New Mexico 2025 Regular Session

New Mexico Senate Bill SB328 Compare Versions

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

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28	28	SENATE BILL 328
29	29	57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
30	30	INTRODUCED BY
31	31	Antonio Maestas
32	32	AN ACT
33	33	RELATING TO GAMING; REVISING PROVISIONS GOVERNING RACETRACK
34	34	LICENSES AND GAMING OPERATOR LICENSES; PROVIDING FOR
35	35	CONFIDENTIALITY OF CERTAIN DOCUMENTS; REVISING LICENSE TERMS.
36	36	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
37	37	SECTION 1. Section 60-1A-4 NMSA 1978 (being Laws 2007,
38	38	Chapter 39, Section 4) is amended to read:
39	39	"60-1A-4. COMMISSION--POWERS--DUTIES.--
40	40	A. The commission may:
41	41	(1) grant, deny, suspend or revoke
42	42	occupational licenses, secondary licenses and racetrack
43	43	licenses, establish the terms for each classification of a
44	44	racetrack license and set fees for submitting an application
45	45	for a license;
46	46	(2) exclude or compel the exclusion of a
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74	74	person from all horse racetracks [who ] whom the commission
75	75	deems detrimental to the best interests of horse racing or who
76	76	willfully violates the Horse Racing Act, a rule or order of the
77	77	commission or a law of the United States or New Mexico;
78	78	(3) compel the production of documents, books
79	79	and tangible items, including documents showing the receipts
80	80	and disbursements of a racetrack licensee;
81	81	(4) investigate the operations of a licensee
82	82	and place a designated representative on the licensed premises
83	83	of a racetrack licensee for the purpose of observing compliance
84	84	with the Horse Racing Act and rules or orders of the
85	85	commission;
86	86	(5) employ staff as required to administer the
87	87	Horse Racing Act and employ staff with basic law enforcement
88	88	training to be stationed at racetracks to maintain peace and
89	89	order, enforce the law, conduct investigations and enforce the
90	90	Horse Racing Act or rules or orders of the commission; provided
91	91	that staff employed with law enforcement training may not carry
92	92	firearms or other deadly weapons while on duty for the
93	93	commission;
94	94	(6) summon witnesses;
95	95	(7) administer oaths for the effective
96	96	discharge of the commission's authority; and
97	97	(8) appoint a hearing officer to conduct
98	98	hearings required by the Horse Racing Act or a rule adopted
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127	127	pursuant to that act.
128	128	B. The commission shall:
129	129	(1) make rules to hold, conduct and operate
130	130	all race meets and horse races held in the state and to
131	131	identify and [assign] approve racing dates;
132	132	(2) require the following information for each
133	133	applicant on an application for a license:
134	134	(a) the full name, address and contact
135	135	information of the applicant, and if the applicant is a
136	136	corporation, the name of the state of incorporation and the
137	137	names, addresses and contact information of officers, members
138	138	of the board of directors and managers of the corporation;
139	139	(b) the exact location at which the
140	140	applicant desires to conduct a horse race or race meet;
141	141	(c) whether the horse racetrack is owned
142	142	or leased, and, if leased, the name and residence of the fee
143	143	owner of the land or, if the owner is a corporation, the names
144	144	of the directors and stockholders;
145	145	(d) a statement of the assets and
146	146	liabilities of the person or corporation making the
147	147	application;
148	148	(e) the kind of racing to be conducted;
149	149	(f) the beginning and ending dates
150	150	desired for the race meet and the days during that time period
151	151	when horse races are to be scheduled; and
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180	180	(g) other information determined by the
181	181	commission to be necessary to assess the potential for success
182	182	of the applicant;
183	183	(3) require a statement under oath by the
184	184	applicant that the information on the application is true;
185	185	(4) supervise and oversee the making of pari-
186	186	mutuel pools and the distribution from those pools;
187	187	(5) make on-site inspections of horse
188	188	racetracks in New Mexico at reasonable intervals;
189	189	(6) approve all improvements proposed to be
190	190	completed on the licensed premises of a horse racetrack,
191	191	including extensions, additions or improvements of buildings,
192	192	stables or tracks;
193	193	(7) monitor and oversee the pari-mutuel
194	194	machines and equipment at all horse races or race meets held in
195	195	the state;
196	196	(8) approve contracts for simulcasting, pari-
197	197	mutuel wagering and capital improvements funded pursuant to
198	198	Section 60-1A-20 NMSA 1978 entered into by horse racetracks;
199	199	(9) regulate the size of the purses to be
200	200	offered at horse races run in the state;
201	201	(10) require background investigations of
202	202	employees of a racetrack licensee as set forth in the rules of
203	203	the commission; and
204	204	(11) provide an annual report to the governor
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233	233	regarding the commission's administration of horse racing in
234	234	the state."
235	235	SECTION 2. Section 60-1A-6 NMSA 1978 (being Laws 2007,
236	236	Chapter 39, Section 6) is amended to read:
237	237	"60-1A-6. CLASSIFICATION OF RACETRACK LICENSES--RULES .--
238	238	[A. A license to conduct a race meet in New Mexico
239	239	shall be classified as either a class A or class B license,
240	240	determined by the commission as follows:
241	241	(1) a class A racetrack license shall be
242	242	issued to a racetrack licensee who received from all race meets
243	243	in the preceding calendar year a gross amount wagered through
244	244	the pari-mutuel system of ten million dollars ($10,000,000) or
245	245	more; and
246	246	(2) a class B racetrack license shall be
247	247	issued to a racetrack licensee who received from all race meets
248	248	in the preceding calendar year a gross amount wagered through
249	249	the pari-mutuel system of less than ten million dollars
250	250	($10,000,000).
251	251	B. A new racetrack license to conduct a race meet
252	252	in New Mexico shall be given a classification by the commission
253	253	based on an estimate of the anticipated gross amounts projected
254	254	to be received by the new racetrack licensee from all pari-
255	255	mutuel wagering in the racetrack licensee's first full calendar
256	256	year of racing. After the racetrack licensee's first full
257	257	calendar year of racing, the commission shall review the
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286	286	classification and change it if necessary.
287	287	C. Each class of] Every racetrack license is
288	288	subject to all provisions of the Horse Racing Act, except as
289	289	otherwise provided in that act. The commission shall adopt and
290	290	promulgate rules necessary to provide for license
291	291	classification."
292	292	SECTION 3. A new section of the Horse Racing Act, Section
293	293	60-1A-7.1 NMSA 1978, is enacted to read:
294	294	"60-1A-7.1. [NEW MATERIAL ] COMMUNICATION OR DOCUMENT OF
295	295	APPLICANT OR LICENSEE--ABSOLUTELY CONFIDENTIAL--CONFIDENTIALITY
296	296	NOT WAIVED--DISCLOSURE OF CONFIDENTIAL INFORMATION
297	297	PROHIBITED.--
298	298	A. Any communication or document of an applicant
299	299	for a license or a licensee is confidential and does not impose
300	300	liability for defamation or constitute a ground for recovery in
301	301	any civil action if the communication or document is required
302	302	by:
303	303	(1) law or the rules of the board; or
304	304	(2) a subpoena issued by the board to be made
305	305	or transmitted to the board.
306	306	B. The confidentiality provided for in Subsection A
307	307	of this section is not waived or lost because the document or
308	308	communication is disclosed to the board.
309	309	C. Notwithstanding the powers granted to the board
310	310	by the Horse Racing Act, the board:
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339	339	(1) may release or disclose any confidential
340	340	information, documents or communications provided by an
341	341	applicant or licensee only with the prior written consent of
342	342	the applicant or licensee or pursuant to a lawful court order
343	343	after timely notice of the proceedings has been given to the
344	344	applicant or licensee;
345	345	(2) shall maintain all confidential
346	346	information, documents and communications in a secure place
347	347	accessible only to members of the board; and
348	348	(3) shall adopt procedures and rules to
349	349	protect the confidentiality of information, documents and
350	350	communications provided by an applicant or licensee."
351	351	SECTION 4. A new section of the Horse Racing Act, Section
352	352	60-1A-7.2 NMSA 1978, is enacted to read:
353	353	"60-1A-7.2. [NEW MATERIAL ] MOTION FOR RELEASE OF
354	354	CONFIDENTIAL INFORMATION.--An application to a court for an
355	355	order requiring the board to release any information declared
356	356	by law to be confidential shall be made only by petition in
357	357	district court. A hearing shall be held on the petition not
358	358	less than ten days and not more than twenty days after the date
359	359	of service of the petition on the board, the attorney general
360	360	and all persons who may be affected by the entry of that order.
361	361	A copy of the petition, all papers filed in support of it and a
362	362	notice of hearing shall be served."
363	363	SECTION 5. Section 60-1A-8 NMSA 1978 (being Laws 2007,
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392	392	Chapter 39, Section 8) is amended to read:
393	393	"60-1A-8. RACETRACK LICENSES--APPLICATIONS--SPECIFIC
394	394	REQUIREMENTS.--
395	395	A. It is a violation of the Horse Racing Act for a
396	396	person to hold a public horse race or a race meet for profit or
397	397	gain in any manner unless the person has been issued a
398	398	racetrack license by the commission and has been authorized by
399	399	the commission to hold the horse race or race meet on specific
400	400	dates.
401	401	B. An application for a racetrack license shall be
402	402	submitted in writing on forms designated by the commission. An
403	403	applicant shall affirm that information contained in the
404	404	application is true and accurate. The application shall be
405	405	signed by the applicant or the applicant's agent, and the
406	406	signature shall be notarized.
407	407	C. A racetrack license shall be valid for a period
408	408	not to exceed [one year ] three years. The commission may renew
409	409	a racetrack license upon expiration of the term of the license.
410	410	D. Renewal applications for racetrack licenses
411	411	shall be filed no later than June 1 of each year. The race
412	412	dates for the upcoming year shall be set by the commission
413	413	after the commission receives all renewal applications.
414	414	E. An application shall specify the dates and days
415	415	of the week of the race meet that the applicant is requesting
416	416	the commission to approve.
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445	445	F. An application shall be filed not less than
446	446	sixty days prior to the first day the proposed horse race or
447	447	race meet is to be held.
448	448	G. The fee for a new racetrack license issued
449	449	pursuant to this section shall not exceed five thousand dollars
450	450	($5,000).
451	451	H. The commission may schedule a date for a hearing
452	452	on the application for a new racetrack license to determine the
453	453	eligibility of the applicant pursuant to the Horse Racing Act
454	454	or as needed for determining the eligibility for the renewal of
455	455	a racetrack license. The applicant shall be notified of the
456	456	hearing at least five days prior to the date of the hearing.
457	457	The applicant has the right to present testimony in support of
458	458	the application. Notice shall be mailed to the address of the
459	459	applicant appearing upon the application for the racetrack
460	460	license. Notice of the hearing date, time and location shall
461	461	be postmarked by United States mail five days prior to the date
462	462	of the hearing. Deposit of the hearing notice in United States
463	463	mail constitutes notice.
464	464	I. If, after a hearing on the application, the
465	465	commission finds the applicant ineligible pursuant to the
466	466	provisions of the Horse Racing Act or rules adopted by the
467	467	board, the racetrack license shall be denied.
468	468	J. If there is more than one application for a
469	469	racetrack license pending at the same time, the commission
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498	498	shall determine the racing days that will be allotted to each
499	499	successful applicant. Upon renewal, the commission shall
500	500	determine the racing days that will be allotted to each
501	501	applicant upon terms and conditions established by the
502	502	commission.
503	503	K. A person shall not have a direct, indirect or
504	504	beneficial interest of any nature, whether or not financial,
505	505	administrative, policymaking or supervisory, in more than two
506	506	horse racetracks in New Mexico. For purposes of this
507	507	subsection, a person shall not be considered to have a direct,
508	508	indirect or beneficial interest in a horse racetrack if the
509	509	person owns or holds less than ten percent of the total
510	510	authorized, issued and outstanding shares of a corporation that
511	511	is licensed to conduct a race meet in New Mexico, unless the
512	512	person has some other direct, indirect or beneficial interest
513	513	of any nature, whether or not financial, administrative,
514	514	policymaking or supervisory, in more than two licensed horse
515	515	racetracks.
516	516	L. To determine interest held in a racetrack, to
517	517	the extent that the interest is based on stock ownership:
518	518	(1) stock owned, directly or indirectly, by or
519	519	for a corporation, partnership, estate or trust shall be
520	520	considered as being owned proportionately by its shareholders,
521	521	partners or beneficiaries;
522	522	(2) an individual shall be considered as
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551	551	owning the stock, directly or indirectly, if it is held by an
552	552	immediate family member. For purposes of this paragraph, an
553	553	"immediate family member" includes only the individual's
554	554	siblings, spouse or children; and
555	555	(3) stock constructively owned by a person by
556	556	reason of the application of Paragraph (1) of this subsection
557	557	shall be considered to be actually owned by the person; and
558	558	stock shall be constructively owned by an individual by reason
559	559	of the application of Paragraph (2) of this subsection if the
560	560	purpose of the constructive ownership is to make a person other
561	561	than the individual applicant appear as the owner of the stock.
562	562	M. A corporation holding a racetrack license shall
563	563	not issue to a person shares of its stock amounting to ten
564	564	percent or more of the total authorized, issued and outstanding
565	565	shares, and a corporation holding a racetrack license shall not
566	566	issue shares of its stock that would, when combined with that
567	567	stock transferee's existing shares owned, total more than ten
568	568	percent of the total authorized, issued and outstanding shares
569	569	of the corporation, unless:
570	570	(1) the corporation gives written notice to
571	571	the commission at least sixty days before the contemplated
572	572	stock transfer that the person to whom the stock is being
573	573	transferred will become an owner of ten percent or more of the
574	574	total authorized, issued and outstanding shares of the
575	575	corporation; and
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604	604	(2) the corporation receives written approval
605	605	from the commission of the proposed transfer.
606	606	N. A determination made by the commission of a
607	607	matter pursuant to this section shall be final and not subject
608	608	to appeal."
609	609	SECTION 6. Section 60-1A-18 NMSA 1978 (being Laws 2007,
610	610	Chapter 39, Section 18) is amended to read:
611	611	"60-1A-18. DAILY PARI-MUTUEL TAX--IMPOSED--RATE.--
612	612	A. The "daily pari-mutuel tax" is imposed on a
613	613	racetrack licensee that offers pari-mutuel wagering at the
614	614	racetrack licensee's licensed premises and shall be remitted to
615	615	the taxation and revenue department for deposit in the general
616	616	fund.
617	617	B. The daily pari-mutuel tax imposed on [class A ]
618	618	racetrack licensees pursuant to this section shall be:
619	619	(1) for each racing day a [class A ] racetrack
620	620	licensee offers pari-mutuel wagering on live on-track horse
621	621	races, six hundred fifty dollars ($650); provided, however,
622	622	that a [class A] racetrack licensee shall deduct from the six
623	623	hundred fifty dollars ($650) and remit to the municipality in
624	624	which the racetrack licensee is located one hundred fifty
625	625	dollars ($150) if the racetrack licensee is located in a
626	626	municipality having a population according to the 2000 federal
627	627	decennial census of:
628	628	(a) less than six thousand located in a
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657	657	county with a population of more than ten thousand but less
658	658	than fifteen thousand; or
659	659	(b) more than eight thousand but less
660	660	than ten thousand located in a county with a population of more
661	661	than one hundred thousand but less than one hundred fifty
662	662	thousand; and
663	663	(2) for each day a [class A ] racetrack
664	664	licensee offers no pari-mutuel wagering on live on-track horse
665	665	races and offers solely pari-mutuel wagering on simulcast races
666	666	pursuant to the Horse Racing Act, one-eighth percent of the
667	667	racetrack licensee's gross daily handle, not to exceed three
668	668	hundred dollars ($300) per racing day.
669	669	[C. The daily pari-mutuel tax imposed on a class B
670	670	racetrack licensee pursuant to this section shall be:
671	671	(1) for each racing day a class B racetrack
672	672	licensee offers pari-mutuel wagering on live on-track horse
673	673	races, one-eighth percent of the racetrack licensee's gross
674	674	daily handle, not to exceed three hundred dollars ($300) per
675	675	racing day; and
676	676	(2) for each day a class B racetrack licensee
677	677	offers no pari-mutuel wagering on live on-track horse races and
678	678	offers solely pari-mutuel wagering on simulcast races pursuant
679	679	to the Horse Racing Act, one-eighth percent of the class B
680	680	racetrack licensee's gross daily handle, not to exceed three
681	681	hundred dollars ($300) per racing day. ]"
682	682	.229983.3
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710	710	SECTION 7. Section 60-1A-19 NMSA 1978 (being Laws 2007,
711	711	Chapter 39, Section 19) is amended to read:
712	712	"60-1A-19. RETAINAGE--NEW MEXICO HORSE BREEDERS'
713	713	ASSOCIATION [AND NEW MEXICO HORSEMEN'S ASSOCIATION ]--BREAKAGE--
714	714	DISTRIBUTION OF RETAINED AMOUNTS.--
715	715	A. Each racetrack licensee shall notify the
716	716	commission at least thirty days prior to each race meet of the
717	717	amount of exotic wager retainage that the racetrack licensee
718	718	will retain pursuant to Paragraph (1) [or (2) ] of this
719	719	subsection. There shall be an amount retained by the racetrack
720	720	licensee equal to:
721	721	(1) [for a class A racetrack licensee:
722	722	(a)] nineteen percent of the gross amount
723	723	wagered on win, place and show, of which:
724	724	[1)] (a) eighteen and three-fourths
725	725	percent shall be retained by the racetrack licensee; and
726	726	[2)] (b) one-fourth percent shall be
727	727	remitted to the taxation and revenue department for deposit in
728	728	the general fund; and
729	729	[(b)] (2) not less than twenty-one percent and
730	730	not greater than twenty-five percent of the gross amount
731	731	wagered in exotic wagers. [and
732	732	(2) for a class B racetrack licensee:
733	733	(a) not less than eighteen and three-
734	734	fourths percent and not greater than twenty-five percent of the
735	735	.229983.3
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763	763	gross amount wagered daily on win, place and show; and
764	764	(b) not less than twenty-one percent and
765	765	not greater than thirty percent of the gross amount wagered in
766	766	exotic wagers]
767	767	B. There shall be retained by a racetrack licensee
768	768	for allocation to the New Mexico horse breeders' association
769	769	amounts equal to:
770	770	(1) five-eighths percent of the gross amount
771	771	wagered on win, place and show to be allocated weekly to the
772	772	New Mexico horse breeders' association for further distribution
773	773	pursuant to the provisions of Subsection D of Section 60-1A-24
774	774	NMSA 1978; and
775	775	(2) one and three-eighths percent of the gross
776	776	amount wagered in exotic wagers to be allocated weekly to the
777	777	New Mexico horse breeders' association for further distribution
778	778	pursuant to the provisions of Subsection D of Section 60-1A-24
779	779	NMSA 1978.
780	780	C. The breakage from the gross amount wagered
781	781	through pari-mutuel wagering shall be retained by the licensee
782	782	and allocated as follows:
783	783	(1) fifty percent of the total breakage shall
784	784	be retained by the racetrack licensee; and
785	785	(2) fifty percent of the total breakage shall
786	786	be allocated by the racetrack licensee to enhance the race
787	787	purses of established stakes races that include only New
788	788	.229983.3
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816	816	Mexico-bred horses that are registered with the New Mexico
817	817	horse breeders' association. The New Mexico horse breeders'
818	818	association shall distribute the percentage designated to
819	819	purses pursuant to Subsection D of Section [60-1-24 ] 60-1A-24
820	820	NMSA 1978, subject to the approval of the commission.
821	821	D. All money resulting from the failure of patrons
822	822	who purchased winning pari-mutuel tickets during a race meet to
823	823	redeem their winning tickets before the end of the sixty-day
824	824	period immediately succeeding the closing day of the race meet
825	825	or from all money resulting from the failure of patrons who
826	826	purchased pari-mutuel tickets that were entitled to a refund
827	827	but were not refunded by the end of the sixty-day period
828	828	immediately following the race meet shall be apportioned as
829	829	follows:
830	830	(1) thirty-three and thirty-three hundredths
831	831	percent shall be retained by the racetrack licensee;
832	832	(2) thirty-three and thirty-four hundredths
833	833	percent shall be distributed to the New Mexico horse breeders'
834	834	association to enhance each racetrack licensee's established
835	835	overnight purses for races that include only horses registered
836	836	as New Mexico bred pursuant to Paragraph (3) of Subsection D of
837	837	Section 60-1A-24 NMSA 1978, subject to the approval of the
838	838	commission; and
839	839	(3) thirty-three and thirty-three hundredths
840	840	percent shall be allocated [to the New Mexico horsemen's
841	841	.229983.3
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869	869	association] for purses.
870	870	E. One-half percent of the gross amount wagered on
871	871	simulcast horse races broadcast to a horse racetrack in New
872	872	Mexico shall be distributed by the racetrack licensee to the
873	873	[New Mexico horsemen's association for medical benefits for the
874	874	members of the New Mexico horsemen's association ] commission or
875	875	to an organization designated by the commission that is under
876	876	the absolute control of the commission . The commission shall
877	877	by rule provide for the timing and manner of the distribution
878	878	required pursuant to this subsection and shall audit or arrange
879	879	for an independent audit of the distributions required.
880	880	F. Amounts to be deducted from the retainage by the
881	881	racetrack licensee from any form of wager made on the licensed
882	882	premises of the racetrack licensee are:
883	883	(1) the daily pari-mutuel tax imposed by
884	884	Section 60-1A-18 NMSA 1978;
885	885	(2) money allocated in this section to the New
886	886	Mexico horse breeders' association;
887	887	(3) money allocated by this section to [the
888	888	New Mexico horsemen's association ] the commission or to an
889	889	organization designated by the commission that is under the
890	890	absolute control of the commission ;
891	891	(4) expenses incurred to engage in intrastate
892	892	simulcasting pursuant to the Horse Racing Act; provided that
893	893	the deduction for a racetrack licensee shall be a portion of
894	894	.229983.3
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922	922	five percent of the gross amount wagered at all the sites
923	923	receiving the same simulcast horse races and:
924	924	(a) the deduction for a racetrack
925	925	licensee shall be an amount allocated to the racetrack licensee
926	926	by agreement voluntarily reached between all the racetracks
927	927	sending or receiving the same simulcast horse races; or
928	928	(b) the deduction for a racetrack
929	929	licensee shall be an amount identified by the commission if all
930	930	the racetracks sending or receiving the same simulcast horse
931	931	races fail to reach a voluntary agreement on the level at which
932	932	to set the rate of the deduction for expenses incurred for
933	933	engaging in intrastate simulcasting; and
934	934	(5) fees incurred to receive interstate
935	935	simulcasts pursuant to the Horse Racing Act.
936	936	G. A racetrack licensee shall allocate to the New
937	937	Mexico horse breeders' association five percent of the daily
938	938	retainage on interstate common pools received from a guest
939	939	state by a racetrack licensee. Of the net retainage from all
940	940	wagers, after deductions:
941	941	(1) fifty percent shall be allocated to
942	942	purses; and
943	943	(2) fifty percent shall be retained by the
944	944	racetrack licensee."
945	945	SECTION 8. Section 60-1A-20 NMSA 1978 (being Laws 2007,
946	946	Chapter 39, Section 20, as amended) is amended to read:
947	947	.229983.3
948	948	- 18 - underscored material = new
949	949	[bracketed material] = delete
950	950	1
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975	975	"60-1A-20. DAILY CAPITAL OUTLAY TAX--CAPITAL OUTLAY
976	976	OFFSET--STATE FAIR COMMISSION DISTRIBUTION--DAILY LICENSE
977	977	FEES.--
978	978	A. A "daily capital outlay tax" of two and three-
979	979	sixteenths percent is imposed on the gross amount wagered each
980	980	day at a racetrack where horse racing is conducted on the
981	981	premises of a racetrack licensee and also on the gross amount
982	982	wagered each day when a racetrack licensee is engaged in
983	983	simulcasting pursuant to the Horse Racing Act. After deducting
984	984	the amount of offset allowed pursuant to this section, any
985	985	remaining daily capital outlay tax shall be paid by the
986	986	commission to the taxation and revenue department from the
987	987	retainage of a racetrack licensee from on-site wagers made on
988	988	the licensed premises of the racetrack licensee for deposit in
989	989	the general fund. Of the daily capital outlay tax imposed
990	990	pursuant to this subsection:
991	991	(1) [for a class A racetrack licensee ] not
992	992	more than one-half of the daily capital outlay tax imposed on
993	993	the first two hundred fifty thousand dollars ($250,000) of the
994	994	daily handle may be offset by the amount that the [class A ]
995	995	racetrack licensee expends for capital improvements or for
996	996	long-term financing of capital improvements at the racetrack
997	997	licensee's existing facility
998	998	[(2) for a class B racetrack licensee, not
999	999	more than one-half of the daily capital outlay tax imposed on
1000	1000	.229983.3
1001	1001	- 19 - underscored material = new
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1028	1028	the first two hundred fifty thousand dollars ($250,000) of the
1029	1029	daily handle may be offset:
1030	1030	(a) in an amount not to exceed one-half
1031	1031	of the offset allowed, the amount expended by the class B
1032	1032	racetrack licensee for capital improvements; and
1033	1033	(b) in an amount not to exceed one-half
1034	1034	of the offset allowed, the amount expended by the class B
1035	1035	racetrack licensee for advertising, marketing and promoting
1036	1036	horse racing in the state;
1037	1037	(3) through December 31, 2014, for both class
1038	1038	A and class B racetrack licensees, an amount equal to one-half
1039	1039	of the daily capital outlay tax is appropriated and transferred
1040	1040	to the state fair commission for expenditure on capital
1041	1041	improvements at the state fairgrounds and for expenditure on
1042	1042	debt service on negotiable bonds issued for the state
1043	1043	fairgrounds' capital improvements; and
1044	1044	(4) on and after January 1, 2015, for both
1045	1045	class A and class B racetrack licensees ]; and
1046	1046	(2) an amount equal to one-half of the daily
1047	1047	capital outlay tax is appropriated and transferred to the
1048	1048	racehorse testing fund.
1049	1049	B. An additional daily license fee of five hundred
1050	1050	dollars ($500) shall be paid to the commission by the racetrack
1051	1051	licensee for each day of live racing on the premises of the
1052	1052	racetrack licensee.
1053	1053	.229983.3
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1081	1081	C. Accurate records shall be kept by the racetrack
1082	1082	licensee to show gross amounts wagered, retainage, breakage and
1083	1083	amounts received from interstate common pools and distributions
1084	1084	from gross amounts wagered, retainage, breakage and amounts
1085	1085	received from interstate common pools, as well as other
1086	1086	information the commission may require. Records shall be open
1087	1087	to inspection and shall be audited by the commission, its
1088	1088	authorized representatives or an independent auditor selected
1089	1089	by the commission. The commission may prescribe the method in
1090	1090	which records shall be maintained. A racetrack licensee shall
1091	1091	keep records that are accurate, legible and easy to understand.
1092	1092	D. Notwithstanding any other provision of law,
1093	1093	a political subdivision of the state shall not impose an
1094	1094	occupational tax on a horse racetrack owned or operated by
1095	1095	a racetrack licensee. A political subdivision of the state
1096	1096	shall not impose an excise tax on a horse racetrack owned
1097	1097	or operated by a racetrack licensee. Local option gross
1098	1098	receipts taxes authorized by the state may be imposed to the
1099	1099	extent authorized and imposed by a subdivision of the state
1100	1100	on a horse racetrack owned or operated by a racetrack
1101	1101	licensee."
1102	1102	SECTION 9. Section 60-1A-21 NMSA 1978 (being Laws 2007,
1103	1103	Chapter 39, Section 21) is amended to read:
1104	1104	"60-1A-21. INABILITY TO RECEIVE OR ADMINISTER
1105	1105	DISTRIBUTIONS--NEW MEXICO HORSE BREEDERS' ASSOCIATION [NEW
1106	1106	.229983.3
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1108	1108	[bracketed material] = delete
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1134	1134	MEXICO HORSEMEN'S ASSOCIATION ]--COMMISSION AUTHORITY--NEW
1135	1135	MEXICO-BRED HORSE REGISTRY.--[A. ] In the event that money
1136	1136	allocated to the New Mexico horse breeders' association
1137	1137	pursuant to Section 60-1A-19 NMSA 1978 cannot be received or
1138	1138	administered by the New Mexico horse breeders' association, the
1139	1139	commission or another organization designated by the commission
1140	1140	and under the absolute control of the commission shall receive
1141	1141	and administer the money that is allocated to be distributed by
1142	1142	the New Mexico horse breeders' association pursuant to Section
1143	1143	60-1A-24 NMSA 1978. If the commission or its designee
1144	1144	organization is required to receive, administer and distribute
1145	1145	money on behalf of the New Mexico horse breeders' association,
1146	1146	the maximum percentage of retainage from Paragraph (3) of
1147	1147	Subsection D of Section 60-1A-24 NMSA 1978 shall be distributed
1148	1148	by the commission to the New Mexico horse breeders' association
1149	1149	as a fee to certify the dam and stud of New Mexico-bred horses
1150	1150	from the registry maintained by the New Mexico horse breeders'
1151	1151	association.
1152	1152	[B. In the event that money allocated to the New
1153	1153	Mexico horsemen's association pursuant to the Horse Racing Act
1154	1154	cannot be received or administered by the New Mexico horsemen's
1155	1155	association, the commission or another organization designated
1156	1156	by the commission and under the absolute control of the
1157	1157	commission shall receive and administer the money that is
1158	1158	allocated by Section 60-1A-19 NMSA 1978 to the New Mexico
1159	1159	.229983.3
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1187	1187	horsemen's association and distribute the money as required by
1188	1188	Section 60-1A-19 NMSA 1978. ]"
1189	1189	SECTION 10. Section 60-2E-14 NMSA 1978 (being Laws 1997,
1190	1190	Chapter 190, Section 16, as amended) is amended to read:
1191	1191	"60-2E-14. LICENSURE--APPLICATION.--
1192	1192	A. The board shall establish and issue the
1193	1193	following categories of licenses:
1194	1194	(1) manufacturer;
1195	1195	(2) distributor;
1196	1196	(3) gaming operator; and
1197	1197	(4) gaming machine.
1198	1198	B. The board shall issue certifications of findings
1199	1199	of suitability for key executives and other persons for whom
1200	1200	certification is required.
1201	1201	C. The board shall issue work permits for gaming
1202	1202	employees.
1203	1203	D. A licensee shall not be issued more than one
1204	1204	type of license, but this provision does not prohibit a
1205	1205	licensee from owning, leasing, acquiring or having in the
1206	1206	licensee's possession licensed gaming machines if that activity
1207	1207	is otherwise allowed by the provisions of the Gaming Control
1208	1208	Act. A licensee shall not own a majority interest in, manage
1209	1209	or otherwise control a holder of another type of license issued
1210	1210	pursuant to the provisions of that act.
1211	1211	E. An applicant for a license, a certification of
1212	1212	.229983.3
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1240	1240	finding of suitability or a work permit shall apply [on ] using
1241	1241	forms provided by the board and shall furnish to the board two
1242	1242	sets of fingerprint cards and all other information requested
1243	1243	by the board. Submission of an application constitutes consent
1244	1244	to a national criminal background check of the applicant, a
1245	1245	credit check of the applicant and all persons having a
1246	1246	substantial interest in the applicant and any other background
1247	1247	investigations required pursuant to the Gaming Control Act or
1248	1248	deemed necessary by the board. The board may obtain from the
1249	1249	taxation and revenue department copies of tax returns filed by
1250	1250	or on behalf of the applicant or its affiliates and information
1251	1251	concerning liens imposed on the applicant or its affiliates by
1252	1252	the taxation and revenue department.
1253	1253	F. All licenses issued by the board pursuant to the
1254	1254	provisions of this section shall be reviewed for renewal
1255	1255	[annually] every three years unless revoked, suspended,
1256	1256	canceled or terminated.
1257	1257	G. All certifications of findings of suitability
1258	1258	and work permits issued by the board pursuant to this section
1259	1259	shall be reviewed for renewal every three years unless revoked,
1260	1260	suspended, canceled or terminated.
1261	1261	[G.] H. A license shall not be transferred or
1262	1262	assigned.
1263	1263	[H.] I. The application for a license shall
1264	1264	include:
1265	1265	.229983.3
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1293	1293	(1) the name of the applicant;
1294	1294	(2) the location of the proposed operation;
1295	1295	(3) the gaming devices to be operated,
1296	1296	manufactured, distributed or serviced;
1297	1297	(4) the names of all persons having a direct
1298	1298	or indirect interest in the business of the applicant and the
1299	1299	nature of such interest; and
1300	1300	(5) such other information and details as the
1301	1301	board may require.
1302	1302	[I.] J. The board shall furnish to the applicant
1303	1303	supplemental forms that the applicant shall complete and file
1304	1304	with the application. The supplemental forms shall require two
1305	1305	sets of fingerprint cards and complete information and details
1306	1306	with respect to the applicant's antecedents, habits, immediate
1307	1307	family, character, state and federal criminal records, business
1308	1308	activities, financial affairs and business associates, covering
1309	1309	at least a ten-year period immediately preceding the date of
1310	1310	filing of the application.
1311	1311	[J.] K. In conducting a background investigation
1312	1312	and preparing an investigative report on the applicant, the
1313	1313	board's law enforcement officers may request and receive
1314	1314	criminal history information from the federal bureau of
1315	1315	investigation or any other law enforcement agency or
1316	1316	organization. The board's law enforcement officers shall
1317	1317	maintain confidentiality regarding information received from a
1318	1318	.229983.3
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1346	1346	law enforcement agency that may be imposed by the agency as a
1347	1347	condition for providing the information to the board."
1348	1348	SECTION 11. Section 60-2E-27 NMSA 1978 (being Laws 1997,
1349	1349	Chapter 190, Section 29, as amended) is amended to read:
1350	1350	"60-2E-27. GAMING OPERATOR LICENSEES--SPECIAL CONDITIONS
1351	1351	FOR RACETRACKS--NUMBER OF GAMING MACHINES--DAYS AND HOURS OF
1352	1352	OPERATIONS.--
1353	1353	A. A racetrack licensed by the state racing
1354	1354	commission pursuant to the Horse Racing Act to conduct live
1355	1355	horse races or simulcast races may be issued a gaming
1356	1356	operator's license to operate gaming machines at the
1357	1357	racetrack's licensed premises. The gaming operator's license
1358	1358	issued pursuant to this subsection shall allow the licensee
1359	1359	to conduct live racing either on its licensed premises [where
1360	1360	live racing is conducted ] or at another licensed premises
1361	1361	that has been authorized by the state racing commission .
1362	1362	B. A racetrack's gaming operator's license shall
1363	1363	[automatically] become void only upon a decision of the board
1364	1364	and if:
1365	1365	(1) the racetrack no longer holds an active
1366	1366	license to conduct pari-mutuel wagering; or
1367	1367	(2) the racetrack [paid gaming tax to the
1368	1368	state on its net take in an amount greater than eight million
1369	1369	dollars ($8,000,000) in the prior fiscal year pursuant to
1370	1370	Section 60-2E-47 NMSA 1978 and ] fails to maintain a minimum
1371	1371	.229983.3
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1399	1399	of [four] three live race days a week with at least [nine ]
1400	1400	ten live races on each race day during its licensed race
1401	1401	meet, except as provided in [Subsection F ] Subsections E and
1402	1402	F of this section [or
1403	1403	(3) the racetrack paid gaming tax to the
1404	1404	state on its net take in an amount equal to eight million
1405	1405	dollars ($8,000,000) or less in the prior fiscal year
1406	1406	pursuant to Section 60-2E-47 NMSA 1978 and fails to maintain
1407	1407	a minimum of three live race days a week with at least ten
1408	1408	live races on each day during its licensed race meets, except
1409	1409	as provided in Subsection F of this section ].
1410	1410	C. Unless a larger number is allowed pursuant to
1411	1411	Subsection D of this section, a gaming operator licensee that
1412	1412	is a racetrack may have up to six hundred licensed gaming
1413	1413	machines.
1414	1414	D. By execution of an allocation agreement,
1415	1415	signed by both the allocating racetrack and the racetrack to
1416	1416	which the allocation is made, a gaming operator licensee that
1417	1417	is a racetrack may allocate any number of its authorized
1418	1418	gaming machines to another gaming operator licensee that is a
1419	1419	racetrack. To be valid, the allocation agreement must bear
1420	1420	the written approval of the board and the state racing
1421	1421	commission, and this approval shall make specific reference
1422	1422	to the meeting at which the action of approval was taken and
1423	1423	the number of votes cast both for and against the approval.
1424	1424	.229983.3
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1452	1452	By allocating a number of its authorized machines to another
1453	1453	racetrack, the allocating racetrack automatically surrenders
1454	1454	all rights to operate the number of machines allocated. No
1455	1455	racetrack shall operate or be authorized to operate more than
1456	1456	seven hundred fifty gaming machines.
1457	1457	E. Gaming machines on a racetrack gaming operator
1458	1458	licensee's premises may be played only on days when the
1459	1459	racetrack is either conducting live horse races or
1460	1460	simulcasting horse race meets, unless there are no live or
1461	1461	simulcast race meets due to acts, events or occurrences that
1462	1462	the board finds are not within the control of the licensee,
1463	1463	even with the licensee's exercise of reasonable diligence or
1464	1464	care. On days when gaming machines are permitted to be
1465	1465	operated, a racetrack gaming operator licensee may offer
1466	1466	gaming machines for operation for up to eighteen hours per
1467	1467	day; provided that the total number of hours in which gaming
1468	1468	machines are operated does not exceed one hundred twelve
1469	1469	hours in a one-week period beginning on Tuesday at 8:00 a.m.
1470	1470	and ending at 8:00 a.m. on the following Tuesday. A
1471	1471	racetrack gaming operator licensee may offer gaming machines
1472	1472	for play at any time during a day; provided that the total
1473	1473	hours of operation in each day from just after midnight of
1474	1474	the previous day until midnight of the current day does not
1475	1475	exceed eighteen hours. A racetrack gaming operator licensee
1476	1476	shall determine, within the limitations imposed by this
1477	1477	.229983.3
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1505	1505	subsection, the hours it will offer gaming machines for
1506	1506	operation each day and shall notify the board in writing of
1507	1507	those hours.
1508	1508	F. Maintaining fewer live race days or fewer live
1509	1509	races on each race day during a licensed race meet does not
1510	1510	constitute a failure to maintain the minimum number of live
1511	1511	race days or races as required by [Paragraphs ] Paragraph (2)
1512	1512	[and (3)] of Subsection B of this section if the licensee
1513	1513	submits to the board written approval by the state racing
1514	1514	commission for the licensee to vary the minimum number of
1515	1515	live race days or races, and the variance is due to:
1516	1516	(1) the inability of a racetrack gaming
1517	1517	operator licensee to fill races as published in the
1518	1518	licensee's condition book as long as the same type of
1519	1519	canceled race is run within the following two race weeks as
1520	1520	the race season permits;
1521	1521	(2) severe weather or other act, event or
1522	1522	occurrence resulting from natural forces;
1523	1523	(3) a strike or work stoppage by jockeys or
1524	1524	other persons necessary to conduct a race or meet;
1525	1525	(4) a power outage, electrical failure or
1526	1526	failure or unavailability of any equipment or supplies
1527	1527	necessary to conduct a race or meet;
1528	1528	(5) hazardous conditions or other threats to
1529	1529	the public health or safety; or
1530	1530	.229983.3
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1558	1558	(6) any other act, event or occurrence that
1559	1559	the board finds is not within the control of the licensee
1560	1560	even with the exercise of reasonable diligence or care.
1561	1561	G. Alcoholic beverages shall not be sold, served,
1562	1562	delivered or consumed in the area restricted pursuant to
1563	1563	Subsection F of Section 60-2E-26 NMSA 1978."
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