0001|     
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0002|                           SENATE BILL 759
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0003|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0004|                            INTRODUCED BY
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0005|                          JOHN ARTHUR SMITH
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0006|     
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0007|                                   
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0008|     
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0009|     
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0010|     
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0011|                                AN ACT
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0012|     RELATING TO GAMING; ENACTING THE GAMING CONTROL ACT;
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0013|     AUTHORIZING LIMITED MACHINE GAMING; PROVIDING FOR LICENSING AND
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0014|     REGULATION OF THE PERMITTED ACTIVITIES; PROVIDING FOR FEES AND
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0015|     A TAX; REQUIRING LOCAL OPTION FOR CERTAIN MACHINE GAMING;
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0016|     PROVIDING FOR DISTRIBUTION OF CERTAIN REVENUE; PROVIDING
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0017|     PENALTIES; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978;
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0018|     MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.
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0019|     
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0020|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0021|          Section 1.  [<u>NEW MATERIAL</u>]  SHORT TITLE.--Sections 1
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0022|     through 63 of this act may be cited as the "Gaming Control
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0023|     Act".
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0024|          Section 2.  [<u>NEW MATERIAL</u>]  POLICY.--It is the state's
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0025|     policy on gaming that:
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0001|               A.  limited gaming activities should be allowed in
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0002|     the state if those activities are strictly regulated to ensure
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0003|     honest and competitive gaming that is free from criminal and
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0004|     corruptive elements and influences; and  
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0005|               B.  the holder of any license issued by the state in
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0006|     connection with the regulation of gaming activities has a
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0007|     revocable privilege only and has no property right or vested
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0008|     interest in the license. 
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0009|          Section 3.  [<u>NEW MATERIAL</u>]  DEFINITIONS.--As used in the
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0010|     Gaming Control Act: 
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0011|               A.  "affiliate" means a person who, directly or
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0012|     indirectly through one or more intermediaries, controls, is
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0013|     controlled by or is under common control with a specified
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0014|     person;
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0015|               B.  "affiliated company" means a company that:
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0016|                    (1)  controls, is controlled by or is under
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0017|     common control with a company licensee; and
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0018|                    (2)  is involved in gaming activities or
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0019|     involved in the ownership of property on which gaming is
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0020|     conducted;
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0021|               C.  "applicant" means a person who has applied for a
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0022|     license or for approval of an act or transaction for which
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0023|     approval is required or allowed pursuant to the provisions of
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0024|     the Gaming Control Act;
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0025|               D.  "application" means a request for the issuance
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0001|     of a license or for approval of an act or transaction for which
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0002|     approval is required or allowed pursuant to the provisions of
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0003|     the Gaming Control Act, but "application" does not include a
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0004|     supplemental form or information that may be required with the
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0005|     application;
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0006|               E.  "associated equipment" means equipment or a
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0007|     mechanical, electromechanical or electronic contrivance,
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0008|     component or machine used in connection with gaming;
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0009|               F.  "board" means the gaming control board;
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0010|               G.  "certification" means a notice of approval by
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0011|     the board of a person required to be certified by the board;
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0012|               H.  "company" means a corporation, partnership,
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0013|     limited partnership, trust, association, joint stock company,
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0014|     joint venture, limited liability company or other form of
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0015|     business organization that is not a natural person;
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0016|               I.  "distributor" means a person who supplies gaming
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0017|     devices to a gaming operator but does not manufacture gaming
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0018|     devices;
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0019|               J.  "equity security" means an interest in a company
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0020|     that is evidenced by:
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0021|                    (1)  voting stock or similar security;
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0022|                    (2)  a security convertible into voting stock
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0023|     or similar security, with or without consideration, or a
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0024|     security carrying a warrant or right to subscribe to or
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0025|     purchase voting stock or similar security;
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0001|                    (3)  a warrant or right to subscribe to or
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0002|     purchase voting stock or similar security; or
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0003|                    (4)  a security having a direct or indirect
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0004|     participation in the profits of the issuer;
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0005|               K.  "executive director" means the chief
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0006|     administrative officer appointed by the board pursuant to
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0007|     Section 7 of the Gambling Control Act;
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0008|               L.  "finding of suitability" means a certification
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0009|     of  approval issued by the board permitting a person to be
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0010|     involved directly or indirectly with a licensee, relating only
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0011|     to the specified involvement for which it is made;
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0012|               M.  "game" means an activity in which, upon payment
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0013|     of consideration, a player receives a prize or other thing of
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0014|     value, the award of which is determined by chance even though
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0015|     accompanied by some skill; "game" does not include an activity
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0016|     played in a private residence in which no person makes money
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0017|     for operating the activity except through winnings as a player;
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0018|               N.  "gaming" means offering a game for play;
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0019|               O.  "gaming activity" means any endeavor associated
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0020|     with the manufacture or distribution of gaming devices or the
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0021|     conduct of gaming;
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0022|               P.  "gaming device" means associated equipment or a
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0023|     gaming machine and includes a system for processing information
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0024|     that can alter the normal criteria of random selection that
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0025|     affects the operation of a game or determines the outcome of a
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0001|     game; "gaming device" does not include a system or device that
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0002|     affects a game solely by stopping its operation so that the
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0003|     outcome remains undetermined;
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0004|               Q.  "gaming employee" means a person connected
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0005|     directly with a gaming activity; "gaming employee" does not
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0006|     include: 
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0007|                    (1)  bartenders, cocktail servers or other
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0008|     persons engaged solely in preparing or serving food or
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0009|     beverages; 
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0010|                    (2)  secretarial or janitorial personnel; 
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0011|                    (3)  stage, sound and light technicians; or 
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0012|                    (4)  other nongaming personnel;
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0013|               R.  "gaming establishment" means the premises on or
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0014|     in which gaming is conducted;
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0015|               S.  "gaming machine" means a mechanical,
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0016|     electromechanical or electronic contrivance or machine that,
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0017|     upon insertion of a coin, token or similar object, or upon
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0018|     payment of any consideration, is available to play or operate a
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0019|     game, whether the payoff is made automatically from the machine
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0020|     or in any other manner;
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0021|               T.  "gaming operator" means a person who conducts
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0022|     gaming;
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0023|               U.  "holding company" means a company that directly
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0024|     or indirectly owns or has the power or right to control a
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0025|     company that is an applicant or licensee, but a company that
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0001|     does not have a beneficial ownership of more than ten percent
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0002|     of the equity securities of a publicly traded corporation is
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0003|     not a holding company;
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0004|               V.  "immediate family" means natural persons who are
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0005|     related to a specified natural person by affinity or
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0006|     consanguinity in the first through the third degree;
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0007|               W.  "institutional investor" means a state or
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0008|     federal government pension plan or a person that meets the
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0009|     requirements of a qualified institutional buyer as defined in
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0010|     Rule 144A of the federal Securities Act of 1933, and is:
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0011|                    (1)  a bank as defined in Section 3(a)(6) of
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0012|     the federal Securities Exchange Act of 1934;
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0013|                    (2)  an insurance company as defined in Section
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0014|     2(a)(17) of the federal Investment Company Act of 1940;
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0015|                    (3)  an investment company registered under
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0016|     Section 8 of the federal Investment Company Act of 1940;
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0017|                    (4)  an investment adviser registered under
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0018|     Section 203 of the federal Investment Advisers Act of 1940;
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0019|                    (5)  collective trust funds as defined in
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0020|     Section 3(c)(11) of the federal Investment Company Act of 1940;
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0021|                    (6)  an employee benefit plan or pension fund
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0022|     that is subject to the federal Employee Retirement Income
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0023|     Security Act of 1974, excluding an employee benefit plan or
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0024|     pension fund sponsored by a publicly traded corporation
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0025|     registered with the board; or
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0001|                    (7)  a group comprised entirely of persons
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0002|     specified in Paragraphs (1) through (6) of this subsection; 
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0003|               X.  "intermediary company" means a company that:
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0004|                    (1)  is a holding company with respect to a
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0005|     company that is an applicant or licensee; and
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0006|                    (2)  is a subsidiary with respect to any
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0007|     holding company;
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0008|               Y.  "key executive" means an executive of a licensee
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0009|     having the power to exercise significant influence over
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0010|     decisions concerning any part of the licensed operations of the
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0011|     licensee or whose compensation exceeds an amount established by
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0012|     the board in a regulation;
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0013|               Z.  "license" means an authorization required by the
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0014|     board for engaging in gaming activities;
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0015|               AA.  "licensee" means a person to whom a valid
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0016|     license has been issued;
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0017|               BB.  "liquor establishment" means a person licensed
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0018|     pursuant to Section 60-6A-3 NMSA 1978 to dispense alcoholic
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0019|     beverages;
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0020|               CC.  "manufacturer" means a person who manufactures,
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0021|     fabricates, assembles, produces, programs or makes
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0022|     modifications to any gaming device for use or play in New
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0023|     Mexico or for sale, lease or distribution outside New Mexico
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0024|     from any location within New Mexico;
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0025|               DD.  "net take" means the total of the following,
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0001|     less the total of all cash paid out as losses to winning
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0002|     patrons and those amounts paid to purchase annuities to fund
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0003|     losses paid to winning patrons over several years by
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0004|     independent administrators:
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0005|                    (1)  cash received from patrons for playing a
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0006|     game;
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0007|                    (2)  cash received in payment for credit
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0008|     extended by a licensee to a patron for playing a game; and
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0009|                    (3)  compensation received for conducting a
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0010|     game in which the licensee is not a party to a wager;
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0011|               EE.  "nonprofit organization" means an organization
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0012|     that:
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0013|                    (1)  is described in Section 501(c)(8), (10),
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0014|     (19) or (23) of the federal Internal Revenue Code of 1986 and
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0015|     that is exempt from federal income taxation pursuant to Section
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0016|     501(a) of that code;
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0017|                    (2)  has been issued a license pursuant to
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0018|     Section 60-6A-5 NMSA 1978 but does not have gaming as its
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0019|     primary activity; and 
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0020|                    (3)  has been in continuous existence since
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0021|     before January 1, 1994;
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0022|               FF.  "person" means a legal entity;
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0023|               GG.  "premises" means land, together with all
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0024|     buildings, improvements and personal property located on the
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0025|     land;
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0001|               HH.  "progressive jackpot" means a prize that
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0002|     increases over time or as gaming machines that are linked to a
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0003|     progressive system are played and upon conditions established
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0004|     by the board may be paid by an annuity;
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0005|               II.  "progressive system" means one or more gaming
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0006|     machines linked to one or more common progressive jackpots;
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0007|               JJ.  "publicly traded corporation" means a
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0008|     corporation that:
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0009|                    (1)  has one or more classes of securities
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0010|     registered pursuant to the securities laws of the United States
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0011|     or New Mexico; 
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0012|                    (2)  is an issuer subject to the securities
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0013|     laws of the United States or New Mexico; or 
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0014|                    (3)  has one or more classes of securities
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0015|     registered or is an issuer pursuant to applicable foreign laws
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0016|     that the board finds provide protection for institutional
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0017|     investors that is comparable to or greater than the stricter of
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0018|     the securities laws of the United States or New Mexico; 
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0019|               KK.  "registration" means a board action that
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0020|     authorizes a company to be a holding company with respect to a
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0021|     company that holds or applies for a license or that relates to
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0022|     other persons required to be registered pursuant to the Gaming
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0023|     Control Act;
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0024|               LL.  "subsidiary" means a company, all or a part of
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0025|     whose outstanding equity securities are owned, subject to a
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0001|     power or right of control or held, with power to vote, by a
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0002|     holding company or intermediary company; and
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0003|               MM.  "work permit" means a card, certificate or
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0004|     permit issued by the board, whether denominated as a work
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0005|     permit, registration card or otherwise, authorizing the
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0006|     employment of the holder as a gaming employee. 
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0007|          Section 4.  [<u>NEW MATERIAL</u>]  LIMITED GAMING ACTIVITY
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0008|     PERMITTED.--Gaming activity is permitted in New Mexico only if
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0009|     it is conducted in compliance with and pursuant to:
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0010|               A.  the Gaming Control Act; or
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0011|               B.  a state or federal law other than the Gaming
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0012|     Control Act that expressly permits the activity or exempts it
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0013|     from the application of the state criminal law, or both.  
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0014|          Section 5.  [<u>NEW MATERIAL</u>]  GAMING CONTROL BOARD
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0015|     CREATED.--
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0016|               A.  The "gaming control board" is created and
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0017|     consists of five members appointed by the governor with the
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0018|     advice and consent of the senate.  All members of the board
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0019|     shall be residents of New Mexico and citizens of the United
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0020|     States.  At least one member of the board shall have a
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0021|     minimum of five years of previous employment in a supervisory
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0022|     and administrative position in a law enforcement agency; at
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0023|     least one member of the board shall be a certified public
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0024|     accountant in New Mexico who has had at least five years of
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0025|     experience in public accountancy; at least one member of the
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0001|     board shall be an attorney who has been admitted to practice
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0002|     before the supreme court of New Mexico; and at least one
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0003|     member of the board shall have at least five years of
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0004|     previous employment in a top-level supervisory and
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0005|     administrative position in a governmental gaming regulatory
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0006|     agency.
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0007|               B.  The members of the board shall be appointed
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0008|     for terms of five years, except, of the members who are first
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0009|     appointed, one member with law enforcement experience and one
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0010|     member who is a certified public accountant shall be
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0011|     appointed for terms of five years; one member who is an
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0012|     attorney and one member who has gaming regulatory experience
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0013|     shall be appointed for terms of four years; and the fifth
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0014|     member shall be appointed for a term of three years. 
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0015|     Thereafter, all members shall be appointed for terms of five
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0016|     years.  No person shall serve as a board member for more than
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0017|     two consecutive terms or ten years total.  
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0018|               C.  No person appointed to the board may be
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0019|     employed in any other capacity or shall in any manner receive
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0020|     compensation for services rendered to any person or entity
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0021|     other than the board while a member of the board.
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0022|               D.  A vacancy on the board shall be filled within
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0023|     thirty days by the governor with the advice and consent of
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0024|     the senate for the unexpired portion of the term in which the
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0025|     vacancy occurs.  A person appointed to fill a vacancy shall
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0001|     meet all qualification requirements of the office established
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0002|     in this section.
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0003|               E.  The governor shall choose a chairman annually
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0004|     from the board's membership.
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0005|               F.  No more than three members of the board shall
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0006|     be from the same political party.
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0007|               G.  The members of the board shall be full-time
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0008|     state officials and shall receive a salary set by the
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0009|     governor.
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0010|               H.  The department of public safety shall conduct
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0011|     background investigations of all members of the board prior
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0012|     to confirmation by the senate.  To assist the department in
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0013|     the background investigation, a prospective board member
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0014|     shall furnish a disclosure statement to the department on a
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0015|     form provided by the department containing that information
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0016|     deemed by the department as necessary for completion of a
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0017|     detailed and thorough background investigation.  The required
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0018|     information shall include at least:
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0019|                    (1)  a full set of fingerprints made by a
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0020|     law enforcement agency on forms supplied by the department;
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0021|                    (2)  complete information and details with
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0022|     respect to the prospective board member's antecedents,
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0023|     habits, immediate family, character, criminal record,
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0024|     business activities, financial affairs and business
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0025|     associates covering at least a ten-year period immediately
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0001|     preceding the date of submitting the disclosure statement;
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0002|                    (3)  complete disclosure of any equity
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0003|     interest held by the prospective board member or a member of
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0004|     his immediate family in a business connected with gaming; and
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0005|                    (4)  the names and addresses of members of
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0006|     the immediate family of the prospective board member.
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0007|               I.  No person may be appointed or confirmed as a
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0008|     member of the board if that person or member of his immediate
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0009|     family holds an equity interest in a business connected with
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0010|     gaming.
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0011|               J.  A prospective board member shall provide
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0012|     assistance and information requested by the department of
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0013|     public safety or the governor and shall cooperate in any
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0014|     inquiry or investigation of the prospective board member's
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0015|     fitness or qualifications to hold the office to which he is
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0016|     appointed.  The senate shall not confirm a prospective board
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0017|     member if it has reasonable cause to believe that the
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0018|     prospective board member has:
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0019|                    (1)  knowingly misrepresented or omitted a
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0020|     material fact required in a disclosure statement;
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0021|                    (2)  been convicted of a felony, a gaming
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0022|     related offense or a crime involving fraud, theft or moral
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0023|     turpitude within ten years immediately preceding the date of
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0024|     submitting a disclosure statement required pursuant to the
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0025|     provisions of Subsection H of this section;
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0001|                    (3)  exhibited a history of willful
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0002|     disregard for the gaming laws of this or any other state or
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0003|     the United States; or
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0004|                    (4)  had a permit or license issued pursuant
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0005|     to the gaming laws of this or any other state or the United
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0006|     States permanently suspended or revoked for cause.
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0007|               K.  The senate may in its discretion not confirm a
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0008|     prospective board member.
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0009|               L.  At the time of taking office, each board
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0010|     member shall file with the secretary of state a sworn
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0011|     statement that he is not disqualified under the provisions of
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0012|     Subsection I  of this section.  
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0013|          Section 6.  [<u>NEW MATERIAL</u>]  BOARD--MEETINGS--QUORUM--
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0014|     RECORDS.--
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0015|               A.  A majority of the qualified membership of the
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0016|     board then in office constitutes a quorum.  No action may be
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0017|     taken by the board unless at least three members concur.
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0018|               B.  Written notice of the time and place of each
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0019|     board meeting shall be given to each member of the board at
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0020|     least ten days prior to the meeting.
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0021|               C.  Meetings of the board shall be open and public
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0022|     in accordance with the Open Meetings Act, except that the
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0023|     board may close a meeting to hear confidential security and
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0024|     investigative information and other information made
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0025|     confidential by the provisions of the Gaming Control Act.
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0001|               D.  All proceedings of the board shall be recorded
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0002|     by audiotape or other equivalent verbatim audio recording
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0003|     device.
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0004|               E.  The chairman of the board, the executive
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0005|     director, the security director or a majority of the members
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0006|     of the board then in office may call a special meeting of the
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0007|     board upon at least five days' prior written notice to all
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0008|     members of the board, the executive director and the security
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0009|     director.
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0010|          Section 7.  [<u>NEW MATERIAL</u>]  BOARD'S POWERS AND
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0011|     DUTIES.--
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0012|               A.  The board shall implement the state's policy
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0013|     on gaming consistent with the provisions of the Gaming
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0014|     Control Act.  It has the duty to fulfill all responsibilities
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0015|     assigned to it pursuant to that act, and it has all authority
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0016|     necessary to carry out those responsibilities.  It may
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0017|     delegate authority to the executive director and the security
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0018|     director, respectively, but it retains accountability.  The
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0019|     board is an adjunct agency.
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0020|               B.  The board shall:
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0021|                    (1)  employ the executive director and the
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0022|     security director;
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0023|                    (2)  create a separate organizational unit
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0024|     to be managed by the security director and which shall carry
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0025|     out under his direction all security activities specified by
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0001|     the board; 
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0002|                    (3)  make the final decision on issuance,
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0003|     denial, suspension and revocation of all licenses pursuant to
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0004|     and consistent with the provisions of the Gaming Control Act; 
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0005|                    (4)  develop, adopt and promulgate all
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0006|     regulations necessary to implement and administer the
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0007|     provisions of the Gaming Control Act;
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0008|                    (5)  conduct itself, or employ a hearing
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0009|     officer to conduct, all hearings required by the provisions
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0010|     of the Gaming Control Act and other hearings it deems
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0011|     appropriate to fulfill its responsibilities;
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0012|                    (6)  meet at least once each month; and 
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0013|                    (7)  prepare and submit an annual report in
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0014|     December of each year to the governor and the legislature,
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0015|     covering activities of the board in the most recently
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0016|     completed fiscal year, a summary of gaming activities in the
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0017|     state and any recommended changes in or additions to the laws
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0018|     relating to gaming in the state. 
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0019|               C.  The board may:
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0020|                    (1)  impose civil fines not to exceed
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0021|     twenty-five thousand dollars ($25,000) for the first
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0022|     violation and fifty thousand dollars ($50,000) for subsequent
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0023|     violations of any prohibitory provision of the Gaming Control
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0024|     Act or any prohibitory provision of a regulation adopted
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0025|     pursuant to that act; 
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0001|                    (2)  conduct investigations;
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0002|                    (3)  subpoena persons and documents to
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0003|     compel access to or the production of documents and records,
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0004|     including books and memoranda, in the custody or control of
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0005|     any licensee;
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0006|                    (4)  compel the appearance of employees of a
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0007|     licensee or persons for the purpose of ascertaining
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0008|     compliance with provisions of the Gaming Control Act or a
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0009|     regulation adopted pursuant to its provisions;
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0010|                    (5)  administer oaths and take depositions
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0011|     to the same extent and subject to the same limitations as
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0012|     would apply if the deposition were pursuant to discovery
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0013|     rules in a civil action in the district court;
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0014|                    (6)  sue and be sued subject to the
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0015|     limitations of the Tort Claims Act; 
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0016|                    (7)  contract for the provision of goods and
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0017|     services necessary to carry out its responsibilities;
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0018|                    (8)  conduct audits of applicants, licensees
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0019|     and persons affiliated with licensees;
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0020|                    (9)  inspect, examine, photocopy and audit
    |
0021|     all documents and records of an applicant or licensee
    |
0022|     relevant to his gaming activities in the presence of the
    |
0023|     applicant or licensee or his agent;
    |
0024|                    (10)  require verification of income and all
    |
0025|     other matters pertinent to the gaming activities of an
    |
0001|     applicant or licensee affecting the enforcement of any
    |
0002|     provision of the Gaming Control Act;
    |
0003|                    (11)  inspect all places where gaming
    |
0004|     activities are conducted and inspect all property connected
    |
0005|     with gaming in those places; 
    |
0006|                    (12)  summarily seize, remove and impound
    |
0007|     from places inspected any gaming devices, property connected
    |
0008|     with gaming, documents or records for the purpose of
    |
0009|     examination or inspection;
    |
0010|                    (13)  inspect, examine, photocopy and audit
    |
0011|     all documents and records of any affiliate of an applicant or 
    |
0012|     licensee who the board knows or reasonably suspects is
    |
0013|     involved in the financing, operation or management of the
    |
0014|     applicant or licensee.  The inspection, examination,
    |
0015|     photocopying and audit shall be in the presence of a
    |
0016|     representative of the affiliate or its agent when
    |
0017|     practicable; and
    |
0018|                    (14)  except for the powers specified in
    |
0019|     Paragraphs (1) and (4) of this subsection, carry out all or
    |
0020|     part of the foregoing powers and activities through the
    |
0021|     executive director or the security director.
    |
0022|          Section 8.  [<u>NEW MATERIAL</u>]  BOARD REGULATIONS--
    |
0023|     DISCRETIONARY REGULATIONS--PROCEDURE--REQUIRED PROVISIONS.--
    |
0024|               A.  The board may adopt any regulation:
    |
0025|                    (1)  consistent with the provisions of the
    |
0001|     Gaming Control Act; and
    |
0002|                    (2)  it decides is necessary to implement
    |
0003|     the provisions of the Gaming Control Act.
    |
0004|               B.  No regulation shall be adopted, amended or
    |
0005|     repealed without a public hearing on the proposed action
    |
0006|     before the board or a hearing officer designated by it.  The
    |
0007|     public hearing shall be held in Santa Fe.  Notice of the
    |
0008|     subject matter of the regulation, the action proposed to be
    |
0009|     taken, the time and place of the hearing, the manner in which
    |
0010|     interested persons may present their views and the method by
    |
0011|     which copies of the proposed regulation, amendment or repeal
    |
0012|     may be obtained shall be published once at least thirty days
    |
0013|     prior to the hearing date in a newspaper of general
    |
0014|     circulation and mailed at least thirty days prior to the
    |
0015|     hearing date to all persons who have made a written request
    |
0016|     for advance notice of hearing.  All regulations and actions
    |
0017|     taken on regulations shall be filed in accordance with the
    |
0018|     State Rules Act.
    |
0019|               C.  The board shall adopt regulations:
    |
0020|                    (1)  prescribing the method and form of
    |
0021|     application to be followed by an applicant; 
    |
0022|                    (2)  prescribing the information to be
    |
0023|     furnished by an applicant or licensee concerning his
    |
0024|     antecedents, immediate family, habits, character, associates,
    |
0025|     criminal record, business activities and financial affairs,
    |
0001|     past or present;
    |
0002|                    (3)  prescribing the manner and procedure of
    |
0003|     all hearings conducted by the board or a hearing officer;
    |
0004|                    (4)  prescribing the manner and method of
    |
0005|     collection and payment of fees;
    |
0006|                    (5)  prescribing the manner and method of
    |
0007|     the issuance of licenses, permits, registrations,
    |
0008|     certificates and other actions of the board not elsewhere
    |
0009|     prescribed in the Gaming Control Act;
    |
0010|                    (6)  defining the area, games and gaming
    |
0011|     devices allowed and the methods of operation of the games and
    |
0012|     gaming devices for authorized gaming;
    |
0013|                    (7)  prescribing under what conditions the
    |
0014|     nonpayment of winnings is grounds for suspension or
    |
0015|     revocation of a license of a gaming operator;
    |
0016|                    (8)  governing the manufacture, sale,
    |
0017|     distribution, repair and servicing of gaming devices;
    |
0018|                    (9)  prescribing accounting procedures,
    |
0019|     security, collection and verification procedures required of
    |
0020|     licensees and matters regarding financial responsibility of
    |
0021|     licensees;
    |
0022|                    (10)  prescribing what shall be considered
    |
0023|     to be an unsuitable method of operating gaming activities;
    |
0024|                    (11)  restricting access to confidential
    |
0025|     information obtained pursuant to the provisions of the Gaming
    |
0001|     Control Act and ensuring that the confidentiality of that
    |
0002|     information is maintained and protected;
    |
0003|                    (12)  prescribing financial reporting and
    |
0004|     internal control requirements for licensees;
    |
0005|                    (13)  prescribing the manner in which
    |
0006|     winnings, compensation from gaming activities and net take
    |
0007|     shall be computed and reported by a gaming operator licensee;
    |
0008|                    (14)  prescribing the frequency of and the
    |
0009|     matters to be contained in audits of and periodic financial
    |
0010|     reports from a gaming operator licensee consistent with
    |
0011|     standards prescribed by the board;
    |
0012|                    (15)  prescribing the procedures to be
    |
0013|     followed by a gaming operator licensee for the exclusion of
    |
0014|     persons from gaming establishments;
    |
0015|                    (16)  establishing criteria and conditions
    |
0016|     for the operation of progressive systems;
    |
0017|                    (17)  establishing criteria and conditions
    |
0018|     for approval of procurement by the board of personal property
    |
0019|     valued in excess of twenty thousand dollars ($20,000),
    |
0020|     including background investigation requirements for a person
    |
0021|     submitting a bid or proposal; and
    |
0022|                    (18)  establishing an applicant fee schedule
    |
0023|     for processing applications that is based on costs of the
    |
0024|     application review incurred by the board whether directly or
    |
0025|     through payment by the board for costs charged for
    |
0001|     investigations of applicants by state departments and
    |
0002|     agencies other than the board, which regulation shall set a
    |
0003|     maximum fee of one hundred thousand dollars ($100,000).
    |
0004|          Section 9.  [<u>NEW MATERIAL</u>]  EXECUTIVE DIRECTOR--
    |
0005|     SECURITY DIRECTOR--EMPLOYMENT--QUALIFICATIONS.--
    |
0006|               A.  The executive director and the security
    |
0007|     director shall be employed by, report directly to and serve
    |
0008|     at the pleasure of the board.  
    |
0009|               B.  The executive director shall have had at least
    |
0010|     five years of responsible supervisory administrative
    |
0011|     experience in a governmental gaming regulatory agency.
    |
0012|               C.  The security director shall have had at least
    |
0013|     five years of responsible supervisory administrative
    |
0014|     experience in a law enforcement agency, shall have graduated
    |
0015|     from a law enforcement academy with a minimum of four hundred
    |
0016|     hours of basic police training and have at least a bachelor's
    |
0017|     degree from an accredited post-secondary educational
    |
0018|     institution.
    |
0019|          Section 10.  [<u>NEW MATERIAL</u>]  EXECUTIVE DIRECTOR--
    |
0020|     SECURITY DIRECTOR--POWERS--DUTIES.--
    |
0021|               A.  The executive director shall implement those
    |
0022|     policies of the board designated by the board as his
    |
0023|     responsibilities.  The security director shall implement
    |
0024|     those policies of the board designated as his
    |
0025|     responsibilities.
    |
0001|               B.  The executive director shall employ all
    |
0002|     personnel who work for the board except those designated as
    |
0003|     security personnel by the board.  The employees employed by
    |
0004|     the executive director shall be covered employees pursuant to
    |
0005|     the provisions of the Personnel Act.  
    |
0006|               C.  The security director shall employ those
    |
0007|     persons designated as security personnel subject to proper
    |
0008|     certification pursuant to the Law Enforcement Training Act.
    |
0009|     Security personnel shall be covered employees pursuant to the
    |
0010|     Personnel Act.
    |
0011|               D.  The executive director shall establish
    |
0012|     organizational units he determines are appropriate to
    |
0013|     administer the provisions of the Gaming Control Act.
    |
0014|               E.  The executive director:
    |
0015|                    (1)  may delegate authority to subordinates
    |
0016|     as he deems necessary and appropriate, clearly delineating
    |
0017|     the delegated authority and the limitations on it, if any;
    |
0018|                    (2)  shall take administrative action by
    |
0019|     issuing orders and instructions consistent with the Gaming
    |
0020|     Control Act and regulations of the board to assure
    |
0021|     implementation of and compliance with the provisions of that
    |
0022|     act and those regulations;
    |
0023|                    (3)  may conduct research and studies that
    |
0024|     will improve the operations of the board and the provision of
    |
0025|     services to the citizens of the state;
    |
0001|                    (4)  may provide courses of instruction and
    |
0002|     practical training for employees of the board and other
    |
0003|     persons involved in the activities regulated by the board
    |
0004|     with the objectives of improving operations of the board and
    |
0005|     achieving compliance with the law and regulations;
    |
0006|                    (5)  shall prepare an annual budget for the
    |
0007|     board and submit it to the board for approval; and
    |
0008|                    (6)  shall make recommendations to the board
    |
0009|     of proposed regulations and any legislative changes needed to
    |
0010|     provide better administration of the Gaming Control Act and
    |
0011|     fair and efficient regulation of gaming activities in the
    |
0012|     state.
    |
0013|               F.  The security director shall:
    |
0014|                    (1)  conduct background investigations of
    |
0015|     employees of the board, applicants and other persons as
    |
0016|     required by the board;
    |
0017|                    (2)  prepare an annual budget for the
    |
0018|     security activities of the board and submit it to the board
    |
0019|     for approval;
    |
0020|                    (3)  conduct internal investigations of the
    |
0021|     board's operations or contract with the attorney general to
    |
0022|     conduct investigations of the board after consultation with
    |
0023|     and approval by a majority of the board members;
    |
0024|                    (4)  conduct investigations of gaming
    |
0025|     activities and licensees necessary to provide for the secure
    |
0001|     operation of gaming activities in the state and the
    |
0002|     enforcement of the provisions of the Gaming Control Act and
    |
0003|     its regulations;
    |
0004|                    (5)  take administrative action by issuing
    |
0005|     orders and instructions required for the security of the
    |
0006|     board consistent with the Gaming Control Act and regulations
    |
0007|     of the board to assure implementation of and compliance with
    |
0008|     the provisions of that act and those regulations;
    |
0009|                    (6)  coordinate and cooperate with the
    |
0010|     executive director at all times to the extent possible in 
    |
0011|     security matters affecting activities of the board and its
    |
0012|     personnel; and
    |
0013|                    (7)  make recommendations to the board of
    |
0014|     proposed regulations and any legislative changes needed to
    |
0015|     make the activities of licensees more secure and to provide
    |
0016|     more effective and efficient security of the board or the
    |
0017|     activities licensed pursuant to the provisions of the Gaming
    |
0018|     Control Act.
    |
0019|               G.  The security director may:
    |
0020|                    (1)  delegate authority to subordinates as
    |
0021|     he deems necessary and appropriate, clearly delineating the
    |
0022|     delegated authority and the limitations on it, if any; and
    |
0023|                    (2)  provide courses of instruction and
    |
0024|     practical training for employees of the security division and
    |
0025|     for the security personnel of licensees with the objective of
    |
0001|     providing effective, efficient and secure operation of the
    |
0002|     board and gaming activities in the state.
    |
0003|          Section 11.  [<u>NEW MATERIAL</u>]  INVESTIGATION OF
    |
0004|     EXECUTIVE DIRECTOR AND SECURITY DIRECTOR CANDIDATES AND
    |
0005|     EMPLOYEES.--
    |
0006|               A.  A person who is under consideration in the
    |
0007|     final selection process for appointment as the executive
    |
0008|     director or the security director shall file a disclosure
    |
0009|     statement pursuant to the requirements of this section, and
    |
0010|     the board shall not make an appointment of a person as
    |
0011|     executive director or security director until a background
    |
0012|     investigation is completed by the department of public safety
    |
0013|     and a report is made to the board.
    |
0014|               B.  A person who has reached the final selection
    |
0015|     process for employment by the executive director or security
    |
0016|     director shall file a disclosure statement pursuant to the
    |
0017|     requirements of this section if the executive director, the
    |
0018|     security director or the board has directed the person do so. 
    |
0019|     The person shall not be further considered for employment
    |
0020|     until a background investigation is completed by the
    |
0021|     department of public safety and a report is made to the
    |
0022|     employing authority.
    |
0023|               C.  Forms for the disclosure statements required
    |
0024|     by this section shall be developed by the board in
    |
0025|     cooperation with the department of public safety.  At least
    |
0001|     the following information shall be required of a person
    |
0002|     submitting a statement:
    |
0003|                    (1)  a full set of fingerprints made by a
    |
0004|     law enforcement agency on forms supplied by the board;
    |
0005|                    (2)  complete information and details with
    |
0006|     respect to the person's antecedents, habits, immediate
    |
0007|     family, character, criminal record, business activities and
    |
0008|     business associates, covering at least a ten-year period
    |
0009|     immediately preceding the date of submitting the disclosure
    |
0010|     statement; and 
    |
0011|                    (3)  a complete description of any equity
    |
0012|     interest held in a business connected with the gaming
    |
0013|     industry.
    |
0014|               D.  In preparing an investigative report, the
    |
0015|     department of public safety may request and receive criminal
    |
0016|     history information from the federal bureau of investigation
    |
0017|     or any other law enforcement agency or organization.  The
    |
0018|     department of public safety shall maintain confidentiality
    |
0019|     regarding information received from a law enforcement agency
    |
0020|     that may be imposed by the agency as a condition for
    |
0021|     providing the information to the department.
    |
0022|               E.  A person required to file a disclosure
    |
0023|     statement shall provide any assistance or information
    |
0024|     requested by the department of public safety or the board and
    |
0025|     shall cooperate in any inquiry or investigation.
    |
0001|               F.  If information required to be included in a
    |
0002|     disclosure statement changes or if information is added after 
    |
0003|     the statement is filed, the person required to file it shall
    |
0004|     provide that information in writing to the person requesting
    |
0005|     the investigation.  The supplemental information shall be
    |
0006|     provided within thirty days after the change or addition.
    |
0007|               G.  The board shall not appoint a person as
    |
0008|     executive director or security director, and neither the
    |
0009|     executive director nor the security director shall employ a
    |
0010|     person, if the appointing or employing authority has
    |
0011|     reasonable cause to believe that the person has:
    |
0012|                    (1)  knowingly misrepresented or omitted a
    |
0013|     material fact required in a disclosure statement;
    |
0014|                    (2)  been convicted of a felony, a gaming
    |
0015|     related offense or a crime involving fraud, theft or moral
    |
0016|     turpitude within ten years immediately preceding the date of
    |
0017|     submitting a disclosure statement required pursuant to this
    |
0018|     section;
    |
0019|                    (3)  exhibited a history of willful
    |
0020|     disregard for the gaming laws of this or any other state or
    |
0021|     the United States; or
    |
0022|                    (4)  had a permit or license issued pursuant
    |
0023|     to the gaming laws of this or any other state or the United
    |
0024|     States permanently suspended or revoked for cause.
    |
0025|               H.  The board, the executive director and the
    |
0001|     security director may exercise absolute discretion in
    |
0002|     exercising their respective appointing and employing powers.
    |
0003|          Section 12.  [<u>NEW MATERIAL</u>]  CONFLICTS OF INTEREST--
    |
0004|     BOARD--EXECUTIVE DIRECTOR.--
    |
0005|               A.  In addition to all other provisions of New
    |
0006|     Mexico law regarding conflicts of interest of state officials
    |
0007|     and employees, a member of the board, the executive director,
    |
0008|     the security director, or a person in the immediate family of
    |
0009|     or residing in the household of any of the foregoing persons,
    |
0010|     shall not:
    |
0011|                    (1)  directly or indirectly, as a proprietor
    |
0012|     or as a member, stockholder, director or officer of a
    |
0013|     company, have an interest in a business engaged in gaming
    |
0014|     activities in this or another jurisdiction; or
    |
0015|                    (2)  accept or agree to accept any economic
    |
0016|     opportunity, gift, loan, gratuity, special discount, favor,
    |
0017|     hospitality or service having an aggregate value of one
    |
0018|     hundred dollars ($100) or more in any calendar year from a
    |
0019|     licensee or applicant.
    |
0020|               B.  If a member of the board, the executive
    |
0021|     director, the security director, or a person in the immediate
    |
0022|     family of or residing in the household of any of the
    |
0023|     foregoing persons, violates a provision of this section, the
    |
0024|     member of the board, the executive director or the security
    |
0025|     director shall be removed from office.  A board member shall
    |
0001|     be removed by the governor, and the executive director and
    |
0002|     the security director shall be removed by the board. 
    |
0003|          Section 13.  [<u>NEW MATERIAL</u>]  ACTIVITIES REQUIRING
    |
0004|     LICENSING.--
    |
0005|               A.  A person shall not conduct gaming unless he is
    |
0006|     licensed as a gaming operator. 
    |
0007|               B.  A person shall not sell, supply or distribute
    |
0008|     any gaming device or associated equipment for use or play in
    |
0009|     this state or for use or play outside of this state from a
    |
0010|     location within this state unless he is licensed as a
    |
0011|     distributor or manufacturer, but a gaming operator licensee
    |
0012|     may sell or trade in a gaming device or associated equipment
    |
0013|     to a gaming operator licensee, distributor licensee or
    |
0014|     manufacturer licensee. 
    |
0015|               C.  A person shall not manufacture, fabricate,
    |
0016|     assemble, program or make modifications to a gaming device or
    |
0017|     associated equipment for use or play in this state or for use
    |
0018|     or play outside of this state from any location within this
    |
0019|     state unless he is a manufacturer licensee.  A manufacturer
    |
0020|     licensee may sell, supply or distribute only the gaming
    |
0021|     devices or associated equipment that he manufactures,
    |
0022|     fabricates, assembles, programs or modifies.
    |
0023|               D.  A gaming operator licensee or a person other
    |
0024|     than a manufacturer licensee or distributor licensee shall
    |
0025|     not possess or control a place where there is an unlicensed
    |
0001|     gaming machine.  Any unlicensed gaming machine, except one in
    |
0002|     the possession of a licensee while awaiting transfer to a
    |
0003|     gaming operator licensee for licensure of the machine, is
    |
0004|     subject to forfeiture and confiscation by any law enforcement
    |
0005|     agency or peace officer.
    |
0006|               E.  A person shall not service or repair a gaming
    |
0007|     device or associated equipment unless he is licensed as a
    |
0008|     manufacturer or employed by a manufacturer licensee.        
    |
0009|               F.  A person shall not engage in any activity for
    |
0010|     which the board requires a license or permit without
    |
0011|     obtaining the license or permit.
    |
0012|               G.  Except as provided in Subsection B of this
    |
0013|     section, a person shall not purchase, lease or acquire
    |
0014|     possession of a gaming device or associated equipment except
    |
0015|     from a licensed distributor or manufacturer.
    |
0016|          Section 14.  [<u>NEW MATERIAL</u>]  LICENSURE--APPLICATION.-
    |
0017|     -
    |
0018|               A.  The board shall establish and issue the
    |
0019|     following categories of licenses:
    |
0020|                    (1)  manufacturer;
    |
0021|                    (2)  distributor; 
    |
0022|                    (3)  gaming operator; and
    |
0023|                    (4)  gaming machine.
    |
0024|               B.  The board shall issue certifications of
    |
0025|     findings of suitability for key executives and other persons
    |
0001|     for whom certification is required.
    |
0002|               C.  The board shall issue work permits for gaming
    |
0003|     employees.
    |
0004|               D.  A licensee shall not be issued more than one
    |
0005|     type of license, but this provision does not prohibit a
    |
0006|     licensee from owning, leasing, acquiring or having in his
    |
0007|     possession licensed gaming machines if that activity is
    |
0008|     otherwise allowed by the provisions of the Gaming Control
    |
0009|     Act. A licensee shall not own a majority interest in, manage
    |
0010|     or otherwise control a holder of another type of license
    |
0011|     issued pursuant to the provisions of that act. 
    |
0012|               E.  Applicants shall apply on forms provided by
    |
0013|     the board and furnish all information requested by the board. 
    |
0014|     Submission of an application constitutes consent to a credit
    |
0015|     check of the applicant and all persons having a substantial
    |
0016|     interest in the applicant and any other background
    |
0017|     investigations required pursuant to the Gaming Control Act or
    |
0018|     deemed necessary by the board.
    |
0019|               F.  All licenses issued by the board pursuant to
    |
0020|     the provisions of this section shall be reviewed for renewal
    |
0021|     annually unless revoked, suspended, canceled or terminated.
    |
0022|               G.  A license shall not be transferred or
    |
0023|     assigned.
    |
0024|               H.  The application for a license shall include:
    |
0025|                    (1)  the name of the applicant;
    |
0001|                    (2)  the location of the proposed operation;
    |
0002|                    (3)  the gaming devices to be operated,
    |
0003|     manufactured, distributed or serviced;
    |
0004|                    (4)  the names of all persons having a
    |
0005|     direct or indirect interest in the business of the applicant
    |
0006|     and the nature of such interest; and
    |
0007|                    (5)  such other information and details as
    |
0008|     the board may require.
    |
0009|               I.  The board shall furnish to the applicant
    |
0010|     supplemental forms that the applicant shall complete and file
    |
0011|     with the application.  Such supplemental forms shall require
    |
0012|     complete information and details with respect to the
    |
0013|     applicant's antecedents, habits, immediate family, character,
    |
0014|     criminal record, business activities, financial affairs and
    |
0015|     business associates, covering at least a ten-year period
    |
0016|     immediately preceding the date of filing of the application.
    |
0017|          Section 15.  [<u>NEW MATERIAL</u>]  LICENSE, CERTIFICATION
    |
0018|     AND WORK PERMIT FEES.--
    |
0019|               A.  License and other fees shall be established by
    |
0020|     board regulation but shall not exceed the following amounts:
    |
0021|                    (1)  manufacturer's license, twenty thousand
    |
0022|     dollars ($20,000) for the initial license and five thousand
    |
0023|     dollars ($5,000) for annual renewal; 
    |
0024|                    (2)  distributor's license, ten thousand
    |
0025|     dollars ($10,000) for the initial license and one thousand
    |
0001|     dollars ($1,000) for annual renewal;
    |
0002|                    (3)  gaming operator's license for a
    |
0003|     racetrack, fifty thousand dollars ($50,000) for the initial
    |
0004|     license and ten thousand dollars ($10,000) for annual
    |
0005|     renewal;
    |
0006|                    (4)  gaming operator's license for a
    |
0007|     nonprofit organization, one thousand dollars ($1,000) for the
    |
0008|     initial license and two hundred dollars ($200) for annual
    |
0009|     renewal; 
    |
0010|                    (5)  gaming operator's license for a liquor
    |
0011|     establishment, one hundred fifty dollars ($150) for the
    |
0012|     initial license and twenty-five dollars ($25.00) for annual
    |
0013|     renewal;
    |
0014|                    (6)  for each separate gaming machine
    |
0015|     licensed to a person holding an operator's license, five
    |
0016|     hundred dollars ($500) for the initial license and one
    |
0017|     hundred dollars ($100) for annual renewal; and 
    |
0018|                    (7)  work permit, one hundred dollars ($100)
    |
0019|     annually.
    |
0020|               B.  The board shall establish the fee for
    |
0021|     certifications or other actions by regulation, but no fee
    |
0022|     established by the board shall exceed one thousand dollars
    |
0023|     ($1,000), except for fees established pursuant to Paragraph
    |
0024|     (18) of Subsection C of Section 8 of the Gaming Control Act. 
    |
0025|               C.  All license, certification or work permit fees
    |
0001|     shall be paid to the board at the time and in the manner
    |
0002|     established by regulations of the board.
    |
0003|          Section 16.  [<u>NEW MATERIAL</u>]  ACTION BY BOARD ON
    |
0004|     APPLICATIONS.--
    |
0005|               A.  A person that the board determines is
    |
0006|     qualified to receive a license pursuant to the provisions of
    |
0007|     the Gaming Control Act may be issued a license.  The burden
    |
0008|     of proving qualifications is on the applicant.    
    |
0009|               B.  A license shall not be issued unless the board
    |
0010|     is satisfied that the applicant is:
    |
0011|                    (1)  a person of good moral character,
    |
0012|     honesty and integrity;
    |
0013|                    (2)  a person whose prior activities,
    |
0014|     criminal record, reputation, habits and associations do not
    |
0015|     pose a threat to the public interest or to the effective
    |
0016|     regulation and control of gaming or create or enhance the
    |
0017|     dangers of unsuitable, unfair or illegal practices, methods
    |
0018|     and activities in the conduct of gaming or the carrying on of
    |
0019|     the business and financial arrangements incidental thereto;
    |
0020|     and
    |
0021|                    (3)  in all other respects qualified to be
    |
0022|     licensed consistent with the laws of this state.
    |
0023|               C.  A license shall not be issued unless the
    |
0024|     applicant has satisfied the board that:
    |
0025|                    (1)  the applicant has adequate business
    |
0001|     probity, competence and experience in business and gaming;
    |
0002|                    (2)  the proposed financing of the applicant
    |
0003|     is adequate for the nature of the proposed license and from a
    |
0004|     suitable source; any lender or other source of money or
    |
0005|     credit that the board finds does not meet the standards set
    |
0006|     forth in Subsection B of this section shall be deemed
    |
0007|     unsuitable; and 
    |
0008|                    (3)  the applicant is sufficiently
    |
0009|     capitalized under standards set by the board to conduct the
    |
0010|     business covered by the license.
    |
0011|               D.  An application to receive a license,
    |
0012|     certification or work permit constitutes a request for a
    |
0013|     determination of the applicant's general moral character,
    |
0014|     integrity and ability to participate or engage in or be
    |
0015|     associated with gaming.  Any written or oral statement made
    |
0016|     in the course of an official proceeding of the board or by a
    |
0017|     witness testifying under oath that is relevant to the purpose
    |
0018|     of the proceeding is absolutely privileged and does not
    |
0019|     impose liability for defamation or constitute a ground for
    |
0020|     recovery in any civil action.
    |
0021|               E.  The board shall not issue a license or
    |
0022|     certification to an applicant who has been denied a license
    |
0023|     or certification in this state or another state, who has had
    |
0024|     a certification, permit or license issued pursuant to the
    |
0025|     gaming laws of a state or the United States permanently
    |
0001|     suspended or revoked for cause or who is currently under
    |
0002|     suspension or subject to any other limiting action in this
    |
0003|     state or another state involving gaming activities or
    |
0004|     licensure for gaming activities.
    |
0005|               F.  The board shall investigate the qualifications
    |
0006|     of each applicant before a license, certification or work
    |
0007|     permit is issued by the board and shall continue to observe
    |
0008|     and monitor the conduct of all licensees, work permit
    |
0009|     holders, persons certified as being suitable and the persons
    |
0010|     having a material involvement directly or indirectly with a
    |
0011|     licensee.
    |
0012|               G.  The board has the authority to deny an
    |
0013|     application or limit, condition, restrict, revoke or suspend
    |
0014|     a license, certification or permit for any cause.
    |
0015|               H.  After issuance, a license, certification or
    |
0016|     permit shall continue in effect upon proper payment of the
    |
0017|     initial and renewal fees, subject to the power of the board
    |
0018|     to revoke, suspend, condition or limit licenses,
    |
0019|     certifications and permits.
    |
0020|               I.  The board has full and absolute power and
    |
0021|     authority to deny an application for any cause it deems
    |
0022|     reasonable.  If an application is denied, the board shall
    |
0023|     prepare and file its written decision on which its order
    |
0024|     denying the application is based.
    |
0025|          Section 17.  [<u>NEW MATERIAL</u>]  INVESTIGATION FOR
    |
0001|     LICENSES, CERTIFICATIONS AND PERMITS.--The board shall
    |
0002|     conduct an investigation of the applicant within thirty days
    |
0003|     after an application is filed and supplemental information
    |
0004|     that the board may require is received.
    |
0005|          Section 18.  [<u>NEW MATERIAL</u>]  ELIGIBILITY REQUIREMENTS
    |
0006|     FOR COMPANIES.--In order to be eligible to receive a license,
    |
0007|     a company shall:
    |
0008|               A.  be incorporated or otherwise organized and in
    |
0009|     good standing in this state or incorporated or otherwise
    |
0010|     organized in another state, qualified to do business in this
    |
0011|     state and in good standing in this state and in the state of
    |
0012|     incorporation;
    |
0013|               B.  comply with all of the requirements of the
    |
0014|     laws of this state pertaining to the company;
    |
0015|               C.  maintain a ledger in the principal office of
    |
0016|     the company in this state, which shall:
    |
0017|                    (1)  at all times reflect the ownership
    |
0018|     according to company records of every class of security
    |
0019|     issued by the company; and
    |
0020|                    (2)  be available for inspection by the
    |
0021|     board at all reasonable times without notice; and
    |
0022|               D.  file notice of all changes of ownership of all
    |
0023|     classes of securities issued by the company with the board
    |
0024|     within thirty days of the change.
    |
0025|          Section 19.  [<u>NEW MATERIAL</u>]  REGISTRATION WITH BOARD
    |
0001|     BY COMPANY APPLICANTS--REQUIRED INFORMATION.--A company
    |
0002|     applicant shall provide the following information to the
    |
0003|     board on forms provided by the board:
    |
0004|               A.  the organization, financial structure and
    |
0005|     nature of the business to be operated, including the names
    |
0006|     and personal histories of all officers, directors and key
    |
0007|     executives;
    |
0008|               B.  the rights and privileges acquired by the
    |
0009|     holders of different classes of authorized securities;
    |
0010|               C.  the terms and conditions of all outstanding
    |
0011|     loans, mortgages, trust deeds, pledges or any other
    |
0012|     indebtedness or security interest evidenced by a security
    |
0013|     instrument pertaining to the proposed gaming operation or
    |
0014|     other licensed activity in this state and the name and
    |
0015|     address of the person who is servicing the loan, mortgage,
    |
0016|     trust deed, pledge or other indebtedness or security
    |
0017|     interest;
    |
0018|               D.  remuneration to persons, other than directors,
    |
0019|     officers and key executives, exceeding fifty thousand dollars
    |
0020|     ($50,000) per year;
    |
0021|               E.  bonus and profit-sharing arrangements within
    |
0022|     the company;
    |
0023|               F.  management and service contracts pertaining to
    |
0024|     the proposed gaming activity in this state;
    |
0025|               G.  balance sheets and profit and loss statements
    |
0001|     for at least the three preceding fiscal years, or, if the
    |
0002|     company has not been in business for a period of three years,
    |
0003|     balance sheets and profit and loss statements from the time
    |
0004|     of its commencement of business operations and projected for
    |
0005|     three years from the time of its commencement of business
    |
0006|     operations.  All balance sheets and profit and loss
    |
0007|     statements shall be certified by independent certified public
    |
0008|     accountants; and
    |
0009|               H.  any further financial data that the board
    |
0010|     deems necessary or appropriate.
    |
0011|          Section 20.  [<u>NEW MATERIAL</u>]  INDIVIDUAL CERTIFICATION
    |
0012|     OF OFFICERS, DIRECTORS AND OTHER PERSONS.--An officer,
    |
0013|     director, equity security holder of five percent or more,
    |
0014|     partner, general partner, limited partner, trustee or
    |
0015|     beneficiary of the company that holds or has applied for a
    |
0016|     license shall be certified individually, according to the
    |
0017|     provisions of the Gaming Control Act, and if in the judgment
    |
0018|     of the board the public interest is served by requiring any
    |
0019|     or all of the company's key executives to be certified, the
    |
0020|     company shall require those persons to apply for
    |
0021|     certification.  A person who is required to be certified
    |
0022|     pursuant to this section shall apply for certification within
    |
0023|     thirty days after becoming an officer, director, equity
    |
0024|     security holder of five percent or more, partner, general
    |
0025|     partner, limited partner of five percent or more, trustee,
    |
0001|     beneficiary or key executive.  A person who is required to be
    |
0002|     certified pursuant to a decision of the board shall apply for
    |
0003|     certification within thirty days after the board so requests.
    |
0004|          Section 21.  [<u>NEW MATERIAL</u>]  REQUIREMENTS IF COMPANY
    |
0005|     IS OR BECOMES A SUBSIDIARY--INVESTIGATIONS--RESTRICTIONS ON
    |
0006|     UNSUITABLE PERSONS--OTHER REQUIREMENTS.--
    |
0007|               A.  If the company applicant or licensee is or
    |
0008|     becomes a subsidiary, each nonpublicly traded holding company
    |
0009|     and intermediary company with respect to the subsidiary
    |
0010|     company shall:
    |
0011|                    (1)  qualify to do business in New Mexico;
    |
0012|     and
    |
0013|                    (2)  register with the board and furnish to
    |
0014|     the board the following information:
    |
0015|                         (a)  a complete list of all beneficial
    |
0016|     owners of five percent or more of its equity securities,
    |
0017|     which shall be updated within thirty days after any change;
    |
0018|                         (b)  the names of all company officers
    |
0019|     and directors within thirty days of their appointment or
    |
0020|     election;
    |
0021|                         (c)  its organization, financial
    |
0022|     structure and nature of the business it operates;
    |
0023|                         (d)  the terms, position, rights and
    |
0024|     privileges of the different classes of its outstanding
    |
0025|     securities;
    |
0001|                         (e)  the terms on which its securities
    |
0002|     are to be, and during the preceding three years have been,
    |
0003|     offered;
    |
0004|                         (f)  the holder of and the terms and
    |
0005|     conditions of all outstanding loans, mortgages, trust deeds,
    |
0006|     pledges or any other indebtedness or security interest
    |
0007|     pertaining to the applicant or licensee;
    |
0008|                         (g)  the extent of the securities
    |
0009|     holdings or other interest in the holding company or
    |
0010|     intermediary company of all officers, directors, key
    |
0011|     executives, underwriters, partners, principals, trustees or
    |
0012|     any direct or beneficial owners, and the amount of any
    |
0013|     remuneration paid them as compensation for their services in
    |
0014|     the form of salary, wages, fees or by contract pertaining to
    |
0015|     the licensee;
    |
0016|                         (h)  remuneration to persons other than
    |
0017|     directors, officers and key executives exceeding fifty
    |
0018|     thousand dollars ($50,000) per year;
    |
0019|                         (i)  bonus and profit-sharing
    |
0020|     arrangements within the holding company or intermediary
    |
0021|     company;
    |
0022|                         (j)  management and service contracts
    |
0023|     pertaining to the licensee or applicant;
    |
0024|                         (k)  options existing or to be created
    |
0025|     in respect to the company's securities or other interests;
    |
0001|                         (l)  balance sheets and profit and loss
    |
0002|     statements, certified by independent certified public
    |
0003|     accountants, for not more than the three preceding fiscal
    |
0004|     years, or, if the holding company or intermediary company has
    |
0005|     not been in existence more than three years, balance sheets
    |
0006|     and profit and loss statements from the time of its
    |
0007|     establishment, together with projections for three years from
    |
0008|     the time of its establishment;
    |
0009|                         (m)  any further financial statements
    |
0010|     necessary or appropriate to assist the board in making its
    |
0011|     determinations; and
    |
0012|                         (n)  a current annual profit and loss
    |
0013|     statement, a current annual balance sheet and a copy of the
    |
0014|     company's most recent federal income tax return within thirty
    |
0015|     days after the return is filed.
    |
0016|               B.  All holders of five percent or more of the
    |
0017|     equity security of a holding company or intermediary company
    |
0018|     shall apply for a finding of suitability.
    |
0019|               C.  The board may in its discretion perform the
    |
0020|     investigations concerning the officers, directors, key
    |
0021|     executives, underwriters, security holders, partners,
    |
0022|     principals, trustees or direct or beneficial owners of any
    |
0023|     interest in any holding company or intermediary company as it
    |
0024|     deems necessary, either at the time of initial registration
    |
0025|     or at any time thereafter.
    |
0001|               D.  If at any time the board finds that any person
    |
0002|     owning, controlling or holding with power to vote all or any
    |
0003|     part of any class of securities of, or any interest in, any
    |
0004|     holding company or intermediary company is unsuitable to be
    |
0005|     connected with a licensee, it shall so notify both the
    |
0006|     unsuitable person and the holding company or intermediary
    |
0007|     company.  The unsuitable person shall immediately offer the
    |
0008|     securities or other interest to the issuing company for
    |
0009|     purchase.  The company shall purchase the securities or
    |
0010|     interest offered upon the terms and within the time period
    |
0011|     ordered by the board.
    |
0012|               E.  Beginning on the date when the board serves
    |
0013|     notice that a person has been found to be unsuitable pursuant
    |
0014|     to Subsection D of this section, it is unlawful for the
    |
0015|     unsuitable person to:
    |
0016|                    (1)  receive any dividend or interest upon
    |
0017|     any securities held in the holding company or intermediary
    |
0018|     company, or any dividend, payment or distribution of any kind
    |
0019|     from the holding company or intermediary company;
    |
0020|                    (2)  exercise, directly or indirectly or
    |
0021|     through a proxy, trustee or nominee, any voting right
    |
0022|     conferred by the securities or interest; or
    |
0023|                    (3)  receive remuneration in any form from
    |
0024|     the licensee, or from any holding company or intermediary
    |
0025|     company with respect to that licensee, for services rendered
    |
0001|     or otherwise.
    |
0002|               F.  A holding company or intermediary company
    |
0003|     subject to the provisions of Subsection A of this section
    |
0004|     shall not make any public offering of any of its equity
    |
0005|     securities unless such public offering has been approved by
    |
0006|     the board.
    |
0007|               G.  This section does not apply to a holding
    |
0008|     company or intermediary company that is a publicly traded
    |
0009|     corporation, the stock of which is traded on recognized stock
    |
0010|     exchanges, which shall instead comply with the provisions of
    |
0011|     Section 22 of the Gaming Control Act.
    |
0012|          Section 22.  [<u>NEW MATERIAL</u>]  REGISTRATION AND
    |
0013|     CERTIFICATION OF PUBLICLY TRADED CORPORATIONS.--
    |
0014|               A.  If a company applicant or company licensee is
    |
0015|     or becomes a publicly traded corporation, it shall register
    |
0016|     with the board and provide the following information:
    |
0017|                    (1)  as of the date the company became a
    |
0018|     publicly traded corporation, and on any later date when the
    |
0019|     information changes, the names of all stockholders of record
    |
0020|     who hold five percent or more of the outstanding shares of
    |
0021|     any class of equity securities issued by the publicly traded
    |
0022|     corporation;
    |
0023|                    (2)  the names of all officers within thirty
    |
0024|     days of their respective appointments;
    |
0025|                    (3)  the names of all directors within
    |
0001|     thirty days of their respective elections or appointments;
    |
0002|                    (4)  the organization, financial structure
    |
0003|     and nature of the businesses the publicly traded corporation
    |
0004|     operates;
    |
0005|                    (5)  the terms, position, rights and
    |
0006|     privileges of the different classes of securities outstanding
    |
0007|     as of the date the company became a publicly traded
    |
0008|     corporation;
    |
0009|                    (6)  the terms on which the company's
    |
0010|     securities were issued during the three years preceding the
    |
0011|     date on which the company became a publicly traded
    |
0012|     corporation and the terms on which the publicly traded
    |
0013|     corporation's securities are to be offered to the public as
    |
0014|     of the date the company became a publicly traded corporation;
    |
0015|                    (7)  the terms and conditions of all
    |
0016|     outstanding indebtedness and evidence of security pertaining
    |
0017|     directly or indirectly to the publicly traded corporation;
    |
0018|                    (8)  remuneration exceeding fifty thousand
    |
0019|     dollars ($50,000) per year paid to persons other than
    |
0020|     directors, officers and key executives who are actively and
    |
0021|     directly engaged in the administration or supervision of the
    |
0022|     gaming activities of the publicly traded corporation;
    |
0023|                    (9)  bonus and profit-sharing arrangements
    |
0024|     within the publicly traded corporation directly or indirectly
    |
0025|     relating to its gaming activities;
    |
0001|                    (10)  management and service contracts of
    |
0002|     the corporation pertaining to its gaming activities;
    |
0003|                    (11)  options existing or to be created
    |
0004|     pursuant to its equity securities;
    |
0005|                    (12)  balance sheets and profit and loss
    |
0006|     statements, certified by independent certified public
    |
0007|     accountants, for not less than the three fiscal years
    |
0008|     preceding the date the company became a publicly traded
    |
0009|     corporation;
    |
0010|                    (13)  any further financial statements
    |
0011|     deemed necessary or appropriate by the board; and
    |
0012|                    (14)  a description of the publicly traded
    |
0013|     corporation's affiliated companies and intermediary companies
    |
0014|     and gaming licenses, permits and approvals held by those
    |
0015|     entities.
    |
0016|               B.  The board shall consider the following
    |
0017|     criteria in determining whether to certify a publicly traded
    |
0018|     corporation:
    |
0019|                    (1)  the business history of the publicly
    |
0020|     traded corporation, including its record of financial
    |
0021|     stability, integrity and success of its gaming operations in
    |
0022|     other jurisdictions;
    |
0023|                    (2)  the current business activities and
    |
0024|     interests of the applicant, as well as those of its officers,
    |
0025|     promoters, lenders and other sources of financing, or any
    |
0001|     other persons associated with it;
    |
0002|                    (3)  the current financial structure of the
    |
0003|     publicly traded corporation as well as changes that could
    |
0004|     reasonably be expected to occur to its financial structure as
    |
0005|     a consequence of its proposed action;
    |
0006|                    (4)  the present and proposed compensation
    |
0007|     arrangements between the publicly traded corporation and its
    |
0008|     directors, officers, key executives, securities holders,
    |
0009|     lenders or other sources of financing;
    |
0010|                    (5)  the equity investment, commitment or
    |
0011|     contribution of present or prospective directors, key
    |
0012|     executives, investors, lenders or other sources of financing;
    |
0013|     and
    |
0014|                    (6)  the dealings and arrangements,
    |
0015|     prospective or otherwise, between the publicly traded
    |
0016|     corporation and its investment bankers, promoters, finders or
    |
0017|     lenders and other sources of financing.
    |
0018|               C.  The board may issue a certification upon
    |
0019|     receipt of a proper application and consideration of the
    |
0020|     criteria set forth in Subsection B of this section if it
    |
0021|     finds that the certification would not be contrary to the
    |
0022|     public interest or the policy set forth in the Gaming Control
    |
0023|     Act.
    |
0024|          Section 23.  [<u>NEW MATERIAL</u>]  FINDING OF SUITABILITY
    |
0025|     REQUIRED FOR DIRECTORS, OFFICERS AND KEY EXECUTIVES--REMOVAL
    |
0001|     FROM POSITION IF FOUND UNSUITABLE--SUSPENSION OF SUITABILITY
    |
0002|     BY BOARD.--
    |
0003|               A.  Each officer, director and key executive of a
    |
0004|     holding company, intermediary company or publicly traded
    |
0005|     corporation that the board determines is or is to become
    |
0006|     actively and directly engaged in the administration or
    |
0007|     supervision of, or any other significant involvement with,
    |
0008|     the activities of the subsidiary licensee or applicant shall
    |
0009|     apply for a finding of suitability.
    |
0010|               B.  If any officer, director or key executive of a
    |
0011|     holding company, intermediary company or publicly traded
    |
0012|     corporation required to be found suitable pursuant to
    |
0013|     Subsection A of this section fails to apply for a finding of
    |
0014|     suitability within thirty days after being requested to do so
    |
0015|     by the board, or is not found suitable by the board, or if
    |
0016|     his finding of suitability is revoked after appropriate
    |
0017|     findings by the board, the holding company, intermediary
    |
0018|     company or publicly traded corporation shall immediately
    |
0019|     remove that officer, director or key executive from any
    |
0020|     office or position in which the person is engaged in the
    |
0021|     administration or supervision of, or any other involvement
    |
0022|     with, the activities of the certified subsidiary until the
    |
0023|     person is thereafter found to be suitable.  If the board
    |
0024|     suspends the finding of suitability of any officer, director
    |
0025|     or key executive, the holding company, intermediary company
    |
0001|     or publicly traded corporation shall immediately and for the
    |
0002|     duration of the suspension suspend that officer, director or
    |
0003|     key executive from performance of any duties in which he is
    |
0004|     actively and directly engaged in the administration or
    |
0005|     supervision of, or any other involvement with, the activities
    |
0006|     of the subsidiary licensee.
    |
0007|          Section 24.  [<u>NEW MATERIAL</u>]  SUITABILITY OF
    |
0008|     INDIVIDUALS ACQUIRING BENEFICIAL OWNERSHIP OF VOTING SECURITY
    |
0009|     IN PUBLICLY TRADED CORPORATION--REPORT OF ACQUISITION--
    |
0010|     APPLICATION--PROHIBITION.--
    |
0011|               A.  Each person who, individually or in
    |
0012|     association with others, acquires, directly or indirectly,
    |
0013|     beneficial ownership of five percent or more of any voting
    |
0014|     securities in a publicly traded corporation registered with
    |
0015|     the board may be required to be found suitable if the board
    |
0016|     has reason to believe that the acquisition of the ownership
    |
0017|     would otherwise be inconsistent with the declared policy of
    |
0018|     this state.
    |
0019|               B.  Each person who, individually or in
    |
0020|     association with others, acquires, directly or indirectly,
    |
0021|     beneficial ownership of five percent or more of any class of
    |
0022|     voting securities of a publicly traded corporation certified
    |
0023|     by the board shall notify the board within ten days after
    |
0024|     acquiring such interest.
    |
0025|               C.  Each person who, individually or in
    |
0001|     association with others, acquires, directly or indirectly,
    |
0002|     the beneficial ownership of more than ten percent of any
    |
0003|     class of voting securities of a publicly traded corporation
    |
0004|     certified by the board shall apply to the board for a finding
    |
0005|     of suitability within thirty days after acquiring such
    |
0006|     interest. 
    |
0007|               D.  Institutional investors that have been
    |
0008|     exempted from or have received a waiver of suitability
    |
0009|     requirements pursuant to regulations adopted by the board are
    |
0010|     not required to comply with this section.
    |
0011|               E.  Any person required by the board or by the
    |
0012|     provisions of this section to be found suitable shall apply
    |
0013|     for a finding of suitability within thirty days after the
    |
0014|     board requests that he do so.
    |
0015|               F.  Any person required by the board or the
    |
0016|     provisions of this section to be found suitable who
    |
0017|     subsequently is found unsuitable by the board shall not hold
    |
0018|     directly or indirectly the beneficial ownership of any
    |
0019|     security of a publicly traded corporation that is registered
    |
0020|     with the board beyond that period of time prescribed by the
    |
0021|     board.
    |
0022|               G.  The board may, but is not required to, deem a
    |
0023|     person qualified to hold a license or be found suitable as
    |
0024|     required by this section if the person currently holds a
    |
0025|     valid license issued by, or has been found suitable by,
    |
0001|     gaming regulatory authorities in another jurisdiction,
    |
0002|     provided that the board finds that the other jurisdiction has
    |
0003|     conducted a thorough investigation of the applicant and has
    |
0004|     criteria substantially similar to those of the board to
    |
0005|     determine when a person is to be found suitable or to obtain
    |
0006|     a license.
    |
0007|          Section 25.  [<u>NEW MATERIAL</u>]  REPORT OF PROPOSED
    |
0008|     ISSUANCE OR TRANSFER OF SECURITIES--REPORT OF CHANGE IN
    |
0009|     CORPORATE OFFICERS AND DIRECTORS--APPROVAL OF BOARD.--
    |
0010|               A.  Before a company licensee, other than a
    |
0011|     publicly traded corporation, may issue or transfer five
    |
0012|     percent or more of its securities to any person, it shall
    |
0013|     file a report of its proposed action with the board, which
    |
0014|     report shall request the approval of the board.  The board
    |
0015|     shall have ninety days within which to approve or deny the
    |
0016|     request.  If the board fails to act in ninety days, the
    |
0017|     request is deemed approved.  If the board denies the request,
    |
0018|     the company shall not issue or transfer five percent or more
    |
0019|     of its securities to the person about whom the request was
    |
0020|     made.
    |
0021|               B.  A company licensee shall file a report of each
    |
0022|     change of the corporate officers and directors with the board
    |
0023|     within thirty days of the change.  The board shall have
    |
0024|     ninety days from the date the report is filed within which to
    |
0025|     approve or disapprove such change.  During the ninety-day
    |
0001|     period and thereafter, if the board does not disapprove the
    |
0002|     change, an officer or director is be entitled to exercise all
    |
0003|     powers of the office to which he was elected or appointed.
    |
0004|               C.  A company licensee shall report to the board
    |
0005|     in writing any change in company personnel who have been
    |
0006|     designated as key executives.  The report shall be made no
    |
0007|     later than thirty days after the change.
    |
0008|               D.  The board may require that a company licensee
    |
0009|     furnish the board with a copy of its federal income tax
    |
0010|     return within thirty days after the return is filed.
    |
0011|          Section 26.  [<u>NEW MATERIAL</u>]  GAMING OPERATOR
    |
0012|     LICENSEES--GENERAL PROVISIONS--PLAYER AGE LIMIT--RULES FOR
    |
0013|     PLACEMENT.--
    |
0014|               A.  An applicant for licensure as a gaming
    |
0015|     operator shall submit with the application a plan for
    |
0016|     assisting in the prevention, education and treatment of
    |
0017|     compulsive gambling.  The plan shall include regular
    |
0018|     educational training sessions for employees.  Plan approval
    |
0019|     is a condition of issuance of the license.  
    |
0020|               B.  A gaming operator licensee shall be granted a
    |
0021|     license to operate a specific number of machines at a gaming
    |
0022|     establishment identified in the license application and shall
    |
0023|     be granted a license for each gaming machine.
    |
0024|               C.  A gaming operator licensee who desires to
    |
0025|     change the number of machines in operation at a gaming
    |
0001|     establishment shall apply to the board for an amendment to
    |
0002|     his license authorizing a change in the number of machines.
    |
0003|               D.  Gaming machines may be available for play only
    |
0004|     in an area restricted to persons twenty-one years of age or
    |
0005|     older.
    |
0006|               E.  A gaming operator licensee shall not have
    |
0007|     automated teller machines on the premises.
    |
0008|               F.  A gaming operator licensee shall not provide,
    |
0009|     allow, contract or arrange to provide alcohol or food for no
    |
0010|     charge or at reduced prices as an incentive or enticement for
    |
0011|     patrons to game.
    |
0012|          Section 27.  [<u>NEW MATERIAL</u>]  GAMING OPERATOR
    |
0013|     LICENSEES--SPECIAL CONDITIONS FOR RACETRACKS--NUMBER OF
    |
0014|     GAMING MACHINES--DAYS AND HOURS OF OPERATIONS.--
    |
0015|               A.  A racetrack licensed by the state racing
    |
0016|     commission pursuant to the Horse Racing Act to conduct live
    |
0017|     horse races or simulcast races may be issued a gaming
    |
0018|     operator's license to operate gaming machines on its premises
    |
0019|     where live racing is conducted.
    |
0020|               B.  A racetrack's gaming operator's license shall
    |
0021|     automatically become void if:
    |
0022|                    (1)  the racetrack no longer holds an active
    |
0023|     license to conduct pari-mutuel wagering; or
    |
0024|                    (2)  the racetrack fails to maintain a
    |
0025|     minimum of four live race days a week during its licensed
    |
0001|     race meet unless otherwise approved by the board.
    |
0002|               C.  A gaming operator licensee that is a racetrack
    |
0003|     may have an unlimited number of licensed gaming machines, but
    |
0004|     the number of gaming machines to be located on the licensee's
    |
0005|     premises shall be specified in the gaming operator's license.
    |
0006|               D.  A gaming operator licensee that is a racetrack
    |
0007|     shall erect a permanent physical barrier to allow for
    |
0008|     multiple uses of the premises by persons of all ages.  For
    |
0009|     purposes of this subsection, "permanent physical barrier"
    |
0010|     means a floor-to-ceiling wall separating the general areas
    |
0011|     from the restricted areas.  The entrance to the area where
    |
0012|     gaming machines are located shall display a sign that the
    |
0013|     premises are restricted to persons twenty-one years of age or
    |
0014|     older.  Persons under the age of twenty-one shall not enter
    |
0015|     the area where gaming machines are located.
    |
0016|               E.  Gaming machines on a racetrack gaming operator
    |
0017|     licensee's premises may be played only on days when the
    |
0018|     racetrack conducts live horse races or simulcast races and
    |
0019|     during times established by regulation of the board, but the
    |
0020|     regulations shall provide for a maximum of twelve hours a
    |
0021|     day.
    |
0022|          Section 28.  [<u>NEW MATERIAL</u>]  GAMING OPERATOR
    |
0023|     LICENSEES--SPECIAL CONDITIONS FOR NONPROFIT ORGANIZATIONS AND
    |
0024|     LIQUOR ESTABLISHMENTS--NUMBER OF GAMING MACHINES--DAYS AND
    |
0025|     HOURS OF OPERATIONS.--
    |
0001|               A.  A nonprofit organization or a liquor
    |
0002|     establishment may be issued a gaming operator's license to
    |
0003|     operate licensed gaming machines on its premises.
    |
0004|               B.  No more than twenty-five gaming machines may
    |
0005|     be offered for play on the premises of a nonprofit
    |
0006|     organization  gaming operator licensee.  No more than three
    |
0007|     gaming machines may be offered for play on the premises of a
    |
0008|     liquor establishment.
    |
0009|               C.  No gaming machine on the premises of a
    |
0010|     nonprofit organization gaming operator licensee or a liquor
    |
0011|     establishment gaming operator licensee may award a prize that
    |
0012|     exceeds one thousand dollars ($1,000).
    |
0013|               D.  Gaming machines may be played on the premises
    |
0014|     of a nonprofit organization gaming operator licensee from
    |
0015|     12:00 noon until 12:00 midnight every day.  Gaming machines
    |
0016|     may be played on the premises of a liquor establishment
    |
0017|     gaming operator licensee only during the hours that liquor
    |
0018|     may be sold on the premises.
    |
0019|          Section 29.  [<u>NEW MATERIAL</u>]  LICENSING OF MANUFACTURERS
    |
0020|     OF GAMING DEVICES--EXCEPTION--DISPOSITION OF GAMING DEVICES.--
    |
0021|               A.  It is unlawful for any person to operate,
    |
0022|     carry on, conduct or maintain any form of manufacturing of
    |
0023|     any gaming device or associated equipment for use or play in
    |
0024|     New Mexico or any form of manufacturing of any gaming device
    |
0025|     or associated equipment in New Mexico for use or play outside
    |
0001|     of New Mexico without first obtaining and maintaining a
    |
0002|     manufacturer's license.
    |
0003|               B.  If the board revokes a manufacturer's license:
    |
0004|                    (1)  no new gaming device manufactured by
    |
0005|     the manufacturer may be approved for use in this state;
    |
0006|                    (2)  any previously approved gaming device
    |
0007|     manufactured by the manufacturer is subject to revocation of
    |
0008|     approval if the reasons for the revocation of the license
    |
0009|     also apply to that gaming device;
    |
0010|                    (3)  no new gaming device or associated
    |
0011|     equipment made by the manufacturer may be distributed, sold,
    |
0012|     transferred or offered for use or play in New Mexico; and
    |
0013|                    (4)  any association or agreement between
    |
0014|     the manufacturer and a distributor licensee or gaming
    |
0015|     operator licensee in New Mexico shall be terminated.  
    |
0016|               C.  An agreement between a manufacturer licensee
    |
0017|     and a distributor licensee or a gaming operator licensee in
    |
0018|     New Mexico shall be deemed to include a provision for its
    |
0019|     termination without liability for the termination on the part
    |
0020|     of either party upon a finding by the board that either party
    |
0021|     is unsuitable.  Failure to include that condition in the
    |
0022|     agreement is not a defense in any action brought pursuant to
    |
0023|     this section to terminate the agreement.
    |
0024|               D.  A gaming device shall not be used and offered
    |
0025|     for play by a gaming operator licensee unless it is identical
    |
0001|     in all material aspects to a model that has been specifically
    |
0002|     tested and approved by:
    |
0003|                    (1)  the board; 
    |
0004|                    (2)  a laboratory selected by the board; or
    |
0005|                    (3)  gaming officials in Nevada or New
    |
0006|     Jersey after January 1, 1990.
    |
0007|               E.  The board may inspect every gaming device that
    |
0008|     is manufactured:
    |
0009|                    (1)  for use in New Mexico; or
    |
0010|                    (2)  in New Mexico for use outside of New
    |
0011|     Mexico.
    |
0012|               F.  The board may inspect every gaming device that
    |
0013|     is offered for play within New Mexico by a gaming operator
    |
0014|     licensee.
    |
0015|               G.  The board may inspect all associated equipment
    |
0016|     that is manufactured and sold for use in New Mexico or
    |
0017|     manufactured in New Mexico for use outside of New Mexico.
    |
0018|               H.  In addition to all other fees and charges
    |
0019|     imposed pursuant to the Gaming Control Act, the board may
    |
0020|     determine, charge and collect from each manufacturer an
    |
0021|     inspection fee, which shall not exceed the actual cost of
    |
0022|     inspection and investigation.
    |
0023|               I.  The board may prohibit the use of a gaming
    |
0024|     device by a gaming operator licensee if it finds that the
    |
0025|     gaming device does not meet the requirements of this section.
    |
0001|          Section 30.  [<u>NEW MATERIAL</u>]  LICENSING OF
    |
0002|     DISTRIBUTORS OF GAMING DEVICES.--
    |
0003|               A.  It is unlawful for any person to operate,
    |
0004|     carry on, conduct or maintain any form of distribution of any
    |
0005|     gaming device for use or play in New Mexico without first
    |
0006|     obtaining and maintaining a distributor's or manufacturer's
    |
0007|     license.
    |
0008|               B.  If the board revokes a distributor's license:
    |
0009|                    (1)  no new gaming device distributed by the
    |
0010|     person may be approved;
    |
0011|                    (2)  any previously approved gaming device
    |
0012|     distributed by the distributor is subject to revocation of
    |
0013|     approval if the reasons for the revocation of the license
    |
0014|     also apply to that gaming device;
    |
0015|                    (3)  no new gaming device or associated
    |
0016|     equipment distributed by the distributor may be distributed,
    |
0017|     sold, transferred or offered for use or play in New Mexico;
    |
0018|     and
    |
0019|                    (4)  any association or agreement between
    |
0020|     the distributor and a gaming operator licensee shall be
    |
0021|     terminated.  An agreement between a distributor licensee and
    |
0022|     a gaming operator licensee shall be deemed to include a
    |
0023|     provision for its termination without liability on the part
    |
0024|     of either party upon a finding by the board that the other
    |
0025|     party is unsuitable.  Failure to include that condition in
    |
0001|     the agreement is not a defense in any action brought pursuant
    |
0002|     to this section to terminate the agreement.
    |
0003|               C.  The board may inspect every gaming device that
    |
0004|     is distributed for use in New Mexico.
    |
0005|               D.  In addition to all other fees and charges
    |
0006|     imposed by the Gaming Control Act, the board may determine,
    |
0007|     charge and collect from each distributor an inspection fee,
    |
0008|     which shall not exceed the actual cost of inspection and
    |
0009|     investigation.
    |
0010|          Section 31.  [<u>NEW MATERIAL</u>]  SUITABILITY OF CERTAIN
    |
0011|     PERSONS FURNISHING SERVICES OR PROPERTY OR DOING BUSINESS
    |
0012|     WITH GAMING OPERATORS--TERMINATION OF ASSOCIATION.--
    |
0013|               A.  The board may determine the suitability of any
    |
0014|     person who furnishes services or property to a gaming
    |
0015|     operator licensee under any arrangement pursuant to which the
    |
0016|     person receives compensation based on earnings, profits or
    |
0017|     receipts from gaming.  The board may require the person to
    |
0018|     comply with the requirements of the Gaming Control Act and
    |
0019|     with the regulations of the board.  If the board determines
    |
0020|     that the person is unsuitable, it may require the arrangement
    |
0021|     to be terminated.
    |
0022|               B.  The board may require a person to apply for a
    |
0023|     finding of suitability to be associated with a gaming
    |
0024|     operator licensee if the person:
    |
0025|                    (1)  does business on the premises of a
    |
0001|     gaming establishment; or
    |
0002|                    (2)  provides any goods or services to a
    |
0003|     gaming operator licensee for compensation that the board
    |
0004|     finds to be grossly disproportionate to the value of the
    |
0005|     goods or services.
    |
0006|               C.  If the board determines that a person is

    |
0007|     unsuitable to be associated with a gaming operator licensee,
    |
0008|     the association shall be terminated.  Any agreement that
    |
0009|     entitles a business other than gaming to be conducted on the
    |
0010|     premises of a gaming establishment, or entitles a person
    |
0011|     other than a licensee to conduct business with the gaming
    |
0012|     operator licensee, is subject to termination upon a finding
    |
0013|     of unsuitability of the person seeking association with a
    |
0014|     gaming operator licensee.  Every agreement shall be deemed to
    |
0015|     include a provision for its termination without liability on
    |
0016|     the part of the gaming operator licensee upon a finding by
    |
0017|     the board of the unsuitability of the person seeking or
    |
0018|     having an association with the gaming operator licensee. 
    |
0019|     Failure to include that condition in the agreement is not a
    |
0020|     defense in any action brought pursuant to this section to
    |
0021|     terminate the agreement.  If the application is not presented
    |
0022|     to the board within thirty days following demand or the
    |
0023|     unsuitable association is not terminated, the board may
    |
0024|     pursue any remedy or combination of remedies provided in the
    |
0025|     Gaming Control Act.
    |
0001|          Section 32.  [<u>NEW MATERIAL</u>]  REASONS FOR
    |
0002|     INVESTIGATIONS BY BOARD--COMPLAINT BY BOARD--BOARD TO APPOINT
    |
0003|     HEARING EXAMINER--REVIEW BY BOARD--ORDER OF BOARD.--
    |
0004|               A.  The board shall make appropriate
    |
0005|     investigations to:
    |
0006|                    (1)  determine whether there has been any
    |
0007|     violation of the Gaming Control Act or of any regulations
    |
0008|     adopted pursuant to that act;
    |
0009|                    (2)  determine any facts, conditions,
    |
0010|     practices or matters that it deems necessary or proper to aid
    |
0011|     in the enforcement of the Gaming Control Act or regulations
    |
0012|     adopted pursuant to that act;
    |
0013|                    (3)  aid in adopting regulations;
    |
0014|                    (4)  secure information as a basis for
    |
0015|     recommending legislation relating to the Gaming Control Act;
    |
0016|     or
    |
0017|                    (5)  determine whether a licensee is able to
    |
0018|     meet its financial obligations, including all financial
    |
0019|     obligations imposed by the Gaming Control Act, as they become
    |
0020|     due.
    |
0021|               B.  If after an investigation the board is
    |
0022|     satisfied that a license, registration, finding of
    |
0023|     suitability or prior approval by the board of any transaction
    |
0024|     for which approval was required by the provisions of the
    |
0025|     Gaming Control Act should be limited, conditioned, suspended
    |
0001|     or revoked, or that a fine should be levied, the board shall
    |
0002|     initiate a hearing by filing a complaint and transmitting a
    |
0003|     copy of it to the licensee, together with a summary of
    |
0004|     evidence in its possession bearing on the matter and the
    |
0005|     transcript of testimony at any investigative hearing
    |
0006|     conducted by or on behalf of the board.  The complaint shall
    |
0007|     be a written statement of charges that sets forth in ordinary
    |
0008|     and concise language the acts or omissions with which the
    |
0009|     respondent is charged.  It shall specify the statutes or
    |
0010|     regulations that the respondent is alleged to have violated
    |
0011|     but shall not consist merely of charges raised in the
    |
0012|     language of the statutes or regulations.  The summary of the
    |
0013|     evidence shall be confidential and made available only to the
    |
0014|     respondent until such time as it is offered into evidence at
    |
0015|     any public hearing on the matter.
    |
0016|               C.  The respondent shall file an answer within
    |
0017|     thirty days after service of the complaint.
    |
0018|               D.  Upon filing the complaint the board shall
    |
0019|     appoint a hearing examiner to conduct further proceedings.
    |
0020|               E.  The hearing examiner shall conduct proceedings
    |
0021|     in accordance with the Gaming Control Act and the regulations
    |
0022|     adopted by the board.  At the conclusion of the proceedings,
    |
0023|     the hearing examiner may recommend that the board take any
    |
0024|     appropriate action, including revocation, suspension,
    |
0025|     limitation or conditioning of a license or imposition of a
    |
0001|     fine not to exceed fifty thousand dollars ($50,000) for each
    |
0002|     violation or any combination or all of the foregoing actions.
    |
0003|               F.  The hearing examiner shall prepare a written
    |
0004|     decision containing his recommendation to the board and shall
    |
0005|     serve it on all parties.  Any respondent who disagrees with
    |
0006|     the hearing examiner's recommendation may request the board,
    |
0007|     within ten days of service of the recommendation, to review
    |
0008|     the recommendation.
    |
0009|               G.  Upon proper request, the board shall review
    |
0010|     the recommendation.  The board may remand the case to the
    |
0011|     hearing examiner for the presentation of additional evidence
    |
0012|     upon a showing of good cause why such evidence could not have
    |
0013|     been presented at the previous hearing.
    |
0014|               H.  The board shall by a majority vote accept,
    |
0015|     reject or modify the recommendation.
    |
0016|               I.  If the board limits, conditions, suspends or
    |
0017|     revokes any license or imposes a fine or limits, conditions,
    |
0018|     suspends or revokes any registration, finding of suitability
    |
0019|     or prior approval, it shall issue a written order specifying
    |
0020|     its action.
    |
0021|               J.  The board's order is effective unless and
    |
0022|     until reversed upon judicial review, except that the board
    |
0023|     may stay its order pending a rehearing or judicial review
    |
0024|     upon such terms and conditions as it deems proper.
    |
0025|          Section 33.  [<u>NEW MATERIAL</u>]  EMERGENCY ORDERS OF
    |
0001|     BOARD.--The board may issue an emergency order for
    |
0002|     suspension, limitation or conditioning of a license,
    |
0003|     registration, finding of suitability or work permit or may
    |
0004|     issue an emergency order requiring a gaming operator licensee
    |
0005|     to exclude an individual licensee from the premises of the
    |
0006|     gaming operator licensee's gaming establishment or not to pay
    |
0007|     an individual licensee any remuneration for services or any
    |
0008|     profits, income or accruals on his investment in the licensed
    |
0009|     gaming establishment in the following manner:
    |
0010|               A.  an emergency order may be issued only when the
    |
0011|     board believes that:
    |
0012|                    (1)  a licensee has willfully failed to
    |
0013|     report, pay or truthfully account for and pay over any fee
    |
0014|     imposed by the provisions of the Gaming Control Act or
    |
0015|     willfully attempted in any manner to evade or defeat any fee
    |
0016|     or payment thereof;
    |
0017|                    (2)  a licensee or gaming employee has
    |
0018|     cheated at a game; or
    |
0019|                    (3)  the emergency order is necessary for
    |
0020|     the immediate preservation of the public peace, health,
    |
0021|     safety, morals, good order or general welfare;
    |
0022|               B.  the emergency order shall set forth the
    |
0023|     grounds upon which it is issued, including a statement of
    |
0024|     facts constituting the alleged emergency necessitating such
    |
0025|     action;
    |
0001|               C.  the emergency order is effective immediately
    |
0002|     upon issuance and service upon the licensee or resident agent
    |
0003|     of the licensee or gaming employee or, in cases involving
    |
0004|     registration or findings of suitability, upon issuance and
    |
0005|     service upon the person involved or resident agent of that
    |
0006|     person; the emergency order may suspend, limit, condition or
    |
0007|     take other action in relation to the license of one or more
    |
0008|     persons in an operation without affecting other individual
    |
0009|     licensees or the gaming operator licensee.  The emergency
    |
0010|     order remains effective until further order of the board or
    |
0011|     final disposition of the case; and
    |
0012|               D.  within five days after issuance of an
    |
0013|     emergency order, the board shall cause a complaint to be
    |
0014|     filed and served upon the person involved; thereafter, the
    |
0015|     person against whom the emergency order has been issued and
    |
0016|     served is entitled to a hearing before the board and to
    |
0017|     judicial review of the decision and order of the board in
    |
0018|     accordance with the provisions of the board's regulations.
    |
0019|          Section 34.  [<u>NEW MATERIAL</u>]  EXCLUSION OR EJECTION OF
    |
0020|     CERTAIN PERSONS FROM GAMING ESTABLISHMENTS--PERSONS
    |
0021|     INCLUDED.--
    |
0022|               A.  The board shall by regulation provide for the
    |
0023|     establishment of a list of persons who are to be excluded or
    |
0024|     ejected from a gaming establishment.  The list may include
    |
0025|     any person whose presence in the gaming establishment is
    |
0001|     determined by the board to pose a threat to the public
    |
0002|     interest or licensed gaming activities.
    |
0003|               B.  In making the determination in Subsection A of
    |
0004|     this section, the board may consider a:
    |
0005|                    (1)  prior conviction for a crime that is a
    |
0006|     felony under state or federal law, a crime involving moral
    |
0007|     turpitude or a violation of the gaming laws of any
    |
0008|     jurisdiction;
    |
0009|                    (2)  violation or conspiracy to violate the
    |
0010|     provisions of the Gaming Control Act relating to:
    |
0011|                         (a)  the failure to disclose an
    |
0012|     interest in a gaming activity for which the person must
    |
0013|     obtain a license; or
    |
0014|                         (b)  willful evasion of fees or taxes; 
    |
0015|                    (3)  notorious or unsavory reputation that
    |
0016|     would adversely affect public confidence and trust that the
    |
0017|     gaming industry is free from criminal or corruptive
    |
0018|     influences; or
    |
0019|                    (4)  written order of any other governmental
    |
0020|     agency in this state or any other state that authorizes the
    |
0021|     exclusion or ejection of the person from an establishment at
    |
0022|     which gaming is conducted.
    |
0023|               C.  A gaming operator licensee has the right,
    |
0024|     without a list established by the board, to exclude or eject
    |
0025|     a person from its gaming establishment who poses a threat to
    |
0001|     the public interest or for any business reason.
    |
0002|               D.  Race, color, creed, national origin or
    |
0003|     ancestry, age, disability or sex shall not be grounds for
    |
0004|     placing the name of a person on the list or for exclusion or
    |
0005|     ejection under Subsection A or C of this section.
    |
0006|          Section 35.  [<u>NEW MATERIAL</u>]  INTERNAL CONTROL SYSTEMS.--
    |
0007|               A.  Each gaming operator licensee shall adopt
    |
0008|     internal control systems that shall include provisions for:
    |
0009|                    (1)  safeguarding its assets and revenues,
    |
0010|     especially the recording of cash and evidences of
    |
0011|     indebtedness;
    |
0012|                    (2)  making and maintaining reliable
    |
0013|     records, accounts and reports of transactions, operations and
    |
0014|     events, including reports to the board; and
    |
0015|                    (3)  a system by which the amount wagered on
    |
0016|     each gaming machine and the amount paid out by each gaming
    |
0017|     machine is recorded on a daily basis, which results may be
    |
0018|     obtained by the board by appropriate means as described in
    |
0019|     regulations adopted by the board; all manufacturers are
    |
0020|     required to have such a system available for gaming operators
    |
0021|     for the gaming machines that it supplies for use in New
    |
0022|     Mexico, and all distributors shall make such a system
    |
0023|     available to gaming operators.
    |
0024|               B.  The internal control system shall be designed
    |
0025|     to reasonably ensure that:
    |
0001|                    (1)  assets are safeguarded;
    |
0002|                    (2)  financial records are accurate and
    |
0003|     reliable;
    |
0004|                    (3)  transactions are performed only in
    |
0005|     accordance with management's general or specific
    |
0006|     authorization;
    |
0007|                    (4)  transactions are recorded adequately to
    |
0008|     permit proper reporting of gaming revenue and of fees and
    |
0009|     taxes and to maintain accountability of assets;
    |
0010|                    (5)  access to assets is allowed only in
    |
0011|     accordance with management's specific authorization;
    |
0012|                    (6)  recorded accountability for assets is
    |
0013|     compared with actual assets at reasonable intervals and
    |
0014|     appropriate action is taken with respect to any
    |
0015|     discrepancies; and
    |
0016|                    (7)  functions, duties and responsibilities
    |
0017|     are appropriately segregated and performed in accordance with
    |
0018|     sound accounting and management practices by competent,
    |
0019|     qualified personnel.
    |
0020|               C.  A gaming operator licensee and an applicant
    |
0021|     for a gaming operator's license shall describe, in the manner
    |
0022|     the board may approve or require, its administrative and
    |
0023|     accounting procedures in detail in a written system of
    |
0024|     internal control.  A gaming operator licensee and an
    |
0025|     applicant for a gaming operator's license shall submit a copy
    |
0001|     of its written system to the board.  Each written system
    |
0002|     shall include:
    |
0003|                    (1)  an organizational chart depicting
    |
0004|     appropriate segregation of functions and responsibilities;
    |
0005|                    (2)  a description of the duties and
    |
0006|     responsibilities of each position shown on the organizational
    |
0007|     chart;
    |
0008|                    (3)  a detailed, narrative description of
    |
0009|     the administrative and accounting procedures designed to
    |
0010|     satisfy the requirements of Subsection A of this section;
    |
0011|                    (4)  a written statement signed by the
    |
0012|     licensee's chief financial officer and either the licensee's
    |
0013|     chief executive officer or a licensed owner attesting that
    |
0014|     the system satisfies the requirements of this section;
    |
0015|                    (5)  if the written system is submitted by
    |
0016|     an applicant, a letter from an independent certified public
    |
0017|     accountant stating that the applicant's written system has
    |
0018|     been reviewed by the accountant and complies with the
    |
0019|     requirements of this section; and
    |
0020|                    (6)  other items as the board may require.
    |
0021|               D.  The board shall adopt and publish minimum
    |
0022|     standards for internal control procedures.
    |
0023|          Section 36.  [<u>NEW MATERIAL</u>]  GAMING EMPLOYEES--
    |
0024|     ISSUANCE OF WORK PERMITS--REVOCATION OF WORK PERMITS.--
    |
0025|               A.  A person shall not be employed as a gaming
    |
0001|     employee unless the person holds a valid work permit issued
    |
0002|     by the board.
    |
0003|               B.  A work permit shall be issued and may be
    |
0004|     revoked by the board as provided in regulations adopted by
    |
0005|     the board.
    |
0006|               C.  Any person whose work permit has been denied
    |
0007|     or revoked may seek judicial review.
    |
0008|          Section 37.  [<u>NEW MATERIAL</u>]  AGE REQUIREMENT FOR
    |
0009|     PATRONS AND GAMING EMPLOYEES.--A person under the age of
    |
0010|     twenty-one years shall not:
    |
0011|               A.  play, be allowed to play, place wagers on or
    |
0012|     collect winnings from, whether personally or through an
    |
0013|     agent, any game authorized or offered to play pursuant to the
    |
0014|     Gaming Control Act; or
    |
0015|               B.  be employed as a gaming employee.
    |
0016|          Section 38.  [<u>NEW MATERIAL</u>]  CALCULATION OF NET TAKE-
    |
0017|     -CERTAIN EXPENSES NOT DEDUCTIBLE.--In calculating net take
    |
0018|     from gaming machines, the actual cost to the licensee of any
    |
0019|     personal property distributed to a patron as the result of a
    |
0020|     legitimate wager may be deducted as a loss, except for travel
    |
0021|     expenses, food, refreshments, lodging or services.  For the
    |
0022|     purposes of this section, "as the result of a legitimate
    |
0023|     wager" means that the patron must make a wager prior to
    |
0024|     receiving the personal property, regardless of whether the
    |
0025|     receipt of the personal property is dependent on the outcome
    |
0001|     of the wager.
    |
0002|          Section 39.  [<u>NEW MATERIAL</u>]  LIMITATIONS ON TAXES AND
    |
0003|     LICENSE FEES.--A political subdivision of the state shall not
    |
0004|     impose a license fee or tax on any licensee licensed pursuant
    |
0005|     to the Gaming Control Act except for the imposition of
    |
0006|     property taxes.
    |
0007|          Section 40.  [<u>NEW MATERIAL</u>]  USE OF CHIPS, TOKENS OR
    |
0008|     LEGAL TENDER REQUIRED FOR ALL GAMING.--All gaming shall be
    |
0009|     conducted with chips, tokens or other similar objects
    |
0010|     approved by the board or with the legal currency of the
    |
0011|     United States.
    |
0012|          Section 41.  [<u>NEW MATERIAL</u>]  COMMUNICATION OR
    |
0013|     DOCUMENT OF APPLICANT OR LICENSEE ABSOLUTELY PRIVILEGED--
    |
0014|     PRIVILEGE NOT WAIVED--DISCLOSURE OF PRIVILEGED INFORMATION
    |
0015|     PROHIBITED.--
    |
0016|               A.  Any communication or document of an applicant
    |
0017|     or licensee is absolutely privileged and does not impose
    |
0018|     liability for defamation or constitute a ground for recovery
    |
0019|     in any civil action if it is required by:
    |
0020|                    (1)  law or the regulations of the board; or
    |
0021|                    (2)  a subpoena issued by the board to be
    |
0022|     made or transmitted to the board.
    |
0023|               B.  The privilege created pursuant to Subsection A
    |
0024|     of this section is not waived or lost because the document or
    |
0025|     communication is disclosed to the board.
    |
0001|               C.  Notwithstanding the powers granted to the
    |
0002|     board by the Gaming Control Act, the board:
    |
0003|                    (1)  may release or disclose any privileged
    |
0004|     information, documents or communications provided by an
    |
0005|     applicant or licensee only with the prior written consent of
    |
0006|     the applicant or licensee or pursuant to a lawful court order
    |
0007|     after timely notice of the proceedings has been given to the
    |
0008|     applicant or licensee;
    |
0009|                    (2)  shall maintain all privileged
    |
0010|     information, documents and communications in a secure place
    |
0011|     accessible only to members of the board; and
    |
0012|                    (3)  shall adopt procedures and regulations
    |
0013|     to protect the privileged nature of information, documents
    |
0014|     and communications provided by an applicant or licensee.
    |
0015|          Section 42.  [<u>NEW MATERIAL</u>]  MOTION FOR RELEASE OF
    |
0016|     PRIVILEGED INFORMATION.--An application to a court for an
    |
0017|     order requiring the board to release any information declared
    |
0018|     by law to be confidential shall be made only by petition in
    |
0019|     district court.  A hearing shall be held on the petition not
    |
0020|     less than ten days and not more than twenty days after the
    |
0021|     date of service of the petition on the board, the attorney
    |
0022|     general and all persons who may be affected by the entry of
    |
0023|     that order.  A copy of the petition, all papers filed in
    |
0024|     support of it and a notice of hearing shall be served.
    |
0025|          Section 43.  [<u>NEW MATERIAL</u>]  GAMING MACHINE CENTRAL
    |
0001|     SYSTEM.--The board shall develop and operate a central system
    |
0002|     into which all licensed gaming machines are connected.  The
    |
0003|     central system shall be capable of:
    |
0004|               A.  monitoring continuously, retrieving and
    |
0005|     auditing the operations, financial data and program
    |
0006|     information of the network;
    |
0007|               B.  disabling from operation or play any gaming
    |
0008|     machine in the network that does not comply with the
    |
0009|     provisions of the Gaming Control Act or the regulations of
    |
0010|     the board;
    |
0011|               C.  communicating, through program modifications
    |
0012|     or other means equally effective, with all gaming machines
    |
0013|     licensed by the board; 
    |
0014|               D.  interacting, reading, communicating and
    |
0015|     linking with gaming machines from a broad spectrum of
    |
0016|     manufacturers and associated equipment; and
    |
0017|               E.  providing linkage to each gaming machine in
    |
0018|     the network at a reasonable and affordable cost to the state
    |
0019|     and the gaming operator licensee and allowing for program
    |
0020|     modifications and system updating at a reasonable cost.
    |
0021|          Section 44.  [<u>NEW MATERIAL</u>]  MACHINE SPECIFICATIONS.-
    |
0022|     -To be eligible for licensure, each gaming machine shall meet
    |
0023|     all specifications established by regulations of the board
    |
0024|     and:
    |
0025|               A.  be unable to be manipulated in a manner that
    |
0001|     affects the random probability of winning plays or in any
    |
0002|     other manner determined by the board to be undesirable;
    |
0003|               B.  have at least one mechanism that accepts coins
    |
0004|     or currency, but does not accept bills of denominations
    |
0005|     greater than twenty dollars ($20.00);
    |
0006|               C.  be capable of having play suspended through
    |
0007|     the central system by the executive director until he resets
    |
0008|     the gaming machine;
    |
0009|               D.  house nonresettable mechanical and electronic
    |
0010|     meters within a readily accessible locked area of the gaming
    |
0011|     machine that maintain a permanent record of all money
    |
0012|     inserted into the machine, all cash payouts of winnings, all
    |
0013|     refunds of winnings, all credits played for additional games
    |
0014|     and all credits won by players;
    |
0015|               E.  have a printing mechanism capable of printing
    |
0016|     out, at the request of an the executive director, readings on
    |
0017|     the electronic meters of the machine;
    |
0018|               F.  be capable of printing a ticket voucher
    |
0019|     stating the value of a cash prize won by the player at the
    |
0020|     completion of each game, the date and time of day the game
    |
0021|     was played in a twenty-four-hour format showing hours and
    |
0022|     minutes, the machine serial number, the sequential number of
    |
0023|     the ticket voucher and an encrypted validation number for
    |
0024|     determining the validity of a winning ticket voucher;
    |
0025|               G.  be capable of being linked to the board's
    |
0001|     central system for the purpose of being monitored
    |
0002|     continuously as required by the board;
    |
0003|               H.  provide for a payback value for each credit
    |
0004|     wagered, determined over time, of not less than eighty
    |
0005|     percent or more than ninety-six percent; 
    |
0006|               I.  offer only games authorized and examined by
    |
0007|     the board; and
    |
0008|               J.  display the gaming machine license issued for
    |
0009|     that machine in an easily accessible place, before and during
    |
0010|     the time that a machine is available for use.
    |
0011|          Section 45.  [<u>NEW MATERIAL</u>]  POSTING OF GAMING MACHINE
    |
0012|     ODDS.--The odds of winning on each gaming machine shall be
    |
0013|     posted on or near each gaming machine.  The board shall
    |
0014|     provide the manner in which the odds shall be determined and
    |
0015|     posted by regulation.
    |
0016|          Section 46.  [<u>NEW MATERIAL</u>]  EXAMINATION OF GAMING
    |
0017|     DEVICES--COST ALLOCATION.-- 
    |
0018|               A.  The board shall examine prototypes of gaming
    |
0019|     devices of manufacturers seeking a license as required.  
    |
0020|               B.  The board by regulation shall require a
    |
0021|     manufacturer to pay the anticipated actual costs of the
    |
0022|     examination of a gaming device in advance and, after the
    |
0023|     completion of the examination, shall refund overpayments or
    |
0024|     charge and collect amounts sufficient to reimburse the board
    |
0025|     for underpayment of actual costs.
    |
0001|               C.  The board may contract for the examination of
    |
0002|     gaming devices to meet the requirements of this section.
    |
0003|          Section 47.  [<u>NEW MATERIAL</u>]  GAMING TAX--IMPOSITION--
    |
0004|     ADMINISTRATION.--
    |
0005|               A.  An excise tax is imposed on the privilege of
    |
0006|     engaging in gaming activities in the state.  This tax shall
    |
0007|     be known as the "gaming tax".
    |
0008|               B.  The gaming tax is an amount equal to ten
    |
0009|     percent of the gross receipts of manufacturer licensees from
    |
0010|     the sale or other transfer of gaming devices in or into the
    |
0011|     state; ten percent of the gross receipts of distributor
    |
0012|     licensees from the distribution of gaming devices in the
    |
0013|     state; and twenty-five percent of the net take of every
    |
0014|     gaming operator licensee. 
    |
0015|               C.  The gaming tax imposed on a licensee is in
    |
0016|     lieu of all state and local gross receipts taxes on that
    |
0017|     portion of the licensee's gross receipts attributable to
    |
0018|     gaming activities.
    |
0019|               D.  The gaming tax shall be administered and
    |
0020|     collected by the taxation and revenue department in
    |
0021|     cooperation with the board.  The provisions of the Tax
    |
0022|     Administration Act apply to the collection and administration
    |
0023|     of the tax.
    |
0024|               E.  In addition to the gaming tax, a gaming
    |
0025|     operator licensee that is a racetrack shall pay twenty
    |
0001|     percent of the net take to purses to be distributed in
    |
0002|     accordance with regulations adopted by the state racing
    |
0003|     commission. 
    |
0004|          Section 48.  [<u>NEW MATERIAL</u>]  CIVIL ACTIONS TO
    |
0005|     RESTRAIN VIOLATIONS OF GAMING CONTROL ACT.--
    |
0006|               A.  The attorney general, at the request of the
    |
0007|     board, may institute a civil action in any court of this
    |
0008|     state against any person to enjoin a violation of a
    |
0009|     prohibitory provision of the Gaming Control Act.
    |
0010|               B.  An action brought against a person pursuant to
    |
0011|     this section shall not preclude a criminal action or
    |
0012|     administrative proceeding against that person.
    |
0013|          Section 49.  [<u>NEW MATERIAL</u>]  TESTIMONIAL IMMUNITY.--
    |
0014|               A.  The board may order a person to answer a
    |
0015|     question or produce evidence and confer immunity pursuant to
    |
0016|     this section.  If, in the course of an investigation or
    |
0017|     hearing conducted pursuant to the Gaming Control Act, a
    |
0018|     person refuses to answer a question or produce evidence on
    |
0019|     the ground that he will be exposed to criminal prosecution by
    |
0020|     doing so, then the board may by approval of three members,
    |
0021|     after the written approval of the attorney general, issue an
    |
0022|     order to answer or to produce evidence with immunity.
    |
0023|               B.  If a person complies with an order issued
    |
0024|     pursuant to Subsection A of this section, he shall be immune
    |
0025|     from having a responsive answer given or responsive evidence
    |
0001|     produced, or evidence derived from either, used to expose him
    |
0002|     to criminal prosecution, except that the person may be
    |
0003|     prosecuted for any perjury committed in the answer or
    |
0004|     production of evidence and may also be prosecuted for
    |
0005|     contempt for failing to act in accordance with the order of
    |
0006|     the board.  An answer given or evidence produced pursuant to
    |
0007|     the grant of immunity authorized by this section may be used
    |
0008|     against the person granted immunity in a prosecution of the
    |
0009|     person for perjury or a proceeding against him for contempt.
    |
0010|          Section 50.  [<u>NEW MATERIAL</u>]  CRIME--MANIPULATION OF
    |
0011|     GAMING DEVICE WITH INTENT TO CHEAT.--A person who manipulates,
    |
0012|     with the intent to cheat, any component of a gaming device in a
    |
0013|     manner contrary to the designed and normal operational purpose
    |
0014|     of the component, including varying the pull of the handle of a
    |
0015|     slot machine with knowledge that the manipulation affects the
    |
0016|     outcome of the game or with knowledge of any event that affects
    |
0017|     the outcome of the game, is guilty of a fourth degree felony and
    |
0018|     shall be sentenced pursuant to the provisions of Section 31-18-
    |
0019|     15 NMSA 1978.
    |
0020|          Section 51.  [<u>NEW MATERIAL</u>]  CRIME--USE OF COUNTERFEIT
    |
0021|     OR UNAPPROVED TOKENS, CURRENCY OR DEVICES--POSSESSION OF CERTAIN
    |
0022|     DEVICES, EQUIPMENT, PRODUCTS OR MATERIALS.--
    |
0023|               A.  A person who, in playing any game designed to be
    |
0024|     played with, to receive or to be operated by tokens approved by
    |
0025|     the board or by lawful currency of the United States, knowingly
    |
0001|     uses tokens other than those approved by the board, uses
    |
0002|     currency that is not lawful currency of the United States or
    |
0003|     uses currency not of the same denomination as the currency
    |
0004|     intended to be used in that game is guilty of a third degree
    |
0005|     felony and shall be sentenced pursuant to the provisions of
    |
0006|     Section 31-18-15 NMSA 1978.
    |
0007|               B.  A person who knowingly has on his person or in
    |
0008|     his possession within a gaming establishment any device intended
    |
0009|     to be used by him to violate the provisions of the Gaming
    |
0010|     Control Act is guilty of a third degree felony and shall be
    |
0011|     sentenced pursuant to the provisions of Section 31-18-15 NMSA
    |
0012|     1978.
    |
0013|               C.  A person, other than a duly authorized employee
    |
0014|     of a gaming operator acting in furtherance of his employment
    |
0015|     within a gaming establishment, who knowingly has on his person
    |
0016|     or in his possession within a gaming establishment any key or
    |
0017|     device known by him to have been designed for the purpose of and
    |
0018|     suitable for opening, entering or affecting the operation of any
    |
0019|     game, dropbox or any electronic or mechanical device connected
    |
0020|     to the game or dropbox or for removing money or other contents
    |
0021|     from them is guilty of a third degree felony and shall be
    |
0022|     sentenced pursuant to the provisions of Section 31-18-15 NMSA
    |
0023|     1978.
    |
0024|               D.  A person who knowingly and with intent to use
    |
0025|     them for cheating has on his person or in his possession any
    |
0001|     paraphernalia for manufacturing slugs is guilty of a third
    |
0002|     degree felony and shall be sentenced pursuant to the provisions
    |
0003|     of Section 31-18-15 NMSA 1978.  As used in this subsection,
    |
0004|     "paraphernalia for manufacturing slugs" means the equipment,
    |
0005|     products and materials that are intended for use or designed for
    |
0006|     use in manufacturing, producing, fabricating, preparing,
    |
0007|     testing, analyzing, packaging, storing or concealing a
    |
0008|     counterfeit facsimile of tokens approved by the board or a
    |
0009|     lawful coin of the United States, the use of which is unlawful
    |
0010|     pursuant to the Gaming Control Act.  The term includes:
    |
0011|                    (1)  lead or lead alloy;
    |
0012|                    (2)  molds, forms or similar equipment capable
    |
0013|     of producing a likeness of a gaming token or coin;
    |
0014|                    (3)  melting pots or other receptacles;
    |
0015|                    (4)  torches; and
    |
0016|                    (5)  tongs, trimming tools or other similar
    |
0017|     equipment.
    |
0018|               E.  Possession of more than two items of the
    |
0019|     equipment, products or material described in Subsection D of
    |
0020|     this section permits a rebuttable inference that the possessor
    |
0021|     intended to use them for cheating.
    |
0022|          Section 52.  [<u>NEW MATERIAL</u>]  CRIME--CHEATING.--A person
    |
0023|     who knowingly cheats at any game is guilty of a fourth degree
    |
0024|     felony and upon conviction shall be sentenced pursuant to the
    |
0025|     provisions of Section 31-18-15 NMSA 1978.
    |
0001|          Section 53.  [<u>NEW MATERIAL</u>]  CRIME--POSSESSION OF GAMING
    |
0002|     DEVICE MANUFACTURED, SOLD OR DISTRIBUTED IN VIOLATION OF LAW.--A
    |
0003|     person who knowingly possesses any gaming device that has been
    |
0004|     manufactured, sold or distributed in violation of the Gaming
    |
0005|     Control Act is guilty of a fourth degree felony and shall be
    |
0006|     sentenced pursuant to the provisions of Section 31-18-15 NMSA
    |
0007|     1978.
    |
0008|          Section 54.  [<u>NEW MATERIAL</u>]  CRIME--REPORTING AND RECORD
    |
0009|     VIOLATIONS--PENALTY.--A person who, in an application, book or
    |
0010|     record required to be maintained by the Gaming Control Act or by
    |
0011|     a regulation adopted under that act or in a report required to
    |
0012|     be submitted by that act or a regulation adopted under that act,
    |
0013|     knowingly makes a statement or entry that is false or misleading
    |
0014|     or fails to maintain or make an entry the person knows is
    |
0015|     required to be maintained or made is guilty of a fourth degree
    |
0016|     felony and shall be sentenced pursuant to the provisions of
    |
0017|     Section 31-18-15 NMSA 1978.
    |
0018|          Section 55.  [<u>NEW MATERIAL</u>]  CRIME--UNLAWFUL
    |
0019|     MANUFACTURE, SALE, DISTRIBUTION, MARKING, ALTERING OR
    |
0020|     MODIFICATION OF DEVICES ASSOCIATED WITH GAMING--UNLAWFUL
    |
0021|     INSTRUCTION--PENALTY.--
    |
0022|               A.  A person who manufactures, sells or distributes a
    |
0023|     device that is intended by him to be used to violate any
    |
0024|     provision of the Gaming Control Act is guilty of a fourth degree
    |
0025|     felony and shall be sentenced pursuant to the provisions of
    |
0001|     Section 31-18-15 NMSA 1978.
    |
0002|               B.  A person who marks, alters or otherwise modifies
    |
0003|     any gaming device in a manner that affects the result of a wager
    |
0004|     by determining win or loss or alters the normal criteria of
    |
0005|     random selection that affects the operation of a game or that
    |
0006|     determines the outcome of a game is guilty of a fourth degree
    |
0007|     felony and shall be sentenced pursuant to the provisions of
    |
0008|     Section 31-18-15 NMSA 1978.        
    |
0009|          Section 56.  [<u>NEW MATERIAL</u>]  UNDERAGE GAMING--PENALTY
    |
0010|     FOR PERMITTING OR PARTICIPATION.--  
    |
0011|               A.  A person who knowingly permits an individual who
    |
0012|     the person knows is younger than twenty-one years of age to
    |
0013|     participate in gaming is guilty of a misdemeanor and shall be
    |
0014|     sentenced pursuant to the provisions of Section 31-19-1 NMSA
    |
0015|     1978.
    |
0016|               B.  An individual who participates in gaming when he
    |
0017|     is younger than twenty-one years of age at the time of
    |
0018|     participation is guilty of a misdemeanor and shall be sentenced
    |
0019|     pursuant to the provisions of Section 31-19-1 NMSA 1978.
    |
0020|          Section 57.  [<u>NEW MATERIAL</u>]  CRIME--GENERAL PENALTIES
    |
0021|     FOR VIOLATION OF ACT.--A person who willfully violates, attempts
    |
0022|     to violate or conspires to violate any of the provisions of the
    |
0023|     Gaming Control Act specifying prohibited acts, the
    |
0024|     classification of which is not specifically stated in that act,
    |
0025|     is guilty of a misdemeanor and shall be sentenced pursuant to
    |
0001|     the provisions of Section 31-19-1 NMSA 1978.
    |
0002|          Section 58.  [<u>NEW MATERIAL</u>]  DETENTION AND QUESTIONING
    |
0003|     OF A PERSON SUSPECTED OF VIOLATING ACT--LIMITATIONS ON
    |
0004|     LIABILITY--POSTING OF NOTICE.--
    |
0005|               A.  A gaming operator licensee or its officers,
    |
0006|     employees or agents may question a person in its gaming
    |
0007|     establishment suspected of violating any of the provisions of
    |
0008|     the Gaming Control Act.  No gaming operator licensee or any of
    |
0009|     its officers, employees or agents is criminally or civilly
    |
0010|     liable:
    |
0011|                    (1)  on account of any such questioning; or
    |
0012|                    (2)  for reporting to the board or law
    |
0013|     enforcement authorities the person suspected of the violation.
    |
0014|               B.  A gaming operator licensee or any of its
    |
0015|     officers, employees or agents who has reasonable cause for
    |
0016|     believing that there has been a violation of the Gaming Control
    |
0017|     Act in the gaming establishment by a person may detain that
    |
0018|     person in the gaming establishment in a reasonable manner and
    |
0019|     for a reasonable length of time.  Such a detention does not
    |
0020|     render the gaming operator licensee or his officers, employees
    |
0021|     or agents criminally or civilly liable unless it is established
    |
0022|     by clear and convincing evidence detention was unreasonable
    |
0023|     under the circumstances.
    |
0024|               C.  No gaming operator licensee or its officers,
    |
0025|     employees or agents are entitled to the immunity from liability
    |
0001|     provided for in Subsection B of this section unless there is
    |
0002|     displayed in a conspicuous place in the gaming establishment a
    |
0003|     notice in boldface type clearly legible and in substantially
    |
0004|     this form:
    |
0005|               "Any gaming operator licensee or any of his officers,
    |
0006|          employees or agents who have reasonable cause for
    |
0007|          believing that any person has violated any provision
    |
0008|          of the Gaming Control Act prohibiting cheating in
    |
0009|          gaming may detain that person in the establishment.".
    |
0010|          Section 59.  [<u>NEW MATERIAL</u>]  ADMINISTRATIVE APPEAL OF
    |
0011|     BOARD ACTION.--
    |
0012|               A.  Any person aggrieved by an action taken by the
    |
0013|     board or one of its agents may request and receive a hearing for
    |
0014|     the purpose of reviewing the action.  To obtain a hearing the
    |
0015|     aggrieved person shall file a request for hearing with the board
    |
0016|     within thirty days after the date the action is taken.  Failure
    |
0017|     to file the request within the specified time is an irrevocable
    |
0018|     waiver of the right to a hearing, and the action complained of
    |
0019|     shall be final with no further right to review, either
    |
0020|     administratively or by a court.
    |
0021|               B.  The board shall adopt procedural regulations to
    |
0022|     govern the procedures to be followed in administrative hearings
    |
0023|     pursuant to the provisions of this section.  At a minimum, the
    |
0024|     regulations shall provide:
    |
0025|                    (1)  for the hearings to be public;
    |
0001|                    (2)  for the appointment of a hearing officer
    |
0002|     to conduct the hearing and make his recommendation to the board
    |
0003|     not more than ten days after the completion of the hearing;
    |
0004|                    (3)  procedures for discovery;
    |
0005|                    (4)  assurance that procedural due process
    |
0006|     requirements are satisfied;
    |
0007|                    (5)  for the maintenance of a record of the
    |
0008|     hearing proceedings and assessment of costs of any transcription
    |
0009|     of testimony that is required for judicial review purposes; and
    |
0010|                    (6)  for the hearing to be held in Santa Fe for
    |
0011|     enforcement hearings and hearings on actions of statewide
    |
0012|     application, and to be held in the place or area affected for
    |
0013|     enforcement hearings and hearings on actions of limited local
    |
0014|     concern.
    |
0015|               C.  Actions taken by the board after a hearing
    |
0016|     pursuant to the provisions of this section shall be:
    |
0017|                    (1)  written and shall state the reasons for
    |
0018|     the action;
    |
0019|                    (2)  made public when taken;
    |
0020|                    (3)  communicated to all persons who have made
    |
0021|     a written request for notification of the action taken; and
    |
0022|                    (4)  taken not more than thirty days after the
    |
0023|     submission of the hearing officer's report to the board.
    |
0024|          Section 60.  [<u>NEW MATERIAL</u>]  JUDICIAL REVIEW OF
    |
0025|     ADMINISTRATIVE ACTIONS.--
    |
0001|               A.  Any person adversely affected by an action taken
    |
0002|     by the board after review pursuant to the provisions of Section
    |
0003|     59 of the Gaming Control Act may appeal the action to the court
    |
0004|     of appeals.  The appeal shall be on the record made at the
    |
0005|     hearing.  To support his appeal, the appellant shall make
    |
0006|     arrangements with the board for a sufficient number of
    |
0007|     transcripts of the record of the hearing on which the appeal is
    |
0008|     based.  The appellant shall pay for the preparation of the
    |
0009|     transcripts.
    |
0010|               B.  On appeal, the court of appeals shall set aside
    |
0011|     the administrative action only if it is found to be:
    |
0012|                    (1)  arbitrary, capricious or an abuse of
    |
0013|     discretion;
    |
0014|                    (2)  not supported by substantial evidence in
    |
0015|     the whole record; or
    |
0016|                    (3)  otherwise not in accordance with law.
    |
0017|          Section 61.  [<u>NEW MATERIAL</u>]  LOCAL OPTION.--In any
    |
0018|     county or municipality in which the local option provision of
    |
0019|     the Gaming Control Act has been accepted by the voters, play on
    |
0020|     gaming machines is prohibited or permitted in accordance with
    |
0021|     the outcome of the referendum.
    |
0022|          Section 62.  [<u>NEW MATERIAL</u>]  LOCAL OPTION ELECTION--
    |
0023|     RACETRACKS--NONPROFIT ORGANIZATIONS--LICENSED LIQUOR
    |
0024|     ESTABLISHMENTS--PROCEDURE.--
    |
0025|               A.  A county, not including incorporated
    |
0001|     municipalities within its boundaries, or an incorporated
    |
0002|     municipality is a local option district if the option of
    |
0003|     permitting play on electronic gaming machines on the premises of
    |
0004|     liquor establishments and certain nonprofit organizations in
    |
0005|     that county or incorporated municipality is adopted by the
    |
0006|     registered voters of that county or municipality.
    |
0007|               B.  An incorporated municipality may have a local
    |
0008|     option referendum in that municipality, even if the county in
    |
0009|     which the incorporated municipality is located has had a
    |
0010|     referendum and resolved the local option question for the
    |
0011|     county.
    |
0012|               C.  Based on the content of the petition, a local
    |
0013|     governing body of a proposed local option district shall place
    |
0014|     the following question on the ballot:
    |
0015|          "Shall play on electronic gaming machines on the premises
    |
0016|     of liquor establishments and certain nonprofit organizations be
    |
0017|     permitted in (name of proposed local option district), effective
    |
0018|     July 1, 19<u>    </u>?  <u>    </u>YES <u>    </u>NO".
    |
0019|               D.  The procedures for adopting the local option
    |
0020|     provision for electronic gaming are:
    |
0021|                    (1)  at any time from the effective date of the
    |
0022|     Gaming Control Act, the registered voters of any proposed local
    |
0023|     option district may petition the governing body by filing one or
    |
0024|     more petitions in the appropriate office to hold a referendum to
    |
0025|     determine whether the proposed local option district shall adopt
    |
0001|     the local option provision of the Gaming Control Act.  Each
    |
0002|     petition shall state the question that will be presented on the
    |
0003|     ballot.  If the aggregate of the signatures of the registered
    |
0004|     voters on all the petitions equals or exceeds five percent of
    |
0005|     the number of registered voters of the proposed local option
    |
0006|     district at the time of the last general election, the governing
    |
0007|     body shall call an election within ninety days of the
    |
0008|     verification of the petition.  The latest date for filing a
    |
0009|     petition shall be three months after the date on which the first
    |
0010|     signature was obtained;
    |
0011|                    (2)  except as otherwise provided in this
    |
0012|     section, the election shall be called and conducted and votes
    |
0013|     shall be counted and canvassed substantially in the manner
    |
0014|     provided by law for general elections within the county for a
    |
0015|     county referendum or pursuant to the Municipal Election Code for
    |
0016|     a municipal referendum;
    |
0017|                    (3)  except as otherwise provided in this
    |
0018|     section, contests, recounts and rechecks shall be permitted for
    |
0019|     a county referendum as provided for in the case of candidates
    |
0020|     for county offices in general elections or for a municipal
    |
0021|     referendum as provided for in the Municipal Election Code for
    |
0022|     candidates for municipal office.  Applications for contests,
    |
0023|     recounts or rechecks may be filed by any person who voted in the
    |
0024|     election, and service shall be made upon the county clerk or
    |
0025|     municipal clerk.  The payment of the costs and expenses of the
    |
0001|     contest, recount or recheck shall be assessed for a county
    |
0002|     referendum in the manner provided by the Election Code for
    |
0003|     contests in a general election of candidates for county offices
    |
0004|     or for a municipal referendum pursuant to the Municipal Election
    |
0005|     Code for candidates for municipal office;
    |
0006|                    (4)  if a majority of all the votes cast in a
    |
0007|     referendum election seeking to permit play on electronic gaming
    |
0008|     machines on the premises of liquor establishments and certain
    |
0009|     nonprofit organizations is in favor of the local option
    |
0010|     provision to permit play on electronic gaming machines in the
    |
0011|     local option district, the chairman of the governing body shall
    |
0012|     declare by order entered upon the records of the local option
    |
0013|     district that the local option district has adopted the local
    |
0014|     option provision of the Gaming Control Act permitting play on
    |
0015|     electronic gaming machines and shall notify the board of the
    |
0016|     results; and
    |
0017|                    (5)  no election shall be held pursuant to this
    |
0018|     section within forty-two days of any primary, general, municipal
    |
0019|     or school district election unless the election is held on the
    |
0020|     day of any primary, general, municipal or school district
    |
0021|     election.
    |
0022|          Section 63.  [<u>NEW MATERIAL</u>]  RESUBMISSION OF LOCAL
    |
0023|     OPTION QUESTION.--
    |
0024|               A.  In a local option district in which the local
    |
0025|     option provision of the Gaming Control Act has been rejected by
    |
0001|     the voters, it is permissible after the expiration of three
    |
0002|     years from the date of the election at which the local option
    |
0003|     provision was rejected to have another local option election in
    |
0004|     the district by following the procedures provided for in that
    |
0005|     act.
    |
0006|               B.  In a local option district in which the local
    |
0007|     option provision of the Gaming Control Act has been accepted by
    |
0008|     the voters, it is permissible after the expiration of twelve
    |
0009|     years from the date of election at which the local option
    |
0010|     provision was accepted to have another local option election
    |
0011|     that may allow voters to rescind the local option provision
    |
0012|     previously adopted in the county or municipality by following
    |
0013|     the procedures provided for in that act.
    |
0014|          Section 64.  Section 7-1-2 NMSA 1978 (being Laws 1965,
    |
0015|     Chapter 248, Section 2, as amended) is amended to read:
    |
0016|          "7-1-2.  APPLICABILITY.--The Tax Administration Act
    |
0017|     applies to and governs:
    |
0018|               A.  the administration and enforcement of the
    |
0019|     following taxes or tax acts as they now exist or may hereafter
    |
0020|     be amended:
    |
0021|                    (1)  Income Tax Act;
    |
0022|                    (2)  Withholding Tax Act;
    |
0023|                    (3)  Gross Receipts and Compensating Tax Act
    |
0024|     and any state gross receipts tax;
    |
0025|                    (4)  Liquor Excise Tax Act;
    |
0001|                    (5)  Local Liquor Excise Tax Act;
    |
0002|                    <s>[(6)  Banking and Financial Corporations Tax
</s>    |
<s></s>0003| <s>    Act;
</s>    |
<s></s>0004| <s>                   (7)]</s> <u>(6)</u>  any municipal local option gross
    |
0005|     receipts tax;
    |
0006|                    <s>[(8)]</s> <u>(7)</u>  any county local option gross
    |
0007|     receipts tax;
    |
0008|                    <s>[(9)]</s> <u>(8)</u>  Special Fuels Supplier Tax Act;
    |
0009|                    <s>[(10)]</s> <u>(9)</u>  Gasoline Tax Act;
    |
0010|                    <s>[(11)]</s> <u>(10)</u>  petroleum products loading
    |
0011|     fee, which fee shall be considered a tax for the purpose of the
    |
0012|     Tax Administration Act;
    |
0013|                    <s>[(12)]</s> <u>(11)</u>  Alternative Fuel Tax Act;
    |
0014|                    <s>[(13)]</s> <u>(12)</u>  Cigarette Tax Act;
    |
0015|                    <s>[(14)]</s> <u>(13)</u>  Estate Tax Act;
    |
0016|                    <s>[(15)]</s> <u>(14)</u>  Railroad Car Company Tax Act;
    |
0017|                    <s>[(16)]</s> <u>(15)</u>  Investment Credit Act;
    |
0018|                    <s>[(17)]</s> <u>(16)</u>  Corporate Income and Franchise
    |
0019|     Tax Act;
    |
0020|                    <s>[(18)]</s> <u>(17)</u>  Uniform Division of Income for
    |
0021|     Tax Purposes Act;
    |
0022|                    <s>[(19)]</s> <u>(18)</u>  Multistate Tax Compact; 
    |
0023|                    <s>[(20)]</s> <u>(19)</u>  Tobacco Products Tax Act;
    |
0024|                    <s>[(21)]</s> <u>(20)</u>  Filmmaker's Credit Act; and
    |
0025|                    <s>[(22)]</s> <u>(21)</u>  the telecommunications relay
    |
0001|     service surcharge imposed by Section 63-9F-11 NMSA 1978, which
    |
0002|     surcharge shall be considered a tax for the purposes of the Tax
    |
0003|     Administration Act;
    |
0004|               B.  the administration and enforcement of the
    |
0005|     following taxes, surtaxes, advanced payments or tax acts as they
    |
0006|     now exist or may hereafter be amended:
    |
0007|                    (1)  Resources Excise Tax Act;
    |
0008|                    (2)  Severance Tax Act;
    |
0009|                    (3)  any severance surtax;
    |
0010|                    (4)  Oil and Gas Severance Tax Act;
    |
0011|                    (5)  Oil and Gas Conservation Tax Act;
    |
0012|                    (6)  Oil and Gas Emergency School Tax Act;
    |
0013|                    (7)  Oil and Gas Ad Valorem Production Tax Act;
    |
0014|                    (8)  Natural Gas Processors Tax Act;
    |
0015|                    (9)  Oil and Gas Production Equipment Ad
    |
0016|     Valorem Tax Act; 
    |
0017|                    (10)  Copper Production Ad Valorem Tax Act; and
    |
0018|                    (11)  any advance payment required to be made
    |
0019|     by any act specified in this subsection, which advance payment
    |
0020|     shall be considered a tax for the purposes of the Tax
    |
0021|     Administration Act;
    |
0022|               C.  the administration and enforcement of the
    |
0023|     following taxes, surcharges, fees or acts as they now exist or
    |
0024|     may hereafter be amended:
    |
0025|                    (1)  Weight Distance Tax Act;
    |
0001|                    (2)  Special Fuels Tax Act;
    |
0002|                    (3)  the workers' compensation fee authorized
    |
0003|     by Section 52-5-19 NMSA 1978, which fee shall be considered a
    |
0004|     tax for purposes of the Tax Administration Act;
    |
0005|                    (4)  Uniform Unclaimed Property Act;
    |
0006|                    (5)  911 emergency surcharge and the network
    |
0007|     and database surcharge, which surcharges shall be considered
    |
0008|     taxes for purposes of the Tax Administration Act;
    |
0009|                    (6)  the solid waste assessment fee authorized
    |
0010|     by the Solid Waste Act, which fee shall be considered a tax for
    |
0011|     purposes of the Tax Administration Act; <s>[and]</s>
    |
0012|                    (7)  the water conservation fee imposed by
    |
0013|     Section 74-1-13 NMSA 1978, which fee shall be considered a tax
    |
0014|     for the purposes of the Tax Administration Act; and
    |
0015|                    <u>(8)  the gaming tax imposed pursuant to the
</u>    |
<u></u>0016| <u>    Gaming Control Act; and</u>
    |
0017|               D.  the administration and enforcement of all other
    |
0018|     laws, with respect to which the department is charged with
    |
0019|     responsibilities pursuant to the Tax Administration Act, but
    |
0020|     only to the extent that the other laws do not conflict with the
    |
0021|     Tax Administration Act."
    |
0022|          Section 65.  A new Section 7-1-6.40 NMSA 1978 is enacted
    |
0023|     to read:
    |
0024|          "7-1-6.40  [<u>NEW MATERIAL</u>]  DISTRIBUTION OF GAMING TAX TO
    |
0025|     COUNTIES AND MUNICIPALITIES.--A distribution pursuant to Section
    |
0001|     7-1-6.1 NMSA shall be made of five percent of the net receipts
    |
0002|     attributable to the gaming tax in the following manner:
    |
0003|               A.  among municipalities in the same proportion as
    |
0004|     the gaming tax revenue raised pursuant to the Gaming Control Act
    |
0005|     from racetrack gaming operator licensees located within a
    |
0006|     municipality bears to the total gaming tax revenue raised in the
    |
0007|     state from all racetrack licensees; and
    |
0008|               B.  among counties in the same proportion as the
    |
0009|     gaming tax revenue raised pursuant to the Gaming Control Act
    |
0010|     from racetrack gaming operator licensees located in a county
    |
0011|     outside the boundaries of any municipality bears to the total
    |
0012|     gaming tax revenue raised in the state from all racetrack
    |
0013|     licensees."
    |
0014|          Section 66.  Section 10-15-1 NMSA 1978 (being Laws 1974,
    |
0015|     Chapter 91, Section 1, as amended) is amended to read:
    |
0016|          "10-15-1.  FORMATION OF PUBLIC POLICY--PROCEDURES FOR OPEN
    |
0017|     MEETINGS--EXCEPTIONS AND PROCEDURES FOR CLOSED MEETINGS.--
    |
0018|               A.  In recognition of the fact that a representative
    |
0019|     government is dependent upon an informed electorate, it is
    |
0020|     declared to be public policy of this state that all persons are
    |
0021|     entitled to the greatest possible information regarding the
    |
0022|     affairs of government and the official acts of those officers
    |
0023|     and employees who represent them.  The formation of public
    |
0024|     policy or the conduct of business by vote shall not be conducted
    |
0025|     in closed meeting.  All meetings of any public body except the
    |
0001|     legislature and the courts shall be public meetings, and all
    |
0002|     persons so desiring shall be permitted to attend and listen to
    |
0003|     the deliberations and proceedings.  Reasonable efforts shall be
    |
0004|     made to accommodate the use of audio and video recording
    |
0005|     devices.
    |
0006|               B.  All meetings of a quorum of members of any board,
    |
0007|     commission, administrative adjudicatory body or other
    |
0008|     policymaking body of any state agency, any agency or authority
    |
0009|     of any county, municipality, district or any political
    |
0010|     subdivision, held for the purpose of formulating public policy,
    |
0011|     including the development of personnel policy, rules,
    |
0012|     regulations or ordinances, discussing public business or for the
    |
0013|     purpose of taking any action within the authority of or the
    |
0014|     delegated authority of any board, commission or other
    |
0015|     policymaking body are declared to be public meetings open to the
    |
0016|     public at all times, except as otherwise provided in the
    |
0017|     constitution of New Mexico or the Open Meetings Act.  No public
    |
0018|     meeting once convened that is otherwise required to be open
    |
0019|     pursuant to the Open Meetings Act shall be closed or dissolved
    |
0020|     into small groups or committees for the purpose of permitting
    |
0021|     the closing of the meeting.
    |
0022|               C.  If otherwise allowed by law or rule of the public
    |
0023|     body, a member of a public body may participate in a meeting of
    |
0024|     the public body by means of a conference telephone or other
    |
0025|     similar communications equipment when it is otherwise difficult
    |
0001|     or impossible for the member to attend the meeting in person,
    |
0002|     provided that each member participating by conference telephone
    |
0003|     can be identified when speaking, all participants are able to
    |
0004|     hear each other at the same time and members of the public
    |
0005|     attending the meeting are able to hear any member of the public
    |
0006|     body who speaks during the meeting.
    |
0007|               D.  Any meetings at which the discussion or adoption
    |
0008|     of any proposed resolution, rule, regulation or formal action
    |
0009|     occurs and at which a majority or quorum of the body is in
    |
0010|     attendance, and any closed meetings, shall be held only after
    |
0011|     reasonable notice to the public.  The affected body shall
    |
0012|     determine at least annually in a public meeting what notice for
    |
0013|     a public meeting is reasonable when applied to that body.  That
    |
0014|     notice shall include broadcast stations licensed by the federal
    |
0015|     communications commission and newspapers of general circulation
    |
0016|     that have provided a written request for such notice.
    |
0017|               E.  A public body may recess and reconvene a meeting
    |
0018|     to a day subsequent to that stated in the meeting notice if,
    |
0019|     prior to recessing, the public body specifies the date, time and
    |
0020|     place for continuation of the meeting, and, immediately
    |
0021|     following the recessed meeting, posts notice of the date, time
    |
0022|     and place for the reconvened meeting on or near the door of the
    |
0023|     place where the original meeting was held and in at least one
    |
0024|     other location appropriate to provide public notice of the
    |
0025|     continuation of the meeting.  Only matters appearing on the
    |
0001|     agenda of the original meeting may be discussed at the
    |
0002|     reconvened meeting.
    |
0003|               F.  Meeting notices shall include an agenda
    |
0004|     containing a list of specific items of business to be discussed
    |
0005|     or transacted at the meeting or information on how the public
    |
0006|     may obtain a copy of such an agenda.  Except in the case of an
    |
0007|     emergency, the agenda shall be available to the public at least
    |
0008|     twenty-four hours prior to the meeting.  Except for emergency
    |
0009|     matters, a public body shall take action only on items appearing
    |
0010|     on the agenda.  For purposes of this subsection, an "emergency"
    |
0011|     refers to unforeseen circumstances that, if not addressed
    |
0012|     immediately by the public body, will likely result in injury or
    |
0013|     damage to persons or property or substantial financial loss to
    |
0014|     the public body.
    |
0015|               G.  The board, commission or other policymaking body
    |
0016|     shall keep written minutes of all its meetings.  The minutes
    |
0017|     shall include at a minimum the date, time and place of the
    |
0018|     meeting, the names of members in attendance and those absent,
    |
0019|     the substance of the proposals considered and a record of any
    |
0020|     decisions and votes taken that show how each member voted.  All
    |
0021|     minutes are open to public inspection.  Draft minutes shall be
    |
0022|     prepared within ten working days after the meeting and shall be
    |
0023|     approved, amended or disapproved at the next meeting where a
    |
0024|     quorum is present.  Minutes shall not become official until
    |
0025|     approved by the policymaking body.
    |
0001|               H.  The provisions of Subsections A, B and G of this
    |
0002|     section do not apply to:
    |
0003|                    (1)  meetings pertaining to issuance,
    |
0004|     suspension, renewal or revocation of a license, except that a
    |
0005|     hearing at which evidence is offered or rebutted shall be open. 
    |
0006|     All final actions on the issuance, suspension, renewal or
    |
0007|     revocation of a license shall be taken at an open meeting;
    |
0008|                    (2)  limited personnel matters; provided that
    |
0009|     for purposes of the Open Meetings Act, "limited personnel
    |
0010|     matters" means the discussion of hiring, promotion, demotion,
    |
0011|     dismissal, assignment or resignation of or the investigation or
    |
0012|     consideration of complaints or charges against any individual
    |
0013|     public employee; provided further that this subsection is not to
    |
0014|     be construed as to exempt final actions on personnel from being
    |
0015|     taken at open public meetings, nor does it preclude an aggrieved
    |
0016|     public employee from demanding a public hearing.  Judicial
    |
0017|     candidates interviewed by any commission shall have the right to
    |
0018|     demand an open interview;
    |
0019|                    (3)  deliberations by a public body in
    |
0020|     connection with an administrative adjudicatory proceeding.  For
    |
0021|     purposes of this paragraph, an "administrative adjudicatory
    |
0022|     proceeding" means a proceeding brought by or against a person
    |
0023|     before a public body in which individual legal rights, duties or
    |
0024|     privileges are required by law to be determined by the public
    |
0025|     body after an opportunity for a trial-type hearing.  Except as
    |
0001|     otherwise provided in this section, the actual administrative
    |
0002|     adjudicatory proceeding at which evidence is offered or rebutted
    |
0003|     and any final action taken as a result of the proceeding shall
    |
0004|     occur in an open meeting;
    |
0005|                    (4)  the discussion of personally identifiable
    |
0006|     information about any individual student, unless the student,
    |
0007|     his parent or guardian requests otherwise;
    |
0008|                    (5)  meetings for the discussion of bargaining
    |
0009|     strategy preliminary to collective bargaining negotiations
    |
0010|     between the policymaking body and a bargaining unit representing
    |
0011|     the employees of that policymaking body and collective
    |
0012|     bargaining sessions at which the policymaking body and the
    |
0013|     representatives of the collective bargaining unit are present;
    |
0014|                    (6)  that portion of meetings at which a
    |
0015|     decision concerning purchases in an amount exceeding two
    |
0016|     thousand five hundred dollars ($2,500) that can be made only
    |
0017|     from one source and that portion of meetings at which the
    |
0018|     contents of competitive sealed proposals solicited pursuant to
    |
0019|     the Procurement Code are discussed during the contract
    |
0020|     negotiation process.  The actual approval of purchase of the
    |
0021|     item or final action regarding the selection of a contractor
    |
0022|     shall be made in an open meeting;
    |
0023|                    (7)  meetings subject to the attorney-client
    |
0024|     privilege pertaining to threatened or pending litigation in
    |
0025|     which the public body is or may become a participant;
    |
0001|                    (8)  meetings for the discussion of the
    |
0002|     purchase, acquisition or disposal of real property or water
    |
0003|     rights by the public body; <s>[and]</s>
    |
0004|                    (9)  those portions of meetings of committees
    |
0005|     or boards of public hospitals that receive less than fifty
    |
0006|     percent of their operating budget from direct public funds and
    |
0007|     appropriations where strategic and long-range business plans are
    |
0008|     discussed; <u>and
</u>    |
<u></u>0009| <u>                   (10)  that portion of a meeting of the gaming
</u>    |
<u></u>0010| <u>    control board dealing with information made confidential
</u>    |
<u></u>0011| <u>    pursuant to the provisions of the Gaming Control Act</u>.
    |
0012|               I.  If any meeting is closed pursuant to the
    |
0013|     exclusions contained in Subsection H of this section, the
    |
0014|     closure:
    |
0015|                    (1)  if made in an open meeting, shall be
    |
0016|     approved by a majority vote of a quorum of the policymaking
    |
0017|     body; the authority for the closure and the subject to be
    |
0018|     discussed shall be stated with reasonable specificity in the
    |
0019|     motion calling for the vote on a closed meeting; the vote shall
    |
0020|     be taken in an open meeting; and the vote of each individual
    |
0021|     member shall be recorded in the minutes.  Only those subjects
    |
0022|     announced or voted upon prior to closure by the policymaking
    |
0023|     body may be discussed in a closed meeting; and
    |
0024|                    (2)  if called for when the policymaking body
    |
0025|     is not in an open meeting, shall not be held until public
    |
0001|     notice, appropriate under the circumstances, stating the
    |
0002|     specific provision of the law authorizing the closed meeting and
    |
0003|     stating with reasonable specificity the subject to be discussed
    |
0004|     is given to the members and to the general public.
    |
0005|               J.  Following completion of any closed meeting, the
    |
0006|     minutes of the open meeting that was closed or the minutes of
    |
0007|     the next open meeting if the closed meeting was separately
    |
0008|     scheduled shall state that the matters discussed in the closed
    |
0009|     meeting were limited only to those specified in the motion for
    |
0010|     closure or in the notice of the separate closed meeting.  This
    |
0011|     statement shall be approved by the public body under Subsection
    |
0012|     G of this section as part of the minutes."
    |
0013|          Section 67.  Section 30-19-1 NMSA 1978 (being Laws 1963,
    |
0014|     Chapter 303, Section 19-1, as amended) is amended to read:
    |
0015|          "30-19-1.  DEFINITIONS RELATING TO GAMBLING.--As used in
    |
0016|     Chapter 30, Article 19 NMSA 1978:
    |
0017|               A.  "antique gambling device" means a gambling device
    |
0018|     twenty-five years of age or older and substantially in original
    |
0019|     condition that is not used for gambling or commercial gambling
    |
0020|     or located in a gambling place; 
    |
0021|               B.  "bet" means a bargain in which the parties agree
    |
0022|     that, dependent upon chance, even though accompanied by some
    |
0023|     skill, one stands to win or lose anything of value specified in
    |
0024|     the agreement.  A bet does not include:
    |
0025|                    (1)  bona fide business transactions that are
    |
0001|     valid under the law of contracts, including <s>[without
</s>    |
<s></s>0002| <s>    limitation]</s>:
    |
0003|                         (a)  contracts for the purchase or sale,
    |
0004|     at a future date, of securities or other commodities; and
    |
0005|                         (b)  agreements to compensate for loss
    |
0006|     caused by the happening of the chance, including <s>[without
</s>    |
<s></s>0007| <s>    limitation]</s> contracts for indemnity or guaranty and life or
    |
0008|     health and accident insurance;
    |
0009|                    (2)  offers of purses, prizes or premiums to
    |
0010|     the actual contestants in any bona fide contest for the
    |
0011|     determination of skill, speed, strength or endurance or to the
    |
0012|     bona fide owners of animals or vehicles entered in such contest;
    |
0013|                    (3)  a lottery as defined in this section; or
    |
0014|                    (4)  betting otherwise permitted by law;
    |
0015|               <s>[C.  "lottery" means an enterprise other than the
</s>    |
<s></s>0016| <s>    New Mexico state lottery established and operated pursuant to
</s>    |
<s></s>0017| <s>    the New Mexico Lottery Act wherein, for a consideration, the
</s>    |
<s></s>0018| <s>    participants are given an opportunity to win a prize, the award
</s>    |
<s></s>0019| <s>    of which is determined by chance, even though accompanied by
</s>    |
<s></s>0020| <s>    some skill.  As used in this subsection, "consideration" means
</s>    |
<s></s>0021| <s>    anything of pecuniary value required to be paid to the promoter
</s>    |
<s></s>0022| <s>    in order to participate in such enterprise;
</s>    |
<s></s>0023| <s>              D.]</s> <u>C.</u>  "gambling device" means a contrivance
    |
0024|     other than an antique gambling device <u>that is not licensed for
</u>    |
<u></u>0025| <u>    use pursuant to the Gaming Control Act and</u> that, for a
    |
0001|     consideration, affords the player an opportunity to obtain
    |
0002|     anything of value, the award of which is determined by chance,
    |
0003|     even though accompanied by some skill, <s>[and]</s> whether or not
    |
0004|     the prize is automatically paid by the device; <s>[and]</s>
    |
0005|               <s>[E.]</s> <u>D.</u>  "gambling place" means <s>[any]</s> <u>a</u>
    |
0006|     building or tent, <s>[any]</s> <u>a</u> vehicle, whether self-propelled or
    |
0007|     not, or <s>[any]</s> <u>a</u> room within any of them <u>that is not within
</u>    |
<u></u>0008| <u>    the premises of a person licensed as a lottery retailer or that
</u>    |
<u></u>0009| <u>    is not licensed pursuant to the Gaming Control Act</u>, one of
    |
0010|     whose principal uses is:
    |
0011|                    (1)  making and settling of bets;
    |
0012|                    (2)  receiving, holding, recording or
    |
0013|     forwarding bets or offers to bet;
    |
0014|                    (3)  conducting lotteries; or
    |
0015|                    (4)  playing gambling devices; <u>and</u>
    |
0016|               <u>E.  "lottery" means an enterprise wherein, for a
</u>    |
<u></u>0017| <u>    consideration, the participants are given an opportunity to win
</u>    |
<u></u>0018| <u>    a prize, the award of which is determined by chance, even though
</u>    |
<u></u>0019| <u>    accompanied by some skill.  "Lottery" does not include the New
</u>    |
<u></u>0020| <u>    Mexico state lottery established and operated pursuant to the
</u>    |
<u></u>0021| <u>    New Mexico Lottery Act or gaming that is licensed and operated
</u>    |
<u></u>0022| <u>    pursuant to the Gaming Control Act.  As used in this subsection,
</u>    |
<u></u>0023| <u>    "consideration" means anything of pecuniary value required to be
</u>    |
<u></u>0024| <u>    paid to the promoter in order to participate in a gambling or
</u>    |
<u></u>0025| <u>    gaming enterprise</u>."
    |
0001|          Section 68.  Section 30-19-6 NMSA 1978 (being Laws 1963,

    |
0002|     Chapter 303, Section 19-6, as amended) is amended to read:
    |
0003|          "30-19-6.  <s>[PERMISSIVE LOTTERY]</s> <u>CHARITABLE LOTTERIES--
</u>    |
<u></u>0004| <u>    PERMITTED GAMBLING--CONDITIONS</u>.--
    |
0005|               A.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0006| <u>    19</u> NMSA 1978 <s>[shall be construed to apply to any]</s> <u>prohibits
</u>    |
<u></u>0007| <u>    a</u> sale or drawing of <s>[any]</s> <u>a</u> prize at <s>[any]</s> <u>a</u> fair held
    |
0008|     in this state for the benefit of <s>[any]</s> <u>a</u> church, public
    |
0009|     library or religious society <s>[situate or being]</s> <u>located</u> in
    |
0010|     this state, or for charitable purposes when all the proceeds of
    |
0011|     <s>[such]</s> <u>the</u> fair <s>[shall be]</s> <u>are</u> expended in this state
    |
0012|     for the benefit of <s>[such]</s> <u>the</u> church, public library,
    |
0013|     religious society or charitable purposes.  A <s>[lottery shall be
</s>    |
<s></s>0014| <s>    operated]</s> <u>sale or drawing conducted pursuant to this
</u>    |
<u></u>0015| <u>    subsection is</u> for the benefit of the organization or charitable
    |
0016|     purpose only <s>[when]</s> <u>if</u> the entire proceeds of the
    |
0017|     <s>[lottery]</s> <u>sale or drawing</u> go to the organization or
    |
0018|     charitable purpose and no part of such proceeds go to any
    |
0019|     individual member or employee <s>[thereof]</s> <u>of the organization</u>.
    |
0020|               B.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0021| <u>    19</u> NMSA 1978 <s>[shall be held to prohibit any]</s> <u>prohibits a</u>
    |
0022|     bona fide motion picture <s>[theatre]</s> <u>theater</u> from offering
    |
0023|     prizes of cash or merchandise for advertising purposes, in
    |
0024|     connection with <s>[such]</s> <u>the</u> business <u>of the theater</u> or for
    |
0025|     the purpose of stimulating business, whether or not <s>[any]</s>
    |
0001|     consideration other than a monetary consideration in excess of
    |
0002|     the regular price of admission is <s>[exacted]</s> <u>charged</u> for
    |
0003|     participation in drawings for prizes.
    |
0004|               C.  Nothing in <s>[Article 19]</s> Chapter 30, <u>Article
</u>    |
<u></u>0005| <u>    19</u> NMSA 1978 <s>[shall be held to apply to any]</s> <u>prohibits a</u>
    |
0006|     bona fide county fair, including <s>[fairs]</s> <u>a fair</u> for more
    |
0007|     than one county, <s>[which shall have]</s> <u>that has</u> been held
    |
0008|     annually at the same location for at least two years, <s>[and
</s>    |
<s></s>0009| <s>    which shall offer]</s> <u>from offering</u> prizes of livestock or
    |
0010|     poultry in connection with <s>[such]</s> <u>the</u> fair <s>[when]</s> <u>if</u> the
    |
0011|     proceeds of <s>[such]</s> <u>the</u> drawings <s>[shall be]</s> <u>are</u> used for
    |
0012|     the benefit of <s>[said]</s> <u>the</u> fair.
    |
0013|               <s>[D.  Nothing in Article 19, Chapter 30 NMSA 1978
</s>    |
<s></s>0014| <s>    shall be construed to apply to any lottery operated by an
</s>    |
<s></s>0015| <s>    organization exempt from the state income tax pursuant to
</s>    |
<s></s>0016| <s>    Subsection C of Section 7-2-4 NMSA 1978 and not subject to the
</s>    |
<s></s>0017| <s>    provisions of Subsection A of this section; provided that:
</s>    |
<s></s>0018| <s>                   (1)  no more than two lotteries shall be
</s>    |
<s></s>0019| <s>    operated in any year by such an organization;
</s>    |
<s></s>0020| <s>                   (2)  all the gross proceeds less the reasonable
</s>    |
<s></s>0021| <s>    cost of prizes of any lottery operated by such an organization
</s>    |
<s></s>0022| <s>    shall be expended in the state for the benefit of the
</s>    |
<s></s>0023| <s>    organization or public purposes; and
</s>    |
<s></s>0024| <s>                   (3)  no part of the proceeds of any lottery
</s>    |
<s></s>0025| <s>    shall go to any individual member or employee of any
</s>    |
<s></s>0001| <s>    organization except as payment for the purchase of prizes at no
</s>    |
<s></s>0002| <s>    more than the reasonable retail price.]</s>
    |
0003|     <u>         D.  Nothing in Chapter 30, Article 19 NMSA 1978
</u>    |
<u></u>0004| <u>    prohibits an organization that is exempt from state income tax
</u>    |
<u></u>0005| <u>    pursuant to Section 7-2-4 NMSA 1978 from conducting bingo games,
</u>    |
<u></u>0006| <u>    raffles, lotteries or table games, including poker, craps,
</u>    |
<u></u>0007| <u>    blackjack, roulette and the like, at a fundraising event if:
</u>    |
<u></u>0008| <u>                   (1)  the fundraising event is conducted no more
</u>    |
<u></u>0009| <u>    than twice in a calendar year by the qualifying organization;</u>
    |
0010|                    <u>(2)  the only persons authorized to
</u>    |
<u></u>0011| <u>    participate in the operation or management of the fundraising
</u>    |
<u></u>0012| <u>    event are:
</u>    |
<u></u>0013| <u>                        (a)  bona fide members of the qualifying
</u>    |
<u></u>0014| <u>    organization who are not paid for their services in the
</u>    |
<u></u>0015| <u>    operation or management of the event; or
</u>    |
<u></u>0016| <u>                        (b)  persons who provide goods or services
</u>    |
<u></u>0017| <u>    for the fundraising event for a flat fee or an hourly fee
</u>    |
<u></u>0018| <u>    pursuant to a written contract with the qualifying organization;
</u>    |
<u></u>0019| <u>                   (3)  no person receives any part of the
</u>    |
<u></u>0020| <u>    proceeds of the fundraising event except:
</u>    |
<u></u>0021| <u>                        (a)  as payment for prizes purchased at no
</u>    |
<u></u>0022| <u>    more than the reasonable retail prices for the prizes; or
</u>    |
<u></u>0023| <u>                        (b)  pursuant to a contract described in
</u>    |
<u></u>0024| <u>    Subparagraph (b) of Paragraph (2) of this subsection;
</u>    |
<u></u>0025| <u>                   (4)  the net proceeds of the fundraising event
</u>    |
<u></u>0001| <u>    are expended in the state for the benefit of the qualifying
</u>    |
<u></u>0002| <u>    organization or purposes for which it was formed;
</u>    |
<u></u>0003| <u>                   (5)  gross revenue, expenses, prizes paid and
</u>    |
<u></u>0004| <u>    the date, time and location of the fundraising event are
</u>    |
<u></u>0005| <u>    reported to the alcohol and gaming division of the regulation
</u>    |
<u></u>0006| <u>    and licensing department within thirty days after the event;
</u>    |
<u></u>0007| <u>                   (6)  the qualifying organization conducting the
</u>    |
<u></u>0008| <u>    fundraising event maintains records for a period of one year
</u>    |
<u></u>0009| <u>    after the date of the event that accurately show the gross
</u>    |
<u></u>0010| <u>    revenue generated by the event, details of the expenses of
</u>    |
<u></u>0011| <u>    conducting the event and details of how the gross revenue is
</u>    |
<u></u>0012| <u>    used, and the qualifying organization makes the records
</u>    |
<u></u>0013| <u>    available for review by the director of the alcohol and gaming
</u>    |
<u></u>0014| <u>    division of the regulation and licensing department or the
</u>    |
<u></u>0015| <u>    attorney general, or both, at their request;
</u>    |
<u></u>0016| <u>                   (7)  no more than four gambling devices are
</u>    |
<u></u>0017| <u>    operated during the fundraising event, two of which may be video
</u>    |
<u></u>0018| <u>    gaming machines or slot machines and shall be played with tokens
</u>    |
<u></u>0019| <u>    or chips, but not United States coins or currency, provided by
</u>    |
<u></u>0020| <u>    the qualifying organization;
</u>    |
<u></u>0021| <u>                   (8)  no person less than the age of twenty-one
</u>    |
<u></u>0022| <u>    is allowed to participate in the operation or management of the
</u>    |
<u></u>0023| <u>    fundraising event or to play any game at the event; and
</u>    |
<u></u>0024| <u>                   (9)  the fundraising event is conducted
</u>    |
<u></u>0025| <u>    pursuant to regulations and a permit issued by the alcohol and
</u>    |
<u></u>0001| <u>    gaming division of the regulation and licensing department.
</u>    |
<u></u>0002| <u>              E.  The provisions of the Gaming Control Act, the
</u>    |
<u></u>0003| <u>    Bingo and Raffle Act and the New Mexico Lottery Act do not apply
</u>    |
<u></u>0004| <u>    to the activities described in Subsection D of this section.</u>"
    |
0005|          Section 69.  Section 60-7A-19 NMSA 1978 (being Laws 1981,
    |
0006|     Chapter 39, Section 96) is amended to read:
    |
0007|          "60-7A-19.  COMMERCIAL GAMBLING ON LICENSED PREMISES.--
    |
0008|               A.  It is a violation of the Liquor Control Act for a
    |
0009|     licensee to knowingly allow commercial gambling on the licensed
    |
0010|     premises.
    |
0011|               B.  In addition to any criminal penalties, any person
    |
0012|     who violates Subsection A of this section may have his license
    |
0013|     suspended or revoked or a fine imposed, or both, pursuant to the
    |
0014|     Liquor Control Act.
    |
0015|               C.  <s>[For purposes of]</s> <u>As used in</u> this section:
    |
0016|                    <u>(1)</u>  "commercial gambling" means:
    |
0017|                         <s>[(1)]</s> <u>(a)</u>  participating in the
    |
0018|     earnings of or operating a gambling place;
    |
0019|                         <s>[(2)]</s> <u>(b)</u>  receiving, recording or
    |
0020|     forwarding bets or offers to bet;
    |
0021|                         <s>[(3)]</s> <u>(c)</u>  possessing facilities with
    |
0022|     the intent to receive, record or forward bets or offers to bet;
    |
0023|                         <s>[(4)]</s> <u>(d)</u>  for gain, becoming a
    |
0024|     custodian of anything of value bet or offered to be bet;
    |
0025|                         <s>[(5)]</s> <u>(e)</u>  conducting a lottery where
    |
0001|     both the consideration and the prize are money, or whoever with
    |
0002|     intent to conduct a lottery possesses facilities to do so; or
    |
0003|                         <s>[(6)]</s> <u>(f)</u>  setting up for use for the
    |
0004|     purpose of gambling, or collecting the proceeds of, any gambling
    |
0005|     device or game; <u>and</u>
    |
0006|                    <u>(2)  "commercial gambling" does not mean:
</u>    |
<u></u>0007| <u>                        (a)  activities authorized pursuant to the
</u>    |
<u></u>0008| <u>    New Mexico Lottery Act;
</u>    |
<u></u>0009| <u>                        (b)  the conduct of activities pursuant to
</u>    |
<u></u>0010| <u>    Subsection D of Section 30-19-6 NMSA 1978; and
</u>    |
<u></u>0011| <u>                        (c)  gaming authorized pursuant to the
</u>    |
<u></u>0012| <u>    Gaming Control Act on the premises of a gaming operator licensee
</u>    |
<u></u>0013| <u>    licensed pursuant to that act</u>."
    |
0014|          Section 70.  SEVERABILITY.--If any part or application of
    |
0015|     the Gaming Control Act is held invalid, the remainder of its
    |
0016|     application to other situations or persons shall not be
    |
0017|     affected.
    |
0018|          Section 71.  EMERGENCY.--It is necessary for the public
    |
0019|     peace, health and safety that this act take effect immediately.
    |
0020|                              
    |