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| SPONSOR: | Robinson | DATE TYPED: | 03/10/99 | HB | |||
| SHORT TITLE: | Special Conditions for Nonprofit Organization | SB | 575 | ||||
| ANALYST: | Hadwiger | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| Insign. | Recurring | GF | |||
(Parenthesis ( ) Indicate Expenditure Decreases)
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| See text. | ||||
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Gaming Control Board (GCB)
Regulation and Licensing Department (RLD)
SUMMARY
Synopsis of Bill
The bill would amend the Gaming Control Act to allow members of nonprofit organizations that operate gaming machines to sponsor as many as four guests at any time who would be permitted to play gaming machines on the nonprofit's premises.
Significant Issues
This bill would broaden the range of individuals who could play gaming machines at veterans and fraternal organizations. This should increase the amount of funds generated by these organizations for charitable and educational purposes.
According to the GCB, permitting nonprofit organizations to expand their gaming to nonmembers may raise significant issues regarding the exclusivity provisions of the tribal revenue sharing agreement (Section 11-13-2 NMSA 1978), which provides that the tribal obligation to make revenue sharing payments shall terminate in the event that the State permits any expansion of nontribal Class III Gaming in the State beyond the lottery, provisions for racetracks, and "any fraternal, veterans or other nonprofit membership organization to operate such electronic gaming devices lawfully, but only for the benefit of such organization's members." (Section 4B(2) of the Revenue-Sharing Agreement).
FISCAL IMPLICATIONS
If this bill resulted in termination of tribal revenue-sharing payments, there would be a reduction of about $32 million in general fund revenues annually.
ADMINISTRATIVE IMPLICATIONS
The GCB anticipates that expansion of gaming at nonprofit organizations would require additional state monitoring and regulation.
DH/prr