0001| SENATE BILL 606 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| BEN D. ALTAMIRANO | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO GAMING; ENACTING THE VIDEO GAMING ACT; PROVIDING FOR | 0013| VIDEO MACHINE GAMING AT LICENSED CLUBS; PROVIDING FOR A GAMING | 0014| TAX IN LIEU OF OTHER GROSS RECEIPTS OR EXCISE TAXES; PROVIDING | 0015| PENALTIES; MAKING APPROPRIATIONS; AMENDING AND ENACTING SECTIONS | 0016| OF THE NMSA 1978; DECLARING AN EMERGENCY. | 0017| | 0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0019| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0020| through 36 of this act may be cited as the "Video Gaming Act". | 0021| Section 2. [NEW MATERIAL] PURPOSE.--The purpose of the | 0022| Video Gaming Act is to: | 0023| A. authorize and regulate the use and operation of | 0024| video gaming machines at licensed clubs in the state; and | 0025| B. take all actions necessary to ensure the | 0001| integrity, reliability and security of all games of chance | 0002| located on the premises of licensed clubs. | 0003| Section 3. [NEW MATERIAL] PUBLIC POLICY OF STATE | 0004| CONCERNING GAMING.--The legislature finds and declares it to be | 0005| the public policy of this state that: | 0006| A. regulation of video gaming at licensed clubs is | 0007| critical to ensure that it is conducted honestly and uniformly | 0008| throughout New Mexico; | 0009| B. the public's confidence and trust in the conduct | 0010| of permitted video gaming activities at licensed clubs can be | 0011| obtained and maintained only through strict regulation of all | 0012| persons, locations, practices, associations and activities | 0013| related directly or indirectly to nontribal video gaming | 0014| conducted in the state; and | 0015| C. a holder of a license issued pursuant to the | 0016| Video Gaming Act to conduct permitted gaming activities at | 0017| licensed clubs does not acquire any vested interest or right in | 0018| or under the license and has only a revocable privilege. | 0019| Section 4. [NEW MATERIAL] DEFINITIONS.--As used in the | 0020| Video Gaming Act: | 0021| A. "associated equipment" means any proprietary | 0022| device, machine or part used in the manufacture or maintenance | 0023| of a video gaming machine, including but not limited to | 0024| integrated circuit chips, printed wired assembly, printed wire | 0025| boards, printing mechanisms, video display monitors and metering | 0001| devices; | 0002| B. "board" means the video gaming board that | 0003| regulates video gaming pursuant to the provisions of the Video | 0004| Gaming Act; | 0005| C. "committee" means the gaming oversight committee | 0006| that oversees the operation of video gaming in the state and is | 0007| created in the Video Gaming Act; | 0008| D. "distributor" means any person who distributes or | 0009| sells video gaming machines or associated equipment to a | 0010| licensed club in New Mexico; | 0011| E. "licensed club" means a nonprofit organization | 0012| that has been licensed pursuant to the Video Gaming Act; | 0013| F. "licensee" means any person who is granted a | 0014| license pursuant to the Video Gaming Act; | 0015| G. "major procurement" means any procurement or | 0016| contract for the purchase or lease of facilities, equipment, | 0017| goods or services used primarily for the regulation and control | 0018| of video gaming, the value of which is in excess of twenty | 0019| thousand dollars ($20,000), including computer equipment, | 0020| accounting, consulting or other procurements deemed necessary by | 0021| the superintendent; | 0022| H. "manufacturer" means any person who assembles or | 0023| produces video gaming machines or associated equipment to be | 0024| sold or used in New Mexico; | 0025| I. "net take" means the total of all cash received | 0001| from patrons for the play of video gaming machines less the | 0002| total of all cash paid out in prizes; | 0003| J. "nonprofit organization" means any organization, | 0004| described in Section 501(c)(8), 501(c)(10), 501(c)(19) or | 0005| 501(c)(23) of the federal Internal Revenue Code of 1986, as | 0006| amended, that is exempt from federal income taxation pursuant to | 0007| Section 501(a) of that code and that has been issued a license | 0008| pursuant to Section 60-6A-5 NMSA 1978; | 0009| K. "operator" means any person who sells, leases, | 0010| services or places video gaming machines or associated equipment | 0011| for use in the state; | 0012| L. "person" means an individual or any legal entity, | 0013| including a partnership, joint venture, limited partnership, | 0014| limited liability company or corporation; | 0015| M. "regulation" means a rule, regulation, order, | 0016| standard or statement of policy issued or adopted by the board | 0017| pursuant to the Video Gaming Act regarding the regulation or | 0018| operation of video gaming in the state; | 0019| N. "superintendent" means the superintendent of | 0020| regulation and licensing; | 0021| O. "vendor" means any person who provides a major | 0022| procurement under contract with the division or security | 0023| division; | 0024| P. "video game" means a simulated game of chance | 0025| that may involve skill of the player or application of the | 0001| element of chance, or both, that is displayed and played on a | 0002| video gaming machine that has been authorized by the board; | 0003| Q. "video gaming licensee" means a nonprofit | 0004| organization that has obtained a license pursuant to the Video | 0005| Gaming Act to have video gaming machines in operation on the | 0006| licensee's premises; | 0007| R. "video gaming machine" means any electronic or | 0008| electromechanical device, contrivance or machine, including | 0009| those commonly known as slot machines, that is available for | 0010| play upon the payment of consideration and when played may | 0011| entitle the player to receive or may deliver to the player | 0012| something of value, including currency, coins, premiums, | 0013| merchandise, credits, tokens or a voucher, whether by reason of | 0014| the skill of the player or application of the element of chance, | 0015| or both; and | 0016| S. "voucher" means a receipt, credit slip or other | 0017| tangible evidence printed out by a video gaming machine that | 0018| entitles the holder to receive something of value for having | 0019| played the machine and won its game. | 0020| Section 5. BOARD--MEMBERSHIP--QUALIFICATIONS.-- | 0021| A. [NEW MATERIAL] The "video gaming board" is | 0022| created and is administratively attached to the regulation and | 0023| licensing department. | 0024| B. The board shall consist of the following five | 0025| members: | 0001| (1) the state treasurer or a person designated | 0002| by the state treasurer who can represent that office; | 0003| (2) two persons appointed by the governor, one | 0004| of whom shall have had five years' experience in the management | 0005| of a law enforcement agency and one of whom shall have had three | 0006| years' experience in the management of a video gaming | 0007| enterprise; | 0008| (3) one person appointed by the president pro | 0009| tempore of the senate; and | 0010| (4) one person appointed by the speaker of the | 0011| house of representatives. | 0012| C. Members of the board shall be citizens of the | 0013| United States. | 0014| D. Members of the board are subject to confirmation | 0015| by the senate and shall serve four-year terms, except that the | 0016| members appointed by the president pro tempore of the senate or | 0017| the speaker of the house of representatives shall serve | 0018| two-year terms. No person shall serve on the board for more | 0019| than twelve years. | 0020| E. The board shall annually elect a chairman from | 0021| among its members. | 0022| F. The special investigations division of the | 0023| department of public safety shall conduct background | 0024| investigations of all appointed members of the board prior to | 0025| each taking office. The background investigations shall include | 0001| but not be limited to credit checks, police checks, conviction | 0002| records checks and national and statewide criminal records | 0003| clearinghouse and fingerprint checks. The result of the | 0004| investigations shall be provided to the governor, the president | 0005| pro tempore of the senate, the speaker of the house of | 0006| representatives and the senate rules committee. | 0007| G. An individual convicted of a crime, not including | 0008| a petty misdemeanor, that involves gambling, moral turpitude, | 0009| fraud or theft shall not be eligible to serve on or be appointed | 0010| to the board. | 0011| H. A board member shall report his arrest for or | 0012| conviction of a crime, not including a petty misdemeanor, that | 0013| includes gambling, moral turpitude, fraud or theft to the person | 0014| who appointed him and to the chairman of the board within three | 0015| days of the arrest or conviction. A member convicted of a crime | 0016| specified in this subsection shall resign or be removed from the | 0017| board by the person who appointed that member to the board. | 0018| I. No person who has or later acquires an ownership | 0019| interest in a vendor or licensee or is a member of a licensed | 0020| club shall serve on the board. | 0021| Section 6. [NEW MATERIAL] MEETINGS--QUORUM--RECORDS.-- | 0022| A. A majority of the qualified membership of the | 0023| board then in office constitutes a quorum. No action may be | 0024| taken by the board unless at least three members concur. | 0025| B. The board may hold regular or special meetings | 0001| upon reasonable notice. | 0002| C. Meetings of the board shall be open and public in | 0003| accordance with the Open Meetings Act, except that the board may | 0004| have closed meetings to hear security and investigative | 0005| information that is otherwise permitted by law to be | 0006| confidential, to evaluate confidential proprietary information | 0007| provided as part of a major procurement proposal and to consider | 0008| those matters specified as confidential in the Video Gaming Act. | 0009| D. All proceedings of the board shall be recorded by | 0010| audiotape or other equivalent verbatim audio recording device; | 0011| however, tapes of closed meetings shall not be made available to | 0012| the public. | 0013| Section 7. [NEW MATERIAL] BOARD DUTIES--ADMINISTRATIVE | 0014| SUPPORT.-- | 0015| A. The board shall adopt, amend or repeal all | 0016| regulations necessary to administer the Video Gaming Act and to | 0017| assure the honest and secure operation of the board and video | 0018| gaming in the state. | 0019| B. All administrative support required by the board | 0020| shall be provided by the superintendent. | 0021| C. The board shall oversee implementation of all | 0022| adopted regulations. | 0023| D. The board may delegate the authority to enforce | 0024| all adopted regulations to the superintendent. | 0025| E. The board shall provide notice and an opportunity | 0001| to be heard in proceedings for the adoption, amendment or repeal | 0002| of regulations applicable to licensees. | 0003| F. Within one hundred eighty days following the date | 0004| on which the Video Gaming Act becomes effective, the board shall | 0005| adopt regulations consistent with the policy, objectives and | 0006| purposes of that act. | 0007| Section 8. [NEW MATERIAL] COMMITTEE--DUTIES--COMPENSATION.-- | 0008| A. There is created a joint interim legislative | 0009| oversight committee, which shall be known as the "gaming | 0010| oversight committee". The committee shall function from the | 0011| date of its appointment until the first day of December prior to | 0012| the second session of the forty-fifth legislature. | 0013| B. The committee shall be composed of ten members. | 0014| Five members of the house of representatives shall be appointed | 0015| by the speaker of the house of representatives, and five members | 0016| of the senate shall be appointed by the committees' committee of | 0017| the senate or, if the senate appointments are made in the | 0018| interim, by the president pro tempore of the senate after | 0019| consultation with and agreement of a majority of the members of | 0020| the committees' committee. Members shall be appointed so that | 0021| there is a member from each of the major political parties from | 0022| each house. No person who has or later acquires an ownership or | 0023| membership interest in any vendor or licensee shall serve on the | 0024| committee. | 0025| C. The committee shall oversee the operations and | 0001| regulation of video gaming, as well as periodically review and | 0002| evaluate the success with which the board is accomplishing its | 0003| duties and regulating video gaming activities pursuant to the | 0004| Video Gaming Act. The committee may conduct as it deems | 0005| necessary an independent audit or investigation of the gaming | 0006| functions of the board or the regulation and licensing | 0007| department. | 0008| D. Members of the committee may receive per diem and | 0009| mileage in accordance with the provisions of the Per Diem and | 0010| Mileage Act when the legislature is not in session and shall | 0011| receive no other compensation, perquisite or allowance. | 0012| E. The committee shall report its findings and | 0013| recommendations on video gaming to each regular session of the | 0014| legislature. | 0015| Section 9. [NEW MATERIAL] REGULATIONS.-- | 0016| A. The regulations adopted by the board and | 0017| administered by the superintendent pursuant to the Video Gaming | 0018| Act shall include but are not limited to regulations governing: | 0019| (1) security for video games; | 0020| (2) application requirements for licensees, | 0021| including disclosure requirements related to the ownership and | 0022| control of licensees and other disclosures necessary to evaluate | 0023| the competence, background, integrity or character of the | 0024| licensee; | 0025| (3) the manner and schedule of implementation | 0001| of video gaming authorized by and consistent with the Video | 0002| Gaming Act; | 0003| (4) enforcement of prohibitions on the playing | 0004| of video games by or for an individual younger than twenty-one | 0005| years of age; | 0006| (5) the specific games to be conducted within | 0007| the categories of video games to ensure that no specific game is | 0008| operated that is unfair or misleading; | 0009| (6) the percentage payout for video gaming | 0010| machines and how it should be calculated, provided that at least | 0011| eighty-five percent of the amount played or bet computed on a | 0012| regular and systematic basis shall be paid or awarded in cash or | 0013| credits; | 0014| (7) the hours during which video gaming | 0015| machines may be operated; | 0016| (8) the procedures to be followed by a video | 0017| gaming licensee in payment of valid prizes, including annuities; | 0018| (9) the qualifications of vendors or licensees; | 0019| (10) minimum standards for video gaming | 0020| machines that should reflect Nevada or New Jersey standards; | 0021| (11) the operations of distributors and | 0022| operators to ensure their compliance with the Video Gaming Act; | 0023| and | 0024| (12) any other matter necessary or desirable as | 0025| determined by the superintendent to promote and ensure the | 0001| integrity, security, honesty and fairness of the operation and | 0002| administration of video gaming. | 0003| B. Regulations shall be adopted to implement and | 0004| enforce the Video Gaming Act not more than one hundred eighty | 0005| days following the date on which that act becomes effective. | 0006| The regulations adopted pursuant to this section shall be valid | 0007| for no longer than a period of ten years following adoption | 0008| unless earlier reviewed and approved by the superintendent. | 0009| Section 10. [NEW MATERIAL] ADMINISTRATION--HEARING--REGULATIONS.-- | 0010| A. Regulations shall be adopted, amended or repealed | 0011| only after a public hearing by the board. Notice of the hearing | 0012| shall be given at least twenty days in advance in a newspaper of | 0013| general circulation in the state and shall set forth the | 0014| proposed regulation, amendment or the regulation proposed to be | 0015| repealed. The board shall either approve or disapprove the | 0016| proposed regulation, amendment or repeal of the regulations | 0017| within ten days following the hearing. | 0018| B. Certified copies of any approved regulations | 0019| shall be submitted to the committee and, as required, to the | 0020| records center pursuant to the State Rules Act. Copies of the | 0021| regulations in force shall be made available to any person upon | 0022| request. | 0023| C. The board shall adopt regulations to implement | 0024| this section and for the conduct of all hearings. | 0025| Section 11. [NEW MATERIAL] ADMINISTRATIVE SUPPORT.--The | 0001| superintendent shall provide all necessary administrative | 0002| support to the board, including clerical, administrative, | 0003| investigatory or other functions deemed necessary and | 0004| appropriate by the board to carry out its duties pursuant to the | 0005| Video Gaming Act. | 0006| Section 12. [NEW MATERIAL] SECURITY.-- | 0007| A. The superintendent shall be responsible for | 0008| providing security services to the board, including conducting | 0009| background investigations on appropriate personnel. | 0010| B. The department of public safety, at the request | 0011| of the board or superintendent, shall perform a full criminal | 0012| background investigation on any employee who is directly | 0013| involved in administration, implementation or oversight of the | 0014| provisions of the Video Gaming Act. The background | 0015| investigations shall include credit checks, police record | 0016| checks, conviction record checks, national and statewide | 0017| criminal records clearinghouse checks and fingerprint checks. | 0018| The board shall reimburse the department of public safety for | 0019| the actual costs of an investigation. All information obtained | 0020| through a background investigation shall be confidential, except | 0021| that the superintendent may exchange such confidential | 0022| information with state, federal and local law enforcement | 0023| agencies. | 0024| C. Any individual convicted of a felony or any crime | 0025| involving gambling, moral turpitude, fraud or theft shall not be | 0001| eligible for employment involving the administration of the | 0002| Video Gaming Act. | 0003| D. An employee of the regulation and licensing | 0004| department directly involved in the administration, | 0005| implementation or oversight of video gaming shall report his | 0006| arrest for or conviction of a felony or any crime involving | 0007| gambling, moral turpitude, fraud or theft to the superintendent | 0008| within three days of such arrest or conviction. | 0009| E. By January 1, 1998 and at least once every two | 0010| years thereafter, the superintendent shall employ an independent | 0011| firm that is experienced in security, including computer | 0012| security and systems security, to conduct a comprehensive | 0013| confidential study of all aspects of video gaming security, | 0014| including: | 0015| (1) regulation and licensing department | 0016| personnel security; | 0017| (2) vendor and licensee security; | 0018| (3) security against fraudulent winning; | 0019| (4) computer system security and data | 0020| communications, database and systems security; | 0021| (5) security of payment procedures; and | 0022| (6) other security aspects of video gaming | 0023| regulatory operations. | 0024| F. The board shall provide the governor and the | 0025| committee with a copy of the confidential security study. | 0001| G. The board, after consultation with the committee, | 0002| shall develop a plan to improve the security of video gaming | 0003| based upon the recommendations of the confidential security | 0004| study; however, nothing in this section requires the board to | 0005| implement any of the recommendations made in the security study. | 0006| Section 13. [NEW MATERIAL] INFORMATION AND DATA--CONFIDENTIALITY--DISCLOSURE.-- | 0007| A. All of the following information and data are | 0008| confidential and may be revealed in whole or in part only in the | 0009| course of the necessary administration of the Video Gaming Act | 0010| or upon the lawful order of a court of competent jurisdiction, | 0011| except that the board may reveal confidential information and | 0012| data to an authorized agent of any governmental agency pursuant | 0013| to a reciprocal agreement with the other governmental agency to | 0014| share information and maintain confidentiality of the | 0015| information as provided in this section: | 0016| (1) security measures and internal security | 0017| reports; | 0018| (2) information and data provided by a | 0019| governmental agency required by that agency's governing law to | 0020| be kept confidential; | 0021| (3) trade secrets and proprietary information | 0022| of any applicant, licensee or vendor; | 0023| (4) personal data, including personal financial | 0024| data, not otherwise public and not directly related to the | 0025| license or major procurement contract; and | 0001| (5) data or information as otherwise authorized | 0002| by law. | 0003| B. Notice of the content of any information or data | 0004| furnished or released pursuant to Paragraphs (3) and (4) of | 0005| Subsection A of this section shall be given to any applicant or | 0006| licensee in a manner prescribed by regulations adopted pursuant | 0007| to the Video Gaming Act. | 0008| Section 14. [NEW MATERIAL] BOARD--RECORDS-- | 0009| REQUIREMENTS.-- | 0010| A. The board shall make and keep records that | 0011| accurately and fairly reflect transactions of video gaming | 0012| conducted pursuant to the Video Gaming Act, including the | 0013| receipt of funds, prize claims, prizes paid, expenses and all | 0014| other activities and financial transactions involving revenue | 0015| generated by video gaming, to permit preparation of financial | 0016| statements in conformity with generally accepted accounting | 0017| principles and to maintain daily accountability. | 0018| B. The board shall maintain a file of all | 0019| applications for licenses pursuant to the Video Gaming Act, | 0020| together with a record of all action taken with respect to those | 0021| applications. The file and record are open to public | 0022| inspection, except those portions declared by law to be | 0023| confidential. | 0024| C. The board may maintain other files and records as | 0025| it deems desirable. | 0001| Section 15. [NEW MATERIAL] AUDITS.-- | 0002| A. The board shall provide for a certified public | 0003| accountant to conduct an independent audit for each fiscal year | 0004| of all accounts and transactions related to video gaming. The | 0005| independent audit shall be reviewed by the office of the state | 0006| auditor. The certified public accountant shall not have an | 0007| ownership interest in a vendor or licensee and shall report any | 0008| conflict of interest to the board. The certified public | 0009| accountant shall present an audit report to the board, the | 0010| governor and the committee not later than December 31 of the | 0011| year following the fiscal year for which the audit was | 0012| performed. The report shall contain recommendations to improve | 0013| the efficiency of video gaming regulatory operations. | 0014| B. Each vendor's or licensee's records relating to | 0015| the Video Gaming Act are subject to audit. | 0016| C. The board, after consultation with the committee, | 0017| shall develop a plan to improve the efficiency of the regulation | 0018| of video gaming based upon the recommendations of the certified | 0019| public accountant; however, nothing in this section requires the | 0020| board to implement any of the recommendations made by the | 0021| certified public accountant. | 0022| D. All accounts and transactions relating to video | 0023| gaming are exempt from the Audit Act. | 0024| Section 16. [NEW MATERIAL] INVESTIGATORY POWERS.--The | 0025| board has the power to: | 0001| A. examine, under oath, any person or any officer, | 0002| employee or agent of any organization or corporation; | 0003| B. compel by subpoena the production of records; and | 0004| C. compel by subpoena the attendance of any person | 0005| in this state to testify before the board when such | 0006| investigation is necessary to the proper administration of the | 0007| Video Gaming Act. | 0008| Section 17. [NEW MATERIAL] ATTORNEY GENERAL--OTHER LAW | 0009| ENFORCEMENT AUTHORITY--POWERS AND DUTIES.-- | 0010| A. The board may confer with the attorney general as | 0011| deemed necessary and advisable for the proper administration of | 0012| the Video Gaming Act. Upon request of the board, it is the duty | 0013| of the attorney general and any other law enforcement authority | 0014| to whom a violation is reported to investigate and cause | 0015| appropriate proceedings to be instituted without delay. | 0016| B. The attorney general and the department of public | 0017| safety shall furnish to the board any information that they may | 0018| have in their possession as may be necessary to ensure security, | 0019| honesty, fairness and integrity in the operation and | 0020| administration of video gaming conducted pursuant to the Video | 0021| Gaming Act. The board shall be considered to be a criminal | 0022| justice agency and shall be furnished that information without | 0023| charge upon proper written request from the board. | 0024| Section 18. [NEW MATERIAL] CONFLICTS OF INTEREST--COMPLIANCE WITH OTHER LAWS--VIOLATION--REMOVAL FROM OFFICE.-- | 0025| A. The superintendent, the committee, the members of | 0001| the board or other restricted persons shall not, directly or | 0002| indirectly: | 0003| (1) knowingly hold a financial interest or | 0004| acquire stocks, bonds or any other interest in any entity that | 0005| is a licensee or vendor; or | 0006| (2) have a financial interest in the ownership | 0007| or leasing of property used in the conduct or regulation of | 0008| video gaming. | 0009| B. The superintendent, the committee, the members of | 0010| the board or other restricted persons shall not ask for, offer | 0011| to accept or receive any gift, gratuity or other thing of value | 0012| that would inure to that person's benefit from: | 0013| (1) any entity seeking to supply equipment, | 0014| materials or services for use in the conduct or regulation of | 0015| video gaming; | 0016| (2) any applicant for a license; or | 0017| (3) any vendor or licensee. | 0018| C. No person seeking to supply equipment, materials | 0019| or services for use in the conduct or regulation of video | 0020| gaming, no applicant for a license and no vendor or licensee | 0021| shall offer or give to the superintendent, the committee, | 0022| members of the board or other restricted persons any gift, | 0023| gratuity or other thing of value that would inure to the | 0024| recipient's personal benefit. | 0025| D. For purposes of this section: | 0001| (1) "gift, gratuity or other thing of value" | 0002| does not include the provision of a breakfast, luncheon, dinner | 0003| or other refreshment consisting of food and beverage provided | 0004| for immediate consumption; and | 0005| (2) "other restricted person" means anyone | 0006| living in the same household as the superintendent, a member of | 0007| the committee or any member of the board. | 0008| E. The superintendent and members of the board shall | 0009| comply with all state laws applicable to ethics in government, | 0010| conflict of interest and financial disclosure. | 0011| F. If the superintendent or a member of the board | 0012| violates this section, he may be removed from his position after | 0013| notice and a hearing before the board or the remaining members | 0014| of the board. | 0015| Section 19. [NEW MATERIAL] TAX IMPOSED--RATE.-- | 0016| A. For the privilege of offering video gaming | 0017| machines for play on its premises pursuant to the Video Gaming | 0018| Act, an excise tax that may be cited as the "gaming tax" is | 0019| imposed upon licensed clubs. | 0020| B. The gaming tax is imposed in an amount equal to | 0021| ten percent of the net take of each video gaming machine located | 0022| on the premises of the licensed club. | 0023| C. The revenue from the gaming tax shall be | 0024| distributed in the following manner: | 0025| (1) one-fourth of one percent of the revenue | 0001| received from a licensee for each video gaming machine on its | 0002| premises is appropriated to the department of health and shall | 0003| be used for education, prevention and treatment programs for | 0004| compulsive gamblers; and | 0005| (2) the remainder of the revenue received from | 0006| a licensee for each video gaming machine on its premises shall | 0007| be distributed to the general fund. | 0008| D. The gaming tax shall be paid to and administered | 0009| and enforced by the taxation and revenue department pursuant to | 0010| the provisions of the Tax Administration Act. | 0011| E. The gaming tax is imposed in lieu of gross | 0012| receipts tax or any other excise tax imposed by the state or | 0013| local government. | 0014| Section 20. [NEW MATERIAL] PROCUREMENT OF GOODS AND | 0015| SERVICES.--The superintendent shall enter into all contracts, | 0016| subject to approval of the board, for procurement of goods and | 0017| services required by the board to carry out its duties and | 0018| responsibilities under the provisions of the Video Gaming Act. | 0019| Section 21. [NEW MATERIAL] MAJOR PROCUREMENT--VENDOR--DISCLOSURES REQUIRED--CONTRACT APPROVAL--REQUIREMENTS.-- | 0020| A. The board shall request proposals for major | 0021| procurements for effectuating the purpose of the Video Gaming | 0022| Act. No contract for a major procurement may be assigned by a | 0023| vendor except by a written agreement approved and signed by the | 0024| board. | 0025| B. The board may require persons making major | 0001| procurement proposals to disclose information to enable it to | 0002| review and evaluate the responses to the requests for proposals | 0003| on the basis of competence, background, integrity, character and | 0004| nature of the ownership and control of vendors and to ensure | 0005| compliance with the provisions of the Video Gaming Act. | 0006| C. The board shall investigate, as part of the | 0007| process for analyzing responses to requests for proposals for | 0008| any major procurement, the financial responsibility, security | 0009| and integrity of any party whose proposal is under final | 0010| consideration. The board shall require a background | 0011| investigation of any person with a substantial interest, as | 0012| defined by the board, in a party whose proposal is under final | 0013| consideration. A background investigation shall include credit | 0014| checks, police record checks, conviction record checks, national | 0015| and statewide criminal records clearinghouse checks and | 0016| fingerprint checks. Each party whose proposal is under final | 0017| consideration shall pay the costs of that party's background | 0018| investigation. | 0019| D. No major procurement shall be entered into if any | 0020| person with a substantial interest, as defined by the board, in | 0021| the person making a major procurement proposal has been | 0022| convicted of a felony or any crime involving gambling, moral | 0023| turpitude, fraud or theft. | 0024| E. A vendor shall report an arrest for or conviction | 0025| of a felony or any crime involving gambling, moral turpitude, | 0001| fraud or theft for any person with a substantial interest in | 0002| that vendor to the board within three days of such arrest or | 0003| conviction. | 0004| F. No major procurement proposal shall be approved | 0005| by the board if the person making the proposal makes a material | 0006| misrepresentation of fact in his proposal or during the proposal | 0007| review process or if the person making the proposal fails to | 0008| comply with this section. Any contract entered into with a | 0009| vendor who has made a material misrepresentation of fact or has | 0010| failed to comply with this section shall be void. | 0011| G. This section shall be construed broadly and | 0012| liberally to achieve the end of full disclosure of all | 0013| information necessary to allow for a full, complete and ongoing | 0014| evaluation by the board of the competence, integrity, | 0015| background, character and nature of the ownership and control of | 0016| vendors. | 0017| Section 22. [NEW MATERIAL] MAJOR PROCUREMENT--VENDOR--PERFORMANCE BOND.--Each vendor shall post a performance bond | 0018| with the board, using a surety acceptable to the board, in | 0019| consultation with the superintendent of insurance in an amount | 0020| equal to the full amount estimated to be paid annually to the | 0021| vendor under the contract. Nothing in the Video Gaming Act | 0022| shall be construed to restrict the authority of the board to | 0023| specify liquidated or other damages in contracts with vendors. | 0024| Section 23. [NEW MATERIAL] LICENSING.-- | 0025| A. No person may sell, service, install or allow | 0001| play on video gaming machines or sell, service or install | 0002| associated equipment without first obtaining a license from the | 0003| board pursuant to the Video Gaming Act. | 0004| B. The board shall adopt regulations concerning | 0005| licensing criteria. The regulations shall require that it | 0006| consider an applicant's financial responsibility, the security | 0007| of the applicant's place of business or activity and the | 0008| integrity and reputation of the applicant. It is unlawful to | 0009| consider political affiliation, activities or monetary | 0010| contributions to political organizations or candidates for any | 0011| public office. | 0012| C. Video gaming licensees shall be granted a license | 0013| to operate a specific number of video gaming machines on | 0014| premises identified in the license application consistent with | 0015| the Video Gaming Act. In the event that a video gaming licensee | 0016| desires to change the number of machines in operation on his | 0017| premises, the video gaming licensee shall apply to the board for | 0018| an amendment to his license authorizing a change in the number | 0019| of machines. | 0020| D. Applicants for licensure, renewal or amendment | 0021| shall pay a fee to the board to be submitted with the | 0022| application not to exceed the following: | 0023| (1) video gaming licensees, twenty-five dollars | 0024| ($25.00) for each video gaming machine; | 0025| (2) operators, three thousand ($3,000) for | 0001| initial licensure and one thousand five hundred dollars ($1,500) | 0002| for annual renewal; | 0003| (3) distributors, five thousand dollars | 0004| ($5,000) for initial licensure and two thousand five hundred | 0005| dollars ($2,500) annually for renewal; | 0006| (4) manufacturers, ten thousand dollars | 0007| ($10,000) for initial licensure and five thousand dollars | 0008| ($5,000) annually for renewal; and | 0009| (5) gaming manager, one hundred dollars ($100) | 0010| annually. | 0011| E. Licenses issued pursuant to the Video Gaming Act | 0012| shall be valid for one year. Upon application for renewal, the | 0013| board may require additional information as it deems necessary | 0014| to evaluate the renewal application. | 0015| F. The board shall require background investigations | 0016| of any person with a substantial interest, as defined by the | 0017| board, in an applicant. Background investigations shall include | 0018| but not be limited to credit checks, police record checks, | 0019| conviction record checks, national and statewide criminal | 0020| records clearinghouse checks and fingerprint checks. The | 0021| applicant shall pay the costs of the background investigation. | 0022| G. No license shall be granted to an applicant if an | 0023| officer of a licensed club or any person with a substantial | 0024| interest, as defined by the board, in the applicant has been | 0025| convicted of a felony or a crime involving gambling, moral | 0001| turpitude, fraud or theft within ten years prior to the | 0002| application. | 0003| H. The licensee shall report the arrest for or | 0004| conviction of a felony or any crime involving gambling, moral | 0005| turpitude, fraud or theft of an officer of a licensed club or of | 0006| any person with a substantial interest in that licensee to the | 0007| board within ten days of the person's arrest or conviction. | 0008| I. No license shall be granted by the board if the | 0009| applicant makes a material misrepresentation of fact in his | 0010| application or during the application process or if the | 0011| applicant fails to comply with this section. Any license | 0012| granted to an applicant who has made a material | 0013| misrepresentation of fact or has failed to comply with this | 0014| section shall be void. The board may deny any application for | 0015| or limit or condition any license. | 0016| J. The burden of proving qualifications for | 0017| licensure is on the applicant. | 0018| K. If an application is denied, the board shall | 0019| prepare and make available to the applicant a written decision | 0020| upon which the order denying the application is based. | 0021| L. No video gaming licensee shall engage in business | 0022| primarily to operate video gaming machines. | 0023| M. No licensee may transfer a license to another | 0024| person. For purposes of this section, "transfer" means a change | 0025| in ownership or control of the licensee involving five percent | 0001| or more of the ownership or control interest of the licensee. A | 0002| licensee shall notify the board of any transfer. | 0003| N. The holder of any license does not acquire any | 0004| vested interest or right in or under the license, and a license | 0005| issued pursuant to the Video Gaming Act is a revocable | 0006| privilege. | 0007| O. This section shall be construed broadly and | 0008| liberally to achieve the end of full disclosure of all | 0009| information necessary to allow for a full and complete | 0010| evaluation by the board of an applicant's fitness. | 0011| P. The license fees paid to the board pursuant to | 0012| this section in fiscal years 1996 through 1998 are appropriated | 0013| to the board for expenditure in fiscal years 1996 through 1998 | 0014| for the purpose funding the costs of creating the regulatory, | 0015| security and enforcement infrastructure required to implement | 0016| the Video Gaming Act. | 0017| Section 24. [NEW MATERIAL] LICENSURE--LICENSED CLUBS--VIDEO GAMING--NET TAKE DISTRIBUTIONS.-- | 0018| A. A nonprofit organization may apply for and may be | 0019| issued a license as a video gaming licensee by the board to | 0020| offer video gaming on its club premises pursuant to the Video | 0021| Gaming Act and the regulations adopted to implement and enforce | 0022| that act. A nonprofit organization that is a video licensee is | 0023| a licensed club. | 0024| B. No more than five video gaming machines per each | 0025| one hundred members of a licensed club, not to exceed twenty-five video gaming machines, may be offered for play on the | 0001| premises of a licensed club. | 0002| C. Nothing in the Video Gaming Act shall prevent a | 0003| licensed club from owning the video gaming machines placed on | 0004| that club's premises; provided that the video gaming machines | 0005| comply with the Video Gaming Act and the regulations adopted | 0006| pursuant to that act. | 0007| D. No licensed club shall permit play on video | 0008| gaming machines on that club's premises on Tuesdays through | 0009| Saturdays between the hours of 2:00 a.m. and 7:00 a.m., on | 0010| Sundays between the hours of 2:00 a.m. and noon and on Mondays | 0011| between the hours of midnight and 7:00 a.m. | 0012| E. Video game jackpots or prizes shall not exceed a | 0013| value of five thousand dollars ($5,000). | 0014| F. Plays on video gaming machines shall not exceed: | 0015| (1) on five, ten, and twenty-five cent video | 0016| gaming machines, not including video poker machines, not more | 0017| than thirty-two credits; | 0018| (2) on five, ten and twenty-five cent video | 0019| poker machines, not more than thirty-two credits; and | 0020| (3) on dollar video gaming machines, not more | 0021| than five credits. | 0022| G. Licensed clubs shall use a minimum of twenty | 0023| percent of the net take of each video gaming machine for | 0024| charitable or benevolent purposes as described in the bylaws or | 0025| charter of the organization. | 0001| H. Licensed clubs shall submit an accounting of | 0002| distributions made pursuant to Subsection G of this section to | 0003| the board by December 31 of each calendar year for distributions | 0004| made in the fiscal year ending June 30 of that year. | 0005| Section 25. [NEW MATERIAL] GAME MANAGER'S LICENSE.-- | 0006| A. All games of chance conducted by a licensed club | 0007| shall be under the supervision of a game manager or assistant | 0008| game manager. A game manager is responsible for the accounting | 0009| and security of all income received by the licensed club from | 0010| video gaming machines and for ensuring that the conduct of all | 0011| video gaming is in compliance with all laws and regulations. | 0012| B. A licensed club may not have more than one game | 0013| manager and two assistant game managers at any time. | 0014| C. A person may not serve as a game manager or an | 0015| assistant game manager for a licensed club unless the person has | 0016| been issued a valid game manager's license by the board. The | 0017| board shall not issue a game manager's license to a person who | 0018| is a manufacturer, distributor, operator, licensed club or | 0019| person having a substantial financial interest, as defined by | 0020| the board, in a manufacturer, distributor, operator or a | 0021| licensed club. | 0022| D. The board may by regulation require all game | 0023| managers to receive training prior to assuming the duties of a | 0024| game manager and periodic training regarding the lawful control | 0025| of video gaming. | 0001| Section 26. [NEW MATERIAL] VIDEO GAMING LICENSEES--GENERAL RESTRICTIONS--PLAYER AGE LIMIT--RULES FOR PLACEMENT.-- | 0002| A. No person under twenty-one years of age may play | 0003| a video gaming machine licensed pursuant to the Video Gaming | 0004| Act. | 0005| B. Video gaming machines may only be available for | 0006| play in an area restricted to persons twenty-one years of age or | 0007| older. A video gaming licensee shall erect a "permanent | 0008| physical barrier" to allow for multiple uses of the premises by | 0009| persons of all ages. For purposes of this section, "permanent | 0010| physical barrier" means a floor-to-ceiling wall separating the | 0011| general areas from the restricted areas. The entrance to the | 0012| area where video gaming machines are located shall display a | 0013| sign that the premises are restricted to persons twenty-one | 0014| years or older. Persons under the age of twenty-one shall not | 0015| enter the premises where video gaming machines are located. | 0016| C. A person who violates the provisions of this | 0017| section is guilty of a misdemeanor and upon conviction shall be | 0018| sentenced pursuant to the provisions of Section 31-19-1 NMSA | 0019| 1978. | 0020| Section 27. [NEW MATERIAL] MULTIPLE TYPES OF LICENSES | 0021| PROHIBITED.--A manufacturer, distributor or operator shall | 0022| not be licensed as or own, manage or control a video gaming | 0023| licensee. A manufacturer shall not be licensed as or own, | 0024| manage or control an operator. | 0025| Section 28. [NEW MATERIAL] REVOCATION--CONTRACT--LICENSE.-- | 0001| A. Failure of a vendor to comply with any provision | 0002| of the Video Gaming Act or the regulations adopted pursuant to | 0003| that act shall be sufficient cause for suspension or termination | 0004| of a procurement contract; provided, however, suspension or | 0005| termination of a procurement contract shall not relieve the | 0006| vendor from prosecution for any of the alleged violations or | 0007| from imposition of fines and penalties. | 0008| B. If a licensee fails to respond to a written | 0009| request from the board or violates any provision of the Video | 0010| Gaming Act or any regulation adopted pursuant to that act, the | 0011| license of the offending licensee may be suspended, canceled or | 0012| revoked by the board; provided, however, the licensee shall have | 0013| reasonable notice and opportunity to be heard before the board | 0014| before suspension, cancellation, limitation or revocation; and | 0015| provided, further, the suspension, cancellation, limitation or | 0016| revocation of any license does not relieve the licensee from | 0017| prosecution for any of the alleged violations or from imposition | 0018| of fines and penalties. | 0019| C. The board may levy a fine against a vendor or | 0020| licensee for violation of the provisions of the Video Gaming Act | 0021| or regulations adopted pursuant to that act, not to exceed ten | 0022| thousand dollars ($10,000) per violation; provided, however, the | 0023| licensee has a reasonable opportunity to be heard by the board | 0024| before the imposition of the fine. Nothing in this section | 0025| limits the board from pursuing contractual remedies, including | 0001| assessing penalties, pursuant to the terms of a contract with a | 0002| vendor. | 0003| Section 29. [NEW MATERIAL] EMERGENCY ORDERS OF BOARD.-- | 0004| A. The board may issue an emergency order for | 0005| suspension or limitation of a license. | 0006| B. An emergency order may be issued only when the | 0007| board finds that: | 0008| (1) a licensee has failed to report, pay or | 0009| truthfully account for and remit any fee, fine or tax imposed by | 0010| or owed under the provisions of the Video Gaming Act or | 0011| attempted in any manner to evade or defeat a fee, debt or | 0012| required payment; | 0013| (2) a licensee has violated any provision of | 0014| the Video Gaming Act and the violation impairs the security of | 0015| video gaming activities; or | 0016| (3) a licensee is convicted of a felony or any | 0017| crime other than a petty misdemeanor, involving gambling, moral | 0018| turpitude, fraud or theft. | 0019| C. 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 the action. | 0022| D. An emergency order may be issued only with the | 0023| approval of and upon signature of three members of the board. | 0024| E. The emergency order is effective immediately upon | 0025| issuance and service upon the licensee, game manager or resident | 0001| agent of the licensee. The emergency order remains effective | 0002| until further order of the board. | 0003| F. The licensee may request that a hearing be held | 0004| by the board regarding the issuance and maintenance of the | 0005| emergency order. The board shall then hold a hearing within | 0006| twenty days. | 0007| Section 30. [NEW MATERIAL] COMMUNICATIONS SYSTEM.--Each | 0008| video gaming machine within eighteen months from the date on | 0009| which the Video Gaming Act becomes effective shall be linked to | 0010| a central communications system to provide auditing program and | 0011| financial information as required by the board. No | 0012| communications system required by the board shall limit | 0013| participation to only one manufacturer of video gaming machines | 0014| by either cost of implementing the necessary program | 0015| modifications to communicate or the inability to communicate | 0016| with the communications system. | 0017| Section 31. [NEW MATERIAL] VIDEO GAMING LICENSEE--STATE | 0018| REVENUE--DEPOSITS--PROHIBITIONS--DELINQUENT CHILD SUPPORT.-- | 0019| A. The taxation and revenue department may require | 0020| each video gaming licensee to deposit all money owed to the | 0021| state pursuant to provisions of the Video Gaming Act into | 0022| financial institutions designated by that department for credit | 0023| to the state gaming fund. | 0024| B. The taxation and revenue department may authorize | 0025| the electronic transfer of money from the accounts of video | 0001| gaming licensees to the state gaming fund. | 0002| C. No video gaming machine shall be played by and no | 0003| prize shall be awarded to any video gaming licensee or business | 0004| that is engaged in supplying associated equipment, supplies or | 0005| services being used in the operation of video gaming machines or | 0006| any officer, member of the board of directors, employee or owner | 0007| of a licensee or associated equipment business unless authorized | 0008| in writing by the board for research purposes. However, no | 0009| prize may be awarded as a result of play for research purposes. | 0010| D. The board shall implement a procedure to recover | 0011| delinquent child support payments or outstanding state tax | 0012| liability from payment of video gaming prizes in excess of six | 0013| hundred dollars ($600). The licensee shall credit any video | 0014| gaming prize first against any delinquent child support owed by | 0015| the winner and second against any outstanding state tax | 0016| liability owed by the winner and shall pay the balance of the | 0017| prize to the winner. The procedure shall ensure that any person | 0018| who investigates the money owed by the prizewinner shall have no | 0019| liability to a person to whom a delinquent child support payment | 0020| may be owed, the human services department or the taxation and | 0021| revenue department if the investigator fails to discover that a | 0022| winner owes money that is to be applied according to the policy. | 0023| Section 32. [NEW MATERIAL] REQUIREMENTS FOR LICENSED | 0024| VIDEO GAMING MACHINES.-- | 0025| A. Each video gaming machine licensed pursuant to | 0001| the Video Gaming Act shall: | 0002| (1) offer only games authorized by the board; | 0003| (2) not have any means of manipulation that | 0004| affects the random probabilities of winning; | 0005| (3) have nonresettable meters that keep a | 0006| permanent record of all cash inserted into the machine and all | 0007| awards of prizes, whether in cash or by voucher; | 0008| (4) have accounting software that keeps an | 0009| electronic record that includes but is not limited to the | 0010| following: | 0011| (a) total cash inserted into the machine; | 0012| (b) the value of cash or vouchers paid to | 0013| players and the date and time of payment; and | 0014| (c) the payback percentage credited to | 0015| players of each video gaming machine; and | 0016| (5) be linked to a central communications | 0017| system to provide auditing program information as required by | 0018| the board. | 0019| B. The board shall, on or before January 1, 1997, | 0020| adopt by regulation mechanical and electronic standards for | 0021| video gaming machines and slot machines, ensuring the integrity, | 0022| honesty and security of the machines, which standards shall not | 0023| be more lenient than those applied to similar machines in lawful | 0024| use within the United States by any other jurisdiction | 0025| regulating the conduct of video machine and slot machine gaming. | 0001| C. The board shall examine prototypes of video | 0002| gaming machines of licensed manufacturers. The director shall | 0003| require the manufacturer seeking the examination and approval of | 0004| a video gaming machine or associated equipment to pay the | 0005| anticipated actual costs of the examination in advance and, | 0006| after the completion of the examination, shall refund | 0007| overpayments or charge and collect amounts sufficient to | 0008| reimburse the director for underpayment of actual costs. The | 0009| board may contract for the examination of video gaming machines | 0010| and associated equipment as required by this section. | 0011| D. Each video gaming machine shall be licensed by | 0012| the board before placement or operation on the premises of a | 0013| video gaming licensee. Each machine shall have the license | 0014| prominently displayed on it in such a way that an attempt at | 0015| alteration will result in a mutilation of the license. Any | 0016| machine that does not display the license required by this | 0017| section is contraband and a public nuisance subject to | 0018| confiscation by any law enforcement or peace officer. | 0019| Section 33. [NEW MATERIAL] PROHIBITED ACTS--VIOLATIONS--PENALTIES.-- | 0020| A. It is a misdemeanor for a video gaming licensee | 0021| to fail to make available to the board all records pertaining to | 0022| accounts maintained for revenue derived from the operation of | 0023| video gaming machines. | 0024| B. It is a misdemeanor for any video gaming licensee | 0025| to knowingly allow any person under twenty-one years of age to | 0001| play a video gaming machine. | 0002| C. It is a misdemeanor for a person under twenty-one | 0003| years of age to play a video gaming machine. | 0004| D. It is a misdemeanor to release any information | 0005| obtained through a background investigation performed by the | 0006| superintendent or the department of public safety without the | 0007| prior written consent of the subject of the investigation, | 0008| except as provided otherwise in the Video Gaming Act. | 0009| E. It is a fourth degree felony to tamper with a | 0010| video gaming machine with intent to interfere with the proper | 0011| operation and reporting of the video gaming machine. | 0012| F. It is a fourth degree felony to tamper with or | 0013| falsify a voucher or to tamper with a video gaming machine with | 0014| intent to manipulate the outcome or payoff of the video gaming | 0015| machine. | 0016| G. It is a fourth degree felony to have an | 0017| unlicensed video gaming machine on the premises of a licensed | 0018| club. | 0019| H. It is a fourth degree felony to provide false | 0020| information or to intentionally make a material | 0021| misrepresentation of fact to the board or superintendent for | 0022| purposes of applying for a contract or a license or for purposes | 0023| of completing a background investigation pursuant to the Video | 0024| Gaming Act. | 0025| I. Any person convicted of a violation of | 0001| Subsections A through D of this section shall be sentenced | 0002| pursuant to the provisions of Section 31-19-1 NMSA 1978. Any | 0003| person convicted of a violation of Subsections E through H of | 0004| this section shall be sentenced pursuant to the provisions of | 0005| Section 31-18-15 NMSA 1978. | 0006| Section 34. [NEW MATERIAL] DISTRICT COURT OF SANTA FE | 0007| COUNTY--JURISDICTION--APPEAL.--The district court of Santa Fe | 0008| county has exclusive original jurisdiction of all legal | 0009| proceedings, except criminal actions, related to the | 0010| administration, enforcement or fulfillment of the | 0011| responsibilities, duties or functions performed pursuant to the | 0012| Video Gaming Act. An aggrieved party, including a party subject | 0013| to a fine, may seek review of an order or decision of the board | 0014| by filing an appeal with the district court of Santa Fe county | 0015| within thirty days after the date of the order or decision. | 0016| Section 35. [NEW MATERIAL] EXEMPTION FROM LOCAL TAXES.--Video gaming machines licensed and operated pursuant to the | 0017| Video Gaming Act are exempt from any local tax except property | 0018| taxes assessed by any political subdivision of the state having | 0019| the power to levy, assess or collect such a tax. | 0020| Section 36. [NEW MATERIAL] LOCAL LAWS PREEMPTED--APPLICABILITY OF OTHER LAWS.--The Video Gaming Act shall be | 0021| applied uniformly throughout the state and to all political | 0022| subdivisions of the state, and no local authority shall enact | 0023| any ordinances, rules or regulations that expand or conflict | 0024| with the provisions of that act. | 0025| Section 37. Section 7-1-2 NMSA 1978 (being Laws 1965, | 0001| Chapter 248, Section 2, as amended) is amended to read: | 0002| "7-1-2. APPLICABILITY.--The Tax Administration Act applies | 0003| to and governs: | 0004| A. the administration and enforcement of the | 0005| following taxes or tax acts as they now exist or may hereafter | 0006| be amended: | 0007| (1) Income Tax Act; | 0008| (2) Withholding Tax Act; | 0009| (3) Gross Receipts and Compensating Tax Act and | 0010| any state gross receipts tax; | 0011| (4) Liquor Excise Tax Act; | 0012| (5) Local Liquor Excise Tax Act; | 0013| [(6) Banking and Financial Corporations Tax | 0014| Act; | 0015| (7)] (6) any municipal local option gross | 0016| receipts tax; | 0017| [(8)] (7) any county local option gross | 0018| receipts tax; | 0019| [(9)] (8) Special Fuels Supplier Tax Act; | 0020| [(10)] (9) Gasoline Tax Act; | 0021| [(11] (10) petroleum products loading fee, | 0022| which fee shall be considered a tax for the purpose of the Tax | 0023| Administration Act; | 0024| [(12)] (11) Cigarette Tax Act; | 0025| [(13)] (12) Estate Tax Act; | 0001| [(14)] (13) Railroad Car Company Tax Act; | 0002| [(15)] (14) Investment Credit Act; | 0003| [(16)] (15) Corporate Income Tax Act; | 0004| [(17)] (16) Corporate Income and Franchise | 0005| Tax Act; | 0006| [(18)] (17) Uniform Division of Income for | 0007| Tax Purposes Act; | 0008| [(19)] (18) Multistate Tax Compact; | 0009| [(20)] (19) Tobacco Products Tax Act; | 0010| [(21)] (20) Filmmaker's Credit Act; and | 0011| [(22)] (21) the telecommunications relay | 0012| service surcharge imposed by Section 63-9F-11 NMSA 1978, which | 0013| surcharge shall be considered a tax for the purposes of the Tax | 0014| Administration Act; | 0015| B. the administration and enforcement of the | 0016| following taxes, surtaxes, advanced payments or tax acts as they | 0017| now exist or may hereafter be amended: | 0018| (1) Resources Excise Tax Act; | 0019| (2) Severance Tax Act; | 0020| (3) any severance surtax; | 0021| (4) Oil and Gas Severance Tax Act; | 0022| (5) Oil and Gas Conservation Tax Act; | 0023| (6) Oil and Gas Emergency School Tax Act; | 0024| (7) Oil and Gas Ad Valorem Production Tax Act; | 0025| (8) Natural Gas Processors Tax Act; | 0001| (9) Oil and Gas Production Equipment Ad Valorem | 0002| Tax Act; | 0003| (10) Copper Production Ad Valorem Tax Act; and | 0004| (11) any advance payment required to be made by | 0005| any act specified in this subsection, which advance payment | 0006| shall be considered a tax for the purposes of the Tax | 0007| Administration Act; | 0008| C. the administration and enforcement of the | 0009| following taxes, surcharges, fees or acts as they now exist or | 0010| may hereafter be amended: | 0011| (1) Weight Distance Tax Act; | 0012| (2) Special Fuels Tax Act; | 0013| (3) the workers' compensation fee authorized by | 0014| Section 52-5-19 NMSA 1978, which fee shall be considered a tax | 0015| for purposes of the Tax Administration Act; | 0016| (4) Controlled Substance Tax Act; | 0017| (5) Uniform Unclaimed Property Act; | 0018| (6) 911 emergency surcharge and the network and | 0019| database surcharge, which surcharges shall be considered taxes | 0020| for purposes of the Tax Administration Act; | 0021| (7) the solid waste assessment fee authorized | 0022| by the Solid Waste Act, which fee shall be considered a tax for | 0023| purposes of the Tax Administration Act; [and] | 0024| (8) the water conservation fee imposed by | 0025| Section 74-1-13 NMSA 1978, which fee shall be considered a tax | 0001| for the purposes of the Tax Administration Act; and | 0002| (9) the gaming tax imposed pursuant to the | 0003| Video Gaming Act; and | 0004| D. the administration and enforcement of all other | 0005| laws, with respect to which the department is charged with | 0006| responsibilities pursuant to the Tax Administration Act, but | 0007| only to the extent that such other laws do not conflict with the | 0008| Tax Administration Act." | 0009| Section 38. A new section of the Tax Administration Act is | 0010| enacted to read: | 0011| "[NEW MATERIAL] DISTRIBUTION OF GAMING TAX.--A | 0012| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made | 0013| to the video gaming fund of the net receipts attributable to the | 0014| gaming tax." | 0015| Section 39. A new section of the Gross Receipts and | 0016| Compensating Tax Act is enacted to read: | 0017| "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS TAX.--Receipts | 0018| of video gaming licensees from the operation of video gaming | 0019| machines pursuant to the Video Gaming Act may be deducted from | 0020| gross receipts." | 0021| Section 40. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0022| Chapter 91, Section 1, as amended) is amended to read: | 0023| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0024| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0025| A. In recognition of the fact that a representative | 0001| government is dependent upon an informed electorate, it is | 0002| declared to be public policy of this state that all persons are | 0003| entitled to the greatest possible information regarding the | 0004| affairs of government and the official acts of those officers | 0005| and employees who represent them. The formation of public | 0006| policy or the conduct of business by vote shall not be conducted | 0007| in closed meeting. All meetings of any public body except the | 0008| legislature and the courts shall be public meetings, and all | 0009| persons so desiring shall be permitted to attend and listen to | 0010| the deliberations and proceedings. Reasonable efforts shall be | 0011| made to accommodate the use of audio and video recording | 0012| devices. | 0013| B. All meetings of a quorum of members of any board, | 0014| commission, administrative adjudicatory body or other | 0015| policymaking body of any state agency, any agency or authority | 0016| of any county, municipality, district or any political | 0017| subdivision, held for the purpose of formulating public policy, | 0018| including the development of personnel policy, rules, | 0019| regulations or ordinances, discussing public business or for the | 0020| purpose of taking any action within the authority of or the | 0021| delegated authority of any board, commission or other | 0022| policymaking body are declared to be public meetings open to the | 0023| public at all times, except as otherwise provided in the | 0024| constitution of New Mexico or the Open Meetings Act. No public | 0025| meeting once convened that is otherwise required to be open | 0001| pursuant to the Open Meetings Act shall be closed or dissolved | 0002| into small groups or committees for the purpose of permitting | 0003| the closing of the meeting. | 0004| C. If otherwise allowed by law or rule of the public | 0005| body, a member of a public body may participate in a meeting of | 0006| the public body by means of a conference telephone or other | 0007| similar communications equipment when it is otherwise difficult | 0008| or impossible for the member to attend the meeting in person, | 0009| provided that each member participating by conference telephone | 0010| can be identified when speaking, all participants are able to | 0011| hear each other at the same time and members of the public | 0012| attending the meeting are able to hear any member of the public | 0013| body who speaks during the meeting. | 0014| D. Any meetings at which the discussion or adoption | 0015| of any proposed resolution, regulation or formal action occurs | 0016| and at which a majority or quorum of the body is in attendance, | 0017| and any closed meetings, shall be held only after reasonable | 0018| notice to the public. The affected body shall determine at | 0019| least annually in a public meeting what notice for a public | 0020| meeting is reasonable when applied to that body. That notice | 0021| shall include broadcast stations licensed by the federal | 0022| communications commission and newspapers of general circulation | 0023| that have provided a written request for such notice. | 0024| E. A public body may recess and reconvene a meeting | 0025| to a day subsequent to that stated in the meeting notice if, | 0001| prior to recessing, the public body specifies the date, time and | 0002| place for continuation of the meeting, and, immediately | 0003| following the recessed meeting, posts notice of the date, time | 0004| and place for the reconvened meeting on or near the door of the | 0005| place where the original meeting was held and in at least one | 0006| other location appropriate to provide public notice of the | 0007| continuation of the meeting. Only matters appearing on the | 0008| agenda of the original meeting may be discussed at the | 0009| reconvened meeting. | 0010| F. Meeting notices shall include an agenda | 0011| containing a list of specific items of business to be discussed | 0012| or transacted at the meeting or information on how the public | 0013| may obtain a copy of such an agenda. Except in the case of an | 0014| emergency, the agenda shall be available to the public at least | 0015| twenty-four hours prior to the meeting. Except for emergency | 0016| matters, a public body shall take action only on items appearing | 0017| on the agenda. For purposes of this subsection, an "emergency" | 0018| refers to unforeseen circumstances that, if not addressed | 0019| immediately by the public body, will likely result in injury or | 0020| damage to persons or property or substantial financial loss to | 0021| the public body. | 0022| G. The board, commission or other policymaking body | 0023| shall keep written minutes of all its meetings. The minutes | 0024| shall include at a minimum the date, time and place of the | 0025| meeting, the names of members in attendance and those absent, | 0001| the substance of the proposals considered and a record of any | 0002| decisions and votes taken that show how each member voted. All | 0003| minutes are open to public inspection. Draft minutes shall be | 0004| prepared within ten working days after the meeting and shall be | 0005| approved, amended or disapproved at the next meeting where a | 0006| quorum is present. Minutes shall not become official until | 0007| approved by the policymaking body. | 0008| H. The provisions of Subsections A, B and G of this | 0009| section do not apply to: | 0010| (1) meetings pertaining to issuance, | 0011| suspension, renewal or revocation of a license, except that a | 0012| hearing at which evidence is offered or rebutted shall be open. | 0013| All final actions on the issuance, suspension, renewal or | 0014| revocation of a license shall be taken at an open meeting; | 0015| (2) limited personnel matters; provided that | 0016| for purposes of the Open Meetings Act, "limited personnel | 0017| matters" means the discussion of hiring, promotion, demotion, | 0018| dismissal, assignment or resignation of or the investigation or | 0019| consideration of complaints or charges against any individual | 0020| public employee; provided further that this subsection is not to | 0021| be construed as to exempt final actions on personnel from being | 0022| taken at open public meetings, nor does it preclude an aggrieved | 0023| public employee from demanding a public hearing. Judicial | 0024| candidates interviewed by any commission shall have the right to | 0025| demand an open interview; | 0001| (3) deliberations by a public body in | 0002| connection with an administrative adjudicatory proceeding. For | 0003| purposes of this paragraph, an "administrative adjudicatory | 0004| proceeding" means a proceeding brought by or against a person | 0005| before a public body in which individual legal rights, duties or | 0006| privileges are required by law to be determined by the public | 0007| body after an opportunity for a trial-type hearing. Except as | 0008| otherwise provided in this section, the actual administrative | 0009| adjudicatory proceeding at which evidence is offered or rebutted | 0010| and any final action taken as a result of the proceeding shall | 0011| occur in an open meeting; | 0012| (4) the discussion of personally identifiable | 0013| information about any individual student, unless the student, | 0014| his parent or guardian requests otherwise; | 0015| (5) meetings for the discussion of bargaining | 0016| strategy preliminary to collective bargaining negotiations | 0017| between the policymaking body and a bargaining unit representing | 0018| the employees of that policymaking body and collective | 0019| bargaining sessions at which the policymaking body and the | 0020| representatives of the collective bargaining unit are present; | 0021| (6) that portion of meetings at which a | 0022| decision concerning purchases in an amount exceeding two | 0023| thousand five hundred dollars ($2,500) that can be made only | 0024| from one source, that portion of meetings dealing with | 0025| confidential or proprietary information regarding procurement | 0001| made pursuant to the Video Gaming Act and that portion of | 0002| meetings at which the contents of competitive sealed proposals | 0003| solicited pursuant to the Procurement Code are discussed during | 0004| the contract negotiation process. The actual approval of | 0005| purchase of the item or final action regarding the selection of | 0006| a contractor shall be made in an open meeting; | 0007| (7) meetings subject to the attorney-client | 0008| privilege pertaining to threatened or pending litigation in | 0009| which the public body is or may become a participant; | 0010| (8) meetings for the discussion of the | 0011| purchase, acquisition or disposal of real property or water | 0012| rights by the public body; and | 0013| (9) those portions of meetings of committees or | 0014| boards of public hospitals that receive less than fifty percent | 0015| of their operating budget from direct public funds and | 0016| appropriations where strategic and long-range business plans are | 0017| discussed. | 0018| I. If any meeting is closed pursuant to the | 0019| exclusions contained in Subsection H of this section, the | 0020| closure: | 0021| (1) if made in an open meeting, shall be | 0022| approved by a majority vote of a quorum of the policymaking | 0023| body; the authority for the closure and the subject to be | 0024| discussed shall be stated with reasonable specificity in the | 0025| motion calling for the vote on a closed meeting; the vote shall | 0001| be taken in an open meeting; and the vote of each individual | 0002| member shall be recorded in the minutes. Only those subjects | 0003| announced or voted upon prior to closure by the policymaking | 0004| body may be discussed in a closed meeting; and | 0005| (2) if called for when the policymaking body is | 0006| not in an open meeting, shall not be held until public notice, | 0007| appropriate under the circumstances, stating the specific | 0008| provision of the law authorizing the closed meeting and stating | 0009| with reasonable specificity the subject to be discussed is given | 0010| to the members and to the general public. | 0011| J. Following completion of any closed meeting, the | 0012| minutes of the open meeting that was closed or the minutes of | 0013| the next open meeting if the closed meeting was separately | 0014| scheduled shall state that the matters discussed in the closed | 0015| meeting were limited only to those specified in the motion for | 0016| closure or in the notice of the separate closed meeting. This | 0017| statement shall be approved by the public body under Subsection | 0018| G of this section as part of the minutes." | 0019| Section 41. Section 10-15-1 NMSA 1978 (being Laws 1974, | 0020| Chapter 91, Section 1, as amended) is amended to read: | 0021| "10-15-1. FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN | 0022| MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.-- | 0023| A. In recognition of the fact that a representative | 0024| government is dependent upon an informed electorate, it is | 0025| declared to be public policy of this state that all persons are | 0001| entitled to the greatest possible information regarding the | 0002| affairs of government and the official acts of those officers | 0003| and employees who represent them. The formation of public | 0004| policy or the conduct of business by vote shall not be conducted | 0005| in closed meeting. All meetings of any public body except the | 0006| legislature and the courts shall be public meetings, and all | 0007| persons so desiring shall be permitted to attend and listen to | 0008| the deliberations and proceedings. Reasonable efforts shall be | 0009| made to accommodate the use of audio and video recording | 0010| devices. | 0011| B. All meetings of a quorum of members of any board, | 0012| commission, administrative adjudicatory body or other | 0013| policymaking body of any state agency, any agency or authority | 0014| of any county, municipality, district or any political | 0015| subdivision, held for the purpose of formulating public policy, | 0016| including the development of personnel policy, rules, | 0017| regulations or ordinances, discussing public business or for the | 0018| purpose of taking any action within the authority of or the | 0019| delegated authority of any board, commission or other | 0020| policymaking body are declared to be public meetings open to the | 0021| public at all times, except as otherwise provided in the | 0022| constitution of New Mexico or the Open Meetings Act. No public | 0023| meeting once convened that is otherwise required to be open | 0024| pursuant to the Open Meetings Act shall be closed or dissolved | 0025| into small groups or committees for the purpose of permitting | 0001| the closing of the meeting. | 0002| C. If otherwise allowed by law or rule of the public | 0003| body, a member of a public body may participate in a meeting of | 0004| the public body by means of a conference telephone or other | 0005| similar communications equipment when it is otherwise difficult | 0006| or impossible for the member to attend the meeting in person, | 0007| provided that each member participating by conference telephone | 0008| can be identified when speaking, all participants are able to | 0009| hear each other at the same time and members of the public | 0010| attending the meeting are able to hear any member of the public | 0011| body who speaks during the meeting. | 0012| D. Any meetings at which the discussion or adoption | 0013| of any proposed resolution, regulation or formal action occurs | 0014| and at which a majority or quorum of the body is in attendance, | 0015| and any closed meetings, shall be held only after reasonable | 0016| notice to the public. The affected body shall determine at | 0017| least annually in a public meeting what notice for a public | 0018| meeting is reasonable when applied to that body. That notice | 0019| shall include broadcast stations licensed by the federal | 0020| communications commission and newspapers of general circulation | 0021| that have provided a written request for such notice. | 0022| E. A public body may recess and reconvene a meeting | 0023| to a day subsequent to that stated in the meeting notice if, | 0024| prior to recessing, the public body specifies the date, time and | 0025| place for continuation of the meeting, and, immediately | 0001| following the recessed meeting, posts notice of the date, time | 0002| and place for the reconvened meeting on or near the door of the | 0003| place where the original meeting was held and in at least one | 0004| other location appropriate to provide public notice of the | 0005| continuation of the meeting. Only matters appearing on the | 0006| agenda of the original meeting may be discussed at the | 0007| reconvened meeting. | 0008| F. Meeting notices shall include an agenda | 0009| containing a list of specific items of business to be discussed | 0010| or transacted at the meeting or information on how the public | 0011| may obtain a copy of such an agenda. Except in the case of an | 0012| emergency, the agenda shall be available to the public at least | 0013| twenty-four hours prior to the meeting. Except for emergency | 0014| matters, a public body shall take action only on items appearing | 0015| on the agenda. For purposes of this subsection, an "emergency" | 0016| refers to unforeseen circumstances that, if not addressed | 0017| immediately by the public body, will likely result in injury or | 0018| damage to persons or property or substantial financial loss to | 0019| the public body. | 0020| G. The board, commission or other policymaking body | 0021| shall keep written minutes of all its meetings. The minutes | 0022| shall include at a minimum the date, time and place of the | 0023| meeting, the names of members in attendance and those absent, | 0024| the substance of the proposals considered and a record of any | 0025| decisions and votes taken that show how each member voted. All | 0001| minutes are open to public inspection. Draft minutes shall be | 0002| prepared within ten working days after the meeting and shall be | 0003| approved, amended or disapproved at the next meeting where a | 0004| quorum is present. Minutes shall not become official until | 0005| approved by the policymaking body. | 0006| H. The provisions of Subsections A, B and G of this | 0007| section do not apply to: | 0008| (1) meetings pertaining to issuance, | 0009| suspension, renewal or revocation of a license, except that a | 0010| hearing at which evidence is offered or rebutted shall be open. | 0011| All final actions on the issuance, suspension, renewal or | 0012| revocation of a license shall be taken at an open meeting; | 0013| (2) limited personnel matters; provided that | 0014| for purposes of the Open Meetings Act, "limited personnel | 0015| matters" means the discussion of hiring, promotion, demotion, | 0016| dismissal, assignment or resignation of or the investigation or | 0017| consideration of complaints or charges against any individual | 0018| public employee; provided further that this subsection is not to | 0019| be construed as to exempt final actions on personnel from being | 0020| taken at open public meetings, nor does it preclude an aggrieved | 0021| public employee from demanding a public hearing. Judicial | 0022| candidates interviewed by any commission shall have the right to | 0023| demand an open interview; | 0024| (3) deliberations by a public body in | 0025| connection with an administrative adjudicatory proceeding. For | 0001| purposes of this paragraph, an "administrative adjudicatory | 0002| proceeding" means a proceeding brought by or against a person | 0003| before a public body in which individual legal rights, duties or | 0004| privileges are required by law to be determined by the public | 0005| body after an opportunity for a trial-type hearing. Except as | 0006| otherwise provided in this section, the actual administrative | 0007| adjudicatory proceeding at which evidence is offered or rebutted | 0008| and any final action taken as a result of the proceeding shall | 0009| occur in an open meeting; | 0010| (4) the discussion of personally identifiable | 0011| information about any individual student, unless the student, | 0012| his parent or guardian requests otherwise; | 0013| (5) meetings for the discussion of bargaining | 0014| strategy preliminary to collective bargaining negotiations | 0015| between the policymaking body and a bargaining unit representing | 0016| the employees of that policymaking body and collective | 0017| bargaining sessions at which the policymaking body and the | 0018| representatives of the collective bargaining unit are present; | 0019| (6) that portion of meetings at which a | 0020| decision concerning purchases in an amount exceeding two | 0021| thousand five hundred dollars ($2,500) that can be made only | 0022| from one source, that portion of meetings dealing with | 0023| confidential or proprietary information regarding procurement | 0024| made pursuant to the Video Gaming Act and that portion of | 0025| meetings at which the contents of competitive sealed proposals | 0001| solicited pursuant to the Procurement Code are discussed during | 0002| the contract negotiation process. The actual approval of | 0003| purchase of the item or final action regarding the selection of | 0004| a contractor shall be made in an open meeting; | 0005| (7) meetings subject to the attorney-client | 0006| privilege pertaining to threatened or pending litigation in | 0007| which the public body is or may become a participant; | 0008| (8) meetings for the discussion of the | 0009| purchase, acquisition or disposal of real property or water | 0010| rights by the public body; and | 0011| (9) those portions of meetings of committees or | 0012| boards of public hospitals that receive less than fifty percent | 0013| of their operating budget from direct public funds and | 0014| appropriations where strategic and long-range business plans are | 0015| discussed. | 0016| I. If any meeting is closed pursuant to the | 0017| exclusions contained in Subsection H of this section, the | 0018| closure: | 0019| (1) if made in an open meeting, shall be | 0020| approved by a majority vote of a quorum of the policymaking | 0021| body; the authority for the closure and the subject to be | 0022| discussed shall be stated with reasonable specificity in the | 0023| motion calling for the vote on a closed meeting; the vote shall | 0024| be taken in an open meeting; and the vote of each individual | 0025| member shall be recorded in the minutes. Only those subjects | 0001| announced or voted upon prior to closure by the policymaking | 0002| body may be discussed in a closed meeting; and | 0003| (2) if called for when the policymaking body is | 0004| not in an open meeting, shall not be held until public notice, | 0005| appropriate under the circumstances, stating the specific | 0006| provision of the law authorizing the closed meeting and stating | 0007| with reasonable specificity the subject to be discussed is given | 0008| to the members and to the general public. | 0009| J. Following completion of any closed meeting, the | 0010| minutes of the open meeting that was closed or the minutes of | 0011| the next open meeting if the closed meeting was separately | 0012| scheduled shall state that the matters discussed in the closed | 0013| meeting were limited only to those specified in the motion for | 0014| closure or in the notice of the separate closed meeting. This | 0015| statement shall be approved by the public body under Subsection | 0016| G of this section as part of the minutes." | 0017| Section 42. Section 30-19-1 NMSA 1978 (being Laws 1963, | 0018| Chapter 303, Section 19-1, as amended) is amended to read: | 0019| "30-19-1. DEFINITIONS RELATING TO GAMBLING.--As used in | 0020| Chapter 30, Article 19 NMSA 1978: | 0021| A. "antique gambling device" means a gambling device | 0022| twenty-five years of age or older and substantially in original | 0023| condition that is not used for gambling or commercial gambling | 0024| or located in a gambling place; | 0025| B. "bet" means a bargain in which the parties agree | 0001| that, dependent upon chance, even though accompanied by some | 0002| skill, one stands to win or lose anything of value specified in | 0003| the agreement. A "bet" does not include: | 0004| (1) bona fide business transactions that are | 0005| valid under the law of contracts, including [without | 0006| limitation]: | 0007| (a) contracts for the purchase or sale, | 0008| at a future date, of securities or other commodities; and | 0009| (b) agreements to compensate for loss | 0010| caused by the happening of the chance, including [without | 0011| limitation] contracts for indemnity or guaranty and life or | 0012| health and accident insurance; | 0013| (2) offers of purses, prizes or premiums to the | 0014| actual contestants in any bona fide contest for the | 0015| determination of skill, speed, strength or endurance or to the | 0016| bona fide owners of animals or vehicles entered in such contest; | 0017| (3) a lottery as defined in this section; or | 0018| (4) betting otherwise permitted by law; | 0019| [C. "lottery" means an enterprise other than the | 0020| New Mexico state lottery established and operated pursuant to | 0021| the New Mexico Lottery Act wherein, for a consideration, the | 0022| participants are given an opportunity to win a prize, the award | 0023| of which is determined by chance, even though accompanied by | 0024| some skill. As used in this subsection, "consideration" means | 0025| anything of pecuniary value required to be paid to the promoter | 0001| in order to participate in such enterprise; | 0002| D.] C. "gambling device" means a contrivance | 0003| other than an antique gambling device that, for a consideration, | 0004| affords the player an opportunity to obtain anything of value, | 0005| the award of which is determined by chance, even though | 0006| accompanied by some skill, [and] whether or not the prize is | 0007| automatically paid by the device, and that is not licensed for | 0008| use pursuant to the Video Gaming Act; | 0009| [E.] D. "gambling place" means [any] a | 0010| building or tent, [any] a vehicle, whether self-propelled or | 0011| not, or [any] a room within any of them that is not within | 0012| the premises of a person licensed as a lottery retailer or to | 0013| permit the conduct of video gaming pursuant to the New Mexico | 0014| Lottery Act or the Video Gaming Act and one of whose principal | 0015| uses is: | 0016| (1) making and settling of bets; | 0017| (2) receiving, holding, recording or forwarding | 0018| bets or offers to bet; | 0019| (3) conducting lotteries; or | 0020| (4) playing gambling devices; | 0021| | 0022| E. "lottery" means an enterprise other than the New | 0023| Mexico state lottery established and operated pursuant to the | 0024| New Mexico Lottery Act wherein, for a consideration, the | 0025| participants are given an opportunity to win a prize, the award | 0001| of which is determined by chance, even though accompanied by | 0002| some skill. As used in this subsection, "consideration" means | 0003| anything of pecuniary value required to be paid to the promoter | 0004| in order to participate in the enterprise; | 0005| F. "raffle" means a game in which the prize is won | 0006| by random drawing of the name or number of one or more persons | 0007| purchasing a chance; and | 0008| G. "video gaming machine" means any electronic or | 0009| electromechanical device, contrivance or machine that is | 0010| available for play upon the payment of consideration and when | 0011| played may entitle the player to receive or may deliver to the | 0012| player something of value, including currency, coins, premiums, | 0013| merchandise, credits, tokens or a voucher, whether by reason of | 0014| the skill of the player or application of the element of chance, | 0015| or both; "video gaming machine" includes video slot machines. | 0016| Section 43. Section 30-19-6 NMSA 1978 (being Laws 1963, | 0017| Chapter 303, Section 19-6, as amended) is amended to read: | 0018| "30-19-6. [PERMISSIVE LOTTERY] AUTHORIZED GAMBLING--FAIRS, THEATERS AND TAX-EXEMPT ORGANIZATIONS--VIDEO GAMBLING ACT | 0019| AND CHARITY GAMES ACT ACTIVITIES.-- | 0020| A. Nothing in [Article 19] Chapter 30, Article | 0021| 19 NMSA 1978 [shall be construed to apply to any] prohibits | 0022| a sale or drawing of [any] a prize at [any] a fair held | 0023| in this state for the benefit of [any] a church, public | 0024| library or religious society [situate or being] located in | 0025| this state or for charitable purposes when all the proceeds of | 0001| [such] the fair [shall be] are expended in this state | 0002| for the benefit of [such] that church, public library, | 0003| religious society or for charitable purposes. A [lottery | 0004| shall be operated] sale or drawing conducted pursuant to this | 0005| subsection is for the benefit of the organization or charitable | 0006| purpose only [when] if the entire proceeds [of] from the | 0007| [lottery] sale or drawing go to the organization or | 0008| charitable purpose and no part of [such] the proceeds go to | 0009| any individual member or employee [thereof] of the | 0010| organization. | 0011| B. Nothing in [Article 19] Chapter 30, Article | 0012| 19 NMSA 1978 [shall be held to prohibit any] prohibits a | 0013| bona fide motion picture [theatre] theater from offering | 0014| prizes of cash or merchandise for advertising purposes in | 0015| connection with [such] the business of the theater or for | 0016| the purpose of stimulating business, whether or not [any] | 0017| consideration other than a monetary consideration in excess of | 0018| the regular price of admission is [exacted] charged for | 0019| participation in drawings for prizes. | 0020| C. Nothing in [Article 19] Chapter 30, Article | 0021| 19 NMSA 1978 [shall be held to apply to any] prohibits a | 0022| bona fide county fair, including [fairs] a fair for more | 0023| than one county, [which shall have] that has been held | 0024| annually at the same location for at least two years [and which | 0025| shall offer] from offering prizes of livestock or poultry in | 0001| connection with [such] the fair [when] if the proceeds | 0002| of [such] the drawings [shall be] are used for the | 0003| benefit of [said] the fair. | 0004| [D. Nothing in Article 19, Chapter 30 NMSA 1978 | 0005| shall be construed to apply to any lottery operated by an | 0006| organization exempt from the state income tax pursuant to | 0007| Subsection C of Section 7-2-4 NMSA 1978 and not subject to the | 0008| provisions of Subsection A of this section; provided that: | 0009| (1) no more than two lotteries shall be | 0010| operated in any year by such an organization; | 0011| (2) all the gross proceeds less the reasonable | 0012| cost of prizes of any lottery operated by such an organization | 0013| shall be expended in the state for the benefit of the | 0014| organization or public purposes; and | 0015| (3) no part of the proceeds of any lottery | 0016| shall go to any individual member or employee of any | 0017| organization except as payment for the purchase of prizes at no | 0018| more than the reasonable retail price] | 0019| D. Nothing in Chapter 30, Article 19 NMSA 1978 | 0020| prohibits an organization that is exempt from state income tax | 0021| pursuant to Section 7-2-4 NMSA 1978 from conducting bingo games, | 0022| raffles, lotteries or table games, including poker, craps, | 0023| blackjack, roulette and similar casino card and table games, at | 0024| a fundraising event if: | 0025| (1) the fundraising events are conducted no | 0001| more than twice in a calendar year by the qualifying | 0002| organization; | 0003| (2) the only persons authorized to participate | 0004| in the operation or management of the fundraising event are: | 0005| (a) bona fide members of the qualifying | 0006| organization who are not paid for their services in the | 0007| operation or management of the event; or | 0008| (b) persons who provide goods or services | 0009| for the fundraising event for a flat fee or an hourly fee | 0010| pursuant to a written contract with the qualifying organization; | 0011| (3) no person receives any part of the proceeds | 0012| of the fundraising event except: | 0013| (a) as payment for prizes purchased at no | 0014| more than the reasonable retail prices for the prizes; or | 0015| (b) pursuant to a contract described in | 0016| Subparagraph (b) of Paragraph (2) of this subsection; | 0017| (4) the net proceeds of the fundraising event | 0018| are expended in the state for the benefit of the qualifying | 0019| organization or purposes for which it was formed; | 0020| (5) gross revenue, expenses, prizes paid and | 0021| the date, time and location of the fundraising event are | 0022| reported to the alcohol and gaming division of the regulation | 0023| and licensing department within thirty days after the event; | 0024| (6) the qualifying organization conducting the | 0025| fundraising event maintains records for a period of one year | 0001| after the date of the event that accurately show the gross | 0002| revenue generated by the event, details of the expenses of | 0003| conducting the event and details of how the gross revenue is | 0004| used, and the qualifying organization makes the records | 0005| available for review by the director of the alcohol and gaming | 0006| division of the regulation and licensing department or the | 0007| attorney general, or both, at their request; | 0008| (7) no persons less than the age of twenty-one | 0009| are allowed to participate in the operation or management of the | 0010| fundraising event or to play any game at the event; and | 0011| (8) the fundraising event is conducted pursuant | 0012| to a permit issued by the alcohol and gaming division of the | 0013| regulation and licensing department. | 0014| E. Nothing in Chapter 30, Article 19 NMSA 1978 | 0015| prohibits activities authorized and the games of chance | 0016| permitted and regulated pursuant to the provisions of the Video | 0017| Gaming Act." | 0018| Section 44. 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: (1) "commercial gambling" means: | 0004| [(1)] (a) participating in the | 0005| earnings of or operating a gambling place; | 0006| [(2)] (b) receiving, recording or | 0007| forwarding bets or offers to bet; | 0008| [(3)] (c) possessing facilities with | 0009| the intent to receive, record or forward bets or offers to bet; | 0010| [(4)] (d) for gain, becoming a | 0011| custodian of anything of value bet or offered to be bet; | 0012| [(5)] (e) conducting a lottery where | 0013| both the consideration and the prize are money or whoever with | 0014| intent to conduct a lottery possesses facilities to do so; or | 0015| [(6)] (f) setting up for use for the | 0016| purpose of gambling, or collecting the proceeds of, any gambling | 0017| device or game; and | 0018| (2) "commercial gambling" does not include: | 0019| (a) activities authorized pursuant to the | 0020| New Mexico Lottery Act; | 0021| (b) the conduct of games pursuant to | 0022| Subsection D of Section 30-19-6 NMSA 1978; and | 0023| (c) the conduct of video gaming | 0024| authorized pursuant to the Video Gaming Act on the licensed | 0025| premises of a club licensee licensed pursuant to Section 60-6A-5 | 0001| NMSA 1978." | 0002| Section 45. SEVERABILITY.--If any part or application of | 0003| the Video Gaming Act is held invalid, the remainder or its | 0004| application to other situations or persons shall not be | 0005| affected. | 0006| Section 46. EMERGENCY.--It is necessary for the public | 0007| peace, health and safety that this act take effect immediately. | 0008|  | 0009| | 0010| | 0011| FORTY-SECOND LEGISLATURE | 0012| SECOND SESSION, 1996 | 0013| | 0014| | 0015| JANUARY 31, 1996 | 0016| | 0017| Mr. President: | 0018| | 0019| Your COMMITTEES' COMMITTEE, to whom has been referred | 0020| | 0021| SENATE BILL 606 | 0022| | 0023| has had it under consideration and finds same to be GERMANE, PURSUANT | 0024| TO CONSTITUTIONAL PROVISIONS, and thence referred to the COMMITTEE | 0025| OF THE WHOLE COMMITTEE. | 0001| | 0002| Respectfully submitted, | 0003| | 0004| | 0005| | 0006| | 0007| __________________________________ | 0008| SENATOR MANNY M. ARAGON, Chairman | 0009| | 0010| | 0011| | 0012| Adopted_______________________ Not Adopted_______________________ | 0013| (Chief Clerk) (Chief Clerk) | 0014| | 0015| | 0016| Date ________________________ | 0017| | 0018| | 0019| | 0020| S606CC1 | 0021| | 0022| FORTY-SECOND LEGISLATURE | 0023| SECOND SESSION, 1996 | 0024| | 0025| | 0001| February 2, 1996 | 0002| | 0003| Mr. President: | 0004| | 0005| Your COMMITTEE OF THE WHOLE, to whom has been referred | 0006| | 0007| SENATE BILL 606 | 0008| | 0009| has had it under consideration and reports same WITHOUT | 0010| RECOMMENDATION, and thence placed on the President's | 0011| Table. | 0012| | 0013| Respectfully submitted, | 0014| | 0015| | 0016| | 0017| __________________________________ | 0018| Manny M. Aragon, Chairman | 0019| | 0020| | 0021| | 0022| Adopted_______________________ Not Adopted_______________________ | 0023| (Chief Clerk) (Chief Clerk) | 0024| | 0025| | 0001| | 0002| Date ________________________ | 0003| | 0004| | 0005| The roll call vote was by voice vote | 0006| | 0007| | 0008| | 0009| S0606WS1 | 0010| |