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HOUSE BILL 546
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Rod Montoya
AN ACT
RELATING TO HORSE RACING; AMENDING AND ENACTING SECTIONS OF THE
HORSE RACING ACT; CREATING THE STATE RACING COMMISSION
NOMINATING COMMITTEE; REQUIRING MEMBERS OF THE STATE RACING
COMMISSION TO BE SELECTED FROM A LIST OF QUALIFIED NOMINEES
CREATED BY THE STATE RACING COMMISSION NOMINATING COMMITTEE;
PROVIDING FOR THE EMPLOYMENT AND QUALIFICATIONS OF AN EXECUTIVE
DIRECTOR OF THE STATE RACING COMMISSION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 60-1A-2 NMSA 1978 (being Laws 2007,
Chapter 39, Section 2) is amended to read:
"60-1A-2. DEFINITIONS.--As used in the Horse Racing Act:
A. "board" means the gaming control board;
B. "breakage" means the odd cents by which the
amount payable on each dollar wagered exceeds a multiple of
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ten;
C. "commission" means the state racing commission;
D. "exotic wagering" means all wagering other than
on win, place or show, through pari-mutuel wagering;
E. "export" means to send a live audiovisual
broadcast of a horse race in the process of being run at a
horse racetrack from the originating horse racetrack to another
location;
F. "guest state" means a jurisdiction, other than
the jurisdiction in which a horse race is run, in which a horse
racetrack, off-track wagering facility or other facility that
is a member of and subject to an interstate common pool is
located;
G. "guest track" means a horse racetrack, off-track
wagering facility or other licensed facility in a location
other than the state in which a horse race is run that is a
member of and subject to an interstate common pool;
H. "handle" means the total of all pari-mutuel
wagering sales, excluding refunds and cancellations;
I. "horse race" means a competition among
racehorses on a predetermined course in which the horse
completing the course in the least amount of time generally
wins;
J. "host state" means the jurisdiction within which
a sending track is located, also known as a "sending state";
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K. "host track" means the horse racetrack from
which a horse race subject to an interstate common pool is
transmitted to members of that interstate common pool, also
known as a "sending track";
L. "import" means to receive a live audiovisual
broadcast of a horse race;
M. "interstate common pool" means a pari-mutuel
pool that combines comparable pari-mutuel pools from one or
more locations that accept wagers on a horse race run at a
sending track for purposes of establishing payoff prices at the
pool members' locations, including pools in which pool members
from more than one state simultaneously combine pari-mutuel
pools to form an interstate common pool;
N. "jockey club" means an organization that
administers thoroughbred registration records and registers
thoroughbreds;
O. "licensed premises" means land, together with
all buildings, other improvements and personal property located
on the land, that is under the direct control of a racetrack
licensee, including the restricted areas, grandstand and public
parking areas;
P. "licensee" means a person licensed by the
commission and includes a holder of an occupational, secondary
or racetrack license;
Q. "nominating committee" means the state racing
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commission nominating committee;
[Q.] R. "occupational license" means a license
issued by the commission to a vendor or to a person having
access to a restricted area on the licensed premises, including
a horse owner, trainer, jockey, agent, apprentice, groom,
exercise person, veterinarian, valet, farrier, starter,
clocker, racing secretary, pari-mutuel clerk and other
personnel designated by the commission whose work, in whole or
in part, is conducted around racehorses or pari-mutuel betting
windows;
[R.] S. "pari-mutuel wagering" means a system of
wagering in which bets on a live or simulcast horse race are
pooled and held by the racetrack licensee for distribution of
the total amount, less the deductions authorized by law, to
holders of winning tickets; "pari-mutuel wagering" does not
include bookmaking or pool selling;
[S.] T. "pari-mutuel wagering pool" means the money
wagered on a specific horse race through pari-mutuel wagering;
[T.] U. "practical breeder" means a person who has
practical experience in breeding horses, although the person
may not be actively involved in breeding horses;
[U.] V. "primary residence" means the domicile
where a person resides for most of the year, and, if the person
is temporarily out of state, the address where a person will
return when the person returns to New Mexico or the address
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that a person uses for purposes of a driver's license, passport
or voting;
[V.] W. "quarter horse" means a racehorse that is
registered with the American quarter horse association or any
successor association;
[W.] X. "race meet" means a period of time within
dates specified by the commission in which a racetrack licensee
is authorized to conduct live racing on the racing grounds;
[X.] Y. "racehorse" means a quarter horse or
thoroughbred that is bred and trained to compete in horse
races;
[Y.] Z. "racetrack license" means a license to
conduct horse races issued by the commission;
[Z.] AA. "racetrack licensee" means a person who
has been issued a racetrack license;
[AA.] BB. "racing grounds" means the area of the
restricted area of licensed premises used for the purpose of
conducting horse races and all activities ancillary to the
conduct of horse races, including the track, stable area,
jockey's quarters and horse training areas;
[BB.] CC. "retainage" means money that is retained
from wagers on win, place and show and on exotic wagers by a
racetrack licensee pursuant to the Horse Racing Act;
[CC.] DD. "restricted areas" means the stable area,
the area behind the pari-mutuel betting windows and anywhere on
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the racing grounds;
[DD.] EE. "secondary licensee" means all officers,
directors, shareholders, lenders or holders of evidence of
indebtedness of a corporation or legal entity owning a horse
racetrack, and all persons holding a direct or indirect
interest of any nature whatsoever in the horse racetrack,
including interests or positions that deal with the funds of
the racetrack or that are administrative, policymaking or
supervisory;
[EE.] FF. "simulcast" means a transmission of a
live audiovisual broadcast of a horse race being run at a horse
racetrack other than the horse racetrack or other licensed
facility at which the broadcast is being received for viewing
pursuant to a simulcasting contract;
[FF.] GG. "stakes race" means a horse race in which
nominations or entry or starting fees contribute to the purse;
an overnight race is not a stakes race;
[GG.] HH. "steward" means an employee of the
commission who supervises horse races and oversees a race meet
while in progress, including holding hearings regarding
licensees and enforcing the rules of the commission and the
horse racetrack;
[HH.] II. "takeout" means amounts authorized by
statute to be deducted from the pari-mutuel wagers;
[II.] JJ. "thoroughbred" means a racehorse that is
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registered with the jockey club;
[JJ.] KK. "track" means the surfaced oval area on
which horse races are conducted; and
[KK.] LL. "vendor" means a person who provides
goods or services to or in the racing grounds or restricted
area of the licensed premises of a horse racetrack."
SECTION 2. Section 60-1A-3 NMSA 1978 (being Laws 2007,
Chapter 39, Section 3) is amended to read:
"60-1A-3. COMMISSION CREATED--APPOINTMENT OF MEMBERS--
TERMS OF OFFICE.--
A. The "state racing commission" is created and is
administratively attached to the tourism department.
B. The commission shall consist of five members, no
more than three of whom shall be members of the same political
party. The commission members shall be appointed by the
governor [and be confirmed by the senate ] with the consent of
the senate and shall be selected from a list of qualified
nominees submitted to the governor by the nominating committee .
All members of the commission shall hold at-large positions on
the commission.
C. At least three of the members of the commission
shall be practical breeders of racehorses within New Mexico.
D. A commission member shall have primary residence
in New Mexico and shall be of high character and reputation so
that public confidence in the administration of horse racing is
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maintained.
E. The term of each member of the commission shall
be six years from the date of the member's appointment. The
member shall serve until a successor is appointed. In the case
of a vacancy in the membership of the commission, the governor
shall fill the vacancy by appointment for the unexpired term
from a list of nominees submitted by the nominating committee .
F. A person shall not be eligible for appointment
as a member of the commission who is an officer, official or
director in a corporation conducting horse racing within the
state. A member of the commission or relatives of a member of
the commission to the first degree of consanguinity shall not
have a financial interest in a licensee regulated by the
commission.
G. Members of the commission shall receive no
salary, but each member of the commission shall receive per
diem and mileage pursuant to the Per Diem and Mileage Act.
[H. The commission may appoint an executive
director and establish the executive director's duties and
compensation.]"
SECTION 3. A new section of the Horse Racing Act, Section
60-1A-3.1 NMSA 1978, is enacted to read:
"60-1A-3.1. [NEW MATERIAL ] STATE RACING COMMISSION
NOMINATING COMMITTEE.--
A. The "state racing commission nominating
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committee" is created and consists of nine members who are:
(1) knowledgeable about horse racing;
(2) not recipients of contracts or other forms
of compensation from the commission or the board;
(3) not applicants or nominees for membership
on the commission; and
(4) appointed as follows:
(a) six members appointed one each by
the speaker of the house of representatives, the majority floor
leader of the house of representatives, the minority floor
leader of the house of representatives, the president pro
tempore of the senate, the majority floor leader of the senate
and the minority floor leader of the senate;
(b) two members appointed by the
governor; and
(c) one member appointed by the chief
justice of the supreme court.
B. A nominating committee member shall:
(1) be a resident of New Mexico;
(2) serve a four-year term; and
(3) serve without compensation, but shall be
reimbursed for expenses incurred in pursuit of the member's
duties on the nominating committee pursuant to the Per Diem and
Mileage Act.
C. The nominating committee and individual members
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shall be subject to the Governmental Conduct Act, the
Inspection of Public Records Act, the Financial Disclosure Act
and the Open Meetings Act.
D. Administrative support shall be provided to the
nominating committee by the staff of the board.
E. Initial appointments to the nominating committee
shall be made by the appointing authorities prior to September
1, 2025. Subsequent appointments shall be made no later than
thirty days before the end of a term.
F. The first meeting of the members of the
nominating committee shall be held prior to November 1, 2025.
The nominating committee shall select one member to be chair
and one member to be secretary of the nominating committee.
Following the first meeting, the nominating committee shall
meet as often as necessary in order to submit a list to the
governor of no fewer than two qualified nominees for
appointment as members of the commission when a vacancy occurs
on the commission. The list shall be developed to provide
geographical diversity, and nominees on the list shall be from
at least three different counties of the state.
G. The nominating committee shall meet at least
ninety days prior to the date on which the term of a member of
the commission ends and as often as necessary thereafter in
order to submit a list to the governor, at least thirty days
prior to the beginning of the new term, of no fewer than two
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qualified nominees from diverse geographical areas of the state
for appointment as a member of the commission.
H. Upon the occurrence of a vacancy on the
commission, the nominating committee shall meet within thirty
days of the date of the beginning of the vacancy and as often
as necessary thereafter in order to submit a list to the
governor, within sixty days of the first meeting after the
vacancy occurs, of no fewer than two qualified nominees from
diverse geographical areas of the state for appointment as a
member of the commission.
I. If a position on the nominating committee
becomes vacant during a term, a successor shall be selected in
the same manner as the original appointment for that position
and shall serve for the remainder of the term of the position
vacated.
J. The nominating committee shall actively solicit,
accept and evaluate applications and may require an applicant
to submit any information the nominating committee deems
relevant to the consideration of the individual's application.
K. A majority vote of all members of the nominating
committee in favor of a person is required for that person to
be included on the list of qualified nominees submitted to the
governor."
SECTION 4. Section 60-1A-4 NMSA 1978 (being Laws 2007,
Chapter 39, Section 4) is amended to read:
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"60-1A-4. COMMISSION--POWERS--DUTIES.--
A. The commission may:
(1) grant, deny, suspend or revoke
occupational licenses, secondary licenses and racetrack
licenses, establish the terms for each classification of a
racetrack license and set fees for submitting an application
for a license;
(2) exclude or compel the exclusion of a
person from all horse racetracks [who ] whom the commission
deems detrimental to the best interests of horse racing or who
willfully violates the Horse Racing Act, a rule or order of the
commission or a law of the United States or New Mexico;
(3) compel the production of documents, books
and tangible items, including documents showing the receipts
and disbursements of a racetrack licensee;
(4) investigate the operations of a licensee
and place a designated representative on the licensed premises
of a racetrack licensee for the purpose of observing compliance
with the Horse Racing Act and rules or orders of the
commission;
(5) employ staff as required to administer the
Horse Racing Act and employ staff with basic law enforcement
training to be stationed at racetracks to maintain peace and
order, enforce the law, conduct investigations and enforce the
Horse Racing Act or rules or orders of the commission; provided
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that staff employed with law enforcement training may not carry
firearms or other deadly weapons while on duty for the
commission;
(6) summon witnesses;
(7) administer oaths for the effective
discharge of the commission's authority; and
(8) appoint a hearing officer to conduct
hearings required by the Horse Racing Act or a rule adopted
pursuant to that act.
B. The commission shall:
(1) make rules to hold, conduct and operate
all race meets and horse races held in the state and to
identify and assign racing dates;
(2) require the following information for each
applicant on an application for a license:
(a) the full name, address and contact
information of the applicant, and if the applicant is a
corporation, the name of the state of incorporation and the
names, addresses and contact information of officers, members
of the board of directors and managers of the corporation;
(b) the exact location at which the
applicant desires to conduct a horse race or race meet;
(c) whether the horse racetrack is owned
or leased, and, if leased, the name and residence of the fee
owner of the land or, if the owner is a corporation, the names
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of the directors and stockholders;
(d) a statement of the assets and
liabilities of the person or corporation making the
application;
(e) the kind of racing to be conducted;
(f) the beginning and ending dates
desired for the race meet and the days during that time period
when horse races are to be scheduled; and
(g) other information determined by the
commission to be necessary to assess the potential for success
of the applicant;
(3) require a statement under oath by the
applicant that the information on the application is true;
(4) supervise and oversee the making of
pari-mutuel pools and the distribution from those pools;
(5) make on-site inspections of horse
racetracks in New Mexico at reasonable intervals;
(6) approve all improvements proposed to be
completed on the licensed premises of a horse racetrack,
including extensions, additions or improvements of buildings,
stables or tracks;
(7) monitor and oversee the pari-mutuel
machines and equipment at all horse races or race meets held in
the state;
(8) approve contracts for simulcasting,
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pari-mutuel wagering and capital improvements funded pursuant
to Section 60-1A-20 NMSA 1978 entered into by horse racetracks;
(9) regulate the size of the purses to be
offered at horse races run in the state;
(10) require background investigations of
employees of a racetrack licensee as set forth in the rules of
the commission; [and]
(11) provide an annual report to the governor
regarding the commission's administration of horse racing in
the state; and
(12) appoint an executive director ."
SECTION 5. A new section of the Horse Racing Act is
enacted to read:
"[NEW MATERIAL] EXECUTIVE DIRECTOR--QUALIFICATIONS.--
A. The executive director appointed by the
commission shall have had at least five years of responsible
supervisory administrative experience in a governmental gaming
regulatory agency.
B. The executive director appointed by the
commission shall not have a financial interest, either directly
or indirectly, in a racetrack or the operation of licensed
wagering on the results of races."
SECTION 6. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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