter from an independent certified public | 0006| accountant stating that the applicant's written system has | 0007| been reviewed by the accountant and complies with the | 0008| requirements of this section; and | 0009| (6) other items as the board may require. | 0010| D. The board shall adopt and publish minimum | 0011| standards for internal control procedures. | 0012| Section 38. [NEW MATERIAL] GAMING EMPLOYEES--ISSUANCE | 0013| OF WORK PERMITS--REVOCATION OF WORK PERMITS.-- | 0014| A. A person shall not be employed as a gaming | 0015| employee unless the person holds a valid work permit issued | 0016| by the board. | 0017| B. A work permit shall be issued and may be | 0018| revoked by the board as provided in regulations adopted by | 0019| the board. | 0020| C. Any person whose work permit has been denied or | 0021| revoked may seek judicial review. | 0022| Section 39. [NEW MATERIAL] AGE REQUIREMENT FOR | 0023| PATRONS AND GAMING EMPLOYEES.--A person under the age of | 0024| twenty-one years shall not: | 0025| A. play, be allowed to play, place wagers on or | 0001| collect winnings from, whether personally or through an | 0002| agent, any game authorized or offered to play pursuant to the | 0003| Gaming Control Act; or | 0004| B. be employed as a gaming employee. | 0005| Section 40. [NEW MATERIAL] CALCULATION OF NET TAKE-- | 0006| CERTAIN EXPENSES NOT DEDUCTIBLE.--In calculating net take | 0007| from gaming machines, the actual cost to the licensee of any | 0008| personal property distributed to a patron as the result of a | 0009| legitimate wager may be deducted as a loss, except for travel | 0010| expenses, food, refreshments, lodging or services. For the | 0011| purposes of this section, "as the result of a legitimate | 0012| wager" means that the patron must make a wager prior to | 0013| receiving the personal property, regardless of whether the | 0014| receipt of the personal property is dependent on the outcome | 0015| of the wager. | 0016| Section 41. [NEW MATERIAL] LIMITATIONS ON TAXES AND | 0017| LICENSE FEES.--A political subdivision of the state shall not | 0018| impose a license fee or tax on any licensee licensed pursuant | 0019| to the Gaming Control Act except for the imposition of | 0020| property taxes. | 0021| Section 42. [NEW MATERIAL] USE OF CHIPS, TOKENS OR | 0022| LEGAL TENDER REQUIRED FOR ALL GAMING.--All gaming shall be | 0023| conducted with chips, tokens or other similar objects | 0024| approved by the board or with the legal currency of the | 0025| United States. | 0001| Section 43. [NEW MATERIAL] COMMUNICATION OR DOCUMENT | 0002| OF APPLICANT OR LICENSEE ABSOLUTELY PRIVILEGED--PRIVILEGE NOT | 0003| WAIVED--DISCLOSURE OF PRIVILEGED INFORMATION PROHIBITED.-- | 0004| A. Any communication or document of an applicant | 0005| or licensee is absolutely privileged and does not impose | 0006| liability for defamation or constitute a ground for recovery | 0007| in any civil action if it is required by: | 0008| (1) law or the regulations of the board; or | 0009| (2) a subpoena issued by the board to be made | 0010| or transmitted to the board. | 0011| B. The privilege created pursuant to Subsection A | 0012| of this section is not waived or lost because the document or | 0013| communication is disclosed to the board. | 0014| C. Notwithstanding the powers granted to the board | 0015| by the Gaming Control Act, the board: | 0016| (1) may release or disclose any privileged | 0017| information, documents or communications provided by an | 0018| applicant or licensee only with the prior written consent of | 0019| the applicant or licensee or pursuant to a lawful court order | 0020| after timely notice of the proceedings has been given to the | 0021| applicant or licensee; | 0022| (2) shall maintain all privileged | 0023| information, documents and communications in a secure place | 0024| accessible only to members of the board; and | 0025| (3) shall adopt procedures and regulations to | 0001| protect the privileged nature of information, documents and | 0002| communications provided by an applicant or licensee. | 0003| Section 44. [NEW MATERIAL] MOTION FOR RELEASE OF | 0004| PRIVILEGED INFORMATION.--An application to a court for an | 0005| order requiring the board to release any information declared | 0006| by law to be confidential shall be made only by petition in | 0007| district court. A hearing shall be held on the petition not | 0008| less than ten days and not more than twenty days after the | 0009| date of service of the petition on the board, the attorney | 0010| general and all persons who may be affected by the entry of | 0011| that order. A copy of the petition, all papers filed in | 0012| support of it and a notice of hearing shall be served. | 0013| Section 45. [NEW MATERIAL] GAMING MACHINE CENTRAL | 0014| SYSTEM.--The board shall develop and operate a central system | 0015| into which all licensed gaming machines are connected. The | 0016| central system shall be capable of: | 0017| A. monitoring continuously, retrieving and | 0018| auditing the operations, financial data and program | 0019| information of the network; | 0020| B. disabling from operation or play any gaming | 0021| machine in the network that does not comply with the | 0022| provisions of the Gaming Control Act or the regulations of | 0023| the board; | 0024| C. communicating, through program modifications or | 0025| other means equally effective, with all gaming machines | 0001| licensed by the board; | 0002| D. interacting, reading, communicating and linking | 0003| with gaming machines from a broad spectrum of manufacturers | 0004| and associated equipment; and | 0005| E. providing linkage to each gaming machine in the | 0006| network at a reasonable and affordable cost to the state and | 0007| the gaming operator licensee and allowing for program | 0008| modifications and system updating at a reasonable cost. | 0009| Section 46. [NEW MATERIAL] MACHINE SPECIFICATIONS.-- | 0010| To be eligible for licensure, each gaming machine shall meet | 0011| all specifications established by regulations of the board | 0012| and: | 0013| A. be unable to be manipulated in a manner that | 0014| affects the random probability of winning plays or in any | 0015| other manner determined by the board to be undesirable; | 0016| B. have at least one mechanism that accepts coins | 0017| or currency, but does not accept bills of denominations | 0018| greater than twenty dollars ($20.00); | 0019| C. be capable of having play suspended through the | 0020| central system by the executive director until he resets the | 0021| gaming machine; | 0022| D. house nonresettable mechanical and electronic | 0023| meters within a readily accessible locked area of the gaming | 0024| machine that maintain a permanent record of all money | 0025| inserted into the machine, all cash payouts of winnings, all | 0001| refunds of winnings, all credits played for additional games | 0002| and all credits won by players; | 0003| E. have a printing mechanism capable of printing | 0004| out, at the request of an the executive director, readings on | 0005| the electronic meters of the machine; | 0006| F. be capable of printing a ticket voucher stating | 0007| the value of a cash prize won by the player at the completion | 0008| of each game, the date and time of day the game was played in | 0009| a twenty-four-hour format showing hours and minutes, the | 0010| machine serial number, the sequential number of the ticket | 0011| voucher and an encrypted validation number for determining | 0012| the validity of a winning ticket voucher; | 0013| G. be capable of being linked to the board's | 0014| central system for the purpose of being monitored | 0015| continuously as required by the board; | 0016| H. provide for a payback value for each credit | 0017| wagered, determined over time, of not less than eighty | 0018| percent or more than ninety-six percent; | 0019| I. offer only games authorized and examined by the | 0020| board; and | 0021| J. display the gaming machine license issued for | 0022| that machine in an easily accessible place, before and during | 0023| the time that a machine is available for use. | 0024| Section 47. [NEW MATERIAL] POSTING OF GAMING MACHINE | 0025| ODDS.--The odds of winning on each gaming machine shall be | 0001| posted on or near each gaming machine. The board shall | 0002| provide the manner in which the odds shall be determined and | 0003| posted by regulation. | 0004| Section 48. [NEW MATERIAL] EXAMINATION OF GAMING | 0005| DEVICES--COST ALLOCATION.-- | 0006| A. The board shall examine prototypes of gaming | 0007| devices of manufacturers seeking a license as required. | 0008| B. The board by regulation shall require a | 0009| manufacturer to pay the anticipated actual costs of the | 0010| examination of a gaming device in advance and, after the | 0011| completion of the examination, shall refund overpayments or | 0012| charge and collect amounts sufficient to reimburse the board | 0013| for underpayment of actual costs. | 0014| C. The board may contract for the examination of | 0015| gaming devices to meet the requirements of this section. | 0016| Section 49. [NEW MATERIAL] GAMING TAX--IMPOSITION-- | 0017| ADMINISTRATION.-- | 0018| A. An excise tax is imposed on the privilege of | 0019| engaging in gaming activities in the state. This tax shall | 0020| be known as the "gaming tax". | 0021| B. The gaming tax is an amount equal to ten | 0022| percent of the gross receipts of manufacturer licensees from | 0023| the sale or other transfer of gaming devices in or into the | 0024| state; ten percent of the gross receipts of distributor | 0025| licensees from the distribution of gaming devices in the | 0001| state; and twenty-five percent of the net take of every | 0002| gaming operator licensee. | 0003| C. The gaming tax imposed on a licensee is in lieu | 0004| of all state and local gross receipts taxes on that portion | 0005| of the licensee's gross receipts attributable to gaming | 0006| activities. | 0007| D. The gaming tax shall be administered and | 0008| collected by the taxation and revenue department in | 0009| cooperation with the board. The provisions of the Tax | 0010| Administration Act apply to the collection and administration | 0011| of the tax. | 0012| E. In addition to the gaming tax, a gaming | 0013| operator licensee that is a racetrack shall pay twenty | 0014| percent of the net take to purses to be distributed in | 0015| accordance with regulations adopted by the state racing | 0016| commission. A racetrack gaming operator licensee shall spend | 0017| no less than one-fourth of one percent of the net take of its | 0018| gaming machines to fund or support programs for the treatment | 0019| and assistance of compulsive gamblers. | 0020| Section 50. [NEW MATERIAL] CIVIL ACTIONS TO RESTRAIN | 0021| VIOLATIONS OF GAMING CONTROL ACT.-- | 0022| A. The attorney general, at the request of the | 0023| board, may institute a civil action in any court of this | 0024| state against any person to enjoin a violation of a | 0025| prohibitory provision of the Gaming Control Act. | 0001| B. An action brought against a person pursuant to | 0002| this section shall not preclude a criminal action or | 0003| administrative proceeding against that person. | 0004| Section 51. [NEW MATERIAL] TESTIMONIAL IMMUNITY.-- | 0005| A. The board may order a person to answer a | 0006| question or produce evidence and confer immunity pursuant to | 0007| this section. If, in the course of an investigation or | 0008| hearing conducted pursuant to the Gaming Control Act, a | 0009| person refuses to answer a question or produce evidence on | 0010| the ground that he will be exposed to criminal prosecution by | 0011| doing so, then the board may by approval of three members, | 0012| after the written approval of the attorney general, issue an | 0013| order to answer or to produce evidence with immunity. | 0014| B. If a person complies with an order issued | 0015| pursuant to Subsection A of this section, he shall be immune | 0016| from having a responsive answer given or responsive evidence | 0017| produced, or evidence derived from either, used to expose him | 0018| to criminal prosecution, except that the person may be | 0019| prosecuted for any perjury committed in the answer or | 0020| production of evidence and may also be prosecuted for | 0021| contempt for failing to act in accordance with the order of | 0022| the board. An answer given or evidence produced pursuant to | 0023| the grant of immunity authorized by this section may be used | 0024| against the person granted immunity in a prosecution of the | 0025| person for perjury or a proceeding against him for contempt. | 0001| Section 52. [NEW MATERIAL] CRIME--MANIPULATION OF GAMING | 0002| DEVICE WITH INTENT TO CHEAT.--A person who manipulates, with the | 0003| intent to cheat, any component of a gaming device in a manner | 0004| contrary to the designed and normal operational purpose of the | 0005| component, including varying the pull of the handle of a slot | 0006| machine with knowledge that the manipulation affects the outcome | 0007| of the game or with knowledge of any event that affects the | 0008| outcome of the game, is guilty of a fourth degree felony and | 0009| shall be sentenced pursuant to the provisions of Section 31-18- | 0010| 15 NMSA 1978. | 0011| Section 53. [NEW MATERIAL] CRIME--USE OF COUNTERFEIT OR | 0012| UNAPPROVED TOKENS, CURRENCY OR DEVICES--POSSESSION OF CERTAIN | 0013| DEVICES, EQUIPMENT, PRODUCTS OR MATERIALS.-- | 0014| A. A person who, in playing any game designed to be | 0015| played with, to receive or to be operated by tokens approved by | 0016| the board or by lawful currency of the United States, knowingly | 0017| uses tokens other than those approved by the board, uses | 0018| currency that is not lawful currency of the United States or | 0019| uses currency not of the same denomination as the currency | 0020| intended to be used in that game is guilty of a third degree | 0021| felony and shall be sentenced pursuant to the provisions of | 0022| Section 31-18-15 NMSA 1978. | 0023| B. A person who knowingly has on his person or in | 0024| his possession within a gaming establishment any device intended | 0025| to be used by him to violate the provisions of the Gaming | 0001| Control Act is guilty of a third degree felony and shall be | 0002| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0003| 1978. | 0004| C. A person, other than a duly authorized employee | 0005| of a gaming operator acting in furtherance of his employment | 0006| within a gaming establishment, who knowingly has on his person | 0007| or in his possession within a gaming establishment any key or | 0008| device known by him to have been designed for the purpose of and | 0009| suitable for opening, entering or affecting the operation of any | 0010| game, dropbox or any electronic or mechanical device connected | 0011| to the game or dropbox or for removing money or other contents | 0012| from them is guilty of a third degree felony and shall be | 0013| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0014| 1978. | 0015| D. A person who knowingly and with intent to use | 0016| them for cheating has on his person or in his possession any | 0017| paraphernalia for manufacturing slugs is guilty of a third | 0018| degree felony and shall be sentenced pursuant to the provisions | 0019| of Section 31-18-15 NMSA 1978. As used in this subsection, | 0020| "paraphernalia for manufacturing slugs" means the equipment, | 0021| products and materials that are intended for use or designed for | 0022| use in manufacturing, producing, fabricating, preparing, | 0023| testing, analyzing, packaging, storing or concealing a | 0024| counterfeit facsimile of tokens approved by the board or a | 0025| lawful coin of the United States, the use of which is unlawful | 0001| pursuant to the Gaming Control Act. The term includes: | 0002| (1) lead or lead alloy; | 0003| (2) molds, forms or similar equipment capable | 0004| of producing a likeness of a gaming token or coin; | 0005| (3) melting pots or other receptacles; | 0006| (4) torches; and | 0007| (5) tongs, trimming tools or other similar | 0008| equipment. | 0009| E. Possession of more than two items of the | 0010| equipment, products or material described in Subsection D of | 0011| this section permits a rebuttable inference that the possessor | 0012| intended to use them for cheating. | 0013| Section 54. [NEW MATERIAL] CRIME--CHEATING.--A person | 0014| who knowingly cheats at any game is guilty of a fourth degree | 0015| felony and upon conviction shall be sentenced pursuant to the | 0016| provisions of Section 31-18-15 NMSA 1978. | 0017| Section 55. [NEW MATERIAL] CRIME--POSSESSION OF GAMING | 0018| DEVICE MANUFACTURED, SOLD OR DISTRIBUTED IN VIOLATION OF LAW.--A | 0019| person who knowingly possesses any gaming device that has been | 0020| manufactured, sold or distributed in violation of the Gaming | 0021| Control Act is guilty of a fourth degree felony and shall be | 0022| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0023| 1978. | 0024| Section 56. [NEW MATERIAL] CRIME--REPORTING AND RECORD | 0025| VIOLATIONS--PENALTY.--A person who, in an application, book or | 0001| record required to be maintained by the Gaming Control Act or by | 0002| a regulation adopted under that act or in a report required to | 0003| be submitted by that act or a regulation adopted under that act, | 0004| knowingly makes a statement or entry that is false or misleading | 0005| or fails to maintain or make an entry the person knows is | 0006| required to be maintained or made is guilty of a fourth degree | 0007| felony and shall be sentenced pursuant to the provisions of | 0008| Section 31-18-15 NMSA 1978. | 0009| Section 57. [NEW MATERIAL] CRIME--UNLAWFUL MANUFACTURE, | 0010| SALE, DISTRIBUTION, MARKING, ALTERING OR MODIFICATION OF DEVICES | 0011| ASSOCIATED WITH GAMING--UNLAWFUL INSTRUCTION--PENALTY.-- | 0012| A. A person who manufactures, sells or distributes a | 0013| device that is intended by him to be used to violate any | 0014| provision of the Gaming Control Act is guilty of a fourth degree | 0015| felony and shall be sentenced pursuant to the provisions of | 0016| Section 31-18-15 NMSA 1978. | 0017| B. A person who marks, alters or otherwise modifies | 0018| any gaming device in a manner that affects the result of a wager | 0019| by determining win or loss or alters the normal criteria of | 0020| random selection that affects the operation of a game or that | 0021| determines the outcome of a game is guilty of a fourth degree | 0022| felony and shall be sentenced pursuant to the provisions of | 0023| Section 31-18-15 NMSA 1978. | 0024| Section 58. [NEW MATERIAL] UNDERAGE GAMING--PENALTY FOR | 0025| PERMITTING OR PARTICIPATION.-- | 0001| A. A person who knowingly permits an individual who | 0002| the person knows is younger than twenty-one years of age to | 0003| participate in gaming is guilty of a misdemeanor and shall be | 0004| sentenced pursuant to the provisions of Section 31-19-1 NMSA | 0005| 1978. | 0006| B. An individual who participates in gaming when he | 0007| is younger than twenty-one years of age at the time of | 0008| participation is guilty of a misdemeanor and shall be sentenced | 0009| pursuant to the provisions of Section 31-19-1 NMSA 1978. | 0010| Section 59. [NEW MATERIAL] CRIME--GENERAL PENALTIES FOR | 0011| VIOLATION OF ACT.--A person who willfully violates, attempts to | 0012| violate or conspires to violate any of the provisions of the | 0013| Gaming Control Act specifying prohibited acts, the | 0014| classification of which is not specifically stated in that act, | 0015| is guilty of a misdemeanor and shall be sentenced pursuant to | 0016| the provisions of Section 31-19-1 NMSA 1978. | 0017| Section 60. [NEW MATERIAL] DETENTION AND QUESTIONING OF | 0018| A PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON LIABILITY-- | 0019| POSTING OF NOTICE.-- | 0020| A. A gaming operator licensee or its officers, | 0021| employees or agents may question a person in its gaming | 0022| establishment suspected of violating any of the provisions of | 0023| the Gaming Control Act. No gaming operator licensee or any of | 0024| its officers, employees or agents is criminally or civilly | 0025| liable: | 0001| (1) on account of any such questioning; or | 0002| (2) for reporting to the board or law | 0003| enforcement authorities the person suspected of the violation. | 0004| B. A gaming operator licensee or any of its | 0005| officers, employees or agents who has reasonable cause for | 0006| believing that there has been a violation of the Gaming Control | 0007| Act in the gaming establishment by a person may detain that | 0008| person in the gaming establishment in a reasonable manner and | 0009| for a reasonable length of time. Such a detention does not | 0010| render the gaming operator licensee or his officers, employees | 0011| or agents criminally or civilly liable unless it is established | 0012| by clear and convincing evidence detention was unreasonable | 0013| under the circumstances. | 0014| C. No gaming operator licensee or its officers, | 0015| employees or agents are entitled to the immunity from liability | 0016| provided for in Subsection B of this section unless there is | 0017| displayed in a conspicuous place in the gaming establishment a | 0018| notice in boldface type clearly legible and in substantially | 0019| this form: | 0020| "Any gaming operator licensee or any of his officers, | 0021| employees or agents who have reasonable cause for | 0022| believing that any person has violated any provision | 0023| of the Gaming Control Act prohibiting cheating in | 0024| gaming may detain that person in the establishment.". | 0025| Section 61. [NEW MATERIAL] ADMINISTRATIVE APPEAL OF | 0001| BOARD ACTION.-- | 0002| A. Any person aggrieved by an action taken by the | 0003| board or one of its agents may request and receive a hearing for | 0004| the purpose of reviewing the action. To obtain a hearing the | 0005| aggrieved person shall file a request for hearing with the board | 0006| within thirty days after the date the action is taken. Failure | 0007| to file the request within the specified time is an irrevocable | 0008| waiver of the right to a hearing, and the action complained of | 0009| shall be final with no further right to review, either | 0010| administratively or by a court. | 0011| B. The board shall adopt procedural regulations to | 0012| govern the procedures to be followed in administrative hearings | 0013| pursuant to the provisions of this section. At a minimum, the | 0014| regulations shall provide: | 0015| (1) for the hearings to be public; | 0016| (2) for the appointment of a hearing officer to | 0017| conduct the hearing and make his recommendation to the board not | 0018| more than ten days after the completion of the hearing; | 0019| (3) procedures for discovery; | 0020| (4) assurance that procedural due process | 0021| requirements are satisfied; | 0022| (5) for the maintenance of a record of the | 0023| hearing proceedings and assessment of costs of any transcription | 0024| of testimony that is required for judicial review purposes; and | 0025| (6) for the hearing to be held in Santa Fe for | 0001| enforcement hearings and hearings on actions of statewide | 0002| application, and to be held in the place or area affected for | 0003| enforcement hearings and hearings on actions of limited local | 0004| concern. | 0005| C. Actions taken by the board after a hearing | 0006| pursuant to the provisions of this section shall be: | 0007| (1) written and shall state the reasons for the | 0008| action; | 0009| (2) made public when taken; | 0010| (3) communicated to all persons who have made a | 0011| written request for notification of the action taken; and | 0012| (4) taken not more than thirty days after the | 0013| submission of the hearing officer's report to the board. | 0014| Section 62. [NEW MATERIAL] JUDICIAL REVIEW OF | 0015| ADMINISTRATIVE ACTIONS.-- | 0016| A. Any person adversely affected by an action taken | 0017| by the board after review pursuant to the provisions of Section | 0018| 59 of the Gaming Control Act may appeal the action to the court | 0019| of appeals. The appeal shall be on the record made at the | 0020| hearing. To support his appeal, the appellant shall make | 0021| arrangements with the board for a sufficient number of | 0022| transcripts of the record of the hearing on which the appeal is | 0023| based. The appellant shall pay for the preparation of the | 0024| transcripts. | 0025| B. On appeal, the court of appeals shall set aside | 0001| the administrative action only if it is found to be: | 0002| (1) arbitrary, capricious or an abuse of | 0003| discretion; | 0004| (2) not supported by substantial evidence in | 0005| the whole record; or | 0006| (3) otherwise not in accordance with law. | 0007| Section 63. [NEW MATERIAL] BOARD TO STUDY POSSIBLE | 0008| EXPANSION OF GAMING UNDER ACT--CONSIDERATION OF NONPROFIT | 0009| ORGANIZATIONS.--From the effective date of the Gaming Control | 0010| Act through December 1997, the board, in addition to its other | 0011| duties pursuant to that act, shall study the feasibility and | 0012| advisability of expanding the scope of gaming to include | 0013| nonprofit organizations as licensed gaming operators. The board | 0014| shall report the results of its study and any recommendations it | 0015| develops to the forty-third legislature by December 15, 1997. | 0016| If the board recommends expansion to include nonprofit | 0017| organizations, it shall make specific recommendations on the | 0018| imposition of conditions and requirements to be met by a | 0019| nonprofit organization gaming operator licensee. | 0020| Section 64. A new section of the New Mexico Finance | 0021| Authority Act is enacted to read: | 0022| "[NEW MATERIAL] NATIVE AMERICAN PROJECT REVOLVING FUND-- | 0023| PURPOSE--ADMINISTRATION.-- | 0024| A. The "Native American project revolving fund" is | 0025| created within the authority. The fund shall be administered by | 0001| the authority as a separate account, but may consist of such | 0002| subaccounts as the authority deems necessary to carry out the | 0003| purposes of the fund. The authority is authorized to establish | 0004| procedures required to administer the fund in accordance with | 0005| the New Mexico Finance Authority Act. | 0006| B. Except as otherwise provided in this section, | 0007| money from payments of principal of and interest on loans and | 0008| payments of principal of and interest on securities held by the | 0009| authority for Native American projects shall be deposited in the | 0010| Native American project revolving fund. The fund shall also | 0011| consist of any other money appropriated, distributed or | 0012| otherwise allocated to the fund for the purpose of financing | 0013| Native American projects. | 0014| C. Money appropriated to pay administrative costs, | 0015| money available for administrative costs from other sources and | 0016| money from payments of interest on loans or securities held by | 0017| the authority, including payments of interest on loans and | 0018| securities held by the authority for Native American projects, | 0019| that represents payments for administrative costs shall not be | 0020| deposited in the Native American project revolving fund but | 0021| shall be deposited in a separate account of the authority and | 0022| may be used by the authority to meet administrative costs of the | 0023| authority. | 0024| D. Except as otherwise provided in this section, | 0025| money in the Native American project revolving fund is | 0001| appropriated to the authority to make loans or grants and to | 0002| purchase or sell securities to assist qualified Native American | 0003| entities in financing Native American projects in accordance | 0004| with the New Mexico Finance Authority Act. | 0005| E. Money in the Native American project revolving | 0006| fund not needed for immediate disbursement, including money held | 0007| in reserve, may be deposited with the state treasurer for | 0008| short-term investment pursuant to Section 6-10-10.1 NMSA 1978 or | 0009| may be invested in direct and general obligations of or | 0010| obligations fully and unconditionally guaranteed by the United | 0011| States, obligations issued by agencies of the United States, | 0012| obligations of this state or any political subdivision of the | 0013| state, interest-bearing time deposits, commercial paper issued | 0014| by corporations organized and operating in the United States and | 0015| rated "prime" quality by a national rating service, other | 0016| investments permitted by Section 6-10-10 NMSA 1978 or as | 0017| otherwise provided by the trust indenture or bond resolution, if | 0018| money is pledged for or secures payment of bonds issued by the | 0019| authority. | 0020| F. The authority shall establish fiscal controls and | 0021| accounting procedures that are sufficient to assure proper | 0022| accounting for Native American project revolving fund payments, | 0023| disbursements and balances. | 0024| G. As used in this section, "qualified Native | 0025| American entity" means an Indian nation, tribe or pueblo located | 0001| wholly or partially in New Mexico, including a political | 0002| subdivision or wholly owned enterprise of an Indian nation, | 0003| tribe or pueblo, and "Native American project" means any | 0004| economic development, utility, community facility or other | 0005| infrastructure project for a qualified Native American entity. | 0006| H. To implement a program to assist qualified | 0007| entities in financing public projects, the authority may: | 0008| (1) make loans to qualified Native American | 0009| entities that establish one or more dedicated sources of revenue | 0010| to repay the loan from the authority; | 0011| (2) make, enter into and enforce all contracts | 0012| necessary, convenient or desirable for the purposes of the | 0013| authority or pertaining to: | 0014| (a) a loan to a qualified Native American | 0015| entity; | 0016| (b) a grant to a qualified Native American | 0017| entity; | 0018| (c) a purchase or sale of securities | 0019| individually or on a pooled basis; or | 0020| (d) the performance of its duties and | 0021| execution of any of its powers under the New Mexico Finance | 0022| Authority Act; | 0023| (3) purchase or hold securities at prices and | 0024| in a manner the authority considers advisable, giving due | 0025| consideration to the financial capability of the qualified | 0001| Native American entity, and sell securities acquired or held by | 0002| it at prices without relation to cost and in a manner the | 0003| authority considers advisable; | 0004| (4) prescribe the form of application or | 0005| procedure required of a qualified Native American entity for a | 0006| loan or purchase of its securities, fix the terms and conditions | 0007| of the loan or purchase and enter into agreements with qualified | 0008| entities with respect to loans or purchases; | 0009| (5) charge for its costs and services in review | 0010| or consideration of a proposed loan to a qualified Native | 0011| American entity or purchase by the authority of securities, | 0012| whether or not the loan is made or the securities purchased; | 0013| (6) fix and establish terms and provisions with | 0014| respect to: | 0015| (a) a purchase of securities by the | 0016| authority, including date and maturities of the securities; | 0017| (b) redemption or payment before maturity; | 0018| and | 0019| (c) any other matters that in connection | 0020| with the purchase are necessary, desirable or advisable in the | 0021| judgment of the authority; | 0022| (7) to the extent permitted under its contracts | 0023| with the holders of bonds of the authority, consent to | 0024| modification of the rate of interest, time and payment of | 0025| installment of principal or interest, security or any other term | 0001| of a bond, contract or agreement of any kind to which the | 0002| authority is a party; | 0003| (8) in connection with the purchase of any | 0004| securities, consider the ability of the qualified Native | 0005| American entity to secure financing from other sources and the | 0006| costs of that financing and the particular public project or | 0007| purpose to be financed or refinanced with the proceeds of the | 0008| securities to be purchased by the authority; | 0009| (9) acquire and hold title to or leasehold | 0010| interest in real and personal property and to sell, convey or | 0011| lease that property for the purpose of satisfying a default or | 0012| enforcing the provisions of a loan agreement; and | 0013| (10) in the event of default by a qualified | 0014| entity, enforce its rights by suit or mandamus or may use all | 0015| other available remedies under state law. | 0016| I. The authority may issue and sell bonds in | 0017| principal amounts it considers necessary to provide sufficient | 0018| funds for any purpose of this section, including: | 0019| (1) purchase of securities; | 0020| (2) making loans through the purchase of | 0021| securities; | 0022| (3) making grants for Native American projects; | 0023| (4) the construction of Native American | 0024| projects; | 0025| (5) the payment, funding or refunding of the | 0001| principal of or interest or redemption premiums on bonds issued | 0002| by the authority, whether the bonds or interest to be paid, | 0003| funded or refunded have or have not become due; | 0004| (6) the establishment or increase of reserves | 0005| or sinking funds to secure or to pay principal, premium, if any, | 0006| or interest on bonds; and | 0007| (7) all other costs or expenses of the | 0008| authority incident to and necessary or convenient to carry out | 0009| the provisions of this section. | 0010| J. Except as otherwise provided in this section, all | 0011| bonds or other obligations issued by the authority shall be | 0012| obligations of the authority payable solely from the revenues, | 0013| income, fees, charges or funds of the authority that may, | 0014| pursuant to the provisions of the New Mexico Finance Authority | 0015| Act, be pledged to the payment of such obligations, and the | 0016| bonds or other obligations shall not create an obligation, debt | 0017| or liability of the state. No breach of any pledge, obligation | 0018| or agreement of the authority shall impose a pecuniary liability | 0019| or a charge upon the general credit or taxing power of the state | 0020| or any political subdivision of the state. | 0021| K. As security for the payment of the principal, | 0022| interest or premium, if any, on bonds issued by the authority, | 0023| the authority is authorized to pledge, transfer and assign: | 0024| (1) any obligation of a qualified Native | 0025| American entity that is payable to the authority; | 0001| (2) the security for the qualified Native | 0002| American entity's obligations; | 0003| (3) money in the Native American project | 0004| revolving fund; | 0005| (4) any grant, subsidy or contribution from the | 0006| United States or any of its agencies or instrumentalities; or | 0007| (5) any income, revenues, funds or other money | 0008| of the authority from any other source authorized for such | 0009| pledge, transfer or assignment. | 0010| L. Bonds issued by the authority pursuant to this | 0011| section may be issued in accordance with the New Mexico Finance | 0012| Authority Act." | 0013| Section 65. A new section of the Tax Administration Act | 0014| is enacted to read: | 0015| "[NEW MATERIAL] DISTRIBUTION OF REVENUE RECEIVED PURSUANT | 0016| TO INDIAN GAMING REVENUE-SHARING AGREEMENT.-- | 0017| A. A distribution of thirty-three and one-third | 0018| percent of the net receipts attributable to amounts received by | 0019| the state pursuant to the provisions of any Indian gaming | 0020| revenue-sharing agreement shall be made to the Native American | 0021| project revolving fund administered by the New Mexico finance | 0022| authority. | 0023| B. The state pledges to and agrees with the holders | 0024| of any bonds or notes issued by the New Mexico finance authority | 0025| and payable from the revenue source specified in Subsection A of | 0001| this section that it will not limit, reduce or alter the | 0002| distribution of the specified net receipts until the bonds or | 0003| notes with any interest are fully met and discharged. The New | 0004| Mexico finance authority is authorized to include this pledge | 0005| and agreement of the state in any agreement with the holders of | 0006| the bonds or notes." | 0007| Section 66. Section 7-1-2 NMSA 1978 (being Laws 1965, | 0008| Chapter 248, Section 2, as amended) is amended to read: | 0009| "7-1-2. APPLICABILITY.--The Tax Administration Act | 0010| applies to and governs: | 0011| A. the administration and enforcement of the | 0012| following taxes or tax acts as they now exist or may hereafter | 0013| be amended: | 0014| (1) Income Tax Act; | 0015| (2) Withholding Tax Act; | 0016| (3) Gross Receipts and Compensating Tax Act and | 0017| any state gross receipts tax; | 0018| (4) Liquor Excise Tax Act; | 0019| (5) Local Liquor Excise Tax Act; | 0020| [(6) Banking and Financial Corporations Tax | 0021| Act; | 0022| (7)] (6) any municipal local option gross | 0023| receipts tax; | 0024| [(8)] (7) any county local option gross | 0025| receipts tax; | 0001| [(9)] (8) Special Fuels Supplier Tax Act; | 0002| [(10)] (9) Gasoline Tax Act; | 0003| [(11)] (10) petroleum products loading fee, | 0004| which fee shall be considered a tax for the purpose of the Tax | 0005| Administration Act; | 0006| [(12)] (11) Alternative Fuel Tax Act; | 0007| [(13)] (12) Cigarette Tax Act; | 0008| [(14)] (13) Estate Tax Act; | 0009| [(15)] (14) Railroad Car Company Tax Act; | 0010| [(16)] (15) Investment Credit Act; | 0011| [(17)] (16) Corporate Income and Franchise Tax | 0012| Act; | 0013| [(18)] (17) Uniform Division of Income for Tax | 0014| Purposes Act; | 0015| [(19)] (18) Multistate Tax Compact; | 0016| [(20)] (19) Tobacco Products Tax Act; | 0017| [(21)] (20) Filmmaker's Credit Act; and | 0018| [(22)] (21) the telecommunications relay | 0019| service surcharge imposed by Section 63-9F-11 NMSA 1978, which | 0020| surcharge shall be considered a tax for the purposes of the Tax | 0021| Administration Act; | 0022| B. the administration and enforcement of the | 0023| following taxes, surtaxes, advanced payments or tax acts as they | 0024| now exist or may hereafter be amended: | 0025| (1) Resources Excise Tax Act; | 0001| (2) Severance Tax Act; | 0002| (3) any severance surtax; | 0003| (4) Oil and Gas Severance Tax Act; | 0004| (5) Oil and Gas Conservation Tax Act; | 0005| (6) Oil and Gas Emergency School Tax Act; | 0006| (7) Oil and Gas Ad Valorem Production Tax Act; | 0007| (8) Natural Gas Processors Tax Act; | 0008| (9) Oil and Gas Production Equipment Ad Valorem | 0009| Tax Act; | 0010| (10) Copper Production Ad Valorem Tax Act; and | 0011| (11) any advance payment required to be made by | 0012| any act specified in this subsection, which advance payment | 0013| shall be considered a tax for the purposes of the Tax | 0014| Administration Act; | 0015| C. the administration and enforcement of the | 0016| following taxes, surcharges, fees or acts as they now exist or | 0017| may hereafter be amended: | 0018| (1) Weight Distance Tax Act; | 0019| (2) Special Fuels Tax Act; | 0020| (3) the workers' compensation fee authorized by | 0021| Section 52-5-19 NMSA 1978, which fee shall be considered a tax | 0022| for purposes of the Tax Administration Act; | 0023| (4) Uniform Unclaimed Property Act; | 0024| (5) 911 emergency surcharge and the network and | 0025| database surcharge, which surcharges shall be considered taxes | 0001| for purposes of the Tax Administration Act; | 0002| (6) the solid waste assessment fee authorized | 0003| by the Solid Waste Act, which fee shall be considered a tax for | 0004| purposes of the Tax Administration Act; [and] | 0005| (7) the water conservation fee imposed by | 0006| Section 74-1-13 NMSA 1978, which fee shall be considered a tax | 0007| for the purposes of the Tax Administration Act; and | 0008| (8) the gaming tax imposed pursuant to the | 0009| Gaming Control Act; and | 0010| D. the administration and enforcement of all other | 0011| laws, with respect to which the department is charged with | 0012| responsibilities pursuant to the Tax Administration Act, but | 0013| only to the extent that the other laws do not conflict with the | 0014| Tax Administration Act." | 0015| Section 67. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0016| Chapter 91, Section 1, as amended) is amended to read: | 0017| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0018| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0019| A. In recognition of the fact that a representative | 0020| government is dependent upon an informed electorate, it is | 0021| declared to be public policy of this state that all persons are | 0022| entitled to the greatest possible information regarding the | 0023| affairs of government and the official acts of those officers | 0024| and employees who represent them. The formation of public | 0025| policy or the conduct of business by vote shall not be conducted | 0001| in closed meeting. All meetings of any public body except the | 0002| legislature and the courts shall be public meetings, and all | 0003| persons so desiring shall be permitted to attend and listen to | 0004| the deliberations and proceedings. Reasonable efforts shall be | 0005| made to accommodate the use of audio and video recording | 0006| devices. | 0007| B. All meetings of a quorum of members of any board, | 0008| commission, administrative adjudicatory body or other | 0009| policymaking body of any state agency, any agency or authority | 0010| of any county, municipality, district or any political | 0011| subdivision, held for the purpose of formulating public policy, | 0012| including the development of personnel policy, rules, | 0013| regulations or ordinances, discussing public business or for the | 0014| purpose of taking any action within the authority of or the | 0015| delegated authority of any board, commission or other | 0016| policymaking body are declared to be public meetings open to the | 0017| public at all times, except as otherwise provided in the | 0018| constitution of New Mexico or the Open Meetings Act. No public | 0019| meeting once convened that is otherwise required to be open | 0020| pursuant to the Open Meetings Act shall be closed or dissolved | 0021| into small groups or committees for the purpose of permitting | 0022| the closing of the meeting. | 0023| C. If otherwise allowed by law or rule of the public | 0024| body, a member of a public body may participate in a meeting of | 0025| the public body by means of a conference telephone or other | 0001| similar communications equipment when it is otherwise difficult | 0002| or impossible for the member to attend the meeting in person, | 0003| provided that each member participating by conference telephone | 0004| can be identified when speaking, all participants are able to | 0005| hear each other at the same time and members of the public | 0006| attending the meeting are able to hear any member of the public | 0007| body who speaks during the meeting. | 0008| D. Any meetings at which the discussion or adoption | 0009| of any proposed resolution, rule, regulation or formal action | 0010| occurs and at which a majority or quorum of the body is in | 0011| attendance, and any closed meetings, shall be held only after | 0012| reasonable notice to the public. The affected body shall | 0013| determine at least annually in a public meeting what notice for | 0014| a public meeting is reasonable when applied to that body. That | 0015| notice shall include broadcast stations licensed by the federal | 0016| communications commission and newspapers of general circulation | 0017| that have provided a written request for such notice. | 0018| E. A public body may recess and reconvene a meeting | 0019| to a day subsequent to that stated in the meeting notice if, | 0020| prior to recessing, the public body specifies the date, time and | 0021| place for continuation of the meeting, and, immediately | 0022| following the recessed meeting, posts notice of the date, time | 0023| and place for the reconvened meeting on or near the door of the | 0024| place where the original meeting was held and in at least one | 0025| other location appropriate to provide public notice of the | 0001| continuation of the meeting. Only matters appearing on the | 0002| agenda of the original meeting may be discussed at the | 0003| reconvened meeting. | 0004| F. Meeting notices shall include an agenda | 0005| containing a list of specific items of business to be discussed | 0006| or transacted at the meeting or information on how the public | 0007| may obtain a copy of such an agenda. Except in the case of an | 0008| emergency, the agenda shall be available to the public at least | 0009| twenty-four hours prior to the meeting. Except for emergency | 0010| matters, a public body shall take action only on items appearing | 0011| on the agenda. For purposes of this subsection, an "emergency" | 0012| refers to unforeseen circumstances that, if not addressed | 0013| immediately by the public body, will likely result in injury or | 0014| damage to persons or property or substantial financial loss to | 0015| the public body. | 0016| G. The board, commission or other policymaking body | 0017| shall keep written minutes of all its meetings. The minutes | 0018| shall include at a minimum the date, time and place of the | 0019| meeting, the names of members in attendance and those absent, | 0020| the substance of the proposals considered and a record of any | 0021| decisions and votes taken that show how each member voted. All | 0022| minutes are open to public inspection. Draft minutes shall be | 0023| prepared within ten working days after the meeting and shall be | 0024| approved, amended or disapproved at the next meeting where a | 0025| quorum is present. Minutes shall not become official until | 0001| approved by the policymaking body. | 0002| H. The provisions of Subsections A, B and G of this | 0003| section do not apply to: | 0004| (1) meetings pertaining to issuance, | 0005| suspension, renewal or revocation of a license, except that a | 0006| hearing at which evidence is offered or rebutted shall be open. | 0007| All final actions on the issuance, suspension, renewal or | 0008| revocation of a license shall be taken at an open meeting; | 0009| (2) limited personnel matters; provided that | 0010| for purposes of the Open Meetings Act, "limited personnel | 0011| matters" means the discussion of hiring, promotion, demotion, | 0012| dismissal, assignment or resignation of or the investigation or | 0013| consideration of complaints or charges against any individual | 0014| public employee; provided further that this subsection is not to | 0015| be construed as to exempt final actions on personnel from being | 0016| taken at open public meetings, nor does it preclude an aggrieved | 0017| public employee from demanding a public hearing. Judicial | 0018| candidates interviewed by any commission shall have the right to | 0019| demand an open interview; | 0020| (3) deliberations by a public body in | 0021| connection with an administrative adjudicatory proceeding. For | 0022| purposes of this paragraph, an "administrative adjudicatory | 0023| proceeding" means a proceeding brought by or against a person | 0024| before a public body in which individual legal rights, duties or | 0025| privileges are required by law to be determined by the public | 0001| body after an opportunity for a trial-type hearing. Except as | 0002| otherwise provided in this section, the actual administrative | 0003| adjudicatory proceeding at which evidence is offered or rebutted | 0004| and any final action taken as a result of the proceeding shall | 0005| occur in an open meeting; | 0006| (4) the discussion of personally identifiable | 0007| information about any individual student, unless the student, | 0008| his parent or guardian requests otherwise; | 0009| (5) meetings for the discussion of bargaining | 0010| strategy preliminary to collective bargaining negotiations | 0011| between the policymaking body and a bargaining unit representing | 0012| the employees of that policymaking body and collective | 0013| bargaining sessions at which the policymaking body and the | 0014| representatives of the collective bargaining unit are present; | 0015| (6) that portion of meetings at which a | 0016| decision concerning purchases in an amount exceeding two | 0017| thousand five hundred dollars ($2,500) that can be made only | 0018| from one source and that portion of meetings at which the | 0019| contents of competitive sealed proposals solicited pursuant to | 0020| the Procurement Code are discussed during the contract | 0021| negotiation process. The actual approval of purchase of the | 0022| item or final action regarding the selection of a contractor | 0023| shall be made in an open meeting; | 0024| (7) meetings subject to the attorney-client | 0025| privilege pertaining to threatened or pending litigation in | 0001| which the public body is or may become a participant; | 0002| (8) meetings for the discussion of the | 0003| purchase, acquisition or disposal of real property or water | 0004| rights by the public body; [and] | 0005| (9) those portions of meetings of committees or | 0006| boards of public hospitals that receive less than fifty percent | 0007| of their operating budget from direct public funds and | 0008| appropriations where strategic and long-range business plans are | 0009| discussed; and | 0010| (10) that portion of a meeting of the gaming | 0011| control board dealing with information made confidential | 0012| pursuant to the provisions of the Gaming Control Act. | 0013| I. If any meeting is closed pursuant to the | 0014| exclusions contained in Subsection H of this section, the | 0015| closure: | 0016| (1) if made in an open meeting, shall be | 0017| approved by a majority vote of a quorum of the policymaking | 0018| body; the authority for the closure and the subject to be | 0019| discussed shall be stated with reasonable specificity in the | 0020| motion calling for the vote on a closed meeting; the vote shall | 0021| be taken in an open meeting; and the vote of each individual | 0022| member shall be recorded in the minutes. Only those subjects | 0023| announced or voted upon prior to closure by the policymaking | 0024| body may be discussed in a closed meeting; and | 0025| (2) if called for when the policymaking body is | 0001| not in an open meeting, shall not be held until public notice, | 0002| appropriate under the circumstances, stating the specific | 0003| provision of the law authorizing the closed meeting and stating | 0004| with reasonable specificity the subject to be discussed is given | 0005| to the members and to the general public. | 0006| J. Following completion of any closed meeting, the | 0007| minutes of the open meeting that was closed or the minutes of | 0008| the next open meeting if the closed meeting was separately | 0009| scheduled shall state that the matters discussed in the closed | 0010| meeting were limited only to those specified in the motion for | 0011| closure or in the notice of the separate closed meeting. This | 0012| statement shall be approved by the public body under Subsection | 0013| G of this section as part of the minutes." | 0014| Section 68. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0015| Chapter 303, Section 19-1, as amended) is amended to read: | 0016| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0017| Chapter 30, Article 19 NMSA 1978: | 0018| A. "antique gambling device" means a gambling device | 0019| twenty-five years of age or older and substantially in original | 0020| condition that is not used for gambling or commercial gambling | 0021| or located in a gambling place; | 0022| B. "bet" means a bargain in which the parties agree | 0023| that, dependent upon chance, even though accompanied by some | 0024| skill, one stands to win or lose anything of value specified in | 0025| the agreement. A bet does not include: | 0001| (1) bona fide business transactions that are | 0002| valid under the law of contracts, including [without | 0003| limitation]: | 0004| (a) contracts for the purchase or sale, at | 0005| a future date, of securities or other commodities; and | 0006| (b) agreements to compensate for loss | 0007| caused by the happening of the chance, including [without | 0008| limitation] contracts for indemnity or guaranty and life or | 0009| health and accident insurance; | 0010| (2) offers of purses, prizes or premiums to the | 0011| actual contestants in any bona fide contest for the | 0012| determination of skill, speed, strength or endurance or to the | 0013| bona fide owners of animals or vehicles entered in such contest; | 0014| (3) a lottery as defined in this section; or | 0015| (4) betting otherwise permitted by law; | 0016| [C. "lottery" means an enterprise other than the New | 0017| Mexico state lottery established and operated pursuant to the | 0018| New Mexico Lottery Act wherein, for a consideration, the | 0019| participants are given an opportunity to win a prize, the award | 0020| of which is determined by chance, even though accompanied by | 0021| some skill. As used in this subsection, "consideration" means | 0022| anything of pecuniary value required to be paid to the promoter | 0023| in order to participate in such enterprise; | 0024| D.] C. "gambling device" means a contrivance other | 0025| than an antique gambling device that is not licensed for use | 0001| pursuant to the Gaming Control Act and that, for a | 0002| consideration, affords the player an opportunity to obtain | 0003| anything of value, the award of which is determined by chance, | 0004| even though accompanied by some skill, [and] whether or not the | 0005| prize is automatically paid by the device; [and] | 0006| [E.] D. "gambling place" means [any] a building or | 0007| tent, [any] a vehicle, whether self-propelled or not, or [any] a | 0008| room within any of them that is not within the premises of a | 0009| person licensed as a lottery retailer or that is not licensed | 0010| pursuant to the Gaming Control Act, one of whose principal uses | 0011| is: | 0012| (1) making and settling of bets; | 0013| (2) receiving, holding, recording or forwarding | 0014| bets or offers to bet; | 0015| (3) conducting lotteries; or | 0016| (4) playing gambling devices; and | 0017| E. "lottery" means an enterprise wherein, for a | 0018| consideration, the participants are given an opportunity to win | 0019| a prize, the award of which is determined by chance, even though | 0020| accompanied by some skill. "Lottery" does not include the New | 0021| Mexico state lottery established and operated pursuant to the | 0022| New Mexico Lottery Act or gaming that is licensed and operated | 0023| pursuant to the Gaming Control Act. As used in this subsection, | 0024| "consideration" means anything of pecuniary value required to be | 0025| paid to the promoter in order to participate in a gambling or | 0001| gaming enterprise." | 0002| Section 69. Section 30-19-6 NMSA 1978 (being Laws 1963, | 0003| Chapter 303, Section 19-6, as amended) is amended to read: | 0004| "30-19-6. [PERMISSIVE LOTTERY] CHARITABLE LOTTERIES-- | 0005| PERMITTED GAMBLING--CONDITIONS.-- | 0006| A. Nothing in [Article 19] Chapter 30, Article 19 | 0007| NMSA 1978 [shall be construed to apply to any] prohibits a sale | 0008| or drawing of [any] a prize at [any] a fair held in this state | 0009| for the benefit of [any] a church, public library or religious | 0010| society [situate or being] located in this state, or for | 0011| charitable purposes when all the proceeds of [such] the fair | 0012| [shall be] are expended in this state for the benefit of [such] | 0013| the church, public library, religious society or charitable | 0014| purposes. A [lottery shall be operated] sale or drawing | 0015| conducted pursuant to this subsection is for the benefit of the | 0016| organization or charitable purpose only [when] if the entire | 0017| proceeds of the [lottery] sale or drawing go to the organization | 0018| or charitable purpose and no part of such proceeds go to any | 0019| individual member or employee [thereof] of the organization. | 0020| B. Nothing in [Article 19] Chapter 30, Article 19 | 0021| NMSA 1978 [shall be held to prohibit any] prohibits a bona fide | 0022| motion picture [theatre] theater from offering prizes of cash or | 0023| merchandise for advertising purposes, in connection with [such] | 0024| the business of the theater or for the purpose of stimulating | 0025| business, whether or not [any] consideration other than a | 0001| monetary consideration in excess of the regular price of | 0002| admission is [exacted] charged for participation in drawings for | 0003| prizes. | 0004| C. Nothing in [Article 19] Chapter 30, Article 19 | 0005| NMSA 1978 [shall be held to apply to any] prohibits a bona fide | 0006| county fair, including [fairs] a fair for more than one county, | 0007| [which shall have] that has been held annually at the same | 0008| location for at least two years, [and which shall offer] from | 0009| offering prizes of livestock or poultry in connection with | 0010| [such] the fair [when] if the proceeds of [such] the drawings | 0011| [shall be] are used for the benefit of [said] the fair. | 0012| [D. Nothing in Article 19, Chapter 30 NMSA 1978 | 0013| shall be construed to apply to any lottery operated by an | 0014| organization exempt from the state income tax pursuant to | 0015| Subsection C of Section 7-2-4 NMSA 1978 and not subject to the | 0016| provisions of Subsection A of this section; provided that: | 0017| (1) no more than two lotteries shall be | 0018| operated in any year by such an organization; | 0019| (2) all the gross proceeds less the reasonable | 0020| cost of prizes of any lottery operated by such an organization | 0021| shall be expended in the state for the benefit of the | 0022| organization or public purposes; and | 0023| (3) no part of the proceeds of any lottery | 0024| shall go to any individual member or employee of any | 0025| organization except as payment for the purchase of prizes at no | 0001| more than the reasonable retail price.] | 0002| D. Nothing in Chapter 30, Article 19 NMSA 1978 | 0003| prohibits an organization that is exempt from state income tax | 0004| pursuant to Section 7-2-4 NMSA 1978 from conducting bingo games, | 0005| raffles, lotteries or table games, including poker, craps, | 0006| blackjack, roulette and the like, at a fundraising event if: | 0007| (1) the fundraising event is conducted no more | 0008| than twice in a calendar year by the qualifying organization; | 0009| (2) the only persons authorized to participate | 0010| in the operation or management of the fundraising event are: | 0011| (a) bona fide members of the qualifying | 0012| organization who are not paid for their services in the | 0013| operation or management of the event; or | 0014| (b) persons who provide goods or services | 0015| for the fundraising event for a flat fee or an hourly fee | 0016| pursuant to a written contract with the qualifying organization; | 0017| (3) no person receives any part of the proceeds | 0018| of the fundraising event except: | 0019| (a) as payment for prizes purchased at no | 0020| more than the reasonable retail prices for the prizes; or | 0021| (b) pursuant to a contract described in | 0022| Subparagraph (b) of Paragraph (2) of this subsection; | 0023| (4) the net proceeds of the fundraising event | 0024| are expended in the state for the benefit of the qualifying | 0025| organization or purposes for which it was formed; | 0001| (5) gross revenue, expenses, prizes paid and | 0002| the date, time and location of the fundraising event are | 0003| reported to the alcohol and gaming division of the regulation | 0004| and licensing department within thirty days after the event; | 0005| (6) the qualifying organization conducting the | 0006| fundraising event maintains records for a period of one year | 0007| after the date of the event that accurately show the gross | 0008| revenue generated by the event, details of the expenses of | 0009| conducting the event and details of how the gross revenue is | 0010| used, and the qualifying organization makes the records | 0011| available for review by the director of the alcohol and gaming | 0012| division of the regulation and licensing department or the | 0013| attorney general, or both, at their request; | 0014| (7) no more than four gambling devices are | 0015| operated during the fundraising event, two of which may be video | 0016| gaming machines or slot machines and shall be played with tokens | 0017| or chips, but not United States coins or currency, provided by | 0018| the qualifying organization; | 0019| (8) no person less than the age of twenty-one | 0020| is allowed to participate in the operation or management of the | 0021| fundraising event or to play any game at the event; and | 0022| (9) the fundraising event is conducted pursuant | 0023| to regulations and a permit issued by the alcohol and gaming | 0024| division of the regulation and licensing department. | 0025| E. The provisions of the Gaming Control Act, the | 0001| Bingo and Raffle Act and the New Mexico Lottery Act do not apply | 0002| to the activities described in Subsection D of this section." | 0003| Section 70. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0004| Chapter 39, Section 96) is amended to read: | 0005| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0006| A. It is a violation of the Liquor Control Act for a | 0007| licensee to knowingly allow commercial gambling on the licensed | 0008| premises. | 0009| B. In addition to any criminal penalties, any person | 0010| who violates Subsection A of this section may have his license | 0011| suspended or revoked or a fine imposed, or both, pursuant to the | 0012| Liquor Control Act. | 0013| C. [For purposes of] As used in this section: | 0014| (1) "commercial gambling" means: | 0015| [(1)] (a) participating in the earnings of | 0016| or operating a gambling place; | 0017| [(2)] (b) receiving, recording or | 0018| forwarding bets or offers to bet; | 0019| [(3)] (c) possessing facilities with the | 0020| intent to receive, record or forward bets or offers to bet; | 0021| [(4)] (d) for gain, becoming a custodian of | 0022| anything of value bet or offered to be bet; | 0023| [(5)] (e) conducting a lottery where both | 0024| the consideration and the prize are money, or whoever with | 0025| intent to conduct a lottery possesses facilities to do so; or | 0001| [(6)] (f) setting up for use for the | 0002| purpose of gambling, or collecting the proceeds of, any gambling | 0003| device or game; and | 0004| (2) "commercial gambling" does not mean: | 0005| (a) activities authorized pursuant to the | 0006| New Mexico Lottery Act; | 0007| (b) the conduct of activities pursuant to | 0008| Subsection D of Section 30-19-6 NMSA 1978; and | 0009| (c) gaming authorized pursuant to the | 0010| Gaming Control Act on the premises of a gaming operator licensee | 0011| licensed pursuant to that act." | 0012| Section 71. SEVERABILITY.--If any part or application of | 0013| the Gaming Control Act is held invalid, the remainder of its | 0014| application to other situations or persons shall not be | 0015| affected. | 0016| Section 72. DELAYED EFFECTIVE DATE.--The effective date | 0017| of the provisions of Section 30 of this act is July 1, 1998. | 0018| Section 73. EMERGENCY.--It is necessary for the public | 0019| peace, health and safety that this act take effect immediately. | 0020|  |