New Mexico 2025 Regular Session

New Mexico House Bill HB241 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	underscored material = new
2	2	[bracketed material] = delete
3	3	1
4	4	2
5	5	3
6	6	4
7	7	5
8	8	6
9	9	7
10	10	8
11	11	9
12	12	10
13	13	11
14	14	12
15	15	13
16	16	14
17	17	15
18	18	16
19	19	17
20	20	18
21	21	19
22	22	20
23	23	21
24	24	22
25	25	23
26	26	24
27	27	25
28	28	HOUSE BILL 241
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
34	34
35	35	OF
36	36
37	37	NEW
38	38
39	39	MEXICO
40	40
41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Alan T. Martinez and Rebecca Dow and Art De La Cruz
48	48	and Joshua N. Hernandez
49	49	AN ACT
50	50	RELATING TO GAMING; AMENDING DEFINITIONS IN THE GAMING CONTROL
51	51	ACT TO INCLUDE "ALLOWABLE GAMING EXPENSES" AND "BALANCE OF NET
52	52	TAKE".
53	53	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
54	54	SECTION 1. Section 60-2E-3 NMSA 1978 (being Laws 1997,
55	55	Chapter 190, Section 5, as amended) is amended to read:
56	56	"60-2E-3. DEFINITIONS.--As used in the Gaming Control
57	57	Act:
58	58	A. "affiliate" means a person who, directly or
59	59	indirectly through one or more intermediaries, controls, is
60	60	controlled by or is under common control with a specified
61	61	person;
62	62	B. "affiliated company" means a company that:
63	63	(1) controls, is controlled by or is under
64	64	.229513.1 underscored material = new
65	65	[bracketed material] = delete
66	66	1
67	67	2
68	68	3
69	69	4
70	70	5
71	71	6
72	72	7
73	73	8
74	74	9
75	75	10
76	76	11
77	77	12
78	78	13
79	79	14
80	80	15
81	81	16
82	82	17
83	83	18
84	84	19
85	85	20
86	86	21
87	87	22
88	88	23
89	89	24
90	90	25
91	91	common control with a company licensee; and
92	92	(2) is involved in gaming activities or
93	93	involved in the ownership of property on which gaming is
94	94	conducted;
95	95	C. "allowable gaming expenses" means the following
96	96	bona fide expenses in reasonable and customary amounts:
97	97	(1) purchase prices of non-cash prizes;
98	98	(2) security and surveillance expenses;
99	99	(3) independent accountant fees;
100	100	(4) license fees, including renewals and
101	101	gaming machine license fees;
102	102	(5) utilities attributed to the licensed
103	103	premises;
104	104	(6) installment payments to an independent
105	105	administrator or lease payments;
106	106	(7) gaming device repair and maintenance;
107	107	(8) gaming employees' salaries and employment
108	108	taxes;
109	109	(9) gaming supplies;
110	110	(10) approved management fees; and
111	111	(11) licensed premises repair and maintenance;
112	112	[C.] D. "applicant" means a person who has applied
113	113	for a license or for approval of an act or transaction for
114	114	which approval is required or allowed pursuant to the
115	115	provisions of the Gaming Control Act;
116	116	.229513.1
117	117	- 2 - underscored material = new
118	118	[bracketed material] = delete
119	119	1
120	120	2
121	121	3
122	122	4
123	123	5
124	124	6
125	125	7
126	126	8
127	127	9
128	128	10
129	129	11
130	130	12
131	131	13
132	132	14
133	133	15
134	134	16
135	135	17
136	136	18
137	137	19
138	138	20
139	139	21
140	140	22
141	141	23
142	142	24
143	143	25
144	144	[D.] E. "application" means a request for the
145	145	issuance of a license or for approval of an act or transaction
146	146	for which approval is required or allowed pursuant to the
147	147	provisions of the Gaming Control Act, but "application" does
148	148	not include a supplemental form or information that may be
149	149	required with the application;
150	150	[E.] F. "associated equipment" means equipment or a
151	151	mechanical, electromechanical or electronic contrivance,
152	152	component or machine used in connection with gaming activity;
153	153	G. "balance of net take" means the amount of net
154	154	take remaining after a gaming operation licensee pays the
155	155	gaming tax and other applicable taxes, income and allowable
156	156	gaming expenses;
157	157	[F.] H. "board" means the gaming control board;
158	158	[G.] I. "certification" means a notice of approval
159	159	by the board of a person required to be certified by the board;
160	160	[H.] J. "cheat" or "cheating" means to alter the
161	161	element of chance, the method of selection or other criteria in
162	162	a manner that determines:
163	163	(1) the result of the game;
164	164	(2) the amount or frequency of payment in a
165	165	game, including taking advantage of a malfunctioning machine;
166	166	(3) the value of a wagering instrument; or
167	167	(4) the value of a wagering credit;
168	168	[I.] K. "company" means a corporation, partnership,
169	169	.229513.1
170	170	- 3 - underscored material = new
171	171	[bracketed material] = delete
172	172	1
173	173	2
174	174	3
175	175	4
176	176	5
177	177	6
178	178	7
179	179	8
180	180	9
181	181	10
182	182	11
183	183	12
184	184	13
185	185	14
186	186	15
187	187	16
188	188	17
189	189	18
190	190	19
191	191	20
192	192	21
193	193	22
194	194	23
195	195	24
196	196	25
197	197	limited partnership, trust, association, joint stock company,
198	198	joint venture, limited liability company or other form of
199	199	business organization that is not a natural person; "company"
200	200	does not mean a nonprofit organization;
201	201	[J.] L. "distributor" means a person who supplies
202	202	gaming devices to a gaming operator but does not manufacture
203	203	gaming devices;
204	204	[K.] M. "equity security" means an interest in a
205	205	company that is evidenced by:
206	206	(1) voting stock or similar security;
207	207	(2) a security convertible into voting stock
208	208	or similar security, with or without consideration, or a
209	209	security carrying a warrant or right to subscribe to or
210	210	purchase voting stock or similar security;
211	211	(3) a warrant or right to subscribe to or
212	212	purchase voting stock or similar security; or
213	213	(4) a security having a direct or indirect
214	214	participation in the profits of the issuer;
215	215	[L.] N. "executive director" means the chief
216	216	administrative officer appointed by the board pursuant to
217	217	Section 60-2E-7 NMSA 1978;
218	218	[M.] O. "finding of suitability" means a
219	219	certification of approval issued by the board permitting a
220	220	person to be involved directly or indirectly with a licensee,
221	221	relating only to the specified involvement for which it is
222	222	.229513.1
223	223	- 4 - underscored material = new
224	224	[bracketed material] = delete
225	225	1
226	226	2
227	227	3
228	228	4
229	229	5
230	230	6
231	231	7
232	232	8
233	233	9
234	234	10
235	235	11
236	236	12
237	237	13
238	238	14
239	239	15
240	240	16
241	241	17
242	242	18
243	243	19
244	244	20
245	245	21
246	246	22
247	247	23
248	248	24
249	249	25
250	250	made;
251	251	[N.] P. "foreign institutional investor" means:
252	252	(1) a government-related pension plan of a
253	253	foreign government; or
254	254	(2) a person that meets the requirement of a
255	255	qualified institutional buyer as defined by the governing
256	256	financial regulatory agency of the foreign country in which the
257	257	company's primary operations are located and is registered or
258	258	licensed in that country as a bank, an insurance company, an
259	259	investment company, an investment advisor, a collective trust
260	260	fund, an employee benefit plan or pension fund sponsored by a
261	261	publicly traded corporation registered with the board or a
262	262	group composed entirely of entities specified in this
263	263	subsection;
264	264	[O.] Q. "game" means an activity in which, upon
265	265	payment of consideration, a player receives a prize or other
266	266	thing of value, the award of which is determined by chance even
267	267	though accompanied by some skill; "game" does not include an
268	268	activity played in a private residence in which no person makes
269	269	money for operating the activity except through winnings as a
270	270	player;
271	271	[P.] R. "gaming" means offering a game for play;
272	272	[Q.] S. "gaming activity" means an endeavor
273	273	associated with the manufacture or distribution of gaming
274	274	devices or the conduct of gaming;
275	275	.229513.1
276	276	- 5 - underscored material = new
277	277	[bracketed material] = delete
278	278	1
279	279	2
280	280	3
281	281	4
282	282	5
283	283	6
284	284	7
285	285	8
286	286	9
287	287	10
288	288	11
289	289	12
290	290	13
291	291	14
292	292	15
293	293	16
294	294	17
295	295	18
296	296	19
297	297	20
298	298	21
299	299	22
300	300	23
301	301	24
302	302	25
303	303	[R.] T. "gaming device" means associated equipment
304	304	or a gaming machine and includes a system for processing
305	305	information that can alter the normal criteria of random
306	306	selection that affects the operation of a game or determines
307	307	the outcome of a game;
308	308	[S.] U. "gaming employee" means a person connected
309	309	directly with a gaming activity; "gaming employee" does not
310	310	include:
311	311	(1) bartenders, cocktail servers or other
312	312	persons engaged solely in preparing or serving food or
313	313	beverages;
314	314	(2) secretarial or janitorial personnel;
315	315	(3) stage, sound and light technicians; or
316	316	(4) other nongaming personnel;
317	317	[T.] V. "gaming establishment" means the premises
318	318	on or in which gaming is conducted;
319	319	[U.] W. "gaming machine" means a mechanical,
320	320	electromechanical or electronic contrivance or machine that,
321	321	upon insertion of a coin, token or similar object, or upon
322	322	payment of any consideration, is available to play or operate a
323	323	game, whether the payoff is made automatically from the machine
324	324	or in any other manner;
325	325	[V.] X. "gaming operator" means a person who
326	326	conducts gaming;
327	327	[W.] Y. "holding company" means a company that
328	328	.229513.1
329	329	- 6 - underscored material = new
330	330	[bracketed material] = delete
331	331	1
332	332	2
333	333	3
334	334	4
335	335	5
336	336	6
337	337	7
338	338	8
339	339	9
340	340	10
341	341	11
342	342	12
343	343	13
344	344	14
345	345	15
346	346	16
347	347	17
348	348	18
349	349	19
350	350	20
351	351	21
352	352	22
353	353	23
354	354	24
355	355	25
356	356	directly or indirectly owns or has the power or right to
357	357	control a company that is an applicant or licensee, but a
358	358	company that does not have a beneficial ownership of more than
359	359	ten percent of the equity securities of a publicly traded
360	360	corporation is not a holding company;
361	361	[X.] Z. "immediate family" means natural persons
362	362	who are related to a specified natural person by affinity or
363	363	consanguinity in the first through the third degree;
364	364	[Y.] AA. "independent administrator" means a person
365	365	who administers an annuity, who is not associated in any manner
366	366	with the gaming operator licensee for which the annuity was
367	367	purchased and is in no way associated with the person who will
368	368	be receiving the annuity;
369	369	[Z.] BB. "institutional investor" means:
370	370	(1) a foreign institutional investor;
371	371	(2) a state or federal government pension
372	372	plan; or
373	373	(3) a person that meets the requirements of a
374	374	qualified institutional buyer as defined in Rule 144A of the
375	375	federal Securities Act of 1933, and is:
376	376	(a) a bank as defined in Section 3(a)(6)
377	377	of the federal Securities Exchange Act of 1934;
378	378	(b) an insurance company as defined in
379	379	Section 2(a)(17) of the federal Investment Company Act of 1940;
380	380	(c) an investment company registered
381	381	.229513.1
382	382	- 7 - underscored material = new
383	383	[bracketed material] = delete
384	384	1
385	385	2
386	386	3
387	387	4
388	388	5
389	389	6
390	390	7
391	391	8
392	392	9
393	393	10
394	394	11
395	395	12
396	396	13
397	397	14
398	398	15
399	399	16
400	400	17
401	401	18
402	402	19
403	403	20
404	404	21
405	405	22
406	406	23
407	407	24
408	408	25
409	409	under Section 8 of the federal Investment Company Act of 1940;
410	410	(d) an investment adviser registered
411	411	under Section 203 of the federal Investment Advisers Act of
412	412	1940;
413	413	(e) collective trust funds as defined in
414	414	Section 3(c)(11) of the federal Investment Company Act of 1940;
415	415	(f) an employee benefit plan or pension
416	416	fund that is subject to the federal Employee Retirement Income
417	417	Security Act of 1974, excluding an employee benefit plan or
418	418	pension fund sponsored by a publicly traded corporation
419	419	registered with the board; or
420	420	(g) a group comprised entirely of
421	421	persons specified in Subparagraphs (a) through (f) of this
422	422	paragraph;
423	423	[AA.] CC. "intermediary company" means a company
424	424	that:
425	425	(1) is a holding company with respect to a
426	426	company that is an applicant or licensee; and
427	427	(2) is a subsidiary with respect to any
428	428	holding company;
429	429	[BB.] DD. "key executive" means an executive of a
430	430	licensee or other person having the power to exercise
431	431	significant influence over decisions concerning any part of the
432	432	licensed operations of the licensee or whose compensation
433	433	exceeds an amount established by the board in a rule;
434	434	.229513.1
435	435	- 8 - underscored material = new
436	436	[bracketed material] = delete
437	437	1
438	438	2
439	439	3
440	440	4
441	441	5
442	442	6
443	443	7
444	444	8
445	445	9
446	446	10
447	447	11
448	448	12
449	449	13
450	450	14
451	451	15
452	452	16
453	453	17
454	454	18
455	455	19
456	456	20
457	457	21
458	458	22
459	459	23
460	460	24
461	461	25
462	462	[CC.] EE. "license" means an authorization required
463	463	by the board for engaging in gaming activities;
464	464	[DD.] FF. "licensee" means a person to whom a valid
465	465	license has been issued;
466	466	[EE.] GG. "manufacturer" means a person who
467	467	manufactures, fabricates, assembles, produces, programs or
468	468	makes modifications to any gaming device for use or play in New
469	469	Mexico or for sale, lease or distribution outside New Mexico
470	470	from any location within New Mexico;
471	471	[FF.] HH. "net take" means the total of the
472	472	following, less the total of all cash paid out as losses to
473	473	winning patrons and those amounts paid to purchase annuities to
474	474	fund losses paid to winning patrons over several years by
475	475	independent administrators:
476	476	(1) cash received from patrons for playing a
477	477	game;
478	478	(2) cash received in payment for credit
479	479	extended by a licensee to a patron for playing a game; and
480	480	(3) compensation received for conducting a
481	481	game in which the licensee is not a party to a wager;
482	482	[GG.] II. "nonprofit organization" means:
483	483	(1) a bona fide chartered or incorporated
484	484	branch, lodge, order or association, in existence in New Mexico
485	485	prior to January 1, 1997, of a fraternal organization that is
486	486	described in Section 501(c)(8) or (10) of the federal Internal
487	487	.229513.1
488	488	- 9 - underscored material = new
489	489	[bracketed material] = delete
490	490	1
491	491	2
492	492	3
493	493	4
494	494	5
495	495	6
496	496	7
497	497	8
498	498	9
499	499	10
500	500	11
501	501	12
502	502	13
503	503	14
504	504	15
505	505	16
506	506	17
507	507	18
508	508	19
509	509	20
510	510	21
511	511	22
512	512	23
513	513	24
514	514	25
515	515	Revenue Code of 1986 and that is exempt from federal income
516	516	taxation pursuant to Section 501(a) of that code; or
517	517	(2) a bona fide chartered or incorporated
518	518	post, auxiliary unit or society of, or a trust or foundation
519	519	for the post or auxiliary unit, in existence in New Mexico
520	520	prior to January 1, 1997, of a veterans' organization that is
521	521	described in Section 501(c)(19) or (23) of the federal Internal
522	522	Revenue Code of 1986 and that is exempt from federal income
523	523	taxation pursuant to Section 501(a) of that code;
524	524	[HH.] JJ. "person" means a legal entity;
525	525	[II.] KK. "premises" means land, together with all
526	526	buildings, improvements and personal property located on the
527	527	land;
528	528	[JJ.] LL. "progressive jackpot" means a prize that
529	529	increases over time or as gaming machines that are linked to a
530	530	progressive system are played and upon conditions established
531	531	by the board may be paid by an annuity;
532	532	[KK.] MM. "public post-secondary educational
533	533	institution" means an institution designated in Article 12,
534	534	Section 11 of the constitution of New Mexico or an institution
535	535	designated in Chapter 21, Article 13, 14 or 16 NMSA 1978;
536	536	[LL.] NN. "progressive system" means one or more
537	537	gaming machines linked to one or more common progressive
538	538	jackpots;
539	539	[MM.] OO. "publicly traded corporation" means a
540	540	.229513.1
541	541	- 10 - underscored material = new
542	542	[bracketed material] = delete
543	543	1
544	544	2
545	545	3
546	546	4
547	547	5
548	548	6
549	549	7
550	550	8
551	551	9
552	552	10
553	553	11
554	554	12
555	555	13
556	556	14
557	557	15
558	558	16
559	559	17
560	560	18
561	561	19
562	562	20
563	563	21
564	564	22
565	565	23
566	566	24
567	567	25
568	568	corporation that:
569	569	(1) has one or more classes of securities
570	570	registered pursuant to the securities laws of the United States
571	571	or New Mexico;
572	572	(2) is an issuer subject to the securities
573	573	laws of the United States or New Mexico; or
574	574	(3) has one or more classes of securities
575	575	registered or is an issuer pursuant to applicable foreign laws
576	576	that, the board finds, provide protection for institutional
577	577	investors that is comparable to or greater than the stricter of
578	578	the securities laws of the United States or New Mexico;
579	579	[NN.] PP. "registration" means a board action that
580	580	authorizes a company to be a holding company with respect to a
581	581	company that holds or applies for a license or that relates to
582	582	other persons required to be registered pursuant to the Gaming
583	583	Control Act;
584	584	[OO.] QQ. "subsidiary" means a company, all or a
585	585	part of whose outstanding equity securities are owned, subject
586	586	to a power or right of control or held, with power to vote, by
587	587	a holding company or intermediary company;
588	588	[PP.] RR. "technician" means a person approved by
589	589	the board to repair and service gaming devices or associated
590	590	equipment but who is prohibited from programming gaming
591	591	devices; and
592	592	[QQ.] SS. "work permit" means a card, certificate
593	593	.229513.1
594	594	- 11 - underscored material = new
595	595	[bracketed material] = delete
596	596	1
597	597	2
598	598	3
599	599	4
600	600	5
601	601	6
602	602	7
603	603	8
604	604	9
605	605	10
606	606	11
607	607	12
608	608	13
609	609	14
610	610	15
611	611	16
612	612	17
613	613	18
614	614	19
615	615	20
616	616	21
617	617	22
618	618	23
619	619	24
620	620	25
621	621	or permit issued by the board, whether denominated as a work
622	622	permit, registration card or otherwise, authorizing the
623	623	employment of the holder as a gaming employee."
624	624	- 12 -
625	625	.229513.1