0001| | 0002| HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR | 0003| HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR | 0004| HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR | 0005| HOUSE BILL 399 | 0006| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0007| INTRODUCED BY | 0008| | 0009| | 0010| | 0011| | 0012| | 0013| | 0014| AN ACT | 0015| RELATING TO GAMING; ENACTING THE INDIAN GAMING COMPACT; | 0016| ENACTING A REVENUE-SHARING AGREEMENT TO PROVIDE FOR REVENUE | 0017| SHARING BETWEEN THE STATE AND AN INDIAN NATION, TRIBE OR PUEBLO | 0018| CONDUCTING GAMING PURSUANT TO THE COMPACT; ENACTING THE GAMING | 0019| CONTROL ACT TO PERMIT CERTAIN NONTRIBAL GAMING; PROVIDING | 0020| PENALTIES; IMPOSING A GAMING TAX AND FEES; AMENDING AND | 0021| ENACTING SECTIONS OF THE NMSA 1978; MAKING APPROPRIATIONS; | 0022| DECLARING AN EMERGENCY. | 0023| | 0024| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0025| Section 1. [NEW MATERIAL] INDIAN GAMING COMPACT ENTERED | 0001| INTO.--The Indian Gaming Compact is enacted into law and | 0002| entered into with all Indian nations, tribes and pueblos in the | 0003| state legally joining in it by enactment of a resolution | 0004| pursuant to the requirements of applicable tribal and federal | 0005| law. The compact is enacted and entered into in the form | 0006| substantially as follows: | 0007| "INDIAN GAMING COMPACT | 0008| INTRODUCTION | 0009| The State is a sovereign State of the United States of | 0010| America, having been admitted to the Union pursuant to the Act | 0011| of June 20, 1910, 36 Statutes at Large 557, Chapter 310, and is | 0012| authorized by its constitution to enter into contracts and | 0013| agreements, including this Compact, with the Tribe; | 0014| The Tribe is a sovereign federally recognized Indian tribe | 0015| and its governing body has authorized the officials of the | 0016| Tribe to enter into contracts and agreements of every | 0017| description, including this Compact, with the State; | 0018| The Congress of the United States has enacted the Indian | 0019| Gaming Regulatory Act of 1988, 25 U.S.C.  2701-2721 | 0020| (hereinafter "IGRA"), which permits Indian tribes to conduct | 0021| Class III Gaming on Indian Lands pursuant to a tribal-state | 0022| compact entered into for that purpose; | 0023| The Tribe owns or controls Indian Lands and by Ordinance | 0024| has adopted rules and regulations governing Class III games | 0025| played and related activities at any Gaming Facility; | 0001| The State and the Tribe, in recognition of the sovereign | 0002| rights of each party and in a spirit of cooperation to promote | 0003| the best interests of the citizens of the State and the members | 0004| of the Tribe, have engaged in good faith negotiations | 0005| recognizing and respecting the interests of each party and have | 0006| agreed to this Compact. | 0007| NOW, THEREFORE, the State and the Tribe agree as follows: | 0008| TERMS AND CONDITIONS | 0009| SECTION 1. Purpose and Objectives. | 0010| The purpose and objectives of the State and the Tribe in | 0011| making this Compact are as follows: | 0012| A. To evidence the good will and cooperative spirit between | 0013| the State and the Tribe; | 0014| B. To continue the development of an effective government- | 0015| to-government relationship between the State and the Tribe; | 0016| C. To provide for the regulation of Class III Gaming on | 0017| Indian Lands as required by the IGRA; | 0018| D. To fulfill the purpose and intent of the IGRA by | 0019| providing for tribal gaming as a means of generating tribal | 0020| revenues, thereby promoting tribal economic development, tribal | 0021| self-sufficiency, and strong tribal government; | 0022| E. To provide revenues to fund tribal government operations | 0023| or programs, to provide for the general welfare of the tribal | 0024| members and for other purposes allowed under the IGRA; | 0025| F. To provide for the effective regulation of Class III | 0001| Gaming in which the Tribe shall have the sole proprietary interest | 0002| and be the primary beneficiary; and | 0003| G. To address the State's interest in the establishment, by | 0004| the Tribe, of rules and procedures for ensuring that Class III | 0005| Gaming is conducted fairly and honestly by the owners, operators, | 0006| employees and patrons of any Class III Gaming enterprise on Indian | 0007| Lands. | 0008| SECTION 2. Definitions. | 0009| For purposes of this Compact, the following definitions | 0010| pertain: | 0011| A. "Class III Gaming" means all forms of gaming as defined | 0012| in 25 U.S.C.  2703(8), and 25 C.F.R.  502.4. | 0013| B. "Compact" means this compact between the State and the | 0014| Tribe. | 0015| C. "Gaming Enterprise" means the tribal entity created and | 0016| designated by the Tribe as having authority to conduct Class III | 0017| Gaming pursuant to this Compact. | 0018| D. "Gaming Facility" means the buildings or structures in | 0019| which Class III Gaming is conducted on Indian Lands. | 0020| E. "Gaming Machine" means a mechanical, electromechanical | 0021| or electronic contrivance or machine that, upon insertion of a | 0022| coin, token or similar object, or upon payment of any | 0023| consideration, is available to play or operate a game, whether the | 0024| payoff is made automatically from the Gaming Machine or in any | 0025| other manner. | 0001| F. "Indian Lands" means: | 0002| 1. all lands within the exterior boundaries of the | 0003| Tribe's reservation and its confirmed grants from prior | 0004| sovereigns; or | 0005| 2. any other lands title to which is either held in | 0006| trust by the United States for the exclusive benefit of the Tribe | 0007| or a member thereof or is held by the Tribe or a member thereof | 0008| subject to restrictions against alienation imposed by the United | 0009| States, and over which the Tribe exercises jurisdiction and | 0010| governmental authority, but not including any land within the | 0011| boundaries of a municipality that is outside of the boundaries of | 0012| the Tribe's reservation or confirmed Spanish grant, as those | 0013| boundaries existed on October 17, 1988. | 0014| G. "Key Employee" means that term as defined in 25 CFR | 0015| Section 502.14. | 0016| H. "Management Contract" means a contract within the | 0017| meaning of 25 U.S.C.  2710(d)(9) and 2711. | 0018| I. "Management Contractor" means any person or entity that | 0019| has entered into a Management Contract with the Tribe. | 0020| J. "Ordinance" means the gaming ordinance and any | 0021| amendments thereto adopted by the Tribal Council of the Tribe. | 0022| K. "Primary Management Official" means that term as defined | 0023| in 25 CFR Section 502.19. | 0024| L. "State" means the State of New Mexico. | 0025| M. "State Gaming Representative" means that person | 0001| designated by the gaming control board pursuant to the Gaming | 0002| Control Act who will be responsible for actions of the State set | 0003| out in the Compact. The representative will be the single contact | 0004| with the Tribe and may be relied upon as such by the Tribe. If | 0005| the State Legislature enacts legislation to establish an agency of | 0006| the State, such agency may assume the duties of the State Gaming | 0007| Representative. | 0008| N. "Tribal Gaming Agency" means the tribal governmental | 0009| agency which will be identified to the State Gaming Representative | 0010| as the agency responsible for actions of the Tribe set out in the | 0011| Compact. It will be the single contact with the State and may be | 0012| relied upon as such by the State. | 0013| O. "Tribe" means any Indian Tribe or Pueblo located within | 0014| the State of New Mexico entering into this Compact as provided for | 0015| herein. | 0016| SECTION 3. Authorized Class III Gaming. | 0017| The Tribe may conduct, only on Indian Lands, subject to all | 0018| of the terms and conditions of this Compact, any or all forms of | 0019| casino-style gaming, including but not limited to slot machines | 0020| and other forms of electronic gaming devices; all forms of poker, | 0021| blackjack and other casino-style card games, both banked and | 0022| unbanked; roulette; craps; keno; wheel of fortune; pai gow; and | 0023| other games played in casino settings, and any form of a lottery. | 0024| Subject to the foregoing, the Tribe shall establish, in its | 0025| discretion, by tribal law, such limitations as it deems | 0001| appropriate on the number and type of Class III Gaming conducted, | 0002| the location of Class III Gaming on Indian Lands, the hours and | 0003| days of operation, and betting and pot limits, applicable to such | 0004| gaming. | 0005| SECTION 4. Regulation of Class III Gaming. | 0006| A. Tribal Gaming Agency. The Tribal Gaming Agency will | 0007| assure that the Tribe will: | 0008| 1. operate all Class III Gaming pursuant to this | 0009| Compact, tribal law, the IGRA and other applicable | 0010| Federal law; | 0011| 2. provide for the physical safety of patrons in any | 0012| Gaming Facility; | 0013| 3. provide for the physical safety of personnel | 0014| employed by the gaming enterprise; | 0015| 4. provide for the physical safeguarding of assets | 0016| transported to and from the Gaming Facility and | 0017| cashier's cage department; | 0018| 5. provide for the protection of the property of the | 0019| patrons and the gaming enterprise from illegal | 0020| activity; | 0021| 6. participate in licensing of primary management | 0022| officials and key employees of a Class III Gaming | 0023| enterprise; | 0024| 7. detain persons who may be involved in illegal acts | 0025| for the purpose of notifying law enforcement | 0001| authorities; and | 0002| 8. record and investigate any and all unusual | 0003| occurrences related to Class III Gaming within the | 0004| Gaming Facility. | 0005| B. Regulations. Without affecting the generality of the | 0006| foregoing, the Tribe shall adopt laws: | 0007| 1. prohibiting participation in any Class III Gaming | 0008| by any person under the age of twenty-one (21); | 0009| 2. prohibiting the employment of any person in Class | 0010| III Gaming activities who is under the age of | 0011| twenty-one (21) or who has not been licensed in | 0012| accordance with Section 5, herein; | 0013| 3. requiring the Tribe to take all necessary action to | 0014| impose on its gaming operation standards and | 0015| requirements equivalent to or more stringent than | 0016| those contained in the federal Fair Labor Standards | 0017| Act of 1938, the federal Occupational Safety and | 0018| Health Act of 1970, and any other federal laws | 0019| relating to wages, hours of work and conditions of | 0020| work, and the regulations issued thereunder; | 0021| 4. requiring that on any construction project | 0022| involving any Gaming Facility or related structure | 0023| that is funded in whole or in part by federal | 0024| funds, all workers will be paid wages meeting or | 0025| exceeding the standards established for New Mexico | 0001| under the federal Davis-Bacon Act; | 0002| 5. providing to all employees of a gaming | 0003| establishment employment benefits, including, at a | 0004| minimum, sick leave, life insurance, paid annual | 0005| leave, medical and dental insurance as well as | 0006| providing unemployment insurance and workers' | 0007| compensation insurance through participation in the | 0008| state programs offering those benefits; | 0009| 6. providing a grievance process for an employee in | 0010| cases of disciplinary or punitive action taken | 0011| against an employee that includes a process for | 0012| appeals to persons of greater authority than the | 0013| immediate supervisor of the employee; | 0014| 7. permitting State Department of Environment | 0015| inspectors to inspect Gaming Facilities' food | 0016| service operations during normal Gaming Facility | 0017| business hours to assure that standards and | 0018| requirements equivalent to the State's Food Service | 0019| Sanitation Act are maintained; | 0020| 8. prohibiting a gaming enterprise from cashing any | 0021| check for any patron; | 0022| 9. prohibiting a gaming enterprise from extending | 0023| credit by accepting IOUs or markers from its | 0024| patrons; | 0025| 10. requiring that odds be posted on each electronic | 0001| and electromechanical gaming device; | 0002| 11. requiring that automatic teller machines on Gaming | 0003| Facility premises be programmed so that the | 0004| machines will not accept cards issued by the State | 0005| to AFDC recipients for access to AFDC benefits; | 0006| 12. providing that each electronic or electromechanical | 0007| gaming device in use at the Gaming Facility must | 0008| pay out a mathematically demonstrable percentage of | 0009| all amounts wagered, which must not be less than | 0010| eighty percent (80%); | 0011| 13. providing that no later than July 1, 1997, all | 0012| gaming machines on the premises of the Gaming | 0013| Facility will be connected to a central | 0014| computerized reporting and auditing system on the | 0015| Gaming Facility premises, which shall collect on a | 0016| continual basis the activity of each gaming machine | 0017| in use at the Gaming Facility, and that such data | 0018| shall be electronically accessible to the State | 0019| Gaming Representative upon entry of appropriate | 0020| security codes; | 0021| 14. enacting provisions that: | 0022| (a) prohibit an employee of the Gaming Facility | 0023| from selling, serving, giving or delivering an | 0024| alcoholic beverage to an intoxicated person or | 0025| from procuring or aiding in the procurement of | 0001| any alcoholic beverage for an intoxicated | 0002| person at the Gaming Facility; | 0003| (b) require Gaming Facility employees that | 0004| dispense, sell, serve or deliver alcoholic | 0005| beverages to attend Alcohol Server Education | 0006| Classes similar to those classes provided for | 0007| in the New Mexico Liquor Control Act; and | 0008| (c) purchase and maintain a liquor liability | 0009| insurance policy that will provide, at a | 0010| minimum, personal injury coverage of one | 0011| million dollars ($1,000,000) per incident and | 0012| two million dollars ($2,000,000) aggregate per | 0013| policy year; | 0014| 15. prohibiting alcoholic beverages from being sold, | 0015| served, delivered or consumed in that part of a | 0016| Gaming Facility where gaming is allowed; | 0017| 16. requiring the gaming enterprise to spend an amount | 0018| that is no less than one-quarter of one percent | 0019| (.25%) of its net win as that term is defined | 0020| herein annually to fund or support programs for the | 0021| treatment and assistance of compulsive gamblers and | 0022| for the prevention of compulsive gambling; | 0023| 17. governing any Management Contract regarding its | 0024| Class III Gaming activity such that it conforms to | 0025| the requirements of tribal law and the IGRA and the | 0001| regulations issued thereunder; | 0002| 18. prohibiting the operation of any Class III Gaming | 0003| for at least four (4) consecutive hours daily, | 0004| Mondays through Thursdays (except federal | 0005| holidays); | 0006| 19. prohibiting a Tribal Gaming Enterprise and the | 0007| Tribe from providing, allowing, contracting to | 0008| provide or arranging to provide alcoholic | 0009| beverages, food or lodging for no charge or at | 0010| reduced prices at a Gaming Facility or lodging | 0011| facility as an incentive or enticement for patrons | 0012| to game; and | 0013| 20. prohibiting the Tribe, the Tribal Gaming Agency or | 0014| a Management Contractor from contributing | 0015| directly, or through an agent, representative or | 0016| employee, revenue from a Gaming Enterprise owned by | 0017| the Tribe, or anything of value acquired with that | 0018| revenue, to a candidate, political committee or | 0019| person holding an office elected or to be elected | 0020| at an election covered by the State's Campaign | 0021| Reporting Act. | 0022| The Tribal Gaming Agency will provide true copies of all | 0023| tribal laws and regulations affecting Class III Gaming conducted | 0024| under the provisions of this Compact to the State Gaming | 0025| Representative within thirty (30) days after the effective date of | 0001| this Compact, and will provide true copies of any amendments | 0002| thereto or additional laws or regulations affecting gaming within | 0003| thirty (30) days after their enactment (or approval, if any). | 0004| C. Audit and Financial Statements. The Tribal Gaming | 0005| Agency shall require all books and records relating to Class III | 0006| Gaming to be maintained in accordance with generally accepted | 0007| accounting principles. All such books and records shall be | 0008| retained for a period of at least six (6) years from the date of | 0009| creation. Not less than annually, the Tribal Gaming Agency shall | 0010| require an audit and a certified financial statement covering all | 0011| financial activities of the gaming enterprise by an independent | 0012| certified public accountant licensed by the State. The financial | 0013| statement shall be prepared in accordance with generally accepted | 0014| accounting principles and shall be submitted to the Tribal Gaming | 0015| Agency within one hundred twenty (120) days of the close of the | 0016| Tribe's fiscal year. Copies of the financial statement and the | 0017| audit shall be furnished to the State Gaming Representative and | 0018| the state treasurer by the Tribal Gaming Agency within one hundred | 0019| twenty days of the agency's receipt of the documents. The Tribe | 0020| will maintain the following records for not less than six (6) | 0021| 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, IOUs, 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 Gaming Facility 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 Tribal | 0013| Gaming Agency and Gaming Facility of his or | 0014| her presence on the premises and presenting | 0015| proper identification, and requesting access | 0016| to the non-public areas of the Gaming | 0017| Facility. The Tribe, in its sole discretion, | 0018| may require an employee of the Gaming Facility | 0019| or the Tribal Gaming Agency to accompany the | 0020| State Gaming Representative at all times that | 0021| the State Gaming Representative is on the | 0022| premises of a Gaming Facility, but if the | 0023| Tribe imposes such a requirement, the Tribe | 0024| shall require such an employee of the Gaming | 0025| Facility or the Tribal Gaming Agency to be | 0001| available at all times for such purposes; | 0002| (c) with respect to inspection and copying of all | 0003| management records relating to Class III | 0004| Gaming, at any time without prior notice | 0005| between the hours of 9:00 a.m. and 4:00 p.m. | 0006| Monday through Friday, excluding official | 0007| holidays. The reasonable costs of copying | 0008| will be borne by the State; and | 0009| (d) whenever the State Gaming Representative, or | 0010| his designee, enters the premises of the | 0011| Gaming Facility for any such inspection, such | 0012| Representative, or designee, shall identify | 0013| himself to security or supervisory personnel | 0014| of the Gaming Facility. | 0015| 3. Gaming Enterprise and gaming operations information | 0016| shall be considered public information and subject | 0017| to the Inspection of Public Records Act. Trade | 0018| secrets and proprietary information regarding the | 0019| gaming enterprise of the Tribe, Class III Gaming | 0020| conducted by the Tribe, or the operation thereof, | 0021| shall not be deemed public records as a matter of | 0022| state law, and shall not be disclosed to any member | 0023| of the public, without the prior written approval | 0024| of a duly authorized representative of the Tribe. | 0025| These prohibitions shall not be construed to | 0001| prohibit: | 0002| (a) the furnishing of any information to a law | 0003| enforcement or regulatory agency of the | 0004| Federal Government; | 0005| (b) the State from making known the names of | 0006| persons, firms, or corporations conducting | 0007| Class III Gaming pursuant to the terms of this | 0008| Compact, locations at which such activities | 0009| are conducted, or the dates on which such | 0010| activities are conducted; | 0011| (c) publishing the terms of this Compact; | 0012| (d) disclosing information as necessary to audit, | 0013| investigate, prosecute or arbitrate violations | 0014| of this Compact or other applicable laws or to | 0015| defend suits against the State; and | 0016| (e) complying with subpoenas or court orders | 0017| issued by courts of competent jurisdiction. | 0018| 4. To the fullest extent allowed by State law, the | 0019| Tribe shall have the right to inspect State records | 0020| concerning all Class III Gaming conducted by the | 0021| Tribe; the Tribe shall have the right to copy such | 0022| State records, with the Tribe bearing the | 0023| reasonable cost of copying. | 0024| 5. For every year or part thereof in which the Tribe | 0025| is actually engaged in Class III Gaming hereunder, | 0001| the Tribe shall reimburse the State for the costs | 0002| the State incurs in carrying out any functions | 0003| authorized by the terms of this Compact. All | 0004| calculations of amounts due shall be based upon the | 0005| operations of the Gaming Enterprise on the final | 0006| day of operation of each quarter of the calendar | 0007| year. Payments due the State shall be made no | 0008| later than the twenty-fifth day of the month | 0009| following the end of a quarter. The amount of the | 0010| regulatory fee each quarter shall be the sum of six | 0011| thousand two hundred fifty dollars ($6,250) per | 0012| Gaming Facility plus three hundred dollars ($300) | 0013| per gaming machine plus seven hundred fifty dollars | 0014| ($750) per gaming table or device other than a | 0015| Gaming Machine. These amounts shall increase by | 0016| five percent (5%) each year beginning on the first | 0017| day of January occurring after the Compact has been | 0018| in effect for at least twelve months. | 0019| 6. In the event the State believes that the Tribe is | 0020| not administering and enforcing the regulatory | 0021| requirements set forth herein, it may invoke the | 0022| procedures set forth in Section 7 of this Compact. | 0023| F. The Tribe shall comply with all applicable provisions of | 0024| the Bank Secrecy Act, P.L. 91-508, October 26, 1970, 31 U.S.C. | 0025|  5311-5314, and all reporting requirements of the Internal | 0001| Revenue Service. | 0002| SECTION 5. Licensing Requirements. | 0003| A. License Required. The Gaming Facility operator (but not | 0004| including the Tribe), including its principals, primary management | 0005| officials, and key employees, the Management Contractor and its | 0006| principals, primary management officials, and key employees (if | 0007| the Tribe hires a Management Contractor); any person, corporation, | 0008| or other entity that has supplied or proposes to supply any gaming | 0009| device to the Tribe or the Management Contractor; and any person, | 0010| corporation or other entity providing gaming services within or | 0011| without a Gaming Facility, shall apply for and receive a license | 0012| from the Tribal Gaming Agency before participating in any way in | 0013| the operation or conduct of any Class III Gaming on Indian Lands. | 0014| B. License Application. Each applicant for a license shall | 0015| file with the Tribal Gaming Agency a written application in the | 0016| form prescribed by the Tribal Gaming Agency, along with the | 0017| applicant's fingerprint card, current photograph and the fee | 0018| required by the Tribal Gaming Agency. | 0019| 1. The following Notice ("Privacy Act Notice") shall | 0020| be placed on the application form for a principal, | 0021| key employee or a primary management official | 0022| before that form is filled out by an applicant: | 0023| "In compliance with the Privacy | 0024| Act of 1974, the following | 0025| information is provided: | 0001| Solicitation of the information | 0002| on this form is authorized by 25 | 0003| U.S.C.  2701-2721. The purpose | 0004| of the requested information is | 0005| to determine the eligibility of | 0006| individuals to be employed in a | 0007| gaming enterprise. The | 0008| information will be used by | 0009| members and staff of the Tribal | 0010| Gaming Agency and the National | 0011| Indian Gaming Commission who have | 0012| need for the information in the | 0013| performance of their official | 0014| duties. The information may be | 0015| disclosed to appropriate federal, | 0016| tribal, state, local or foreign | 0017| law enforcement and regulatory | 0018| agencies when relevant to civil, | 0019| criminal or regulatory | 0020| investigations or prosecutions or | 0021| when, pursuant to a requirement | 0022| by a Tribe, or the National | 0023| Indian Gaming Commission, the | 0024| information is relevant to the | 0025| hiring or firing of an employee, | 0001| the issuance or revocation of a | 0002| gaming license or investigations | 0003| of activities while associated | 0004| with a Tribe or a gaming | 0005| enterprise. Failure to consent | 0006| to the disclosures indicated in | 0007| this Notice will result in a | 0008| Tribe being unable to hire you in | 0009| a primary management official or | 0010| key employee position with a | 0011| tribal gaming enterprise. | 0012| The disclosure of your Social | 0013| Security Number (SSN) is | 0014| voluntary. However, failure to | 0015| supply an SSN may result in | 0016| errors in processing your | 0017| application.". | 0018| 2. Existing principals, key employees and primary | 0019| management officials shall be notified, in writing, | 0020| that they shall either: | 0021| (a) complete a new application form that contains | 0022| a Privacy Act Notice; or | 0023| (b) sign a statement that contains the Privacy Act | 0024| Notice and consent to the routine uses | 0025| described in that Notice. | 0001| 3. The following Notice ("False Statement Notice") | 0002| shall be placed on the application form for a | 0003| principal, key employee or a primary management | 0004| official before that form is filled out by an | 0005| applicant: | 0006| "A false statement on any part of your | 0007| application may be grounds for not hiring you or | 0008| for firing you after you begin work. Also, you | 0009| may be punished by fine or imprisonment. See 18 | 0010| U.S.C.  1001.". | 0011| 4. The Tribal Gaming Agency shall notify, in writing, | 0012| existing principals, key employees and primary | 0013| management officials that they shall either: | 0014| (a) complete a new application form that contains | 0015| a False Statement Notice; or | 0016| (b) sign a statement that contains the False | 0017| Statement Notice. | 0018| 5. The Tribal Gaming Agency shall request from each | 0019| applicant, and from each principal, primary | 0020| management official and key employee of each | 0021| applicant, all of the following information: | 0022| (a) full name, other names used (oral or written), | 0023| Social Security Number(s), birth date, place | 0024| of birth, citizenship, gender and all | 0025| languages spoken or written; | 0001| (b) currently, and for the previous ten (10) | 0002| years, business and employment positions held, | 0003| ownership interests in those businesses, | 0004| business and residence addresses and driver's | 0005| license numbers; provided, that any applicant | 0006| who is a principal, primary management | 0007| official, key employee, Management Contractor, | 0008| manufacturer or supplier of gaming devices, | 0009| and/or a person providing gaming services, | 0010| must provide such information currently, and | 0011| from the age of eighteen (18); | 0012| (c) the names and current addresses of at least | 0013| three (3) personal references, including one | 0014| (1) personal reference who was acquainted with | 0015| the applicant during each period of residence | 0016| listed in Paragraph B.5.(b) of this section; | 0017| (d) current business and residence telephone | 0018| numbers; | 0019| (e) a description of any existing and previous | 0020| business relationships with a Tribe, including | 0021| ownership interests in those businesses, and a | 0022| description of any potential or actual | 0023| conflict of interests between such businesses | 0024| and a Tribe; | 0025| (f) a description of any existing and previous | 0001| business relationships in the gaming industry, | 0002| including, but not limited to, ownership | 0003| interests in those businesses; | 0004| (g) the name and address of any licensing or | 0005| regulatory agency with which the applicant has | 0006| filed an application for a license or permit | 0007| related to gaming, whether or not such license | 0008| or permit was granted; | 0009| (h) for each felony for which there is an ongoing | 0010| prosecution or a conviction, the charge, the | 0011| date of the charge, the name and address of | 0012| the court involved and the disposition, if | 0013| any; | 0014| (i) for each misdemeanor for which there is an | 0015| ongoing prosecution or conviction (excluding | 0016| minor traffic violations), the charge, the | 0017| date of the charge, the name and address of | 0018| the court involved and the disposition, if | 0019| any; | 0020| (j) for each criminal charge (excluding minor | 0021| traffic charges), whether or not there is a | 0022| conviction, if such criminal charge is not | 0023| otherwise listed pursuant to Paragraph B.5.(h) | 0024| or B.5.(i) of this section, the criminal | 0025| charge, the date of the charge, the name and | 0001| address of the court involved and the | 0002| disposition, if any; | 0003| (k) the name and address of any licensing or | 0004| regulatory agency with which the person has | 0005| filed an application for an occupational | 0006| license or permit, as an applicant, principal, | 0007| primary management official or key employee, | 0008| and whether or not such license or permit was | 0009| granted; | 0010| (l) a current photograph; | 0011| (m) fingerprints, which shall be taken by officers | 0012| of the tribal police department or by another | 0013| law enforcement agency and forwarded directly | 0014| to the tribal police department. Pursuant to | 0015| a Memorandum of Understanding between the | 0016| Tribe and the National Indian Gaming | 0017| Commission ("Commission"), tribal police | 0018| officers shall forward the fingerprint cards | 0019| directly to the Commission; | 0020| (n) the fee required by the Tribal Gaming Agency; | 0021| and | 0022| (o) any other information the Tribal Gaming Agency | 0023| deems relevant. | 0024| C. Background Investigations. | 0025| 1. Upon receipt of a completed application and | 0001| required fee for licensing, the Tribal Gaming | 0002| Agency shall conduct or cause to be conducted a | 0003| background investigation to ensure that the | 0004| applicant is qualified for licensing. | 0005| 2. Background checks of applicants will be performed | 0006| pursuant to the following procedures: | 0007| (a) The Tribal Gaming Agency will provide | 0008| applications to potential applicants upon | 0009| request and shall collect and maintain the | 0010| applications. | 0011| (b) Pursuant to a Memorandum of Understanding | 0012| between the Tribe and the Commission, tribal | 0013| police officers will collect fingerprints from | 0014| all applicants and forward the fingerprint | 0015| cards directly to the Commission. The | 0016| Commission will obtain a criminal history | 0017| record from the Federal Bureau of | 0018| Investigation on each applicant and forward | 0019| such information to the Tribal Gaming Agency. | 0020| (c) The Tribal Gaming Agency shall investigate the | 0021| information provided in the applications. | 0022| This investigation shall include: | 0023| (1) contacting persons or entities identified | 0024| in the application and verifying by written | 0025| or oral communication that the information | 0001| contained in the application is accurate; | 0002| (2) interviewing a sufficient number of | 0003| knowledgeable people, such as former | 0004| employers, partners, business associates, | 0005| and others referred to in the application, | 0006| to provide a basis for the Tribal Gaming | 0007| Agency to make a determination concerning | 0008| whether the applicant meets applicable | 0009| eligibility requirements; | 0010| (3) reviewing relevant financial records of the | 0011| applicant for the three (3) years preceding | 0012| the application; and | 0013| (4) contacting any state, federal or other | 0014| government agency that is referred to in | 0015| the application. | 0016| (d) The Tribal Gaming Agency shall document any | 0017| information it obtains that calls into question | 0018| whether the applicant would meet the eligibility | 0019| requirements under the Ordinance. The Tribal | 0020| Gaming Agency shall then document in detail the | 0021| disposition of these problem areas, indicating | 0022| the follow-up investigations performed on the | 0023| problem areas and the result of such | 0024| investigations. | 0025| (e) The Tribal Gaming Agency will review the results | 0001| of the investigation. This review will include | 0002| a determination as to the scope of the | 0003| investigation and whether sufficient information | 0004| was obtained and verified. If such information | 0005| is found not sufficient, the Tribal Gaming | 0006| Agency will perform additional investigations. | 0007| (f) Once the investigation is complete, the Tribal | 0008| Gaming Agency will decide whether the applicant | 0009| meets the eligibility criteria under the | 0010| Ordinance. | 0011| 3. In conducting a background investigation, the Tribal | 0012| Gaming Agency and its agents shall keep confidential | 0013| the identity of each person interviewed in the course | 0014| of the investigation. | 0015| 4. Within twenty (20) days of the receipt of a completed | 0016| application for licensing, and upon request of an | 0017| applicant, the Tribal Gaming Agency may issue a | 0018| temporary license to the applicant, unless the | 0019| background investigation undertaken discloses that | 0020| the applicant has a criminal history, or unless other | 0021| grounds sufficient to disqualify the applicant are | 0022| apparent on the face of the application. The | 0023| temporary license shall become void and be of no | 0024| effect upon either: | 0025| (a) the issuance of the license; | 0001| (b) the issuance of a notice of denial; or | 0002| (c) ninety (90) days after the temporary license is | 0003| issued, whichever occurs first. | 0004| 5. The Tribal Gaming Agency shall review a person's | 0005| prior activities, criminal record, if any, and | 0006| reputation, habits and associations to make a finding | 0007| concerning the eligibility or suitability of an | 0008| applicant, or a principal, key employee or primary | 0009| management official of an applicant, for employment | 0010| or involvement in a gaming enterprise. After such | 0011| consultation, the Tribal Gaming Agency shall either | 0012| issue a license or deny the application. If the | 0013| Tribal Gaming Agency determines that employment or | 0014| involvement of the applicant poses a threat to the | 0015| public interest or to the effective regulation of | 0016| Class III Gaming or creates or enhances dangers of | 0017| unsuitable, unfair or illegal practices, methods or | 0018| activities in the conduct of Class III Gaming, the | 0019| Tribal Gaming Agency shall deny the application. | 0020| 6. The Tribal Gaming Agency shall retain the right to | 0021| conduct additional background investigations of any | 0022| person required to be licensed at any time while the | 0023| license is valid. | 0024| D. Procedure for Forwarding Applications and Reports. | 0025| Procedures for forwarding applications and investigative reports | 0001| to the Commission and State Gaming Representative: | 0002| 1. When a key employee or primary management official | 0003| begins work at a gaming enterprise authorized by this | 0004| Compact, the Tribal Gaming Agency shall forward to | 0005| the Commission and the State Gaming Representative a | 0006| completed application for employment. | 0007| 2. The Tribal Gaming Agency shall forward the report | 0008| referred to in Paragraph D.4. of this section to the | 0009| Commission and the State Gaming Representative within | 0010| sixty (60) days after an employee begins work, or | 0011| within sixty (60) days of the approval of this | 0012| Compact by the Secretary of the Interior. | 0013| 3. A key employee or primary management official who | 0014| does not have a license shall not be employed after | 0015| ninety (90) days. | 0016| 4. The Tribal Gaming Agency shall prepare and forward to | 0017| the Commission and the State Gaming Representative a | 0018| report on each background investigation | 0019| ("Investigative Report"). An Investigative Report | 0020| shall include all of the following: | 0021| (a) steps taken in conducting the background | 0022| investigation; | 0023| (b) results obtained; | 0024| (c) conclusions reached; and | 0025| (d) the basis for those conclusions. | 0001| 5. The Tribal Gaming Agency shall submit with the | 0002| Investigative Report a copy of the eligibility | 0003| determination made under Paragraph C.5. of this | 0004| section. | 0005| 6. If a license is not issued to an applicant, the | 0006| Tribal Gaming Agency shall notify the Commission and | 0007| the State Gaming Representative. | 0008| 7. With respect to principals, key employees and primary | 0009| management officials, the Tribal Gaming Agency shall | 0010| retain applications for employment and Investigative | 0011| Reports (if any) for no less than three (3) years | 0012| from the date of termination of employment. | 0013| E. Granting a Gaming License. | 0014| 1. If within thirty (30) days after it receives an | 0015| Investigative Report, neither the Commission nor the | 0016| State Gaming Representative has notified the Tribal | 0017| Gaming Agency that it has an objection to the | 0018| issuance of a license pursuant to a license | 0019| application filed by a principal, key employee or | 0020| primary management official, the Tribal Gaming Agency | 0021| may issue a license to such applicant. | 0022| 2. The Tribal Gaming Agency shall respond to any request | 0023| for additional information from the Commission or the | 0024| State Gaming Representative concerning a principal, | 0025| key employee or primary management official who is | 0001| the subject of an Investigative Report. Such a | 0002| request shall suspend the thirty-day (30-day) period | 0003| under Paragraph E.1. of this section until the | 0004| Commission or the State Gaming Representative | 0005| receives the additional information; however, in no | 0006| event shall a request for additional information by | 0007| the State Gaming Representative extend the thirty-day | 0008| (30-day) period under Paragraph E.1. of this section | 0009| for a total period of more than sixty (60) days from | 0010| the date the State Gaming Representative received the | 0011| Investigative Report. | 0012| 3. If, within the thirty-day (30-day) period described | 0013| above, the Commission or the State Gaming | 0014| Representative provides the Tribal Gaming Agency with | 0015| a statement itemizing objections to the issuance of a | 0016| license to a principal, key employee or primary | 0017| management official for whom the Tribal Gaming Agency | 0018| has provided an application and Investigative Report, | 0019| the Tribal Gaming Agency shall reconsider the | 0020| application, taking into account the objections | 0021| itemized by the Commission and/or the State Gaming | 0022| Representative, and make a final decision whether to | 0023| issue a license to such applicant. | 0024| F. Management Contract. | 0025| 1. If the Tribe chooses to enter into a Management | 0001| Contract, the Tribal Gaming Agency shall require that | 0002| all principals, primary management officials and key | 0003| employees of the Management Contractor be licensed. | 0004| 2. The Tribe may enter into a Management Contract only | 0005| if the Management Contract: | 0006| (a) provides that all Class III Gaming covered by | 0007| the Management Contract will be conducted in | 0008| accordance with the IGRA, the Ordinance and this | 0009| Compact; | 0010| (b) enumerates the responsibilities of each of the | 0011| parties for each identifiable function, | 0012| including: | 0013| (1) maintaining and improving the Gaming | 0014| Facility; | 0015| (2) providing operating capital; | 0016| (3) establishing operating days and hours; | 0017| (4) hiring, firing, training and promoting | 0018| employees; | 0019| (5) maintaining the gaming enterprise's books | 0020| and records; | 0021| (6) preparing the gaming enterprise's financial | 0022| statements and reports; | 0023| (7) paying for the services of the independent | 0024| auditor engaged pursuant to 25 C.F.R. | 0025|  571.12; | 0001| (8) hiring and supervising security personnel; | 0002| (9) providing fire protection services; | 0003| (10) setting an advertising budget and placing | 0004| advertising; | 0005| (11) paying bills and expenses; | 0006| (12) establishing and administering employment | 0007| practices; | 0008| (13) obtaining and maintaining insurance | 0009| coverage, including coverage of public | 0010| liability and property loss or damage; | 0011| (14) complying with all applicable provisions of | 0012| the Internal Revenue Code of 1986, as | 0013| amended; | 0014| (15) paying the cost of public safety services; | 0015| and | 0016| (16) if applicable, supplying the Commission | 0017| with all information necessary for the | 0018| Commission to comply with the National | 0019| Environmental Policy Act of 1969; | 0020| (c) provides for the establishment and maintenance | 0021| of satisfactory accounting systems and | 0022| procedures that shall, at a minimum: | 0023| (1) include an adequate system of internal | 0024| controls; | 0025| (2) permit the preparation of financial | 0001| statements in accordance with generally | 0002| accepted accounting principles; | 0003| (3) be susceptible to audit; | 0004| (4) permit the calculation and payment of the | 0005| Management Contractor's fee; and | 0006| (5) provide for the allocation of operating | 0007| expenses or overhead expenses among the | 0008| Tribe, the Management Contractor and any | 0009| other user of a shared Gaming Facility and | 0010| services; | 0011| (d) requires the Management Contractor to provide | 0012| the Tribe, not less frequently than monthly, | 0013| verifiable financial reports or all information | 0014| necessary to prepare such reports; | 0015| (e) requires the Management Contractor to provide | 0016| immediate access to the Gaming Facility, | 0017| including its books and records, by appropriate | 0018| officials of the Tribe, who shall have: | 0019| (1) the right to verify the daily gross | 0020| revenues and income from the gaming | 0021| enterprise; and | 0022| (2) access to any other gaming-related | 0023| information the Tribe deems appropriate; | 0024| (f) provides for a minimum guaranteed monthly | 0025| payment to the Tribe in a sum certain that has | 0001| preference over the retirement of development | 0002| and construction costs; | 0003| (g) provides an agreed upon maximum dollar amount | 0004| for the recoupment of development and | 0005| construction costs; | 0006| (h) provides for a term not to exceed the period | 0007| allowed by the IGRA; | 0008| (i) details the method of compensating and | 0009| reimbursing the Management Contractor. If a | 0010| Management Contract provides for a percentage | 0011| fee, such fee shall be either: | 0012| (1) not more than thirty percent (30%) of the | 0013| net revenues of the gaming enterprise if | 0014| the Chairman of the Commission determines | 0015| that such percentage is reasonable | 0016| considering the circumstances; or | 0017| (2) not more than forty percent (40%) of the | 0018| net revenues if the Chairman of the | 0019| Commission is satisfied that the capital | 0020| investment required and income projections | 0021| for the gaming enterprise require the | 0022| additional fee; | 0023| (j) provides the grounds and mechanisms for | 0024| modifying or terminating the Management | 0025| Contract; | 0001| (k) contains a mechanism to resolve disputes | 0002| between: | 0003| (1) the Management Contractor and customers, | 0004| consistent with the procedures in the | 0005| Ordinance; | 0006| (2) the Management Contractor and the Tribe; | 0007| and | 0008| (3) the Management Contractor and the gaming | 0009| enterprise employees; | 0010| (l) indicates whether and to what extent contract | 0011| assignments and subcontracting are permissible; | 0012| (m) indicates whether and to what extent changes in | 0013| the ownership interest in the Management | 0014| Contract require advance approval by the Tribe; | 0015| and | 0016| (n) states that the Management Contract shall not be | 0017| effective unless and until it is approved by the | 0018| Chairman of the Commission, date of signature of | 0019| the parties notwithstanding. | 0020| 3. The Tribe shall not enter into any Management | 0021| Contract if the Tribal Gaming Agency determines that | 0022| the Management Contractor or any principal, primary | 0023| management official or key employee of the Management | 0024| Contractor is not licensed or is ineligible to be | 0025| licensed. | 0001| G. Confidentiality of Records. Any and all background | 0002| Investigative Reports on employees or contractors, supporting | 0003| documents acquired or generated in connection therewith, and any | 0004| other Investigative Reports or documents acquired or generated in | 0005| the course of investigations performed by the Tribe or the Tribal | 0006| Gaming Agency, that are provided to the State Gaming | 0007| Representative or any other agency or official of the State by the | 0008| Tribal Gaming Agency or the Tribe pursuant to the provisions of | 0009| this Compact, shall not be deemed public records of the State and | 0010| shall not be disclosed to any member of the public without the | 0011| prior express written authorization of an authorized | 0012| representative of the Tribe; provided, that nothing herein shall | 0013| preclude any State agency or official from providing information | 0014| to a federal agency or official having responsibility relative to | 0015| Indian Gaming or from compliance with any valid order of a court | 0016| having jurisdiction. | 0017| SECTION 6. Providers of Class III Gaming Equipment or Devices or | 0018| Supplies. | 0019| A. Within thirty (30) days after the effective date of this | 0020| Compact, if it has not already done so, the Tribal Gaming Agency | 0021| will adopt standards for any and all Class III Gaming equipment, | 0022| devices or supplies to be purchased, leased or otherwise acquired | 0023| by the Tribe after the effective date of this Compact for use in | 0024| any Gaming Facility, which standards shall be at least as strict | 0025| as the comparable standards applicable to Class III Gaming | 0001| equipment, devices or supplies within the State of Nevada. Any | 0002| and all Class III Gaming equipment, devices or supplies acquired | 0003| by the Tribe after the date of this Compact shall meet or exceed | 0004| the standards thereby adopted, and any and all Class III Gaming | 0005| equipment, devices or supplies used by the Tribe in its Gaming | 0006| Facilities as of the effective date of this Compact shall be | 0007| upgraded or replaced, if necessary, so as to comply with such | 0008| standards, by no later than one (1) year after the effective date | 0009| of this Compact. | 0010| B. Prior to entering into any future lease or purchase | 0011| agreement for Class III Gaming equipment, devices or supplies, the | 0012| Tribe shall obtain sufficient information and identification from | 0013| the proposed seller or lessor and all persons holding any direct | 0014| or indirect financial interest in the lessor or the lease/purchase | 0015| agreement to permit the Tribe to license those persons in | 0016| accordance with Section 5, hereof. | 0017| C. The seller, lessor, manufacturer or distributor shall | 0018| provide, assemble and install all Class III Gaming equipment, | 0019| devices or supplies in a manner approved and licensed by the | 0020| Tribe. | 0021| SECTION 7. Dispute Resolution. | 0022| A. In the event either party believes that the other party | 0023| has failed to comply with or has otherwise breached any provision | 0024| of this Compact, such party may invoke the following procedure: | 0025| 1. The party asserting noncompliance shall serve written | 0001| notice on the other party. The notice shall identify | 0002| the specific Compact provision believed to have been | 0003| violated and shall specify the factual and legal | 0004| basis for the alleged noncompliance. The notice | 0005| shall specifically identify the date, time and nature | 0006| of the alleged noncompliance. Representatives of the | 0007| State and Tribe shall thereafter meet within thirty | 0008| (30) days in an effort to resolve the dispute. | 0009| 2. In the event an allegation by the complaining party | 0010| is not resolved to the satisfaction of such party | 0011| within ninety (90) days after service of the notice | 0012| set forth in Paragraph A.1. of this section, the | 0013| complaining party may serve upon the other party a | 0014| notice to cease conduct of the particular game(s) or | 0015| activities alleged by the complaining party to be in | 0016| noncompliance. Upon receipt of such notice, the | 0017| responding party may elect to stop the game(s) or | 0018| activities specified in the notice or invoke | 0019| arbitration and continue the game(s) or activities | 0020| pending the results of arbitration. The responding | 0021| party shall act upon one of the foregoing options | 0022| within thirty (30) days of receipt of notice from the | 0023| complaining party. | 0024| 3. Arbitration under this authority shall be conducted | 0025| under the Commercial Arbitration Rules of the | 0001| American Arbitration Association, except that the | 0002| arbitrators shall be attorneys who are licensed | 0003| members in good standing of the State Bar of New | 0004| Mexico or of the bar of another state. The State | 0005| will select one arbitrator, the Tribe a second | 0006| arbitrator, and the two so chosen shall select a | 0007| third arbitrator. If the third arbitrator is not | 0008| chosen in this manner within ten (10) days after the | 0009| second arbitrator is selected, the third arbitrator | 0010| will be chosen in accordance with the rules of the | 0011| American Arbitration Association. | 0012| 4. All parties shall bear their own costs of arbitration | 0013| and attorney fees. | 0014| 5. The results of arbitration shall be enforceable by an | 0015| action for injunctive or mandatory injunctive relief | 0016| against the State and the Tribe in any court of | 0017| competent jurisdiction. For purposes of any such | 0018| action, the State and the Tribe acknowledge that any | 0019| action or failure to act on the part of any agent or | 0020| employee of the State or the Tribe, contrary to a | 0021| decision of the arbitrators in an arbitration | 0022| proceeding conducted under the provisions of this | 0023| section, occurring after such decision, shall be | 0024| wholly unauthorized and ultra vires acts, not | 0025| protected by the sovereign immunity of the State or | 0001| the Tribe. | 0002| B. Nothing in Subsection 7A. shall be construed to waive, | 0003| limit or restrict any remedy that is otherwise available to either | 0004| party to enforce or resolve disputes concerning the provisions of | 0005| this Compact. Nothing in this Compact shall be deemed a waiver of | 0006| the Tribe's sovereign immunity. Nothing in this Compact shall be | 0007| deemed a waiver of the State's sovereign immunity. | 0008| SECTION 8. Protection of Patrons. | 0009| A. Liability to Patrons. To ensure the personal safety and | 0010| protection of patrons and other invitees of a Tribe's Gaming | 0011| Facility operated under the provisions of this Compact, the Tribe | 0012| shall at all times maintain in effect a policy of public liability | 0013| insurance, insuring the Tribe, its agents and employees against | 0014| any claims, demands or liability that may arise as a result of | 0015| personal injury to any person (other than an employee of the | 0016| gaming establishment) occurring anywhere on the premises of any | 0017| gaming establishment operated by the Tribe under the provisions of | 0018| this Compact, or as a result of any act or omission of any agent | 0019| or employee of such gaming establishment while in the course of | 0020| his or her employment, which policy shall provide personal injury | 0021| coverage of no less than one million dollars ($1,000,000) per | 0022| injured person and ten million dollars ($10,000,000) aggregate per | 0023| policy year. | 0024| The Tribe agrees that it will require that the insurance | 0025| contract provide that in the event of any claim made against it or | 0001| its gaming enterprise, or any agent or employee thereof, arising | 0002| out of any personal injury as described above, neither the Tribe | 0003| nor its insurer will assert any defense of immunity from suit as | 0004| to such claim for compensatory damages up to the amount of one | 0005| million dollars ($1,000,000) per injured person, in any claim | 0006| pursued as provided in this subsection; provided, however, that | 0007| this agreement not to assert such defense shall be strictly | 0008| limited as provided herein, and shall not apply to any claim for | 0009| punitive damages, or to any claim for any loss or damage other | 0010| than that arising from actual bodily injury or death, or to any | 0011| claim for damages in excess of the amount set forth herein. | 0012| Nothing herein shall be construed as stating or implying that the | 0013| Tribe has waived or agreed not to assert its immunity from suit | 0014| for any other purpose or in any other circumstance other than the | 0015| limited purposes and circumstances expressly set forth herein, and | 0016| nothing herein shall be construed as an admission of liability as | 0017| to any claim for damages or as an agreement or indication of | 0018| willingness to pay any amount as damages absent a determination of | 0019| fault, and the Tribe or its insurer, or both, shall in every | 0020| instance have the right to defend any such claim fully on the | 0021| merits. | 0022| Any person wishing to prosecute a claim for personal injury | 0023| against the Gaming Enterprise as provided in this subsection, and | 0024| who is unable to arrive at a satisfactory settlement of such | 0025| claim, may proceed, by no later than three (3) years after the | 0001| date of the incident giving rise to the claim, either by filing | 0002| suit in the tribal court of the Tribe, or by demanding binding | 0003| arbitration as provided herein. The Tribe agrees that it will | 0004| provide a tribal court that is competent to hear such claims, and | 0005| that it will permit its Gaming Enterprise, and the employees | 0006| thereof, to be sued in such courts on such claims, subject to the | 0007| conditions set forth in this subsection. A claimant who wishes to | 0008| proceed by binding arbitration shall submit a written demand | 0009| therefor to the Gaming Enterprise, by certified mail, return | 0010| receipt requested. The claimant and the Gaming Enterprise shall | 0011| each designate an arbitrator within thirty (30) days of the date | 0012| of receipt of such demand, and the two arbitrators shall select a | 0013| third arbitrator. The arbitration panel shall permit the parties | 0014| to engage in reasonable discovery, and shall establish other | 0015| procedures so as to assure a full, fair and expeditious hearing on | 0016| the claim. The award of the arbitration panel shall be final and | 0017| binding (except that any such award of damages to the claimant | 0018| shall in no event exceed the limits of liability set forth in this | 0019| subsection). The Tribe's insurer shall be subject to suit in any | 0020| court of competent jurisdiction for enforcement of the arbitration | 0021| award. | 0022| The Tribe shall provide to the State Gaming Representative | 0023| annually a certificate of insurance showing that its gaming | 0024| enterprise and its agents and employees engaged therein are | 0025| insured to the extent and in the circumstances required by this | 0001| section. If the State Gaming Representative so requests in | 0002| writing, the certificate of insurance may be furnished directly to | 0003| the State Gaming Representative from the insurance carrier or the | 0004| insuring agency for the insured Tribe. | 0005| The Tribe's failure to comply with any awards by an | 0006| arbitration panel or judgment of a tribal court in any action | 0007| brought under the provisions of this section shall be deemed a | 0008| violation of the Compact and may be enforced by the State under | 0009| the provisions of Section 7. | 0010| B. Public Health and Safety. The Tribe shall establish for | 0011| its Gaming Facility health, safety and construction standards that | 0012| are at least as stringent as the current editions of the National | 0013| Electrical Code, the Uniform Building Code, the Uniform Mechanical | 0014| Code, the Uniform Fire Code and the Uniform Plumbing Code, and any | 0015| and all Gaming Facilities or additions thereto constructed by the | 0016| Tribe hereafter shall be constructed and all facilities shall be | 0017| maintained so as to comply with such standards. Inspections will | 0018| be conducted with respect to these standards at least annually. | 0019| If the State Gaming Representative requests sufficiently in | 0020| advance of an annual inspection, the State Gaming Representative | 0021| may be present during such inspection. The Tribe agrees to | 0022| correct any deficiencies noted in such inspections within a time | 0023| agreed upon between the State and Tribe. The Tribal Gaming Agency | 0024| will provide copies of such inspection reports to the State Gaming | 0025| Representative, if requested to do so in writing. | 0001| SECTION 9. Effective Date. This Compact shall be effective | 0002| immediately upon the occurrence of the last of the following: | 0003| A. execution by the Tribe's Governor after approval of the | 0004| Tribal Council; | 0005| B. execution by the Governor of the State; | 0006| C. approval by the Secretary of the Interior; and | 0007| D. publication in the Federal Register. | 0008| The Governor is authorized to execute compacts with an | 0009| individual Tribe that has also entered into revenue-sharing | 0010| agreements and has passed resolutions described herein, in | 0011| substantially the same form as set forth herein. Upon signature | 0012| by the Governor and the Tribe, the Compact shall be transmitted to | 0013| the Secretary of the Interior for approval. | 0014| SECTION 10. Criminal Jurisdiction. | 0015| A. The Tribe and the State acknowledge that under the | 0016| provisions of  23 of the IGRA, especially that portion codified | 0017| at 18 U.S.C.  1166(d), jurisdiction to prosecute violations of | 0018| State gambling laws made applicable by that section to Indian | 0019| country is vested exclusively within the United States, unless the | 0020| Tribe and the State agree in a compact entered into the IGRA to | 0021| transfer such jurisdiction to the State. | 0022| B. The Tribe and the State hereby agree that, in the event | 0023| of any violation of any State gambling law on Indian Lands or any | 0024| other crime against the Gaming Enterprise or any employee thereof | 0025| or that occurs on the premises of the Tribal Gaming Facility, that | 0001| is committed by any person who is not a member of the Tribe, the | 0002| State shall have and may exercise jurisdiction, concurrent with | 0003| that of the United States, to prosecute such person, under its | 0004| laws and in its courts. | 0005| C. Immediately upon becoming aware of any such suspected | 0006| crime by a nonmember of the Tribe, the Gaming Enterprise or the | 0007| Tribal Gaming Agency shall notify the state attorney general and | 0008| the district attorney for the district in which the Gaming | 0009| Facility is located, supplying all particulars available to the | 0010| tribal entity at the time. The Tribe agrees that its law | 0011| enforcement and gaming agencies shall perform such additional | 0012| investigation or take such other steps in furtherance of the | 0013| investigation and prosecution of the violation as the district | 0014| attorney may reasonably request, and otherwise cooperate fully | 0015| with the district attorney and any state law enforcement agencies | 0016| with respect to the matter, but once notice of a suspected | 0017| violation has been given to the district attorney, the matter | 0018| shall be deemed to be under the jurisdiction of the State (except | 0019| that in the event of emergency circumstances involving a possible | 0020| violation, the Tribe and its constituent agencies shall have the | 0021| discretion to act as they see fit, and to call upon such other | 0022| agencies or entities as they deem reasonable or necessary, in | 0023| order to protect against any immediate threat to lives or | 0024| property). The State may, in its discretion, refer the matter to | 0025| federal authorities, but it shall notify the Tribal Gaming Agency | 0001| upon doing so. | 0002| D. The State agrees that no less frequently than annually | 0003| it will provide the Tribal Gaming Agency with a written report of | 0004| the status and disposition of each matter referred to it under the | 0005| provisions of this section that is still pending. In the event | 0006| the district attorney to whom a matter is referred under the | 0007| provisions of this section decides not to prosecute such matter, | 0008| the district attorney shall promptly notify the Tribal Gaming | 0009| Agency of such decision in writing. The Tribal Gaming Agency may | 0010| in that event ask the attorney general of the state to pursue the | 0011| matter. | 0012| E. The district attorney for the district in which the | 0013| Gaming Facility is situated may decline to accept referrals of | 0014| cases under the provisions of this section unless and until the | 0015| Tribe has entered into a Memorandum of Understanding with the | 0016| office of the district attorney to which Memorandum of | 0017| Understanding the United States Attorney for the District of New | 0018| Mexico may also be a party addressing such matters as the specific | 0019| procedures by which cases are to be referred, participation of the | 0020| Tribal Gaming Agency and tribal law enforcement personnel in the | 0021| investigation and prosecution of any such case, payments by the | 0022| Tribe to the office of the district attorney to defray the costs | 0023| of handling cases referred under the provisions of this section, | 0024| and related matters. | 0025| SECTION 11. Binding Effect and Duration. | 0001| A. This Compact shall be binding upon the State and Tribe | 0002| for a term of ten (10) years from the date it becomes effective | 0003| and may renew for an additional period. | 0004| B. Before the date that is one (1) year prior to the | 0005| expiration of the ten-year (10-year) initial term, and/or before | 0006| the date that is one (1) year prior to the expiration of the | 0007| renewal period, either party may serve written notice on the other | 0008| of its desire to renegotiate this Compact. | 0009| C. In the event that either party gives written notice to | 0010| the other of its desire to renegotiate this Compact pursuant to | 0011| Subsection B. of this section, the Tribe may, pursuant to the | 0012| procedures of the IGRA, request the State to enter into | 0013| negotiations for a new compact governing the conduct of Class III | 0014| Gaming. If the parties are unable to conclude a successor | 0015| compact, this Compact shall terminate. | 0016| D. Notwithstanding the foregoing, at any time while this | 0017| Compact remains in effect, either party may, by written notice to | 0018| the other party, request reopening of negotiations with respect to | 0019| any provision of this Compact, or with respect to any issue not | 0020| addressed in the Compact, specifying such provision or issue in | 0021| such notice. No such request shall be unreasonably refused, but | 0022| neither party shall be required to agree to any change in the | 0023| Compact, and no agreement to supplement or amend this Compact in | 0024| any respect shall have any validity until the same shall have been | 0025| approved in writing by the Tribe, the State and the Secretary of | 0001| the Interior and notice of such approval published in the Federal | 0002| Register. | 0003| E. The Tribe may operate Class III Gaming only while this | 0004| Compact or any renegotiated compact is in effect. | 0005| SECTION 12. Notice to Parties. | 0006| Unless otherwise indicated, all notices, payments, requests, | 0007| reports, information or demand that any party hereto may desire or | 0008| may be required to give to the other party hereto, shall be in | 0009| writing and shall be personally delivered or sent by first-class | 0010| mail sent to the other party at the address provided in writing by | 0011| the other party. Every notice, payment, request, report, | 0012| information or demand so given shall be deemed effective upon | 0013| receipt or, if mailed, upon receipt or the expiration of the third | 0014| day following the day of mailing, whichever occurs first, except | 0015| that any notice of change of address shall be effective only upon | 0016| receipt by the party to whom said notice is addressed. | 0017| SECTION 13. Entire Agreement. | 0018| This Compact is the entire agreement between the parties and | 0019| supersedes all prior agreements, whether written or oral, with | 0020| respect to the subject matter hereof. Neither this Compact nor | 0021| any provision herein may be changed, waived, discharged or | 0022| terminated orally, but only by an instrument, in writing, signed | 0023| by the Tribe and the State and approved by the Secretary of the | 0024| Interior. This Compact shall not be amended without the express | 0025| approval of the Tribe, the Governor of the State and the State | 0001| Legislature. | 0002| SECTION 14. Filing of Compact with State Records Center. | 0003| Upon the effective date of this Compact, a copy shall be | 0004| filed by the Governor with the New Mexico Records Center. Any | 0005| subsequent amendment or modification of this Compact shall be | 0006| filed with the New Mexico Records Center. | 0007| SECTION 15. Counterparts. | 0008| This Compact may be executed by the parties in any number of | 0009| separate counterparts with the same effect as if the signatures | 0010| were upon the same instrument. All such counterparts shall | 0011| together constitute one and the same document." | 0012| Section 2. [NEW MATERIAL] REVENUE SHARING OF TRIBAL GAMING | 0013| REVENUE.--The governor is authorized to execute a revenue-sharing | 0014| agreement in the form substantially set forth in this section with | 0015| any New Mexico Indian nation, tribe or pueblo that has also | 0016| entered into an Indian gaming compact as provided by law. | 0017| Execution of an Indian gaming compact is conditioned upon | 0018| execution of a revenue-sharing agreement. The consideration for | 0019| the Indian entity entering into the revenue-sharing agreement is | 0020| the condition of the agreement providing limited exclusivity of | 0021| gaming activities to the tribal entity. The revenue-sharing | 0022| agreement shall be in substantially the following form and is | 0023| effective when executed by the governor on behalf of the state and | 0024| the appropriate official of the Indian entity: | 0025| "REVENUE-SHARING AGREEMENT | 0001| 1. Summary and consideration. The Tribe shall agree to | 0002| contribute a portion of its Class III Gaming revenues identified | 0003| in and under procedures of this Revenue-Sharing Agreement, in | 0004| return for which the State agrees that the Tribe: | 0005| A. has the exclusive right within the State to provide | 0006| all types of Class III Gaming described in the Indian Gaming | 0007| Compact, with the sole exception of the use of Gaming Machines, | 0008| which the State may permit on a limited basis for racetracks and | 0009| veterans' and fraternal organizations; and | 0010| B. will only share that part of its revenue arising | 0011| from the use of Gaming Machines and all other gaming revenue is | 0012| exclusively the Tribe's. | 0013| 2. Revenue to State. The parties agree that, after the | 0014| effective date hereof, the Tribe shall make the quarterly payments | 0015| provided for in Section 3 of the Revenue Sharing Agreement to the | 0016| state treasurer for deposit into the General Fund of the State | 0017| ("State General Fund"). | 0018| 3. Calculation of Revenue to State. | 0019| A. As used in this Revenue-Sharing Agreement, "net win" | 0020| means the annual total amount wagered at a Gaming Facility on | 0021| Gaming Machines less the following amounts: | 0022| (1) the annual amount paid out in prizes from gaming | 0023| on Gaming Machines; | 0024| (2) the actual amount of regulatory fees paid to the | 0025| state; and | 0001| (3) the sum of two hundred fifty thousand dollars | 0002| ($250,000) per year as an amount representing tribal regulatory | 0003| fees, with these amounts increasing by five percent (5%) each year | 0004| beginning on the first day of January occurring after the Compact | 0005| has been in effect for at least twelve months. | 0006| B. The Tribe shall pay the state sixteen percent (16%) | 0007| of the net win. | 0008| C. For purposes of these payments, all calculations of | 0009| amounts due shall be based upon the quarterly activity of the | 0010| gaming facility. Quarterly payments due to the State pursuant to | 0011| these terms shall be paid no later than twenty-five (25) days | 0012| after the last day of each calendar quarter. Any payments due and | 0013| owing from the Tribe in the quarter the Compact is approved, or | 0014| the final quarter the Compact is in force, shall reflect the net | 0015| win, but only for the portion of the quarter the Compact is in | 0016| effect. | 0017| 4. Limitations. The Tribe's obligation to make the | 0018| payments provided for in Paragraphs 2 and 3 of this section shall | 0019| apply and continue only so long as there is a binding Indian | 0020| Gaming Compact in effect between the Tribe and the State, which | 0021| Compact provides for the play of Class III Gaming, but shall | 0022| terminate in the event of any of the following conditions: | 0023| A. If the State passes, amends, or repeals any law, or | 0024| takes any other action, which would directly or indirectly attempt | 0025| to restrict, or has the effect of restricting, the scope of Indian | 0001| gaming. | 0002| B. If the State permits any expansion of nontribal | 0003| Class III Gaming in the State. Notwithstanding this general | 0004| prohibition against permitted expansion of gaming activities, the | 0005| State may permit: (1) the enactment of a State lottery, (2) any | 0006| fraternal, veterans or other nonprofit membership organization to | 0007| operate such electronic gaming devices lawfully, but only for the | 0008| benefit of such organization's members, (3) limited fundraising | 0009| activities conducted by nonprofit tax exempt organizations | 0010| pursuant to Section 30-19-6 NMSA 1978, and (4) any horse | 0011| racetracks to operate electronic gaming devices on days on which | 0012| live or simulcast horse racing occurs. | 0013| 5. Effect of Variance. In the event the acts or omissions | 0014| of the State cause the Tribe's obligation to make payments under | 0015| Paragraph 3 of this section to terminate under the provisions of | 0016| Paragraph 4 of this section, such cessation of obligation to pay | 0017| will not adversely affect the validity of the Compact, but the | 0018| amount that the Tribe agrees to reimburse the State for regulatory | 0019| fees under the Compact shall automatically increase by twenty | 0020| percent (20%). | 0021| 6. Third-Party Beneficiaries. This Agreement is not | 0022| intended to create any third-party beneficiaries and is entered | 0023| into solely for the benefit of the Tribe and the State." | 0024| Section 3. [NEW MATERIAL] SHORT TITLE.--Sections 3 through | 0025| 62 of this act may be cited as the "Gaming Control Act". | 0001| Section 4. [NEW MATERIAL] POLICY.--It is the state's | 0002| policy on gaming that: | 0003| A. limited gaming activities should be allowed in the | 0004| state if those activities are strictly regulated to ensure honest | 0005| and competitive gaming that is free from criminal and corruptive | 0006| elements and influences; and | 0007| B. the holder of any license issued by the state in | 0008| connection with the regulation of gaming activities has a | 0009| revocable privilege only and has no property right or vested | 0010| interest in the license. | 0011| Section 5. [NEW MATERIAL] DEFINITIONS.--As used in the | 0012| Gaming Control Act: | 0013| A. "affiliate" means a person who, directly or | 0014| indirectly through one or more intermediaries, controls, is | 0015| controlled by or is under common control with a specified person; | 0016| B. "affiliated company" means a company that: | 0017| (1) controls, is controlled by or is under common | 0018| control with a company licensee; and | 0019| (2) is involved in gaming activities or involved | 0020| in the ownership of property on which gaming is conducted; | 0021| C. "applicant" means a person who has applied for a | 0022| license or for approval of an act or transaction for which | 0023| approval is required or allowed pursuant to the provisions of the | 0024| Gaming Control Act; | 0025| D. "application" means a request for the issuance of a | 0001| license or for approval of an act or transaction for which | 0002| approval is required or allowed pursuant to the provisions of the | 0003| Gaming Control Act, but "application" does not include a | 0004| supplemental form or information that may be required with the | 0005| application; | 0006| E. "associated equipment" means equipment or a | 0007| mechanical, electromechanical or electronic contrivance, component | 0008| or machine used in connection with gaming; | 0009| F. "board" means the gaming control board; | 0010| G. "certification" means a notice of approval by the | 0011| board of a person required to be certified by the board; | 0012| H. "certified technician" means a person certified by | 0013| a manufacturer licensee to repair and service gaming devices, but | 0014| who is prohibited from programming gaming devices; | 0015| I. "company" means a corporation, partnership, limited | 0016| partnership, trust, association, joint stock company, joint | 0017| venture, limited liability company or other form of business | 0018| organization that is not a natural person; | 0019| J. "distributor" means a person who supplies gaming | 0020| devices to a gaming operator but does not manufacture gaming | 0021| devices; | 0022| K. "equity security" means an interest in a company | 0023| that is evidenced by: | 0024| (1) voting stock or similar security; | 0025| (2) a security convertible into voting stock or | 0001| similar security, with or without consideration, or a security | 0002| carrying a warrant or right to subscribe to or purchase voting | 0003| stock or similar security; | 0004| (3) a warrant or right to subscribe to or purchase | 0005| voting stock or similar security; or | 0006| (4) a security having a direct or indirect | 0007| participation in the profits of the issuer; | 0008| L. "executive director" means the chief administrative | 0009| officer appointed by the board pursuant to Section 9 of the Gaming | 0010| Control Act; | 0011| M. "finding of suitability" means a certification of | 0012| approval issued by the board permitting a person to be involved | 0013| directly or indirectly with a licensee, relating only to the | 0014| specified involvement for which it is made; | 0015| N. "game" means an activity in which, upon payment of | 0016| consideration, a player receives a prize or other thing of value, | 0017| the award of which is determined by chance even though accompanied | 0018| by some skill; "game" does not include an activity played in a | 0019| private residence in which no person makes money for operating the | 0020| activity except through winnings as a player; | 0021| O. "gaming" means offering a game for play; | 0022| P. "gaming activity" means any endeavor associated | 0023| with the manufacture or distribution of gaming devices or the | 0024| conduct of gaming; | 0025| Q. "gaming device" means associated equipment or a | 0001| gaming machine and includes a system for processing information | 0002| that can alter the normal criteria of random selection that | 0003| affects the operation of a game or determines the outcome of a | 0004| game; "gaming device" does not include a system or device that | 0005| affects a game solely by stopping its operation so that the | 0006| outcome remains undetermined; | 0007| R. "gaming employee" means a person connected directly | 0008| with a gaming activity; "gaming employee" does not include: | 0009| (1) bartenders, cocktail servers or other persons | 0010| engaged solely in preparing or serving food or beverages; | 0011| (2) secretarial or janitorial personnel; | 0012| (3) stage, sound and light technicians; or | 0013| (4) other nongaming personnel; | 0014| S. "gaming establishment" means the premises on or in | 0015| which gaming is conducted; | 0016| T. "gaming machine" means a mechanical, | 0017| electromechanical or electronic contrivance or machine that, upon | 0018| insertion of a coin, token or similar object, or upon payment of | 0019| any consideration, is available to play or operate a game, whether | 0020| the payoff is made automatically from the machine or in any other | 0021| manner; | 0022| U. "gaming operator" means a person who conducts | 0023| gaming; | 0024| V. "holding company" means a company that directly or | 0025| indirectly owns or has the power or right to control a company | 0001| that is an applicant or licensee, but a company that does not have | 0002| a beneficial ownership of more than ten percent of the equity | 0003| securities of a publicly traded corporation is not a holding | 0004| company; | 0005| W. "immediate family" means natural persons who are | 0006| related to a specified natural person by affinity or consanguinity | 0007| in the first through the third degree; | 0008| X. "independent administrator" means a person who | 0009| administers an annuity, who is not associated in any manner with | 0010| the gaming operator licensee for which the annuity was purchased | 0011| and is in no way associated with the person who will be receiving | 0012| the annuity; | 0013| Y. "institutional investor" means a state or federal | 0014| government pension plan or a person that meets the requirements of | 0015| a qualified institutional buyer as defined in Rule 144A of the | 0016| federal Securities Act of 1933, and is: | 0017| (1) a bank as defined in Section 3(a)(6) of the | 0018| federal Securities Exchange Act of 1934; | 0019| (2) an insurance company as defined in Section | 0020| 2(a)(17) of the federal Investment Company Act of 1940; | 0021| (3) an investment company registered under Section | 0022| 8 of the federal Investment Company Act of 1940; | 0023| (4) an investment adviser registered under Section | 0024| 203 of the federal Investment Advisers Act of 1940; | 0025| (5) collective trust funds as defined in Section | 0001| 3(c)(11) of the federal Investment Company Act of 1940; | 0002| (6) an employee benefit plan or pension fund that | 0003| is subject to the federal Employee Retirement Income Security Act | 0004| of 1974, excluding an employee benefit plan or pension fund | 0005| sponsored by a publicly traded corporation registered with the | 0006| board; or | 0007| (7) a group comprised entirely of persons | 0008| specified in Paragraphs (1) through (6) of this subsection; | 0009| Z. "intermediary company" means a company that: | 0010| (1) is a holding company with respect to a company | 0011| that is an applicant or licensee; and | 0012| (2) is a subsidiary with respect to any holding | 0013| company; | 0014| AA. "key executive" means an executive of a licensee | 0015| or other person having the power to exercise significant influence | 0016| over decisions concerning any part of the licensed operations of | 0017| the licensee or whose compensation exceeds an amount established | 0018| by the board in a regulation; | 0019| BB. "license" means an authorization required by the | 0020| board for engaging in gaming activities; | 0021| CC. "licensee" means a person to whom a valid license | 0022| has been issued; | 0023| DD. "manufacturer" means a person who manufactures, | 0024| fabricates, assembles, produces, programs or makes modifications | 0025| to any gaming device for use or play in New Mexico or for sale, | 0001| lease or distribution outside New Mexico from any location within | 0002| New Mexico; | 0003| EE. "net take" means the total of the following, less | 0004| the total of all cash paid out as losses to winning patrons and | 0005| those amounts paid to purchase annuities to fund losses paid to | 0006| winning patrons over several years by independent administrators: | 0007| (1) cash received from patrons for playing a game; | 0008| (2) cash received in payment for credit extended | 0009| by a licensee to a patron for playing a game; and | 0010| (3) compensation received for conducting a game in | 0011| which the licensee is not a party to a wager; | 0012| FF. "nonprofit organization" means: | 0013| (1) a bona fide chartered or incorporated branch, | 0014| lodge, order or association, in existence in New Mexico prior to | 0015| January 1, 1997, of a fraternal organization that is described in | 0016| Section 501(c)(8) or (10) of the federal Internal Revenue Code of | 0017| 1986 and that is exempt from federal income taxation pursuant to | 0018| Section 501(a) of that code; or | 0019| (2) a bona fide chartered or incorporated post, | 0020| auxiliary unit or society of, or a trust or foundation for the | 0021| post or auxiliary unit, in existence in New Mexico prior to | 0022| January 1, 1997, of a veterans' organization that is described in | 0023| Section 501(c)(19) or (23) of the federal Internal Revenue Code of | 0024| 1986 and that is exempt from federal income taxation pursuant to | 0025| Section 501(a) of that code; | 0001| GG. "person" means a legal entity; | 0002| HH. "premises" means land, together with all | 0003| buildings, improvements and personal property located on the land; | 0004| II. "progressive jackpot" means a prize that increases | 0005| over time or as gaming machines that are linked to a progressive | 0006| system are played and upon conditions established by the board may | 0007| be paid by an annuity; | 0008| JJ. "progressive system" means one or more gaming | 0009| machines linked to one or more common progressive jackpots; | 0010| KK. "publicly traded corporation" means a corporation | 0011| that: | 0012| (1) has one or more classes of securities | 0013| registered pursuant to the securities laws of the United States or | 0014| New Mexico; | 0015| (2) is an issuer subject to the securities laws of | 0016| the United States or New Mexico; or | 0017| (3) has one or more classes of securities | 0018| registered or is an issuer pursuant to applicable foreign laws | 0019| that the board finds provide protection for institutional | 0020| investors that is comparable to or greater than the stricter of | 0021| the securities laws of the United States or New Mexico; | 0022| LL. "registration" means a board action that | 0023| authorizes a company to be a holding company with respect to a | 0024| company that holds or applies for a license or that relates to | 0025| other persons required to be registered pursuant to the Gaming | 0001| Control Act; | 0002| MM. "subsidiary" means a company, all or a part of | 0003| whose outstanding equity securities are owned, subject to a power | 0004| or right of control or held, with power to vote, by a holding | 0005| company or intermediary company; and | 0006| NN. "work permit" means a card, certificate or permit | 0007| issued by the board, whether denominated as a work permit, | 0008| registration card or otherwise, authorizing the employment of the | 0009| holder as a gaming employee. | 0010| Section 6. [NEW MATERIAL] LIMITED GAMING ACTIVITY | 0011| PERMITTED.--Gaming activity is permitted in New Mexico only if it | 0012| is conducted in compliance with and pursuant to: | 0013| A. the Gaming Control Act; or | 0014| B. a state or federal law other than the Gaming | 0015| Control Act that expressly permits the activity or exempts it from | 0016| the application of the state criminal law, or both. | 0017| Section 7. [NEW MATERIAL] GAMING CONTROL BOARD CREATED.- | 0018| - | 0019| A. The "gaming control board" is created and | 0020| consists of five members. Three members are appointed by the | 0021| governor with the advice and consent of the senate, and two | 0022| members are ex officio: the chairman of the state racing | 0023| commission and the chairman of the board of the New Mexico | 0024| lottery authority. All members of the board shall be residents | 0025| of New Mexico and citizens of the United States. One appointed | 0001| member of the board shall have a minimum of five years of | 0002| previous employment in a supervisory and administrative position | 0003| in a law enforcement agency; one appointed member of the board | 0004| shall be a certified public accountant in New Mexico who has had | 0005| at least five years of experience in public accountancy; and one | 0006| appointed member of the board shall be an attorney who has been | 0007| admitted to practice before the supreme court of New Mexico. | 0008| B. The appointed members of the board shall be | 0009| appointed for terms of five years, except, of the members who | 0010| are first appointed, the member with law enforcement experience | 0011| shall be appointed for a term of five years; the member who is a | 0012| certified public accountant shall be appointed for a term of | 0013| four years; and the member who is an attorney shall be appointed | 0014| for a term of three years. Thereafter, all members shall be | 0015| appointed for terms of five years. No person shall serve as a | 0016| board member for more than two consecutive terms or ten years | 0017| total. | 0018| C. No person appointed to the board may be employed | 0019| in any other capacity or shall in any manner receive | 0020| compensation for services rendered to any person or entity other | 0021| than the board while a member of the board. | 0022| D. A vacancy on the board of an appointed member | 0023| shall be filled within thirty days by the governor with the | 0024| advice and consent of the senate for the unexpired portion of | 0025| the term in which the vacancy occurs. A person appointed to | 0001| fill a vacancy shall meet all qualification requirements of the | 0002| office established in this section. | 0003| E. The governor shall choose a chairman annually | 0004| from the board's appointed membership. | 0005| F. No more than three members of the board shall be | 0006| from the same political party. | 0007| G. The appointed members of the board shall be full- | 0008| time state officials and shall receive a salary set by the | 0009| governor. | 0010| H. The department of public safety shall conduct | 0011| background investigations of all members of the board prior to | 0012| confirmation by the senate. To assist the department in the | 0013| background investigation, a prospective board member shall | 0014| furnish a disclosure statement to the department on a form | 0015| provided by the department containing that information deemed by | 0016| the department as necessary for completion of a detailed and | 0017| thorough background investigation. The required information | 0018| shall include at least: | 0019| (1) a full set of fingerprints made by a law | 0020| enforcement agency on forms supplied by the department; | 0021| (2) complete information and details with | 0022| respect to the prospective board member's antecedents, habits, | 0023| immediate family, character, criminal record, business | 0024| activities, financial affairs and business associates covering | 0025| at least a ten-year period immediately preceding the date of | 0001| submitting the disclosure statement; | 0002| (3) complete disclosure of any equity interest | 0003| held by the prospective board member or a member of his | 0004| immediate family in a company that is an applicant or licensee | 0005| or an affiliate, affiliated company, intermediary company or | 0006| holding company in respect to an applicant or licensee; and | 0007| (4) the names and addresses of members of the | 0008| immediate family of the prospective board member. | 0009| I. No person may be appointed or confirmed as a | 0010| member of the board if that person or member of his immediate | 0011| family holds an equity interest in a company that is an | 0012| applicant or licensee or an affiliate, affiliated company, | 0013| intermediary company or holding company in respect to an | 0014| applicant or licensee. | 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. At the time of taking office, each board member | 0012| shall file with the secretary of state a sworn statement that he | 0013| is not disqualified under the provisions of Subsection I of this | 0014| section. | 0015| Section 8. [NEW MATERIAL] BOARD--MEETINGS--QUORUM-- | 0016| RECORDS.-- | 0017| A. A majority of the qualified membership of the | 0018| board then in office constitutes a quorum. No action may be | 0019| taken by the board unless at least three members concur. | 0020| B. Written notice of the time and place of each | 0021| board meeting shall be given to each member of the board at | 0022| least ten days prior to the meeting. | 0023| C. Meetings of the board shall be open and public in | 0024| accordance with the Open Meetings Act, except that the board may | 0025| close a meeting to hear confidential security and investigative | 0001| information and other information made confidential by the | 0002| provisions of the Gaming Control Act. | 0003| D. All proceedings of the board shall be recorded by | 0004| audiotape or other equivalent verbatim audio recording device. | 0005| E. The chairman of the board, the executive director | 0006| or a majority of the members of the board then in office may | 0007| call a special meeting of the board upon at least five days' | 0008| prior written notice to all members of the board and the | 0009| executive director. | 0010| Section 9. [NEW MATERIAL] BOARD'S POWERS AND DUTIES.-- | 0011| A. The board shall implement the state's policy on | 0012| gaming consistent with the provisions of the Gaming Control Act. | 0013| It has the duty to fulfill all responsibilities assigned to it | 0014| pursuant to that act, and it has all authority necessary to | 0015| carry out those responsibilities. It may delegate authority to | 0016| the executive director, but it retains accountability. The | 0017| board is an adjunct agency. | 0018| B. The board shall: | 0019| (1) employ the executive director; | 0020| (2) make the final decision on issuance, | 0021| denial, suspension and revocation of all licenses pursuant to | 0022| and consistent with the provisions of the Gaming Control Act; | 0023| (3) develop, adopt and promulgate all | 0024| regulations necessary to implement and administer the provisions | 0025| of the Gaming Control Act; | 0001| (4) conduct itself, or employ a hearing officer | 0002| to conduct, all hearings required by the provisions of the | 0003| Gaming Control Act and other hearings it deems appropriate to | 0004| fulfill its responsibilities; | 0005| (5) meet at least once each month; and | 0006| (6) prepare and submit an annual report in | 0007| December of each year to the governor and the legislature, | 0008| covering activities of the board in the most recently completed | 0009| fiscal year, a summary of gaming activities in the state and any | 0010| recommended changes in or additions to the laws relating to | 0011| gaming in the state. | 0012| C. The board may: | 0013| (1) impose civil fines not to exceed twenty- | 0014| five thousand dollars ($25,000) for the first violation and | 0015| fifty thousand dollars ($50,000) for subsequent violations of | 0016| any prohibitory provision of the Gaming Control Act or any | 0017| prohibitory provision of a regulation adopted pursuant to that | 0018| act; | 0019| (2) conduct investigations; | 0020| (3) subpoena persons and documents to compel | 0021| access to or the production of documents and records, including | 0022| books and memoranda, in the custody or control of any licensee; | 0023| (4) compel the appearance of employees of a | 0024| licensee or persons for the purpose of ascertaining compliance | 0025| with provisions of the Gaming Control Act or a regulation | 0001| adopted pursuant to its provisions; | 0002| (5) administer oaths and take depositions to | 0003| the same extent and subject to the same limitations as would | 0004| apply if the deposition were pursuant to discovery rules in a | 0005| civil action in the district court; | 0006| (6) sue and be sued subject to the limitations | 0007| of the Tort Claims Act; | 0008| (7) contract for the provision of goods and | 0009| services necessary to carry out its responsibilities; | 0010| (8) conduct audits of applicants, licensees and | 0011| persons affiliated with licensees; | 0012| (9) inspect, examine, photocopy and audit all | 0013| documents and records of an applicant or licensee relevant to | 0014| his gaming activities in the presence of the applicant or | 0015| licensee or his agent; | 0016| (10) require verification of income and all | 0017| other matters pertinent to the gaming activities of an applicant | 0018| or licensee affecting the enforcement of any provision of the | 0019| Gaming Control Act; | 0020| (11) inspect all places where gaming activities | 0021| are conducted and inspect all property connected with gaming in | 0022| those places; | 0023| (12) summarily seize, remove and impound from | 0024| places inspected any gaming devices, property connected with | 0025| gaming, documents or records for the purpose of examination or | 0001| inspection; | 0002| (13) inspect, examine, photocopy and audit all | 0003| documents and records of any affiliate of an applicant or | 0004| licensee who the board knows or reasonably suspects is involved | 0005| in the financing, operation or management of the applicant or | 0006| licensee. The inspection, examination, photocopying and audit | 0007| shall be in the presence of a representative of the affiliate or | 0008| its agent when practicable; | 0009| (14) except for the powers specified in | 0010| Paragraphs (1) and (4) of this subsection, carry out all or part | 0011| of the foregoing powers and activities through the executive | 0012| director. | 0013| D. The board shall monitor all activity authorized | 0014| in an Indian Gaming Compact between the state and an Indian | 0015| nation, tribe or pueblo. The board shall appoint the state | 0016| gaming representative for the purposes of the compact. | 0017| Section 10. [NEW MATERIAL] BOARD REGULATIONS-- | 0018| DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.-- | 0019| A. The board may adopt any regulation: | 0020| (1) consistent with the provisions of the | 0021| Gaming Control Act; and | 0022| (2) it decides is necessary to implement the | 0023| provisions of the Gaming Control Act. | 0024| B. No regulation shall be adopted, amended or | 0025| repealed without a public hearing on the proposed action before | 0001| the board or a hearing officer designated by it. The public | 0002| hearing shall be held in Santa Fe. Notice of the subject matter | 0003| of the regulation, the action proposed to be taken, the time and | 0004| place of the hearing, the manner in which interested persons may | 0005| present their views and the method by which copies of the | 0006| proposed regulation, amendment or repeal may be obtained shall | 0007| be published once at least thirty days prior to the hearing date | 0008| in a newspaper of general circulation and mailed at least thirty | 0009| days prior to the hearing date to all persons who have made a | 0010| written request for advance notice of hearing. All regulations | 0011| and actions taken on regulations shall be filed in accordance | 0012| with the State Rules Act. | 0013| C. The board shall adopt regulations: | 0014| (1) prescribing the method and form of | 0015| application to be followed by an applicant; | 0016| (2) prescribing the information to be furnished | 0017| by an applicant or licensee concerning his antecedents, | 0018| immediate family, habits, character, associates, criminal | 0019| record, business activities and financial affairs, past or | 0020| present; | 0021| (3) prescribing the manner and procedure of all | 0022| hearings conducted by the board or a hearing officer; | 0023| (4) prescribing the manner and method of | 0024| collection and payment of fees; | 0025| (5) prescribing the manner and method of the | 0001| issuance of licenses, permits, registrations, certificates and | 0002| other actions of the board not elsewhere prescribed in the | 0003| Gaming Control Act; | 0004| (6) defining the area, games and gaming devices | 0005| allowed and the methods of operation of the games and gaming | 0006| devices for authorized gaming; | 0007| (7) prescribing under what conditions the | 0008| nonpayment of winnings is grounds for suspension or revocation | 0009| of a license of a gaming operator; | 0010| (8) governing the manufacture, sale, | 0011| distribution, repair and servicing of gaming devices; | 0012| (9) prescribing accounting procedures, | 0013| security, collection and verification procedures required of | 0014| licensees and matters regarding financial responsibility of | 0015| licensees; | 0016| (10) prescribing what shall be considered to be | 0017| an unsuitable method of operating gaming activities; | 0018| (11) restricting access to confidential | 0019| information obtained pursuant to the provisions of the Gaming | 0020| Control Act and ensuring that the confidentiality of that | 0021| information is maintained and protected; | 0022| (12) prescribing financial reporting and | 0023| internal control requirements for licensees; | 0024| (13) prescribing the manner in which winnings, | 0025| compensation from gaming activities and net take shall be | 0001| computed and reported by a gaming operator licensee; | 0002| (14) prescribing the frequency of and the | 0003| matters to be contained in audits of and periodic financial | 0004| reports from a gaming operator licensee consistent with | 0005| standards prescribed by the board; | 0006| (15) prescribing the procedures to be followed | 0007| by a gaming operator licensee for the exclusion of persons from | 0008| gaming establishments; | 0009| (16) establishing criteria and conditions for | 0010| the operation of progressive systems; | 0011| (17) establishing criteria and conditions for | 0012| approval of procurement by the board of personal property valued | 0013| in excess of twenty thousand dollars ($20,000), including | 0014| background investigation requirements for a person submitting a | 0015| bid or proposal; and | 0016| (18) establishing an applicant fee schedule for | 0017| processing applications that is based on costs of the | 0018| application review incurred by the board whether directly or | 0019| through payment by the board for costs charged for | 0020| investigations of applicants by state departments and agencies | 0021| other than the board, which regulation shall set a maximum fee | 0022| of one hundred thousand dollars ($100,000). | 0023| Section 11. [NEW MATERIAL] EXECUTIVE DIRECTOR-- | 0024| EMPLOYMENT--QUALIFICATIONS.-- | 0025| A. The executive director shall be employed by, | 0001| report directly to and serve at the pleasure of the board. | 0002| B. The executive director shall have had at least | 0003| five years of responsible supervisory administrative experience | 0004| in a governmental gaming regulatory agency. | 0005| C. The executive director shall receive an annual | 0006| salary to be set by the board, but not to exceed eighty-five | 0007| thousand dollars ($85,000) per year. | 0008| Section 12. [NEW MATERIAL] EXECUTIVE DIRECTOR--POWERS-- | 0009| DUTIES.-- | 0010| A. The executive director shall implement the | 0011| policies of the board. | 0012| B. The executive director shall employ all personnel | 0013| who work for the board. The employees shall be covered | 0014| employees pursuant to the provisions of the Personnel Act. | 0015| Among those personnel he shall employ and designate an | 0016| appropriate number of individuals as law enforcement officers | 0017| subject to proper certification pursuant to the Law Enforcement | 0018| Training Act. | 0019| C. The executive director shall establish | 0020| organizational units he determines are appropriate to administer | 0021| the provisions of the Gaming Control Act. | 0022| D. The executive director: | 0023| (1) may delegate authority to subordinates as | 0024| he deems necessary and appropriate, clearly delineating the | 0025| delegated authority and the limitations on it, if any; | 0001| (2) shall take administrative action by issuing | 0002| orders and instructions consistent with the Gaming Control Act | 0003| and regulations of the board to assure implementation of and | 0004| compliance with the provisions of that act and those | 0005| regulations; | 0006| (3) may conduct research and studies that will | 0007| improve the operations of the board and the provision of | 0008| services to the citizens of the state; | 0009| (4) may provide courses of instruction and | 0010| practical training for employees of the board and other persons | 0011| involved in the activities regulated by the board with the | 0012| objectives of improving operations of the board and achieving | 0013| compliance with the law and regulations; | 0014| (5) shall prepare an annual budget for the | 0015| board and submit it to the board for approval; and | 0016| (6) shall make recommendations to the board of | 0017| proposed regulations and any legislative changes needed to | 0018| provide better administration of the Gaming Control Act and fair | 0019| and efficient regulation of gaming activities in the state. | 0020| Section 13. [NEW MATERIAL] INVESTIGATION OF EXECUTIVE | 0021| DIRECTOR CANDIDATES AND EMPLOYEES.-- | 0022| A. A person who is under consideration in the final | 0023| selection process for appointment as the executive director | 0024| shall file a disclosure statement pursuant to the requirements | 0025| of this section, and the board shall not make an appointment of | 0001| a person as executive director until a background investigation | 0002| is completed by the department of public safety and a report is | 0003| made to the board. | 0004| B. A person who has reached the final selection | 0005| process for employment by the executive director shall file a | 0006| disclosure statement pursuant to the requirements of this | 0007| section if the executive director or the board has directed the | 0008| person do so. The person shall not be further considered for | 0009| employment until a background investigation is completed by the | 0010| department of public safety and a report is made to the | 0011| executive director. | 0012| C. Forms for the disclosure statements required by | 0013| this section shall be developed by the board in cooperation with | 0014| the department of public safety. At least the following | 0015| information shall be required of a person submitting a | 0016| statement: | 0017| (1) a full set of fingerprints made by a law | 0018| enforcement agency on forms supplied by the board; | 0019| (2) complete information and details with | 0020| respect to the person's antecedents, habits, immediate family, | 0021| character, criminal record, business activities and business | 0022| associates, covering at least a ten-year period immediately | 0023| preceding the date of submitting the disclosure statement; and | 0024| (3) a complete description of any equity | 0025| interest held in a business connected with the gaming industry. | 0001| D. In preparing an investigative report, the | 0002| department of public safety may request and receive criminal | 0003| history information from the federal bureau of investigation or | 0004| any other law enforcement agency or organization. The | 0005| department of public safety shall maintain confidentiality | 0006| regarding information received from a law enforcement agency | 0007| that may be imposed by the agency as a condition for providing | 0008| the information to the department. | 0009| E. A person required to file a disclosure statement | 0010| shall provide any assistance or information requested by the | 0011| department of public safety or the board and shall cooperate in | 0012| any inquiry or investigation. | 0013| F. If information required to be included in a | 0014| disclosure statement changes or if information is added after | 0015| the statement is filed, the person required to file it shall | 0016| provide that information in writing to the person requesting the | 0017| investigation. The supplemental information shall be provided | 0018| within thirty days after the change or addition. | 0019| G. The board shall not appoint a person as executive | 0020| director, and the executive director shall not employ a person, | 0021| if the board or the executive director has reasonable cause to | 0022| believe that the person 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 this | 0004| 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| H. Both the board and the executive director may | 0012| exercise absolute discretion in exercising their respective | 0013| appointing and employing powers. | 0014| Section 14. [NEW MATERIAL] CONFLICTS OF INTEREST--BOARD- | 0015| -EXECUTIVE DIRECTOR.-- | 0016| A. In addition to all other provisions of New Mexico | 0017| law regarding conflicts of interest of state officials and | 0018| employees, a member of the board, the executive director, or a | 0019| person in the immediate family of or residing in the household | 0020| of any of the foregoing persons, shall not: | 0021| (1) directly or indirectly, as a proprietor or | 0022| as a member, stockholder, director or officer of a company, have | 0023| an interest in a business engaged in gaming activities in this | 0024| or another jurisdiction; or | 0025| (2) accept or agree to accept any economic | 0001| opportunity, gift, loan, gratuity, special discount, favor, | 0002| hospitality or service having an aggregate value of one hundred | 0003| dollars ($100) or more in any calendar year from a licensee or | 0004| applicant. | 0005| B. If a member of the board, the executive director | 0006| or a person in the immediate family of or residing in the | 0007| household of a member of the board or the executive director | 0008| violates a provision of this section, the member of the board or | 0009| executive director shall be removed from office. A board member | 0010| shall be removed by the governor, and the executive director | 0011| shall be removed from his position by the board. | 0012| Section 15. [NEW MATERIAL] ACTIVITIES REQUIRING | 0013| LICENSING.-- | 0014| A. A person shall not conduct gaming unless he is | 0015| licensed as a gaming operator. | 0016| B. A person shall not sell, supply or distribute any | 0017| gaming device or associated equipment for use or play in this | 0018| state or for use or play outside of this state from a location | 0019| within this state unless he is licensed as a distributor or | 0020| manufacturer, but a gaming operator licensee may sell or trade | 0021| in a gaming device or associated equipment to a gaming operator | 0022| licensee, distributor licensee or manufacturer licensee. | 0023| C. A person shall not manufacture, fabricate, | 0024| assemble, program or make modifications to a gaming device or | 0025| associated equipment for use or play in this state or for use or | 0001| play outside of this state from any location within this state | 0002| unless he is a manufacturer licensee. A manufacturer licensee | 0003| may sell, supply or distribute only the gaming devices or | 0004| associated equipment that he manufactures, fabricates, | 0005| assembles, programs or modifies. | 0006| D. A gaming operator licensee or a person other than | 0007| a manufacturer licensee or distributor licensee shall not | 0008| possess or control a place where there is an unlicensed gaming | 0009| machine. Any unlicensed gaming machine, except one in the | 0010| possession of a licensee while awaiting transfer to a gaming | 0011| operator licensee for licensure of the machine, is subject to | 0012| forfeiture and confiscation by any law enforcement agency or | 0013| peace officer. | 0014| E. A person shall not service or repair a gaming | 0015| device or associated equipment unless he is licensed as a | 0016| manufacturer, is employed by a manufacturer licensee or is a | 0017| technician certified by a manufacturer and employed by a | 0018| distributor licensee or a gaming operator licensee. | 0019| F. A person shall not engage in any activity for | 0020| which the board requires a license or permit without obtaining | 0021| the license or permit. | 0022| G. Except as provided in Subsection B of this | 0023| section, a person shall not purchase, lease or acquire | 0024| possession of a gaming device or associated equipment except | 0025| from a licensed distributor or manufacturer. | 0001| H. A distributor licensee may receive a percentage | 0002| of the amount wagered, the net take or other measure related to | 0003| the operation of a gaming machine as a payment pursuant to a | 0004| lease or other arrangement for furnishing a gaming machine, but | 0005| the board shall adopt a regulation setting the maximum allowable | 0006| percentage. | 0007| Section 16. [NEW MATERIAL] LICENSURE--APPLICATION.-- | 0008| A. The board shall establish and issue the following | 0009| categories of licenses: | 0010| (1) manufacturer; | 0011| (2) distributor; | 0012| (3) gaming operator; and | 0013| (4) gaming machine. | 0014| B. The board shall issue certifications of findings | 0015| of suitability for key executives and other persons for whom | 0016| certification is required. | 0017| C. The board shall issue work permits for gaming | 0018| employees. | 0019| D. A licensee shall not be issued more than one type | 0020| of license, but this provision does not prohibit a licensee from | 0021| owning, leasing, acquiring or having in his possession licensed | 0022| gaming machines if that activity is otherwise allowed by the | 0023| provisions of the Gaming Control Act. A licensee shall not own | 0024| a majority interest in, manage or otherwise control a holder of | 0025| another type of license issued pursuant to the provisions of | 0001| that act. | 0002| E. Applicants shall apply on forms provided by the | 0003| board and furnish all information requested by the board. | 0004| Submission of an application constitutes consent to a credit | 0005| check of the applicant and all persons having a substantial | 0006| interest in the applicant and any other background | 0007| investigations required pursuant to the Gaming Control Act or | 0008| deemed necessary by the board. | 0009| F. All licenses issued by the board pursuant to the | 0010| provisions of this section shall be reviewed for renewal | 0011| annually unless revoked, suspended, canceled or terminated. | 0012| G. A license shall not be transferred or assigned. | 0013| H. The application for a license shall include: | 0014| (1) the name of the applicant; | 0015| (2) the location of the proposed operation; | 0016| (3) the gaming devices to be operated, | 0017| manufactured, distributed or serviced; | 0018| (4) the names of all persons having a direct or | 0019| indirect interest in the business of the applicant and the | 0020| nature of such interest; and | 0021| (5) such other information and details as the | 0022| board may require. | 0023| I. The board shall furnish to the applicant | 0024| supplemental forms that the applicant shall complete and file | 0025| with the application. Such supplemental forms shall require | 0001| complete information and details with respect to the applicant's | 0002| antecedents, habits, immediate family, character, criminal | 0003| record, business activities, financial affairs and business | 0004| associates, covering at least a ten-year period immediately | 0005| preceding the date of filing of the application. | 0006| Section 17. [NEW MATERIAL] LICENSE, CERTIFICATION AND | 0007| WORK PERMIT FEES.-- | 0008| A. License and other fees shall be established by | 0009| board regulation but shall not exceed the following amounts: | 0010| (1) manufacturer's license, twenty thousand | 0011| dollars ($20,000) for the initial license and five thousand | 0012| dollars ($5,000) for annual renewal; | 0013| (2) distributor's license, ten thousand dollars | 0014| ($10,000) for the initial license and one thousand dollars | 0015| ($1,000) for annual renewal; | 0016| (3) gaming operator's license for a racetrack, | 0017| fifty thousand dollars ($50,000) for the initial license and ten | 0018| thousand dollars ($10,000) for annual renewal; | 0019| (4) gaming operator's license for a nonprofit | 0020| organization, one thousand dollars ($1,000) for the initial | 0021| license and two hundred dollars ($200) for annual renewal; | 0022| (5) for each separate gaming machine licensed | 0023| to a person holding an operator's license, five hundred dollars | 0024| ($500) for the initial license and one hundred dollars ($100) | 0025| for annual renewal; and | 0001| (6) work permit, one hundred dollars ($100) | 0002| annually. | 0003| B. The board shall establish the fee for | 0004| certifications or other actions by regulation, but no fee | 0005| established by the board shall exceed one thousand dollars | 0006| ($1,000), except for fees established pursuant to Paragraph (18) | 0007| of Subsection C of Section 10 of the Gaming Control Act. | 0008| C. All license, certification or work permit fees | 0009| shall be paid to the board at the time and in the manner | 0010| established by regulations of the board. | 0011| Section 18. [NEW MATERIAL] ACTION BY BOARD ON | 0012| APPLICATIONS.-- | 0013| A. A person that the board determines is qualified | 0014| to receive a license pursuant to the provisions of the Gaming | 0015| Control Act may be issued a license. The burden of proving | 0016| qualifications is on the applicant. | 0017| B. A license shall not be issued unless the board is | 0018| satisfied that the applicant is: | 0019| (1) a person of good moral character, honesty | 0020| and integrity; | 0021| (2) a person whose prior activities, criminal | 0022| record, reputation, habits and associations do not pose a threat | 0023| to the public interest or to the effective regulation and | 0024| control of gaming or create or enhance the dangers of | 0025| unsuitable, unfair or illegal practices, methods and activities | 0001| in the conduct of gaming or the carrying on of the business and | 0002| financial arrangements incidental thereto; and | 0003| (3) in all other respects qualified to be | 0004| licensed consistent with the laws of this state. | 0005| C. A license shall not be issued unless the | 0006| applicant has satisfied the board that: | 0007| (1) the applicant has adequate business | 0008| probity, competence and experience in business and gaming; | 0009| (2) the proposed financing of the applicant is | 0010| adequate for the nature of the proposed license and from a | 0011| suitable source; any lender or other source of money or credit | 0012| that the board finds does not meet the standards set forth in | 0013| Subsection B of this section shall be deemed unsuitable; and | 0014| (3) the applicant is sufficiently capitalized | 0015| under standards set by the board to conduct the business covered | 0016| by the license. | 0017| D. An application to receive a license, | 0018| certification or work permit constitutes a request for a | 0019| determination of the applicant's general moral character, | 0020| integrity and ability to participate or engage in or be | 0021| associated with gaming. Any written or oral statement made in | 0022| the course of an official proceeding of the board or by a | 0023| witness testifying under oath that is relevant to the purpose of | 0024| the proceeding is absolutely privileged and does not impose | 0025| liability for defamation or constitute a ground for recovery in | 0001| any civil action. | 0002| E. The board shall not issue a license or | 0003| certification to an applicant who has been denied a license or | 0004| certification in this state or another state, who has had a | 0005| certification, permit or license issued pursuant to the gaming | 0006| laws of a state or the United States permanently suspended or | 0007| revoked for cause or who is currently under suspension or | 0008| subject to any other limiting action in this state or another | 0009| state involving gaming activities or licensure for gaming | 0010| activities. | 0011| F. The board shall investigate the qualifications of | 0012| each applicant before a license, certification or work permit is | 0013| issued by the board and shall continue to observe and monitor | 0014| the conduct of all licensees, work permit holders, persons | 0015| certified as being suitable and the persons having a material | 0016| involvement directly or indirectly with a licensee. | 0017| G. The board has the authority to deny an | 0018| application or limit, condition, restrict, revoke or suspend a | 0019| license, certification or permit for any cause. | 0020| H. After issuance, a license, certification or | 0021| permit shall continue in effect upon proper payment of the | 0022| initial and renewal fees, subject to the power of the board to | 0023| revoke, suspend, condition or limit licenses, certifications and | 0024| permits. | 0025| I. The board has full and absolute power and | 0001| authority to deny an application for any cause it deems | 0002| reasonable. If an application is denied, the board shall | 0003| prepare and file its written decision on which its order denying | 0004| the application is based. | 0005| Section 19. [NEW MATERIAL] INVESTIGATION FOR LICENSES, | 0006| CERTIFICATIONS AND PERMITS.--The board shall initiate an | 0007| investigation of the applicant within thirty days after an | 0008| application is filed and supplemental information that the board | 0009| may require is received. | 0010| Section 20. [NEW MATERIAL] ELIGIBILITY REQUIREMENTS FOR | 0011| COMPANIES.--In order to be eligible to receive a license, a | 0012| company shall: | 0013| A. be incorporated or otherwise organized and in | 0014| good standing in this state or incorporated or otherwise | 0015| organized in another state, qualified to do business in this | 0016| state and in good standing in this state and in the state of | 0017| incorporation; | 0018| B. comply with all of the requirements of the laws | 0019| of this state pertaining to the company; | 0020| C. maintain a ledger in the principal office of the | 0021| company in this state, which shall: | 0022| (1) at all times reflect the ownership | 0023| according to company records of every class of security issued | 0024| by the company; and | 0025| (2) be available for inspection by the board at | 0001| all reasonable times without notice; and | 0002| D. file notice of all changes of ownership of all | 0003| classes of securities issued by the company with the board | 0004| within thirty days of the change. | 0005| Section 21. [NEW MATERIAL] REGISTRATION WITH BOARD BY | 0006| COMPANY APPLICANTS--REQUIRED INFORMATION.--A company applicant | 0007| shall provide the following information to the board on forms | 0008| provided by the board: | 0009| A. the organization, financial structure and nature | 0010| of the business to be operated, including the names and personal | 0011| histories of all officers, directors and key executives; | 0012| B. the rights and privileges acquired by the holders | 0013| of different classes of authorized securities; | 0014| C. the terms and conditions of all outstanding | 0015| loans, mortgages, trust deeds, pledges or any other indebtedness | 0016| or security interest evidenced by a security instrument | 0017| pertaining to the proposed gaming operation or other licensed | 0018| activity in this state and the name and address of the person | 0019| who is servicing the loan, mortgage, trust deed, pledge or other | 0020| indebtedness or security interest; | 0021| D. remuneration to persons, other than directors, | 0022| officers and key executives, exceeding fifty thousand dollars | 0023| ($50,000) per year; | 0024| E. bonus and profit-sharing arrangements within the | 0025| company; | 0001| F. management and service contracts pertaining to | 0002| the proposed gaming activity in this state; | 0003| G. balance sheets and profit and loss statements for | 0004| at least the three preceding fiscal years, or, if the company | 0005| has not been in business for a period of three years, balance | 0006| sheets and profit and loss statements from the time of its | 0007| commencement of business operations and projected for three | 0008| years from the time of its commencement of business operations. | 0009| All balance sheets and profit and loss statements shall be | 0010| certified by independent certified public accountants; and | 0011| H. any further financial data that the board deems | 0012| necessary or appropriate. | 0013| Section 22. [NEW MATERIAL] INDIVIDUAL CERTIFICATION OF | 0014| OFFICERS, DIRECTORS AND OTHER PERSONS.--An officer, director, | 0015| equity security holder of five percent or more, partner, general | 0016| partner, limited partner, trustee or beneficiary of the company | 0017| that holds or has applied for a license shall be certified | 0018| individually, according to the provisions of the Gaming Control | 0019| Act, and if in the judgment of the board the public interest is | 0020| served by requiring any or all of the company's key executives | 0021| to be certified, the company shall require those persons to | 0022| apply for certification. A person who is required to be | 0023| certified pursuant to this section shall apply for certification | 0024| within thirty days after becoming an officer, director, equity | 0025| security holder of five percent or more, partner, general | 0001| partner, limited partner of five percent or more, trustee, | 0002| beneficiary or key executive. A person who is required to be | 0003| certified pursuant to a decision of the board shall apply for | 0004| certification within thirty days after the board so requests. | 0005| Section 23. [NEW MATERIAL] REQUIREMENTS IF COMPANY IS OR | 0006| BECOMES A SUBSIDIARY--INVESTIGATIONS--RESTRICTIONS ON UNSUITABLE | 0007| PERSONS--OTHER REQUIREMENTS.-- | 0008| A. If the company applicant or licensee is or | 0009| becomes a subsidiary, each nonpublicly traded holding company | 0010| and intermediary company with respect to the subsidiary company | 0011| shall: | 0012| (1) qualify to do business in New Mexico; and | 0013| (2) register with the board and furnish to the | 0014| board the following information: | 0015| (a) a complete list of all beneficial | 0016| owners of five percent or more of its equity securities, which | 0017| shall be updated within thirty days after any change; | 0018| (b) the names of all company officers and | 0019| directors within thirty days of their appointment or election; | 0020| (c) its organization, financial structure | 0021| and nature of the business it operates; | 0022| (d) the terms, position, rights and | 0023| privileges of the different classes of its outstanding | 0024| securities; | 0025| (e) the terms on which its securities are | 0001| to be, and during the preceding three years have been, offered; | 0002| (f) the holder of and the terms and | 0003| conditions of all outstanding loans, mortgages, trust deeds, | 0004| pledges or any other indebtedness or security interest | 0005| pertaining to the applicant or licensee; | 0006| (g) the extent of the securities holdings | 0007| or other interest in the holding company or intermediary company | 0008| of all officers, directors, key executives, underwriters, | 0009| partners, principals, trustees or any direct or beneficial | 0010| owners, and the amount of any remuneration paid them as | 0011| compensation for their services in the form of salary, wages, | 0012| fees or by contract pertaining to the licensee; | 0013| (h) remuneration to persons other than | 0014| directors, officers and key executives exceeding fifty thousand | 0015| dollars ($50,000) per year; | 0016| (i) bonus and profit-sharing arrangements | 0017| within the holding company or intermediary company; | 0018| (j) management and service contracts | 0019| pertaining to the licensee or applicant; | 0020| (k) options existing or to be created in | 0021| respect to the company's securities or other interests; | 0022| (l) balance sheets and profit and loss | 0023| statements, certified by independent certified public | 0024| accountants, for not more than the three preceding fiscal years, | 0025| or, if the holding company or intermediary company has not been | 0001| in existence more than three years, balance sheets and profit | 0002| and loss statements from the time of its establishment, together | 0003| with projections for three years from the time of its | 0004| establishment; | 0005| (m) any further financial statements | 0006| necessary or appropriate to assist the board in making its | 0007| determinations; and | 0008| (n) a current annual profit and loss | 0009| statement, a current annual balance sheet and a copy of the | 0010| company's most recent federal income tax return within thirty | 0011| days after the return is filed. | 0012| B. All holders of five percent or more of the equity | 0013| security of a holding company or intermediary company shall | 0014| apply for a finding of suitability. | 0015| C. The board may in its discretion perform the | 0016| investigations concerning the officers, directors, key | 0017| executives, underwriters, security holders, partners, | 0018| principals, trustees or direct or beneficial owners of any | 0019| interest in any holding company or intermediary company as it | 0020| deems necessary, either at the time of initial registration or | 0021| at any time thereafter. | 0022| D. If at any time the board finds that any person | 0023| owning, controlling or holding with power to vote all or any | 0024| part of any class of securities of, or any interest in, any | 0025| holding company or intermediary company is unsuitable to be | 0001| connected with a licensee, it shall so notify both the | 0002| unsuitable person and the holding company or intermediary | 0003| company. The unsuitable person shall immediately offer the | 0004| securities or other interest to the issuing company for | 0005| purchase. The company shall purchase the securities or interest | 0006| offered upon the terms and within the time period ordered by the | 0007| board. | 0008| E. Beginning on the date when the board serves | 0009| notice that a person has been found to be unsuitable pursuant to | 0010| Subsection D of this section, it is unlawful for the unsuitable | 0011| person to: | 0012| (1) receive any dividend or interest upon any | 0013| securities held in the holding company or intermediary company, | 0014| or any dividend, payment or distribution of any kind from the | 0015| holding company or intermediary company; | 0016| (2) exercise, directly or indirectly or through | 0017| a proxy, trustee or nominee, any voting right conferred by the | 0018| securities or interest; or | 0019| (3) receive remuneration in any form from the | 0020| licensee, or from any holding company or intermediary company | 0021| with respect to that licensee, for services rendered or | 0022| otherwise. | 0023| F. A holding company or intermediary company subject | 0024| to the provisions of Subsection A of this section shall not make | 0025| any public offering of any of its equity securities unless such | 0001| public offering has been approved by the board. | 0002| G. This section does not apply to a holding company | 0003| or intermediary company that is a publicly traded corporation, | 0004| the stock of which is traded on recognized stock exchanges, | 0005| which shall instead comply with the provisions of Section 24 of | 0006| the Gaming Control Act. | 0007| Section 24. [NEW MATERIAL] REGISTRATION AND | 0008| CERTIFICATION OF PUBLICLY TRADED CORPORATIONS.-- | 0009| A. If a company applicant or company licensee is or | 0010| becomes a publicly traded corporation, it shall register with | 0011| the board and provide the following information: | 0012| (1) as of the date the company became a | 0013| publicly traded corporation, and on any later date when the | 0014| information changes, the names of all stockholders of record who | 0015| hold five percent or more of the outstanding shares of any class | 0016| of equity securities issued by the publicly traded corporation; | 0017| (2) the names of all officers within thirty | 0018| days of their respective appointments; | 0019| (3) the names of all directors within thirty | 0020| days of their respective elections or appointments; | 0021| (4) the organization, financial structure and | 0022| nature of the businesses the publicly traded corporation | 0023| operates; | 0024| (5) the terms, position, rights and privileges | 0025| of the different classes of securities outstanding as of the | 0001| date the company became a publicly traded corporation; | 0002| (6) the terms on which the company's securities | 0003| were issued during the three years preceding the date on which | 0004| the company became a publicly traded corporation and the terms | 0005| on which the publicly traded corporation's securities are to be | 0006| offered to the public as of the date the company became a | 0007| publicly traded corporation; | 0008| (7) the terms and conditions of all outstanding | 0009| indebtedness and evidence of security pertaining directly or | 0010| indirectly to the publicly traded corporation; | 0011| (8) remuneration exceeding fifty thousand | 0012| dollars ($50,000) per year paid to persons other than directors, | 0013| officers and key executives who are actively and directly | 0014| engaged in the administration or supervision of the gaming | 0015| activities of the publicly traded corporation; | 0016| (9) bonus and profit-sharing arrangements | 0017| within the publicly traded corporation directly or indirectly | 0018| relating to its gaming activities; | 0019| (10) management and service contracts of the | 0020| corporation pertaining to its gaming activities; | 0021| (11) options existing or to be created pursuant | 0022| to its equity securities; | 0023| (12) balance sheets and profit and loss | 0024| statements, certified by independent certified public | 0025| accountants, for not less than the three fiscal years preceding | 0001| the date the company became a publicly traded corporation; | 0002| (13) any further financial statements deemed | 0003| necessary or appropriate by the board; and | 0004| (14) a description of the publicly traded | 0005| corporation's affiliated companies and intermediary companies | 0006| and gaming licenses, permits and approvals held by those | 0007| entities. | 0008| B. The board shall consider the following criteria | 0009| in determining whether to certify a publicly traded corporation: | 0010| (1) the business history of the publicly traded | 0011| corporation, including its record of financial stability, | 0012| integrity and success of its gaming operations in other | 0013| jurisdictions; | 0014| (2) the current business activities and | 0015| interests of the applicant, as well as those of its officers, | 0016| promoters, lenders and other sources of financing, or any other | 0017| persons associated with it; | 0018| (3) the current financial structure of the | 0019| publicly traded corporation as well as changes that could | 0020| reasonably be expected to occur to its financial structure as a | 0021| consequence of its proposed action; | 0022| (4) the present and proposed compensation | 0023| arrangements between the publicly traded corporation and its | 0024| directors, officers, key executives, securities holders, lenders | 0025| or other sources of financing; | 0001| (5) the equity investment, commitment or | 0002| contribution of present or prospective directors, key | 0003| executives, investors, lenders or other sources of financing; | 0004| and | 0005| (6) the dealings and arrangements, prospective | 0006| or otherwise, between the publicly traded corporation and its | 0007| investment bankers, promoters, finders or lenders and other | 0008| sources of financing. | 0009| C. The board may issue a certification upon receipt | 0010| of a proper application and consideration of the criteria set | 0011| forth in Subsection B of this section if it finds that the | 0012| certification would not be contrary to the public interest or | 0013| the policy set forth in the Gaming Control Act. | 0014| Section 25. [NEW MATERIAL] FINDING OF SUITABILITY | 0015| REQUIRED FOR DIRECTORS, OFFICERS AND KEY EXECUTIVES--REMOVAL | 0016| FROM POSITION IF FOUND UNSUITABLE--SUSPENSION OF SUITABILITY BY | 0017| BOARD.-- | 0018| A. Each officer, director and key executive of a | 0019| holding company, intermediary company or publicly traded | 0020| corporation that the board determines is or is to become | 0021| actively and directly engaged in the administration or | 0022| supervision of, or any other significant involvement with, the | 0023| activities of the subsidiary licensee or applicant shall apply | 0024| for a finding of suitability. | 0025| B. If any officer, director or key executive of a | 0001| holding company, intermediary company or publicly traded | 0002| corporation required to be found suitable pursuant to Subsection | 0003| A of this section fails to apply for a finding of suitability | 0004| within thirty days after being requested to do so by the board, | 0005| or is not found suitable by the board, or if his finding of | 0006| suitability is revoked after appropriate findings by the board, | 0007| the holding company, intermediary company or publicly traded | 0008| corporation shall immediately remove that officer, director or | 0009| key executive from any office or position in which the person is | 0010| engaged in the administration or supervision of, or any other | 0011| involvement with, the activities of the certified subsidiary | 0012| until the person is thereafter found to be suitable. If the | 0013| board suspends the finding of suitability of any officer, | 0014| director or key executive, the holding company, intermediary | 0015| company or publicly traded corporation shall immediately and for | 0016| the duration of the suspension suspend that officer, director or | 0017| key executive from performance of any duties in which he is | 0018| actively and directly engaged in the administration or | 0019| supervision of, or any other involvement with, the activities of | 0020| the subsidiary licensee. | 0021| Section 26. [NEW MATERIAL] SUITABILITY OF INDIVIDUALS | 0022| ACQUIRING BENEFICIAL OWNERSHIP OF VOTING SECURITY IN PUBLICLY | 0023| TRADED CORPORATION--REPORT OF ACQUISITION--APPLICATION-- | 0024| PROHIBITION.-- | 0025| A. Each person who, individually or in association | 0001| with others, acquires, directly or indirectly, beneficial | 0002| ownership of five percent or more of any voting securities in a | 0003| publicly traded corporation registered with the board may be | 0004| required to be found suitable if the board has reason to believe | 0005| that the acquisition of the ownership would otherwise be | 0006| inconsistent with the declared policy of this state. | 0007| B. Each person who, individually or in association | 0008| with others, acquires, directly or indirectly, beneficial | 0009| ownership of five percent or more of any class of voting | 0010| securities of a publicly traded corporation certified by the | 0011| board shall notify the board within ten days after acquiring | 0012| such interest. | 0013| C. Each person who, individually or in association | 0014| with others, acquires, directly or indirectly, the beneficial | 0015| ownership of more than ten percent of any class of voting | 0016| securities of a publicly traded corporation certified by the | 0017| board shall apply to the board for a finding of suitability | 0018| within thirty days after acquiring such interest. | 0019| D. Institutional investors that have been exempted | 0020| from or have received a waiver of suitability requirements | 0021| pursuant to regulations adopted by the board are not required to | 0022| comply with this section. | 0023| E. Any person required by the board or by the | 0024| provisions of this section to be found suitable shall apply for | 0025| a finding of suitability within thirty days after the board | 0001| requests that he do so. | 0002| F. Any person required by the board or the | 0003| provisions of this section to be found suitable who subsequently | 0004| is found unsuitable by the board shall not hold directly or | 0005| indirectly the beneficial ownership of any security of a | 0006| publicly traded corporation that is registered with the board | 0007| beyond that period of time prescribed by the board. | 0008| G. The board may, but is not required to, deem a | 0009| person qualified to hold a license or be found suitable as | 0010| required by this section if the person currently holds a valid | 0011| license issued by, or has been found suitable by, gaming | 0012| regulatory authorities in another jurisdiction, provided that | 0013| the board finds that the other jurisdiction has conducted a | 0014| thorough investigation of the applicant and has criteria | 0015| substantially similar to those of the board to determine when a | 0016| person is to be found suitable or to obtain a license. | 0017| Section 27. [NEW MATERIAL] REPORT OF PROPOSED ISSUANCE | 0018| OR TRANSFER OF SECURITIES--REPORT OF CHANGE IN CORPORATE | 0019| OFFICERS AND DIRECTORS--APPROVAL OF BOARD.-- | 0020| A. Before a company licensee, other than a publicly | 0021| traded corporation, may issue or transfer five percent or more | 0022| of its securities to any person, it shall file a report of its | 0023| proposed action with the board, which report shall request the | 0024| approval of the board. The board shall have ninety days within | 0025| which to approve or deny the request. If the board fails to act | 0001| in ninety days, the request is deemed approved. If the board | 0002| denies the request, the company shall not issue or transfer five | 0003| percent or more of its securities to the person about whom the | 0004| request was made. | 0005| B. A company licensee shall file a report of each | 0006| change of the corporate officers and directors with the board | 0007| within thirty days of the change. The board shall have ninety | 0008| days from the date the report is filed within which to approve | 0009| or disapprove such change. During the ninety-day period and | 0010| thereafter, if the board does not disapprove the change, an | 0011| officer or director is be entitled to exercise all powers of the | 0012| office to which he was elected or appointed. | 0013| C. A company licensee shall report to the board in | 0014| writing any change in company personnel who have been designated | 0015| as key executives. The report shall be made no later than | 0016| thirty days after the change. | 0017| D. The board may require that a company licensee | 0018| furnish the board with a copy of its federal income tax return | 0019| within thirty days after the return is filed. | 0020| Section 28. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0021| GENERAL PROVISIONS--BUSINESS PLAN--PLAYER AGE LIMIT-- | 0022| RESTRICTIONS.-- | 0023| A. An applicant for licensure as a gaming operator | 0024| shall submit with the application a plan for assisting in the | 0025| prevention, education and treatment of compulsive gambling. The | 0001| plan shall include regular educational training sessions for | 0002| employees. Plan approval is a condition of issuance of the | 0003| license. | 0004| B. An applicant for licensure as a gaming operator | 0005| shall submit with the application a proposed business plan. The | 0006| plan shall include at least: | 0007| (1) a floor plan of the area to be used for | 0008| gaming machine operations; | 0009| (2) an advertising and marketing plan; | 0010| (3) the proposed placement and number of gaming | 0011| machines; | 0012| (4) a financial control plan; | 0013| (5) a security plan; | 0014| (6) a staffing plan for gaming machine | 0015| operations; and | 0016| (7) details of any proposed progressive | 0017| systems. C. A gaming operator licensee shall be granted | 0018| a license to operate a specific number of machines at a gaming | 0019| establishment identified in the license application and shall be | 0020| granted a license for each gaming machine. | 0021| D. A gaming operator licensee who desires to change | 0022| the number of machines in operation at a gaming establishment | 0023| shall apply to the board for an amendment to his license | 0024| authorizing a change in the number of machines. | 0025| E. Gaming machines may be available for play only in | 0001| an area restricted to persons twenty-one years of age or older. | 0002| F. A gaming operator licensee shall erect a | 0003| permanent physical barrier to allow for multiple uses of the | 0004| premises by persons of all ages. For purposes of this | 0005| subsection, "permanent physical barrier" means a floor-to- | 0006| ceiling wall separating the general areas from the restricted | 0007| areas. The entrance to the area where gaming machines are | 0008| located shall display a sign that the premises are restricted to | 0009| persons twenty-one years of age or older. Persons under the age | 0010| of twenty-one shall not enter the area where gaming machines are | 0011| located. | 0012| G. A gaming operator licensee shall not have | 0013| automated teller machines in the area restricted pursuant to | 0014| Subsection F of this section. | 0015| H. A gaming operator licensee shall not provide, | 0016| allow, contract or arrange to provide alcohol or food for no | 0017| charge or at reduced prices as an incentive or enticement for | 0018| patrons to game. | 0019| I. Only a racetrack licensed by the state racing | 0020| commission or a nonprofit organization may apply for or be | 0021| issued a gaming operator's license. No other persons are | 0022| qualified to apply for or be issued a gaming operator's license | 0023| pursuant to the Gaming Control Act. | 0024| Section 29. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0025| SPECIAL CONDITIONS FOR RACETRACKS--NUMBER OF GAMING MACHINES-- | 0001| DAYS AND HOURS OF OPERATIONS.-- | 0002| A. A racetrack licensed by the state racing | 0003| commission pursuant to the Horse Racing Act to conduct live | 0004| horse races or simulcast races may be issued a gaming operator's | 0005| license to operate gaming machines on its premises where live | 0006| racing is conducted. | 0007| B. A racetrack's gaming operator's license shall | 0008| automatically become void if: | 0009| (1) the racetrack no longer holds an active | 0010| license to conduct pari-mutuel wagering; or | 0011| (2) the racetrack fails to maintain a minimum | 0012| of three live race days a week with at least nine live races on | 0013| each race day during its licensed race meet in the 1997 calendar | 0014| year and in the 1998 and subsequent calendar years, four live | 0015| race days a week with at least nine live races on each race day | 0016| during its licensed race meet. | 0017| C. A gaming operator licensee that is a racetrack | 0018| may have not more than three hundred licensed gaming machines, | 0019| but the number of gaming machines to be located on the | 0020| licensee's premises shall be specified in the gaming operator's | 0021| license. | 0022| D. Gaming machines on a racetrack gaming operator | 0023| licensee's premises may be played only on days when the | 0024| racetrack is either conducting live horse races or simulcasting | 0025| horse race meets and during times established by regulation of | 0001| the board, but the regulations shall provide for a maximum of | 0002| twelve hours a day. | 0003| E. Alcoholic beverages shall not be sold, served, | 0004| delivered or consumed in the area restricted pursuant to | 0005| Subsection F of Section 28 of the Gaming Control Act. | 0006| Section 30. [NEW MATERIAL] GAMING OPERATOR LICENSEES-- | 0007| SPECIAL CONDITIONS FOR NONPROFIT ORGANIZATIONS--NUMBER OF GAMING | 0008| MACHINES--DAYS AND HOURS OF OPERATIONS.-- | 0009| A. A nonprofit organization may be issued a gaming | 0010| operator's license to operate licensed gaming machines on its | 0011| premises to be played only by active and auxiliary members. | 0012| B. No more than fifteen gaming machines may be | 0013| offered for play on the premises of a nonprofit organization | 0014| gaming operator licensee. | 0015| C. No gaming machine on the premises of a nonprofit | 0016| organization gaming operator licensee may award a prize that | 0017| exceeds four thousand dollars ($4,000). | 0018| D. Gaming machines may be played on the premises of | 0019| a nonprofit organization gaming operator licensee from 12:00 | 0020| noon until 12:00 midnight every day. | 0021| E. Alcoholic beverages shall not be sold, served, | 0022| delivered or consumed in the area where gaming machines are | 0023| installed and operated on the premises of a nonprofit | 0024| organization gaming operator licensee. | 0025| Section 31. [NEW MATERIAL] LICENSING OF MANUFACTURERS OF | 0001| GAMING DEVICES--EXCEPTION--DISPOSITION OF GAMING DEVICES.-- | 0002| A. It is unlawful for any person to operate, carry | 0003| on, conduct or maintain any form of manufacturing of any gaming | 0004| device or associated equipment for use or play in New Mexico or | 0005| any form of manufacturing of any gaming device or associated | 0006| equipment in New Mexico for use or play outside of New Mexico | 0007| without first obtaining and maintaining a manufacturer's | 0008| license. | 0009| B. If the board revokes a manufacturer's license: | 0010| (1) no new gaming device manufactured by the | 0011| manufacturer may be approved for use in this state; | 0012| (2) any previously approved gaming device | 0013| manufactured by the manufacturer is subject to revocation of | 0014| approval if the reasons for the revocation of the license also | 0015| apply to that gaming device; | 0016| (3) no new gaming device or associated | 0017| equipment made by the manufacturer may be distributed, sold, | 0018| transferred or offered for use or play in New Mexico; and | 0019| (4) any association or agreement between the | 0020| manufacturer and a distributor licensee or gaming operator | 0021| licensee in New Mexico shall be terminated. | 0022| C. An agreement between a manufacturer licensee and | 0023| a distributor licensee or a gaming operator licensee in New | 0024| Mexico shall be deemed to include a provision for its | 0025| termination without liability for the termination on the part of | 0001| either party upon a finding by the board that either party is | 0002| unsuitable. Failure to include that condition in the agreement | 0003| is not a defense in any action brought pursuant to this section | 0004| to terminate the agreement. | 0005| D. A gaming device shall not be used and offered for | 0006| play by a gaming operator licensee unless it is identical in all | 0007| material aspects to a model that has been specifically tested | 0008| and approved by: | 0009| (1) the board; | 0010| (2) a laboratory selected by the board; or | 0011| (3) gaming officials in Nevada or New Jersey | 0012| after January 1, 1990. | 0013| E. The board may inspect every gaming device that is | 0014| manufactured: | 0015| (1) for use in New Mexico; or | 0016| (2) in New Mexico for use outside of New | 0017| Mexico. | 0018| F. The board may inspect every gaming device that is | 0019| offered for play within New Mexico by a gaming operator | 0020| licensee. | 0021| G. The board may inspect all associated equipment | 0022| that is manufactured and sold for use in New Mexico or | 0023| manufactured in New Mexico for use outside of New Mexico. | 0024| H. In addition to all other fees and charges imposed | 0025| pursuant to the Gaming Control Act, the board may determine, | 0001| charge and collect from each manufacturer an inspection fee, | 0002| which shall not exceed the actual cost of inspection and | 0003| investigation. | 0004| I. The board may prohibit the use of a gaming device | 0005| by a gaming operator licensee if it finds that the gaming device | 0006| does not meet the requirements of this section. | 0007| Section 32. [NEW MATERIAL] LICENSING OF DISTRIBUTORS OF | 0008| GAMING DEVICES.-- | 0009| A. It is unlawful for any person to operate, carry | 0010| on, conduct or maintain any form of distribution of any gaming | 0011| device for use or play in New Mexico without first obtaining and | 0012| maintaining a distributor's or manufacturer's license. | 0013| B. If the board revokes a distributor's license: | 0014| (1) no new gaming device distributed by the | 0015| person may be approved; | 0016| (2) any previously approved gaming device | 0017| distributed by the distributor is subject to revocation of | 0018| approval if the reasons for the revocation of the license also | 0019| apply to that gaming device; | 0020| (3) no new gaming device or associated | 0021| equipment distributed by the distributor may be distributed, | 0022| sold, transferred or offered for use or play in New Mexico; and | 0023| (4) any association or agreement between the | 0024| distributor and a gaming operator licensee shall be terminated. | 0025| An agreement between a distributor licensee and a gaming | 0001| operator licensee shall be deemed to include a provision for its | 0002| termination without liability on the part of either party upon a | 0003| finding by the board that the other party is unsuitable. | 0004| Failure to include that condition in the agreement is not a | 0005| defense in any action brought pursuant to this section to | 0006| terminate the agreement. | 0007| C. The board may inspect every gaming device that is | 0008| distributed for use in New Mexico. | 0009| D. In addition to all other fees and charges imposed | 0010| by the Gaming Control Act, the board may determine, charge and | 0011| collect from each distributor an inspection fee, which shall not | 0012| exceed the actual cost of inspection and investigation. | 0013| Section 33. [NEW MATERIAL] SUITABILITY OF CERTAIN | 0014| PERSONS FURNISHING SERVICES OR PROPERTY OR DOING BUSINESS WITH | 0015| GAMING OPERATORS--TERMINATION OF ASSOCIATION.-- | 0016| A. The board may determine the suitability of any | 0017| person who furnishes services or property to a gaming operator | 0018| licensee under any arrangement pursuant to which the person | 0019| receives compensation based on earnings, profits or receipts | 0020| from gaming. The board may require the person to comply with | 0021| the requirements of the Gaming Control Act and with the | 0022| regulations of the board. If the board determines that the | 0023| person is unsuitable, it may require the arrangement to be | 0024| terminated. | 0025| B. The board may require a person to apply for a | 0001| finding of suitability to be associated with a gaming operator | 0002| licensee if the person: | 0003| (1) does business on the premises of a gaming | 0004| establishment; or | 0005| (2) provides any goods or services to a gaming | 0006| operator licensee for compensation that the board finds to be | 0007| grossly disproportionate to the value of the goods or services. | 0008| C. If the board determines that a person is | 0009| unsuitable to be associated with a gaming operator licensee, the | 0010| association shall be terminated. Any agreement that entitles a | 0011| business other than gaming to be conducted on the premises of a | 0012| gaming establishment, or entitles a person other than a licensee | 0013| to conduct business with the gaming operator licensee, is | 0014| subject to termination upon a finding of unsuitability of the | 0015| person seeking association with a gaming operator licensee. | 0016| Every agreement shall be deemed to include a provision for its | 0017| termination without liability on the part of the gaming operator | 0018| licensee upon a finding by the board of the unsuitability of the | 0019| person seeking or having an association with the gaming operator | 0020| licensee. Failure to include that condition in the agreement is | 0021| not a defense in any action brought pursuant to this section to | 0022| terminate the agreement. If the application is not presented to | 0023| the board within thirty days following demand or the unsuitable | 0024| association is not terminated, the board may pursue any remedy | 0025| or combination of remedies provided in the Gaming Control Act. | 0001| Section 34. [NEW MATERIAL] REASONS FOR INVESTIGATIONS BY | 0002| BOARD--COMPLAINT BY BOARD--BOARD TO APPOINT HEARING EXAMINER-- | 0003| REVIEW BY BOARD--ORDER OF BOARD.-- | 0004| A. The board shall make appropriate investigations | 0005| to: | 0006| (1) determine whether there has been any | 0007| violation of the Gaming Control Act or of any regulations | 0008| adopted pursuant to that act; | 0009| (2) determine any facts, conditions, practices | 0010| or matters that it deems necessary or proper to aid in the | 0011| enforcement of the Gaming Control Act or regulations adopted | 0012| pursuant to that act; | 0013| (3) aid in adopting regulations; | 0014| (4) secure information as a basis for | 0015| recommending legislation relating to the Gaming Control Act; or | 0016| (5) determine whether a licensee is able to | 0017| meet its financial obligations, including all financial | 0018| obligations imposed by the Gaming Control Act, as they become | 0019| due. | 0020| B. If after an investigation the board is satisfied | 0021| that a license, registration, finding of suitability or prior | 0022| approval by the board of any transaction for which approval was | 0023| required by the provisions of the Gaming Control Act should be | 0024| limited, conditioned, suspended or revoked, or that a fine | 0025| should be levied, the board shall initiate a hearing by filing a | 0001| complaint and transmitting a copy of it to the licensee, | 0002| together with a summary of evidence in its possession bearing on | 0003| the matter and the transcript of testimony at any investigative | 0004| hearing conducted by or on behalf of the board. The complaint | 0005| shall be a written statement of charges that sets forth in | 0006| ordinary and concise language the acts or omissions with which | 0007| the respondent is charged. It shall specify the statutes or | 0008| regulations that the respondent is alleged to have violated but | 0009| shall not consist merely of charges raised in the language of | 0010| the statutes or regulations. The summary of the evidence shall | 0011| be confidential and made available only to the respondent until | 0012| such time as it is offered into evidence at any public hearing | 0013| on the matter. | 0014| C. The respondent shall file an answer within thirty | 0015| days after service of the complaint. | 0016| D. Upon filing the complaint the board shall appoint | 0017| a hearing examiner to conduct further proceedings. | 0018| E. The hearing examiner shall conduct proceedings in | 0019| accordance with the Gaming Control Act and the regulations | 0020| adopted by the board. At the conclusion of the proceedings, the | 0021| hearing examiner may recommend that the board take any | 0022| appropriate action, including revocation, suspension, limitation | 0023| or conditioning of a license or imposition of a fine not to | 0024| exceed fifty thousand dollars ($50,000) for each violation or | 0025| any combination or all of the foregoing actions. | 0001| F. The hearing examiner shall prepare a written | 0002| decision containing his recommendation to the board and shall | 0003| serve it on all parties. Any respondent who disagrees with the | 0004| hearing examiner's recommendation may request the board, within | 0005| ten days of service of the recommendation, to review the | 0006| recommendation. | 0007| G. Upon proper request, the board shall review the | 0008| recommendation. The board may remand the case to the hearing | 0009| examiner for the presentation of additional evidence upon a | 0010| showing of good cause why such evidence could not have been | 0011| presented at the previous hearing. | 0012| H. The board shall by a majority vote accept, reject | 0013| or modify the recommendation. | 0014| I. If the board limits, conditions, suspends or | 0015| revokes any license or imposes a fine or limits, conditions, | 0016| suspends or revokes any registration, finding of suitability or | 0017| prior approval, it shall issue a written order specifying its | 0018| action. | 0019| J. The board's order is effective unless and until | 0020| reversed upon judicial review, except that the board may stay | 0021| its order pending a rehearing or judicial review upon such terms | 0022| and conditions as it deems proper. | 0023| Section 35. [NEW MATERIAL] EMERGENCY ORDERS OF BOARD.-- | 0024| The board may issue an emergency order for suspension, | 0025| limitation or conditioning of a license, registration, finding | 0001| of suitability or work permit or may issue an emergency order | 0002| requiring a gaming operator licensee to exclude an individual | 0003| licensee from the premises of the gaming operator licensee's | 0004| gaming establishment or not to pay an individual licensee any | 0005| remuneration for services or any profits, income or accruals on | 0006| his investment in the licensed gaming establishment in the | 0007| following manner: | 0008| A. an emergency order may be issued only when the | 0009| board believes that: | 0010| (1) a licensee has willfully failed to report, | 0011| pay or truthfully account for and pay over any fee imposed by | 0012| the provisions of the Gaming Control Act or willfully attempted | 0013| in any manner to evade or defeat any fee or payment thereof; | 0014| (2) a licensee or gaming employee has cheated | 0015| at a game; or | 0016| (3) the emergency order is necessary for the | 0017| immediate preservation of the public peace, health, safety, | 0018| morals, good order or general welfare; | 0019| B. the emergency order shall set forth the grounds | 0020| upon which it is issued, including a statement of facts | 0021| constituting the alleged emergency necessitating such action; | 0022| C. the emergency order is effective immediately upon | 0023| issuance and service upon the licensee or resident agent of the | 0024| licensee or gaming employee or, in cases involving registration | 0025| or findings of suitability, upon issuance and service upon the | 0001| person or entity involved or resident agent of the entity | 0002| involved; the emergency order may suspend, limit, condition or | 0003| take other action in relation to the license of one or more | 0004| persons in an operation without affecting other individual | 0005| licensees or the gaming operator licensee. The emergency order | 0006| remains effective until further order of the board or final | 0007| disposition of the case; and | 0008| D. within five days after issuance of an emergency | 0009| order, the board shall cause a complaint to be filed and served | 0010| upon the person or entity involved; thereafter, the person or | 0011| entity against whom the emergency order has been issued and | 0012| served is entitled to a hearing before the board and to judicial | 0013| review of the decision and order of the board in accordance with | 0014| the provisions of the board's regulations. | 0015| Section 36. [NEW MATERIAL] EXCLUSION OR EJECTION OF | 0016| CERTAIN PERSONS FROM GAMING ESTABLISHMENTS--PERSONS INCLUDED.-- | 0017| A. The board shall by regulation provide for the | 0018| establishment of a list of persons who are to be excluded or | 0019| ejected from a gaming establishment. The list may include any | 0020| person whose presence in the gaming establishment is determined | 0021| by the board to pose a threat to the public interest or licensed | 0022| gaming activities. | 0023| B. In making the determination in Subsection A of | 0024| this section, the board may consider a: | 0025| (1) prior conviction for a crime that is a | 0001| felony under state or federal law, a crime involving moral | 0002| turpitude or a violation of the gaming laws of any jurisdiction; | 0003| (2) violation or conspiracy to violate the | 0004| provisions of the Gaming Control Act relating to: | 0005| (a) the failure to disclose an interest in | 0006| a gaming activity for which the person must obtain a license; or | 0007| (b) willful evasion of fees or taxes; | 0008| (3) notorious or unsavory reputation that would | 0009| adversely affect public confidence and trust that the gaming | 0010| industry is free from criminal or corruptive influences; or | 0011| (4) written order of any other governmental | 0012| agency in this state or any other state that authorizes the | 0013| exclusion or ejection of the person from an establishment at | 0014| which gaming is conducted. | 0015| C. A gaming operator licensee has the right, without | 0016| a list established by the board, to exclude or eject a person | 0017| from its gaming establishment who poses a threat to the public | 0018| interest or for any business reason. | 0019| D. Race, color, creed, national origin or ancestry, | 0020| age, disability or sex shall not be grounds for placing the name | 0021| of a person on the list or for exclusion or ejection under | 0022| Subsection A or C of this section. | 0023| Section 37. [NEW MATERIAL] INTERNAL CONTROL SYSTEMS.-- | 0024| A. Each gaming operator licensee shall adopt | 0025| internal control systems that shall include provisions for: | 0001| (1) safeguarding its assets and revenues, | 0002| especially the recording of cash and evidences of indebtedness; | 0003| (2) making and maintaining reliable records, | 0004| accounts and reports of transactions, operations and events, | 0005| including reports to the board; and | 0006| (3) a system by which the amount wagered on | 0007| each gaming machine and the amount paid out by each gaming | 0008| machine is recorded on a daily basis, which results may be | 0009| obtained by the board by appropriate means as described in | 0010| regulations adopted by the board; all manufacturers are required | 0011| to have such a system available for gaming operators for the | 0012| gaming machines that it supplies for use in New Mexico, and all | 0013| distributors shall make such a system available to gaming | 0014| operators. | 0015| B. The internal control system shall be designed to | 0016| reasonably ensure that: | 0017| (1) assets are safeguarded; | 0018| (2) financial records are accurate and | 0019| reliable; | 0020| (3) transactions are performed only in | 0021| accordance with management's general or specific authorization; | 0022| (4) transactions are recorded adequately to | 0023| permit proper reporting of gaming revenue and of fees and taxes | 0024| and to maintain accountability of assets; | 0025| (5) access to assets is allowed only in | 0001| accordance with management's specific authorization; | 0002| (6) recorded accountability for assets is | 0003| compared with actual assets at reasonable intervals and | 0004| appropriate action is taken with respect to any discrepancies; | 0005| and | 0006| (7) functions, duties and responsibilities are | 0007| appropriately segregated and performed in accordance with sound | 0008| accounting and management practices by competent, qualified | 0009| personnel. | 0010| C. A gaming operator licensee and an applicant for a | 0011| gaming operator's license shall describe, in the manner the | 0012| board may approve or require, its administrative and accounting | 0013| procedures in detail in a written system of internal control. A | 0014| gaming operator licensee and an applicant for a gaming | 0015| operator's license shall submit a copy of its written system to | 0016| the board. Each written system 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 the | 0024| 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 the | 0003| 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 been | 0007| reviewed by the accountant and complies with the requirements of | 0008| 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 OF | 0013| 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 by | 0016| the board. | 0017| B. A work permit shall be issued and may be revoked | 0018| by the board as provided in regulations adopted by the board. | 0019| C. Any person whose work permit has been denied or | 0020| revoked may seek judicial review. | 0021| Section 39. [NEW MATERIAL] AGE REQUIREMENT FOR PATRONS | 0022| AND GAMING EMPLOYEES.--A person under the age of twenty-one | 0023| years shall not: | 0024| A. play, be allowed to play, place wagers on or | 0025| collect winnings from, whether personally or through an agent, | 0001| any game authorized or offered to play pursuant to the Gaming | 0002| Control Act; or | 0003| B. be employed as a gaming employee. | 0004| Section 40. [NEW MATERIAL] CALCULATION OF NET TAKE-- | 0005| CERTAIN EXPENSES NOT DEDUCTIBLE.--In calculating net take from | 0006| gaming machines, the actual cost to the licensee of any personal | 0007| property distributed to a patron as the result of a legitimate | 0008| wager may be deducted as a loss, except for travel expenses, | 0009| food, refreshments, lodging or services. For the purposes of | 0010| this section, "as the result of a legitimate wager" means that | 0011| the patron must make a wager prior to receiving the personal | 0012| property, regardless of whether the receipt of the personal | 0013| property is dependent on the outcome of the wager. | 0014| Section 41. [NEW MATERIAL] LIMITATIONS ON TAXES AND | 0015| LICENSE FEES.--A political subdivision of the state shall not | 0016| impose a license fee or tax on any licensee licensed pursuant to | 0017| the Gaming Control Act except for the imposition of property | 0018| taxes and the distribution provided for and determined pursuant | 0019| to Subsection C of Section 60-1-15 and Section 10-1-15.2 NMSA | 0020| 1978. | 0021| Section 42. [NEW MATERIAL] USE OF CHIPS, TOKENS OR LEGAL | 0022| TENDER REQUIRED FOR ALL GAMING.--All gaming shall be conducted | 0023| with chips, tokens or other similar objects approved by the | 0024| board or with the legal currency of the United States. | 0025| Section 43. [NEW MATERIAL] COMMUNICATION OR DOCUMENT OF | 0001| APPLICANT OR LICENSEE ABSOLUTELY CONFIDENTIAL--CONFIDENTIALITY | 0002| NOT WAIVED--DISCLOSURE OF CONFIDENTIAL INFORMATION PROHIBITED.-- | 0003| A. Any communication or document of an applicant or | 0004| licensee is confidential and does not impose liability for | 0005| defamation or constitute a ground for recovery in any civil | 0006| action if it is required by: | 0007| (1) law or the regulations of the board; or | 0008| (2) a subpoena issued by the board to be made | 0009| or transmitted to the board. | 0010| B. The confidentiality created pursuant to | 0011| Subsection A of this section is not waived or lost because the | 0012| document or communication is disclosed to the board. | 0013| C. Notwithstanding the powers granted to the board | 0014| by the Gaming Control Act, the board: | 0015| (1) may release or disclose any confidential | 0016| information, documents or communications provided by an | 0017| applicant or licensee only with the prior written consent of the | 0018| applicant or licensee or pursuant to a lawful court order after | 0019| timely notice of the proceedings has been given to the applicant | 0020| or licensee; | 0021| (2) shall maintain all confidential | 0022| information, documents and communications in a secure place | 0023| accessible only to members of the board; and | 0024| (3) shall adopt procedures and regulations to | 0025| protect the confidentiality of information, documents and | 0001| communications provided by an applicant or licensee. | 0002| Section 44. [NEW MATERIAL] MOTION FOR RELEASE OF | 0003| CONFIDENTIAL INFORMATION.--An application to a court for an | 0004| order requiring the board to release any information declared by | 0005| law to be confidential shall be made only by petition in | 0006| district court. A hearing shall be held on the petition not | 0007| less than ten days and not more than twenty days after the date | 0008| of service of the petition on the board, the attorney general | 0009| and all persons who may be affected by the entry of that order. | 0010| A copy of the petition, all papers filed in support of it and a | 0011| notice of hearing shall be served. | 0012| Section 45. [NEW MATERIAL] GAMING MACHINE CENTRAL | 0013| SYSTEM.--The board shall develop and operate a central system | 0014| into which all licensed gaming machines are connected. The | 0015| central system shall be capable of: | 0016| A. monitoring continuously, retrieving and auditing | 0017| the operations, financial data and program information of the | 0018| network; | 0019| B. disabling from operation or play any gaming | 0020| machine in the network that does not comply with the provisions | 0021| of the Gaming Control Act or the regulations of the board; | 0022| C. communicating, through program modifications or | 0023| other means equally effective, with all gaming machines licensed | 0024| by the board; | 0025| D. interacting, reading, communicating and linking | 0001| with gaming machines from a broad spectrum of manufacturers and | 0002| associated equipment; and | 0003| E. providing linkage to each gaming machine in the | 0004| network at a reasonable and affordable cost to the state and the | 0005| gaming operator licensee and allowing for program modifications | 0006| and system updating at a reasonable cost. | 0007| Section 46. [NEW MATERIAL] MACHINE SPECIFICATIONS.--To | 0008| be eligible for licensure, each gaming machine shall meet all | 0009| specifications established by regulations of the board and: | 0010| A. be unable to be manipulated in a manner that | 0011| affects the random probability of winning plays or in any other | 0012| manner determined by the board to be undesirable; | 0013| B. have at least one mechanism that accepts coins or | 0014| currency, but does not accept bills of denominations greater | 0015| than twenty dollars ($20.00); | 0016| C. be capable of having play suspended through the | 0017| central system by the executive director until he resets the | 0018| gaming machine; | 0019| D. house nonresettable mechanical and electronic | 0020| meters within a readily accessible locked area of the gaming | 0021| machine that maintain a permanent record of all money inserted | 0022| into the machine, all cash payouts of winnings, all refunds of | 0023| winnings, all credits played for additional games and all | 0024| credits won by players; | 0025| E. be capable of printing out, at the request of the | 0001| executive director, readings on the electronic meters of the | 0002| machine; | 0003| F. for machines that do not dispense coins or tokens | 0004| directly to players, be capable of printing a ticket voucher | 0005| stating the value of a cash prize won by the player at the | 0006| completion of each game, the date and time of day the game was | 0007| played in a twenty-four-hour format showing hours and minutes, | 0008| the machine serial number, the sequential number of the ticket | 0009| voucher and an encrypted validation number for determining the | 0010| validity of a winning ticket voucher; | 0011| G. be capable of being linked to the board's central | 0012| system for the purpose of being monitored continuously as | 0013| required by the board; | 0014| H. provide for a payback value for each credit | 0015| wagered, determined over time, of not less than eighty percent | 0016| or more than ninety-six percent; | 0017| I. meet the standards and specifications set by laws | 0018| or regulations of the states of Nevada and New Jersey for gaming | 0019| machines, whichever are more stringent; | 0020| J. offer only games authorized and examined by the | 0021| board; and | 0022| K. display the gaming machine license issued for | 0023| that machine in an easily accessible place, before and during | 0024| the time that a machine is available for use. | 0025| Section 47. [NEW MATERIAL] POSTING OF GAMING MACHINE | 0001| ODDS.--The odds of winning on each gaming machine shall be | 0002| posted on or near each gaming machine. The board shall provide | 0003| the manner in which the odds shall be determined and posted by | 0004| regulation. | 0005| Section 48. [NEW MATERIAL] EXAMINATION OF GAMING | 0006| DEVICES--COST ALLOCATION.-- | 0007| A. The board shall examine prototypes of gaming | 0008| devices of manufacturers seeking a license as required. | 0009| B. The board by regulation shall require a | 0010| manufacturer to pay the anticipated actual costs of the | 0011| examination of a gaming device in advance and, after the | 0012| completion of the examination, shall refund overpayments or | 0013| charge and collect amounts sufficient to reimburse the board for | 0014| underpayment of actual costs. | 0015| C. The board may contract for the examination of | 0016| gaming devices to meet the requirements of this section. | 0017| Section 49. [NEW MATERIAL] GAMING TAX--IMPOSITION-- | 0018| ADMINISTRATION.-- | 0019| A. An excise tax is imposed on the privilege of | 0020| engaging in gaming activities in the state. This tax shall be | 0021| known as the "gaming tax". | 0022| B. The gaming tax is an amount equal to ten percent | 0023| of the gross receipts of manufacturer licensees from the sale, | 0024| lease or other transfer of gaming devices in or into the state, | 0025| except receipts of a manufacturer from the sale, lease or other | 0001| transfer to a licensed distributor for subsequent sale or lease | 0002| may be excluded from gross receipts; ten percent of the gross | 0003| receipts of distributor licensees from the sale, lease or other | 0004| transfer of gaming devices in or into the state; and twenty-five | 0005| percent of the net take of every gaming operator licensee. | 0006| C. The gaming tax imposed on a licensee is in lieu | 0007| of all state and local gross receipts taxes on that portion of | 0008| the licensee's gross receipts attributable to gaming activities. | 0009| D. The gaming tax shall be administered and | 0010| collected by the taxation and revenue department in cooperation | 0011| with the board. The provisions of the Tax Administration Act | 0012| apply to the collection and administration of the tax. | 0013| E. In addition to the gaming tax, a gaming operator | 0014| licensee that is a racetrack shall pay twenty percent of the net | 0015| take to purses to be distributed in accordance with regulations | 0016| adopted by the state racing commission. A racetrack gaming | 0017| operator licensee shall spend no less than one-fourth of one | 0018| percent of the net take of its gaming machines to fund or | 0019| support programs for the treatment and assistance of compulsive | 0020| gamblers. | 0021| F. A nonprofit gaming operator licensee shall | 0022| distribute at least eighty-eight percent of the balance of net | 0023| take, after payment of the gaming tax and any income taxes, for | 0024| charitable or educational purposes. | 0025| G. The taxation and revenue department shall deduct | 0001| an amount equal to three percent of the gaming tax collected as | 0002| a charge for the administrative costs of collection, which | 0003| amount is appropriated to the taxation and revenue department | 0004| for collection and administration of the tax. | 0005| Section 50. [NEW MATERIAL] CIVIL ACTIONS TO RESTRAIN | 0006| VIOLATIONS OF GAMING CONTROL ACT.-- | 0007| A. The attorney general, at the request of the | 0008| board, may institute a civil action in any court of this state | 0009| against any person to enjoin a violation of a prohibitory | 0010| provision of the Gaming Control Act. | 0011| B. An action brought against a person pursuant to | 0012| this section shall not preclude a criminal action or | 0013| administrative proceeding against that person. | 0014| Section 51. [NEW MATERIAL] TESTIMONIAL IMMUNITY.-- | 0015| A. The board may order a person to answer a question | 0016| or produce evidence and confer immunity pursuant to this | 0017| section. If, in the course of an investigation or hearing | 0018| conducted pursuant to the Gaming Control Act, a person refuses | 0019| to answer a question or produce evidence on the ground that he | 0020| will be exposed to criminal prosecution by doing so, then the | 0021| board may by approval of three members, after the written | 0022| approval of the attorney general, issue an order to answer or to | 0023| produce evidence with immunity. | 0024| B. If a person complies with an order issued | 0025| pursuant to Subsection A of this section, he shall be immune | 0001| from having a responsive answer given or responsive evidence | 0002| produced, or evidence derived from either, used to expose him to | 0003| criminal prosecution, except that the person may be prosecuted | 0004| for any perjury committed in the answer or production of | 0005| evidence and may also be prosecuted for contempt for failing to | 0006| act in accordance with the order of the board. An answer given | 0007| or evidence produced pursuant to the grant of immunity | 0008| authorized by this section may be used against the person | 0009| granted immunity in a prosecution of the person for perjury or a | 0010| proceeding against him for contempt. | 0011| Section 52. [NEW MATERIAL] CRIME--MANIPULATION OF GAMING | 0012| DEVICE WITH INTENT TO CHEAT.--A person who manipulates, with the | 0013| intent to cheat, any component of a gaming device in a manner | 0014| contrary to the designed and normal operational purpose of the | 0015| component, including varying the pull of the handle of a slot | 0016| machine with knowledge that the manipulation affects the outcome | 0017| of the game or with knowledge of any event that affects the | 0018| outcome of the game, is guilty of a fourth degree felony and | 0019| shall be sentenced pursuant to the provisions of Section 31-18- | 0020| 15 NMSA 1978. | 0021| Section 53. [NEW MATERIAL] CRIME--USE OF COUNTERFEIT OR | 0022| UNAPPROVED TOKENS, CURRENCY OR DEVICES--POSSESSION OF CERTAIN | 0023| DEVICES, EQUIPMENT, PRODUCTS OR MATERIALS.-- | 0024| A. A person who, in playing any game designed to be | 0025| played with, to receive or to be operated by tokens approved by | 0001| the board or by lawful currency of the United States, knowingly | 0002| uses tokens other than those approved by the board, uses | 0003| currency that is not lawful currency of the United States or | 0004| uses currency not of the same denomination as the currency | 0005| intended to be used in that game is guilty of a third degree | 0006| felony and shall be sentenced pursuant to the provisions of | 0007| Section 31-18-15 NMSA 1978. | 0008| B. A person who knowingly has on his person or in | 0009| his possession within a gaming establishment any device intended | 0010| to be used by him to violate the provisions of the Gaming | 0011| Control Act is guilty of a third degree felony and shall be | 0012| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0013| 1978. | 0014| C. A person, other than a duly authorized employee | 0015| of a gaming operator acting in furtherance of his employment | 0016| within a gaming establishment, who knowingly has on his person | 0017| or in his possession within a gaming establishment any key or | 0018| device known by him to have been designed for the purpose of and | 0019| suitable for opening, entering or affecting the operation of any | 0020| game, dropbox or any electronic or mechanical device connected | 0021| to the game or dropbox or for removing money or other contents | 0022| from them is guilty of a third degree felony and shall be | 0023| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0024| 1978. | 0025| D. A person who knowingly and with intent to use | 0001| them for cheating has on his person or in his possession any | 0002| paraphernalia for manufacturing slugs is guilty of a third | 0003| degree felony and shall be sentenced pursuant to the provisions | 0004| of Section 31-18-15 NMSA 1978. As used in this subsection, | 0005| "paraphernalia for manufacturing slugs" means the equipment, | 0006| products and materials that are intended for use or designed for | 0007| use in manufacturing, producing, fabricating, preparing, | 0008| testing, analyzing, packaging, storing or concealing a | 0009| counterfeit facsimile of tokens approved by the board or a | 0010| lawful coin of the United States, the use of which is unlawful | 0011| pursuant to the Gaming Control Act. The term includes: | 0012| (1) lead or lead alloy; | 0013| (2) molds, forms or similar equipment capable | 0014| of producing a likeness of a gaming token or coin; | 0015| (3) melting pots or other receptacles; | 0016| (4) torches; and | 0017| (5) tongs, trimming tools or other similar | 0018| equipment. | 0019| E. Possession of more than two items of the | 0020| equipment, products or material described in Subsection D of | 0021| this section permits a rebuttable inference that the possessor | 0022| intended to use them for cheating. | 0023| Section 54. [NEW MATERIAL] CRIME--CHEATING.--A person | 0024| who knowingly cheats at any game is guilty of a fourth degree | 0025| felony and upon conviction shall be sentenced pursuant to the | 0001| provisions of Section 31-18-15 NMSA 1978. | 0002| Section 55. [NEW MATERIAL] CRIME--POSSESSION OF GAMING | 0003| DEVICE MANUFACTURED, SOLD OR DISTRIBUTED IN VIOLATION OF LAW.--A | 0004| person who knowingly possesses any gaming device that has been | 0005| manufactured, sold or distributed in violation of the Gaming | 0006| Control Act is guilty of a fourth degree felony and shall be | 0007| sentenced pursuant to the provisions of Section 31-18-15 NMSA | 0008| 1978. | 0009| Section 56. [NEW MATERIAL] CRIME--REPORTING AND RECORD | 0010| VIOLATIONS--PENALTY.--A person who, in an application, book or | 0011| record required to be maintained by the Gaming Control Act or by | 0012| a regulation adopted under that act or in a report required to | 0013| be submitted by that act or a regulation adopted under that act, | 0014| knowingly makes a statement or entry that is false or misleading | 0015| or fails to maintain or make an entry the person knows is | 0016| required to be maintained or made is guilty of a fourth degree | 0017| felony and shall be sentenced pursuant to the provisions of | 0018| Section 31-18-15 NMSA 1978. | 0019| Section 57. [NEW MATERIAL] CRIME--UNLAWFUL MANUFACTURE, | 0020| SALE, DISTRIBUTION, MARKING, ALTERING OR MODIFICATION OF DEVICES | 0021| ASSOCIATED WITH GAMING--UNLAWFUL INSTRUCTION--PENALTY.-- | 0022| A. A person who manufactures, sells or distributes a | 0023| device that is intended by him to be used to violate any | 0024| provision of the Gaming Control Act is guilty of a fourth degree | 0025| felony and shall be sentenced pursuant to the provisions of | 0001| Section 31-18-15 NMSA 1978. | 0002| B. A person who marks, alters or otherwise modifies | 0003| any gaming device in a manner that affects the result of a wager | 0004| by determining win or loss or alters the normal criteria of | 0005| random selection that affects the operation of a game or that | 0006| determines the outcome of a game 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 58. [NEW MATERIAL] UNDERAGE GAMING--PENALTY FOR | 0010| PERMITTING OR PARTICIPATION.-- | 0011| A. A person who knowingly permits an individual who | 0012| the person knows is younger than twenty-one years of age to | 0013| participate in gaming is guilty of a fourth degree felony and | 0014| shall be sentenced pursuant to the provisions of Section | 0015| 31-18-15 NMSA 1978. | 0016| B. An individual who participates in gaming when he | 0017| is younger than twenty-one years of age at the time of | 0018| participation is guilty of a misdemeanor and shall be sentenced | 0019| pursuant to the provisions of Section 31-19-1 NMSA 1978. | 0020| Section 59. [NEW MATERIAL] CRIME--GENERAL PENALTIES FOR | 0021| VIOLATION OF ACT.--A person who willfully violates, attempts to | 0022| violate or conspires to violate any of the provisions of the | 0023| Gaming Control Act specifying prohibited acts, the | 0024| classification of which is not specifically stated in that act, | 0025| is guilty of a fourth degree felony and shall be sentenced | 0001| pursuant to the provisions of Section 31-18-15 NMSA 1978. | 0002| Section 60. [NEW MATERIAL] DETENTION AND QUESTIONING OF | 0003| A PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON LIABILITY-- | 0004| POSTING OF NOTICE.-- | 0005| A. A gaming operator licensee or its officers, | 0006| employees or agents may question a person in its gaming | 0007| establishment suspected of violating any of the provisions of | 0008| the Gaming Control Act. No gaming operator licensee or any of | 0009| its officers, employees or agents is criminally or civilly | 0010| liable: | 0011| (1) on account of any such questioning; or | 0012| (2) for reporting to the board or law | 0013| enforcement authorities the person suspected of the violation. | 0014| B. A gaming operator licensee or any of its | 0015| officers, employees or agents who has reasonable cause for | 0016| believing that there has been a violation of the Gaming Control | 0017| Act in the gaming establishment by a person may detain that | 0018| person in the gaming establishment in a reasonable manner and | 0019| for a reasonable length of time. Such a detention does not | 0020| render the gaming operator licensee or his officers, employees | 0021| or agents criminally or civilly liable unless it is established | 0022| by clear and convincing evidence detention was unreasonable | 0023| under the circumstances. | 0024| C. No gaming operator licensee or its officers, | 0025| employees or agents are entitled to the immunity from liability | 0001| provided for in Subsection B of this section unless there is | 0002| displayed in a conspicuous place in the gaming establishment a | 0003| notice in boldface type clearly legible and in substantially | 0004| this form: | 0005| "Any gaming operator licensee or any of his officers, | 0006| employees or agents who have reasonable cause for | 0007| believing that any person has violated any provision | 0008| of the Gaming Control Act prohibiting cheating in | 0009| gaming may detain that person in the establishment.". | 0010| Section 61. [NEW MATERIAL] ADMINISTRATIVE APPEAL OF | 0011| BOARD ACTION.-- | 0012| A. Any person aggrieved by an action taken by the | 0013| board or one of its agents may request and receive a hearing for | 0014| the purpose of reviewing the action. To obtain a hearing the | 0015| aggrieved person shall file a request for hearing with the board | 0016| within thirty days after the date the action is taken. Failure | 0017| to file the request within the specified time is an irrevocable | 0018| waiver of the right to a hearing, and the action complained of | 0019| shall be final with no further right to review, either | 0020| administratively or by a court. | 0021| B. The board shall adopt procedural regulations to | 0022| govern the procedures to be followed in administrative hearings | 0023| pursuant to the provisions of this section. At a minimum, the | 0024| regulations shall provide: | 0025| (1) for the hearings to be public; | 0001| (2) for the appointment of a hearing officer to | 0002| conduct the hearing and make his recommendation to the board not | 0003| more than ten days after the completion of the hearing; | 0004| (3) procedures for discovery; | 0005| (4) assurance that procedural due process | 0006| requirements are satisfied; | 0007| (5) for the maintenance of a record of the | 0008| hearing proceedings and assessment of costs of any transcription | 0009| of testimony that is required for judicial review purposes; and | 0010| (6) for the hearing to be held in Santa Fe for | 0011| enforcement hearings and hearings on actions of statewide | 0012| application, and to be held in the place or area affected for | 0013| enforcement hearings and hearings on actions of limited local | 0014| concern. | 0015| C. Actions taken by the board after a hearing | 0016| pursuant to the provisions of this section shall be: | 0017| (1) written and shall state the reasons for the | 0018| action; | 0019| (2) made public when taken; | 0020| (3) communicated to all persons who have made a | 0021| written request for notification of the action taken; and | 0022| (4) taken not more than thirty days after the | 0023| submission of the hearing officer's report to the board. | 0024| Section 62. [NEW MATERIAL] JUDICIAL REVIEW OF | 0025| ADMINISTRATIVE ACTIONS.-- | 0001| A. Any person adversely affected by an action taken | 0002| by the board after review pursuant to the provisions of Section | 0003| 61 of the Gaming Control Act may appeal the action to the court | 0004| of appeals. The appeal shall be on the record made at the | 0005| hearing. To support his appeal, the appellant shall make | 0006| arrangements with the board for a sufficient number of | 0007| transcripts of the record of the hearing on which the appeal is | 0008| based. The appellant shall pay for the preparation of the | 0009| transcripts. | 0010| B. On appeal, the court of appeals shall set aside | 0011| the administrative action only if it is found to be: | 0012| (1) arbitrary, capricious or an abuse of | 0013| discretion; | 0014| (2) not supported by substantial evidence in | 0015| the whole record; or | 0016| (3) otherwise not in accordance with law. | 0017| Section 63. Section 7-1-2 NMSA 1978 (being Laws 1965, | 0018| Chapter 248, Section 2, as amended) is amended to read: | 0019| "7-1-2. APPLICABILITY.--The Tax Administration Act | 0020| applies to and governs: | 0021| A. the administration and enforcement of the | 0022| following taxes or tax acts as they now exist or may hereafter | 0023| be amended: | 0024| (1) Income Tax Act; | 0025| (2) Withholding Tax Act; | 0001| (3) Gross Receipts and Compensating Tax Act and | 0002| any state gross receipts tax; | 0003| (4) Liquor Excise Tax Act; | 0004| (5) Local Liquor Excise Tax Act; | 0005| [(6) Banking and Financial Corporations Tax | 0006| Act; | 0007| (7)] (6) any municipal local option gross | 0008| receipts tax; | 0009| [(8)] (7) any county local option gross | 0010| receipts tax; | 0011| [(9)] (8) Special Fuels Supplier Tax Act; | 0012| [(10)] (9) Gasoline Tax Act; | 0013| [(11)] (10) petroleum products loading fee, | 0014| which fee shall be considered a tax for the purpose of the Tax | 0015| Administration Act; | 0016| [(12)] (11) Alternative Fuel Tax Act; | 0017| [(13)] (12) Cigarette Tax Act; | 0018| [(14)] (13) Estate Tax Act; | 0019| [(15)] (14) Railroad Car Company Tax Act; | 0020| [(16)] (15) Investment Credit Act; | 0021| [(17)] (16) Corporate Income and Franchise Tax | 0022| Act; | 0023| [(18)] (17) Uniform Division of Income for Tax | 0024| Purposes Act; | 0025| [(19)] (18) Multistate Tax Compact; | 0001| [(20)] (19) Tobacco Products Tax Act; | 0002| [(21)] (20) Filmmaker's Credit Act; and | 0003| [(22)] (21) the telecommunications relay | 0004| service surcharge imposed by Section 63-9F-11 NMSA 1978, which | 0005| surcharge shall be considered a tax for the purposes of the Tax | 0006| Administration Act; | 0007| B. the administration and enforcement of the | 0008| following taxes, surtaxes, advanced payments or tax acts as they | 0009| now exist or may hereafter be amended: | 0010| (1) Resources Excise Tax Act; | 0011| (2) Severance Tax Act; | 0012| (3) any severance surtax; | 0013| (4) Oil and Gas Severance Tax Act; | 0014| (5) Oil and Gas Conservation Tax Act; | 0015| (6) Oil and Gas Emergency School Tax Act; | 0016| (7) Oil and Gas Ad Valorem Production Tax Act; | 0017| (8) Natural Gas Processors Tax Act; | 0018| (9) Oil and Gas Production Equipment Ad Valorem | 0019| Tax Act; | 0020| (10) Copper Production Ad Valorem Tax Act; and | 0021| (11) any advance payment required to be made by | 0022| any act specified in this subsection, which advance payment | 0023| shall be considered a tax for the purposes of the Tax | 0024| Administration Act; | 0025| C. the administration and enforcement of the | 0001| following taxes, surcharges, fees or acts as they now exist or | 0002| may hereafter be amended: | 0003| (1) Weight Distance Tax Act; | 0004| (2) Special Fuels Tax Act; | 0005| (3) the workers' compensation fee authorized by | 0006| Section 52-5-19 NMSA 1978, which fee shall be considered a tax | 0007| for purposes of the Tax Administration Act; | 0008| (4) Uniform Unclaimed Property Act; | 0009| (5) 911 emergency surcharge and the network and | 0010| database surcharge, which surcharges shall be considered taxes | 0011| for purposes of the Tax Administration Act; | 0012| (6) the solid waste assessment fee authorized | 0013| by the Solid Waste Act, which fee shall be considered a tax for | 0014| purposes of the Tax Administration Act; [and] | 0015| (7) the water conservation fee imposed by | 0016| Section 74-1-13 NMSA 1978, which fee shall be considered a tax | 0017| for the purposes of the Tax Administration Act; and | 0018| (8) the gaming tax imposed pursuant to the | 0019| Gaming Control Act; and | 0020| D. the administration and enforcement of all other | 0021| laws, with respect to which the department is charged with | 0022| responsibilities pursuant to the Tax Administration Act, but | 0023| only to the extent that the other laws do not conflict with the | 0024| Tax Administration Act." | 0025| Section 64. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0001| Chapter 91, Section 1, as amended) is amended to read: | 0002| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0003| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0004| A. In recognition of the fact that a representative | 0005| government is dependent upon an informed electorate, it is | 0006| declared to be public policy of this state that all persons are | 0007| entitled to the greatest possible information regarding the | 0008| affairs of government and the official acts of those officers | 0009| and employees who represent them. The formation of public | 0010| policy or the conduct of business by vote shall not be conducted | 0011| in closed meeting. All meetings of any public body except the | 0012| legislature and the courts shall be public meetings, and all | 0013| persons so desiring shall be permitted to attend and listen to | 0014| the deliberations and proceedings. Reasonable efforts shall be | 0015| made to accommodate the use of audio and video recording | 0016| devices. | 0017| B. All meetings of a quorum of members of any board, | 0018| commission, administrative adjudicatory body or other | 0019| policymaking body of any state agency, any agency or authority | 0020| of any county, municipality, district or any political | 0021| subdivision, held for the purpose of formulating public policy, | 0022| including the development of personnel policy, rules, | 0023| regulations or ordinances, discussing public business or for the | 0024| purpose of taking any action within the authority of or the | 0025| delegated authority of any board, commission or other | 0001| policymaking body are declared to be public meetings open to the | 0002| public at all times, except as otherwise provided in the | 0003| constitution of New Mexico or the Open Meetings Act. No public | 0004| meeting once convened that is otherwise required to be open | 0005| pursuant to the Open Meetings Act shall be closed or dissolved | 0006| into small groups or committees for the purpose of permitting | 0007| the closing of the meeting. | 0008| C. If otherwise allowed by law or rule of the public | 0009| body, a member of a public body may participate in a meeting of | 0010| the public body by means of a conference telephone or other | 0011| similar communications equipment when it is otherwise difficult | 0012| or impossible for the member to attend the meeting in person, | 0013| provided that each member participating by conference telephone | 0014| can be identified when speaking, all participants are able to | 0015| hear each other at the same time and members of the public | 0016| attending the meeting are able to hear any member of the public | 0017| body who speaks during the meeting. | 0018| D. Any meetings at which the discussion or adoption | 0019| of any proposed resolution, rule, regulation or formal action | 0020| occurs and at which a majority or quorum of the body is in | 0021| attendance, and any closed meetings, shall be held only after | 0022| reasonable notice to the public. The affected body shall | 0023| determine at least annually in a public meeting what notice for | 0024| a public meeting is reasonable when applied to that body. That | 0025| notice shall include broadcast stations licensed by the federal | 0001| communications commission and newspapers of general circulation | 0002| that have provided a written request for such notice. | 0003| E. A public body may recess and reconvene a meeting | 0004| to a day subsequent to that stated in the meeting notice if, | 0005| prior to recessing, the public body specifies the date, time and | 0006| place for continuation of the meeting and, immediately following | 0007| the recessed meeting, posts notice of the date, time and place | 0008| for the reconvened meeting on or near the door of the place | 0009| where the original meeting was held and in at least one other | 0010| location appropriate to provide public notice of the | 0011| continuation of the meeting. Only matters appearing on the | 0012| agenda of the original meeting may be discussed at the | 0013| reconvened meeting. | 0014| F. Meeting notices shall include an agenda | 0015| containing a list of specific items of business to be discussed | 0016| or transacted at the meeting or information on how the public | 0017| may obtain a copy of such an agenda. Except in the case of an | 0018| emergency, the agenda shall be available to the public at least | 0019| twenty-four hours prior to the meeting. Except for emergency | 0020| matters, a public body shall take action only on items appearing | 0021| on the agenda. For purposes of this subsection, an "emergency" | 0022| refers to unforeseen circumstances that, if not addressed | 0023| immediately by the public body, will likely result in injury or | 0024| damage to persons or property or substantial financial loss to | 0025| the public body. | 0001| G. The board, commission or other policymaking body | 0002| shall keep written minutes of all its meetings. The minutes | 0003| shall include at a minimum the date, time and place of the | 0004| meeting, the names of members in attendance and those absent, | 0005| the substance of the proposals considered and a record of any | 0006| decisions and votes taken that show how each member voted. All | 0007| minutes are open to public inspection. Draft minutes shall be | 0008| prepared within ten working days after the meeting and shall be | 0009| approved, amended or disapproved at the next meeting where a | 0010| quorum is present. Minutes shall not become official until | 0011| approved by the policymaking body. | 0012| H. The provisions of Subsections A, B and G of this | 0013| section do not apply to: | 0014| (1) meetings pertaining to issuance, | 0015| suspension, renewal or revocation of a license, except that a | 0016| hearing at which evidence is offered or rebutted shall be open. | 0017| All final actions on the issuance, suspension, renewal or | 0018| revocation of a license shall be taken at an open meeting; | 0019| (2) limited personnel matters; provided that | 0020| for purposes of the Open Meetings Act, "limited personnel | 0021| matters" means the discussion of hiring, promotion, demotion, | 0022| dismissal, assignment or resignation of or the investigation or | 0023| consideration of complaints or charges against any individual | 0024| public employee; provided further that this subsection is not to | 0025| be construed as to exempt final actions on personnel from being | 0001| taken at open public meetings, nor does it preclude an aggrieved | 0002| public employee from demanding a public hearing. Judicial | 0003| candidates interviewed by any commission shall have the right to | 0004| demand an open interview; | 0005| (3) deliberations by a public body in | 0006| connection with an administrative adjudicatory proceeding. For | 0007| purposes of this paragraph, an "administrative adjudicatory | 0008| proceeding" means a proceeding brought by or against a person | 0009| before a public body in which individual legal rights, duties or | 0010| privileges are required by law to be determined by the public | 0011| body after an opportunity for a trial-type hearing. Except as | 0012| otherwise provided in this section, the actual administrative | 0013| adjudicatory proceeding at which evidence is offered or rebutted | 0014| and any final action taken as a result of the proceeding shall | 0015| occur in an open meeting; | 0016| (4) the discussion of personally identifiable | 0017| information about any individual student, unless the student, | 0018| his parent or guardian requests otherwise; | 0019| (5) meetings for the discussion of bargaining | 0020| strategy preliminary to collective bargaining negotiations | 0021| between the policymaking body and a bargaining unit representing | 0022| the employees of that policymaking body and collective | 0023| bargaining sessions at which the policymaking body and the | 0024| representatives of the collective bargaining unit are present; | 0025| (6) that portion of meetings at which a | 0001| decision concerning purchases in an amount exceeding two | 0002| thousand five hundred dollars ($2,500) that can be made only | 0003| from one source and that portion of meetings at which the | 0004| contents of competitive sealed proposals solicited pursuant to | 0005| the Procurement Code are discussed during the contract | 0006| negotiation process. The actual approval of purchase of the | 0007| item or final action regarding the selection of a contractor | 0008| shall be made in an open meeting; | 0009| (7) meetings subject to the attorney-client | 0010| privilege pertaining to threatened or pending litigation in | 0011| which the public body is or may become a participant; | 0012| (8) meetings for the discussion of the | 0013| purchase, acquisition or disposal of real property or water | 0014| rights by the public body; [and] | 0015| (9) those portions of meetings of committees or | 0016| boards of public hospitals that receive less than fifty percent | 0017| of their operating budget from direct public funds and | 0018| appropriations where strategic and long-range business plans are | 0019| discussed; and | 0020| (10) that portion of a meeting of the gaming | 0021| control board dealing with information made confidential | 0022| pursuant to the provisions of the Gaming Control Act. | 0023| I. If any meeting is closed pursuant to the | 0024| exclusions contained in Subsection H of this section, the | 0025| closure: | 0001| (1) if made in an open meeting, shall be | 0002| approved by a majority vote of a quorum of the policymaking | 0003| body; the authority for the closure and the subject to be | 0004| discussed shall be stated with reasonable specificity in the | 0005| motion calling for the vote on a closed meeting; the vote shall | 0006| be taken in an open meeting; and the vote of each individual | 0007| member shall be recorded in the minutes. Only those subjects | 0008| announced or voted upon prior to closure by the policymaking | 0009| body may be discussed in a closed meeting; and | 0010| (2) if called for when the policymaking body is | 0011| not in an open meeting, shall not be held until public notice, | 0012| appropriate under the circumstances, stating the specific | 0013| provision of the law authorizing the closed meeting and stating | 0014| with reasonable specificity the subject to be discussed is given | 0015| to the members and to the general public. | 0016| J. Following completion of any closed meeting, the | 0017| minutes of the open meeting that was closed or the minutes of | 0018| the next open meeting if the closed meeting was separately | 0019| scheduled shall state that the matters discussed in the closed | 0020| meeting were limited only to those specified in the motion for | 0021| closure or in the notice of the separate closed meeting. This | 0022| statement shall be approved by the public body under Subsection | 0023| G of this section as part of the minutes." | 0024| Section 65. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0025| Chapter 303, Section 19-1, as amended) is amended to read: | 0001| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0002| Chapter 30, Article 19 NMSA 1978: | 0003| A. "antique gambling device" means a gambling device | 0004| twenty-five years of age or older and substantially in original | 0005| condition that is not used for gambling or commercial gambling | 0006| or located in a gambling place; | 0007| B. "bet" means a bargain in which the parties agree | 0008| that, dependent upon chance, even though accompanied by some | 0009| skill, one stands to win or lose anything of value specified in | 0010| the agreement. A bet does not include: | 0011| (1) bona fide business transactions that are | 0012| valid under the law of contracts, including [without | 0013| limitation]: | 0014| (a) contracts for the purchase or sale, at | 0015| a future date, of securities or other commodities; and | 0016| (b) agreements to compensate for loss | 0017| caused by the happening of the chance, including [without | 0018| limitation] contracts for indemnity or guaranty and life or | 0019| health and accident insurance; | 0020| (2) offers of purses, prizes or premiums to the | 0021| actual contestants in any bona fide contest for the | 0022| determination of skill, speed, strength or endurance or to the | 0023| bona fide owners of animals or vehicles entered in such contest; | 0024| (3) a lottery as defined in this section; or | 0025| (4) betting otherwise permitted by law; | 0001| [C. "lottery" means an enterprise other than the New | 0002| Mexico state lottery established and operated pursuant to the | 0003| New Mexico Lottery Act wherein, for a consideration, the | 0004| participants are given an opportunity to win a prize, the award | 0005| of which is determined by chance, even though accompanied by | 0006| some skill. As used in this subsection, "consideration" means | 0007| anything of pecuniary value required to be paid to the promoter | 0008| in order to participate in such enterprise; | 0009| D.] C. "gambling device" means a contrivance other | 0010| than an antique gambling device that is not licensed for use | 0011| pursuant to the Gaming Control Act and that, for a | 0012| consideration, affords the player an opportunity to obtain | 0013| anything of value, the award of which is determined by chance, | 0014| even though accompanied by some skill, [and] whether or not the | 0015| prize is automatically paid by the device; [and] | 0016| [E.] D. "gambling place" means [any] a building or | 0017| tent, [any] a vehicle, whether self-propelled or not, or [any] a | 0018| room within any of them that is not within the premises of a | 0019| person licensed as a lottery retailer or that is not licensed | 0020| pursuant to the Gaming Control Act, one of whose principal uses | 0021| is: | 0022| (1) making and settling of bets; | 0023| (2) receiving, holding, recording or forwarding | 0024| bets or offers to bet; | 0025| (3) conducting lotteries; or | 0001| (4) playing gambling devices; and | 0002| E. "lottery" means an enterprise wherein, for a | 0003| consideration, the participants are given an opportunity to win | 0004| a prize, the award of which is determined by chance, even though | 0005| accompanied by some skill. "Lottery" does not include the New | 0006| Mexico state lottery established and operated pursuant to the | 0007| New Mexico Lottery Act or gaming that is licensed and operated | 0008| pursuant to the Gaming Control Act. As used in this subsection, | 0009| "consideration" means anything of pecuniary value required to be | 0010| paid to the promoter in order to participate in a gambling or | 0011| gaming enterprise." | 0012| Section 66. A new section of Chapter 40, Article 3 NMSA | 0013| 1978 is enacted to read: | 0014| "[NEW MATERIAL] GAMBLING DEBTS ARE SEPARATE DEBTS OF | 0015| SPOUSE INCURRING DEBT.--A gambling debt incurred by a married | 0016| person as a result of legal gambling is a separate debt of the | 0017| spouse incurring the debt." | 0018| Section 67. Section 60-7A-19 NMSA 1978 (being Laws 1981, | 0019| Chapter 39, Section 96) is amended to read: | 0020| "60-7A-19. COMMERCIAL GAMBLING ON LICENSED PREMISES.-- | 0021| A. It is a violation of the Liquor Control Act for a | 0022| licensee to knowingly allow commercial gambling on the licensed | 0023| premises. | 0024| B. In addition to any criminal penalties, any person | 0025| who violates Subsection A of this section may have his license | 0001| suspended or revoked or a fine imposed, or both, pursuant to the | 0002| Liquor Control Act. | 0003| C. [For purposes of] As used in this section: | 0004| (1) "commercial gambling" means: | 0005| [(1)] (a) participating in the earnings of | 0006| or operating a gambling place; | 0007| [(2)] (b) receiving, recording or | 0008| forwarding bets or offers to bet; | 0009| [(3)] (c) possessing facilities with the | 0010| intent to receive, record or forward bets or offers to bet; | 0011| [(4)] (d) for gain, becoming a custodian of | 0012| anything of value bet or offered to be bet; | 0013| [(5)] (e) conducting a lottery where both | 0014| the consideration and the prize are money, or whoever with | 0015| intent to conduct a lottery possesses facilities to do so; or | 0016| [(6)] (f) setting up for use for the | 0017| purpose of gambling, or collecting the proceeds of, any gambling | 0018| device or game; and | 0019| (2) "commercial gambling" does not mean: | 0020| (a) activities authorized pursuant to the | 0021| New Mexico Lottery Act; | 0022| (b) the conduct of activities pursuant to | 0023| Subsection D of Section 30-19-6 NMSA 1978; and | 0024| (c) gaming authorized pursuant to the | 0025| Gaming Control Act on the premises of a gaming operator licensee | 0001| licensed pursuant to that act." | 0002| Section 68. SEVERABILITY.--If any part or application of | 0003| the Gaming Control Act is held invalid, the remainder or its | 0004| application to other situations or persons shall not be | 0005| affected. | 0006| Section 69. DELAYED EFFECTIVE DATE.--The provisions of | 0007| the Gaming Control Act shall be effective on the date that a | 0008| tribal gaming compact agreed upon and executed by an Indian | 0009| nation, tribe or pueblo and the state is approved pursuant to | 0010| the provisions of the Indian Gaming Regulatory Act, 25 USCA | 0011| Section 2701, et seq. | 0012| Section 70. EMERGENCY.--It is necessary for the public | 0013| peace, health and safety that this act take effect immediately. | 0014|  | 0015| |