New Mexico 2025 Regular Session

New Mexico Senate Bill SB328 Latest Draft

Bill / Introduced Version Filed 02/10/2025

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SENATE BILL 328
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Antonio Maestas
AN ACT
RELATING TO GAMING; REVISING PROVISIONS GOVERNING RACETRACK
LICENSES AND GAMING OPERATOR LICENSES; PROVIDING FOR
CONFIDENTIALITY OF CERTAIN DOCUMENTS; REVISING LICENSE TERMS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 60-1A-4 NMSA 1978 (being Laws 2007,
Chapter 39, Section 4) is amended to read:
"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
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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
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
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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] approve 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
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 
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(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, 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
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regarding the commission's administration of horse racing in
the state."
SECTION 2. Section 60-1A-6 NMSA 1978 (being Laws 2007,
Chapter 39, Section 6) is amended to read:
"60-1A-6.  CLASSIFICATION OF RACETRACK LICENSES--RULES .--
[A.  A license to conduct a race meet in New Mexico
shall be classified as either a class A or class B license,
determined by the commission as follows:
(1)  a class A racetrack license shall be
issued to a racetrack licensee who received from all race meets
in the preceding calendar year a gross amount wagered through
the pari-mutuel system of ten million dollars ($10,000,000) or
more; and
(2)  a class B racetrack license shall be
issued to a racetrack licensee who received from all race meets
in the preceding calendar year a gross amount wagered through
the pari-mutuel system of less than ten million dollars
($10,000,000).
B.  A new racetrack license to conduct a race meet
in New Mexico shall be given a classification by the commission
based on an estimate of the anticipated gross amounts projected
to be received by the new racetrack licensee from all pari-
mutuel wagering in the racetrack licensee's first full calendar
year of racing.  After the racetrack licensee's first full
calendar year of racing, the commission shall review the
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classification and change it if necessary. 
C.  Each class of] Every racetrack license is
subject to all provisions of the Horse Racing Act, except as
otherwise provided in that act.  The commission shall adopt and
promulgate rules necessary to provide for license
classification."
SECTION 3.  A new section of the Horse Racing Act, Section
60-1A-7.1 NMSA 1978, is enacted to read:
"60-1A-7.1.  [NEW MATERIAL ] COMMUNICATION OR DOCUMENT OF
APPLICANT OR LICENSEE--ABSOLUTELY CONFIDENTIAL--CONFIDENTIALITY
NOT WAIVED--DISCLOSURE OF CONFIDENTIAL INFORMATION
PROHIBITED.--
A.  Any communication or document of an applicant
for a license or a licensee is confidential and does not impose
liability for defamation or constitute a ground for recovery in
any civil action if the communication or document is required
by:
(1)  law or the rules of the board; or
(2)  a subpoena issued by the board to be made
or transmitted to the board.
B.  The confidentiality provided for in Subsection A
of this section is not waived or lost because the document or
communication is disclosed to the board.
C.  Notwithstanding the powers granted to the board
by the Horse Racing Act, the board:  
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(1)  may release or disclose any confidential
information, documents or communications provided by an
applicant or licensee only with the prior written consent of
the applicant or licensee or pursuant to a lawful court order
after timely notice of the proceedings has been given to the
applicant or licensee;
(2)  shall maintain all confidential
information, documents and communications in a secure place
accessible only to members of the board; and
(3)  shall adopt procedures and rules to
protect the confidentiality of information, documents and
communications provided by an applicant or licensee." 
SECTION 4.  A new section of the Horse Racing Act, Section
60-1A-7.2 NMSA 1978, is enacted to read:
"60-1A-7.2.  [NEW MATERIAL ] MOTION FOR RELEASE OF
CONFIDENTIAL INFORMATION.--An application to a court for an
order requiring the board to release any information declared
by law to be confidential shall be made only by petition in
district court.  A hearing shall be held on the petition not
less than ten days and not more than twenty days after the date
of service of the petition on the board, the attorney general
and all persons who may be affected by the entry of that order. 
A copy of the petition, all papers filed in support of it and a
notice of hearing shall be served."
SECTION 5.  Section 60-1A-8 NMSA 1978 (being Laws 2007,
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Chapter 39, Section 8) is amended to read:
"60-1A-8.  RACETRACK LICENSES--APPLICATIONS--SPECIFIC
REQUIREMENTS.--
A.  It is a violation of the Horse Racing Act for a
person to hold a public horse race or a race meet for profit or
gain in any manner unless the person has been issued a
racetrack license by the commission and has been authorized by
the commission to hold the horse race or race meet on specific
dates.
B.  An application for a racetrack license shall be
submitted in writing on forms designated by the commission.  An
applicant shall affirm that information contained in the
application is true and accurate.  The application shall be
signed by the applicant or the applicant's agent, and the
signature shall be notarized.
C.  A racetrack license shall be valid for a period
not to exceed [one year ] three years.  The commission may renew
a racetrack license upon expiration of the term of the license.
D.  Renewal applications for racetrack licenses
shall be filed no later than June 1 of each year.  The race
dates for the upcoming year shall be set by the commission
after the commission receives all renewal applications.
E.  An application shall specify the dates and days
of the week of the race meet that the applicant is requesting
the commission to approve.
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F.  An application shall be filed not less than
sixty days prior to the first day the proposed horse race or
race meet is to be held.  
G.  The fee for a new racetrack license issued
pursuant to this section shall not exceed five thousand dollars
($5,000).
H.  The commission may schedule a date for a hearing
on the application for a new racetrack license to determine the
eligibility of the applicant pursuant to the Horse Racing Act
or as needed for determining the eligibility for the renewal of
a racetrack license.  The applicant shall be notified of the
hearing at least five days prior to the date of the hearing. 
The applicant has the right to present testimony in support of
the application.  Notice shall be mailed to the address of the
applicant appearing upon the application for the racetrack
license.  Notice of the hearing date, time and location shall
be postmarked by United States mail five days prior to the date
of the hearing.  Deposit of the hearing notice in United States
mail constitutes notice.
I.  If, after a hearing on the application, the
commission finds the applicant ineligible pursuant to the
provisions of the Horse Racing Act or rules adopted by the
board, the racetrack license shall be denied.
J.  If there is more than one application for a
racetrack license pending at the same time, the commission
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shall determine the racing days that will be allotted to each
successful applicant.  Upon renewal, the commission shall
determine the racing days that will be allotted to each
applicant upon terms and conditions established by the
commission.
K.  A person shall not have a direct, indirect or
beneficial interest of any nature, whether or not financial,
administrative, policymaking or supervisory, in more than two
horse racetracks in New Mexico.  For purposes of this
subsection, a person shall not be considered to have a direct,
indirect or beneficial interest in a horse racetrack if the
person owns or holds less than ten percent of the total
authorized, issued and outstanding shares of a corporation that
is licensed to conduct a race meet in New Mexico, unless the
person has some other direct, indirect or beneficial interest
of any nature, whether or not financial, administrative,
policymaking or supervisory, in more than two licensed horse
racetracks.
L.  To determine interest held in a racetrack, to
the extent that the interest is based on stock ownership:
(1)  stock owned, directly or indirectly, by or
for a corporation, partnership, estate or trust shall be
considered as being owned proportionately by its shareholders,
partners or beneficiaries;
(2)  an individual shall be considered as
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owning the stock, directly or indirectly, if it is held by an
immediate family member.  For purposes of this paragraph, an
"immediate family member" includes only the individual's
siblings, spouse or children; and
(3)  stock constructively owned by a person by
reason of the application of Paragraph (1) of this subsection
shall be considered to be actually owned by the person; and
stock shall be constructively owned by an individual by reason
of the application of Paragraph (2) of this subsection if the
purpose of the constructive ownership is to make a person other
than the individual applicant appear as the owner of the stock.
M.  A corporation holding a racetrack license shall
not issue to a person shares of its stock amounting to ten
percent or more of the total authorized, issued and outstanding
shares, and a corporation holding a racetrack license shall not
issue shares of its stock that would, when combined with that
stock transferee's existing shares owned, total more than ten
percent of the total authorized, issued and outstanding shares
of the corporation, unless:
(1)  the corporation gives written notice to
the commission at least sixty days before the contemplated
stock transfer that the person to whom the stock is being
transferred will become an owner of ten percent or more of the
total authorized, issued and outstanding shares of the
corporation; and
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(2)  the corporation receives written approval
from the commission of the proposed transfer.
N.  A determination made by the commission of a
matter pursuant to this section shall be final and not subject
to appeal."
SECTION 6. Section 60-1A-18 NMSA 1978 (being Laws 2007,
Chapter 39, Section 18) is amended to read:
"60-1A-18.  DAILY PARI-MUTUEL TAX--IMPOSED--RATE.--
A.  The "daily pari-mutuel tax" is imposed on a
racetrack licensee that offers pari-mutuel wagering at the
racetrack licensee's licensed premises and shall be remitted to
the taxation and revenue department for deposit in the general
fund.
B.  The daily pari-mutuel tax imposed on [class A ]
racetrack licensees pursuant to this section shall be:
(1)  for each racing day a [class A ] racetrack
licensee offers pari-mutuel wagering on live on-track horse
races, six hundred fifty dollars ($650); provided, however,
that a [class A] racetrack licensee shall deduct from the six
hundred fifty dollars ($650) and remit to the municipality in
which the racetrack licensee is located one hundred fifty
dollars ($150) if the racetrack licensee is located in a
municipality having a population according to the 2000 federal
decennial census of:
(a)  less than six thousand located in a
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county with a population of more than ten thousand but less
than fifteen thousand; or 
(b)  more than eight thousand but less
than ten thousand located in a county with a population of more
than one hundred thousand but less than one hundred fifty
thousand; and
(2)  for each day a [class A ] racetrack
licensee offers no pari-mutuel wagering on live on-track horse
races and offers solely pari-mutuel wagering on simulcast races
pursuant to the Horse Racing Act, one-eighth percent of the
racetrack licensee's gross daily handle, not to exceed three
hundred dollars ($300) per racing day.
[C.  The daily pari-mutuel tax imposed on a class B
racetrack licensee pursuant to this section shall be:
(1)  for each racing day a class B racetrack
licensee offers pari-mutuel wagering on live on-track horse
races, one-eighth percent of the racetrack licensee's gross
daily handle, not to exceed three hundred dollars ($300) per
racing day; and
(2)  for each day a class B racetrack licensee
offers no pari-mutuel wagering on live on-track horse races and
offers solely pari-mutuel wagering on simulcast races pursuant
to the Horse Racing Act, one-eighth percent of the class B
racetrack licensee's gross daily handle, not to exceed three
hundred dollars ($300) per racing day. ]"
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SECTION 7. Section 60-1A-19 NMSA 1978 (being Laws 2007,
Chapter 39, Section 19) is amended to read:
"60-1A-19.  RETAINAGE--NEW MEXICO HORSE BREEDERS'
ASSOCIATION [AND NEW MEXICO HORSEMEN'S ASSOCIATION ]--BREAKAGE--
DISTRIBUTION OF RETAINED AMOUNTS.--
A.  Each racetrack licensee shall notify the
commission at least thirty days prior to each race meet of the
amount of exotic wager retainage that the racetrack licensee
will retain pursuant to Paragraph (1) [or (2) ] of this
subsection.  There shall be an amount retained by the racetrack
licensee equal to:
(1)  [for a class A racetrack licensee:
(a)] nineteen percent of the gross amount
wagered on win, place and show, of which:
[1)] (a) eighteen and three-fourths
percent shall be retained by the racetrack licensee; and 
[2)] (b) one-fourth percent shall be
remitted to the taxation and revenue department for deposit in
the general fund; and
[(b)] (2) not less than twenty-one percent and
not greater than twenty-five percent of the gross amount
wagered in exotic wagers.  [and
(2)  for a class B racetrack licensee:
(a)  not less than eighteen and three-
fourths percent and not greater than twenty-five percent of the
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gross amount wagered daily on win, place and show; and
(b)  not less than twenty-one percent and
not greater than thirty percent of the gross amount wagered in
exotic wagers]
B.  There shall be retained by a racetrack licensee
for allocation to the New Mexico horse breeders' association 
amounts equal to:
(1)  five-eighths percent of the gross amount
wagered on win, place and show to be allocated weekly to the
New Mexico horse breeders' association for further distribution
pursuant to the provisions of Subsection D of Section 60-1A-24
NMSA 1978; and
(2)  one and three-eighths percent of the gross
amount wagered in exotic wagers to be allocated weekly to the
New Mexico horse breeders' association for further distribution
pursuant to the provisions of Subsection D of Section 60-1A-24
NMSA 1978.
C.  The breakage from the gross amount wagered
through pari-mutuel wagering shall be retained by the licensee
and allocated as follows:
(1)  fifty percent of the total breakage shall
be retained by the racetrack licensee; and
(2)  fifty percent of the total breakage shall
be allocated by the racetrack licensee to enhance the race
purses of established stakes races that include only New
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Mexico-bred horses that are registered with the New Mexico
horse breeders' association.  The New Mexico horse breeders'
association shall distribute the percentage designated to
purses pursuant to Subsection D of Section [60-1-24 ] 60-1A-24
NMSA 1978, subject to the approval of the commission.
D.  All money resulting from the failure of patrons
who purchased winning pari-mutuel tickets during a race meet to
redeem their winning tickets before the end of the sixty-day
period immediately succeeding the closing day of the race meet
or from all money resulting from the failure of patrons who
purchased pari-mutuel tickets that were entitled to a refund
but were not refunded by the end of the sixty-day period
immediately following the race meet shall be apportioned as
follows:
(1)  thirty-three and thirty-three hundredths
percent shall be retained by the racetrack licensee;
(2)  thirty-three and thirty-four hundredths
percent shall be distributed to the New Mexico horse breeders'
association to enhance each racetrack licensee's established
overnight purses for races that include only horses registered
as New Mexico bred pursuant to Paragraph (3) of Subsection D of
Section 60-1A-24 NMSA 1978, subject to the approval of the
commission; and
(3)  thirty-three and thirty-three hundredths
percent shall be allocated [to the New Mexico horsemen's
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association] for purses.
E.  One-half percent of the gross amount wagered on
simulcast horse races broadcast to a horse racetrack in New
Mexico shall be distributed by the racetrack licensee to the
[New Mexico horsemen's association for medical benefits for the
members of the New Mexico horsemen's association ] commission or
to an organization designated by the commission that is under
the absolute control of the commission .  The commission shall
by rule provide for the timing and manner of the distribution
required pursuant to this subsection and shall audit or arrange
for an independent audit of the distributions required.
F.  Amounts to be deducted from the retainage by the
racetrack licensee from any form of wager made on the licensed
premises of the racetrack licensee are:
(1)  the daily pari-mutuel tax imposed by
Section 60-1A-18 NMSA 1978;
(2)  money allocated in this section to the New
Mexico horse breeders' association;
(3)  money allocated by this section to [the
New Mexico horsemen's association ] the commission or to an
organization designated by the commission that is under the
absolute control of the commission ;
(4)  expenses incurred to engage in intrastate
simulcasting pursuant to the Horse Racing Act; provided that
the deduction for a racetrack licensee shall be a portion of
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five percent of the gross amount wagered at all the sites
receiving the same simulcast horse races and:
(a)  the deduction for a racetrack
licensee shall be an amount allocated to the racetrack licensee
by agreement voluntarily reached between all the racetracks
sending or receiving the same simulcast horse races; or
(b)  the deduction for a racetrack
licensee shall be an amount identified by the commission if all
the racetracks sending or receiving the same simulcast horse
races fail to reach a voluntary agreement on the level at which
to set the rate of the deduction for expenses incurred for
engaging in intrastate simulcasting; and
(5)  fees incurred to receive interstate
simulcasts pursuant to the Horse Racing Act.
G.  A racetrack licensee shall allocate to the New
Mexico horse breeders' association five percent of the daily
retainage on interstate common pools received from a guest
state by a racetrack licensee.  Of the net retainage from all
wagers, after deductions:
(1)  fifty percent shall be allocated to
purses; and 
(2)  fifty percent shall be retained by the
racetrack licensee."
SECTION 8. Section 60-1A-20 NMSA 1978 (being Laws 2007,
Chapter 39, Section 20, as amended) is amended to read:
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"60-1A-20.  DAILY CAPITAL OUTLAY TAX--CAPITAL OUTLAY
OFFSET--STATE FAIR COMMISSION DISTRIBUTION--DAILY LICENSE
FEES.--
A.  A "daily capital outlay tax" of two and three-
sixteenths percent is imposed on the gross amount wagered each
day at a racetrack where horse racing is conducted on the
premises of a racetrack licensee and also on the gross amount
wagered each day when a racetrack licensee is engaged in
simulcasting pursuant to the Horse Racing Act.  After deducting
the amount of offset allowed pursuant to this section, any
remaining daily capital outlay tax shall be paid by the
commission to the taxation and revenue department from the
retainage of a racetrack licensee from on-site wagers made on
the licensed premises of the racetrack licensee for deposit in
the general fund.  Of the daily capital outlay tax imposed
pursuant to this subsection:
(1)  [for a class A racetrack licensee ] not
more than one-half of the daily capital outlay tax imposed on
the first two hundred fifty thousand dollars ($250,000) of the
daily handle may be offset by the amount that the [class A ]
racetrack licensee expends for capital improvements or for
long-term financing of capital improvements at the racetrack
licensee's existing facility
[(2)  for a class B racetrack licensee, not
more than one-half of the daily capital outlay tax imposed on
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the first two hundred fifty thousand dollars ($250,000) of the
daily handle may be offset:
   (a)  in an amount not to exceed one-half
of the offset allowed, the amount expended by the class B
racetrack licensee for capital improvements; and
(b)  in an amount not to exceed one-half
of the offset allowed, the amount expended by the class B
racetrack licensee for advertising, marketing and promoting
horse racing in the state; 
(3)  through December 31, 2014, for both class
A and class B racetrack licensees, an amount equal to one-half
of the daily capital outlay tax is appropriated and transferred
to the state fair commission for expenditure on capital
improvements at the state fairgrounds and for expenditure on
debt service on negotiable bonds issued for the state
fairgrounds' capital improvements; and
(4)  on and after January 1, 2015, for both
class A and class B racetrack licensees ]; and
(2) an amount equal to one-half of the daily
capital outlay tax is appropriated and transferred to the
racehorse testing fund.
B.  An additional daily license fee of five hundred
dollars ($500) shall be paid to the commission by the racetrack
licensee for each day of live racing on the premises of the
racetrack licensee.
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C.  Accurate records shall be kept by the racetrack
licensee to show gross amounts wagered, retainage, breakage and
amounts received from interstate common pools and distributions
from gross amounts wagered, retainage, breakage and amounts
received from interstate common pools, as well as other
information the commission may require.  Records shall be open
to inspection and shall be audited by the commission, its
authorized representatives or an independent auditor selected
by the commission.  The commission may prescribe the method in
which records shall be maintained.  A racetrack licensee shall
keep records that are accurate, legible and easy to understand.
D.  Notwithstanding any other provision of law, 
a political subdivision of the state shall not impose an
occupational tax on a horse racetrack owned or operated by 
a racetrack licensee.  A political subdivision of the state
shall not impose an excise tax on a horse racetrack owned 
or operated by a racetrack licensee.  Local option gross 
receipts taxes authorized by the state may be imposed to the
extent authorized and imposed by a subdivision of the state 
on a horse racetrack owned or operated by a racetrack
licensee."
SECTION 9. Section 60-1A-21 NMSA 1978 (being Laws 2007,
Chapter 39, Section 21) is amended to read:
"60-1A-21.  INABILITY TO RECEIVE OR ADMINISTER
DISTRIBUTIONS--NEW MEXICO HORSE BREEDERS' ASSOCIATION [NEW
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MEXICO HORSEMEN'S ASSOCIATION ]--COMMISSION AUTHORITY--NEW
MEXICO-BRED HORSE REGISTRY.--[A. ] In the event that money
allocated to the New Mexico horse breeders' association
pursuant to Section 60-1A-19 NMSA 1978 cannot be received or
administered by the New Mexico horse breeders' association, the
commission or another organization designated by the commission
and under the absolute control of the commission shall receive
and administer the money that is allocated to be distributed by
the New Mexico horse breeders' association pursuant to Section
60-1A-24 NMSA 1978.  If the commission or its designee
organization is required to receive, administer and distribute
money on behalf of the New Mexico horse breeders' association,
the maximum percentage of retainage from Paragraph (3) of
Subsection D of Section 60-1A-24 NMSA 1978 shall be distributed
by the commission to the New Mexico horse breeders' association
as a fee to certify the dam and stud of New Mexico-bred horses
from the registry maintained by the New Mexico horse breeders'
association.
[B.  In the event that money allocated to the New
Mexico horsemen's association pursuant to the Horse Racing Act
cannot be received or administered by the New Mexico horsemen's
association, the commission or another organization designated
by the commission and under the absolute control of the
commission shall receive and administer the money that is
allocated by Section 60-1A-19 NMSA 1978 to the New Mexico
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horsemen's association and distribute the money as required by
Section 60-1A-19 NMSA 1978. ]"
SECTION 10. Section 60-2E-14 NMSA 1978 (being Laws 1997,
Chapter 190, Section 16, as amended) is amended to read:
"60-2E-14.  LICENSURE--APPLICATION.--
A.  The board shall establish and issue the
following categories of licenses:
(1)  manufacturer;
(2)  distributor; 
(3)  gaming operator; and
(4)  gaming machine.
B.  The board shall issue certifications of findings
of suitability for key executives and other persons for whom
certification is required.
C.  The board shall issue work permits for gaming
employees.
D.  A licensee shall not be issued more than one
type of license, but this provision does not prohibit a
licensee from owning, leasing, acquiring or having in the
licensee's possession licensed gaming machines if that activity
is otherwise allowed by the provisions of the Gaming Control
Act.  A licensee shall not own a majority interest in, manage
or otherwise control a holder of another type of license issued
pursuant to the provisions of that act.
E.  An applicant for a license, a certification of
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finding of suitability or a work permit shall apply [on ] using
forms provided by the board and shall furnish to the board two
sets of fingerprint cards and all other information requested
by the board.  Submission of an application constitutes consent
to a national criminal background check of the applicant, a
credit check of the applicant and all persons having a
substantial interest in the applicant and any other background
investigations required pursuant to the Gaming Control Act or
deemed necessary by the board.  The board may obtain from the
taxation and revenue department copies of tax returns filed by
or on behalf of the applicant or its affiliates and information
concerning liens imposed on the applicant or its affiliates by
the taxation and revenue department.
F.  All licenses issued by the board pursuant to the
provisions of this section shall be reviewed for renewal
[annually] every three years unless revoked, suspended,
canceled or terminated.
G.  All certifications of findings of suitability
and work permits issued by the board pursuant to this section
shall be reviewed for renewal every three years unless revoked,
suspended, canceled or terminated.
[G.] H. A license shall not be transferred or
assigned.
[H.] I. The application for a license shall
include:
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(1)  the name of the applicant;
(2)  the location of the proposed operation;
(3)  the gaming devices to be operated,
manufactured, distributed or serviced;
(4)  the names of all persons having a direct
or indirect interest in the business of the applicant and the
nature of such interest; and
(5)  such other information and details as the
board may require.
[I.] J. The board shall furnish to the applicant
supplemental forms that the applicant shall complete and file
with the application.  The supplemental forms shall require two
sets of fingerprint cards and complete information and details
with respect to the applicant's antecedents, habits, immediate
family, character, state and federal criminal records, business
activities, financial affairs and business associates, covering
at least a ten-year period immediately preceding the date of
filing of the application.
[J.] K. In conducting a background investigation
and preparing an investigative report on the applicant, the
board's law enforcement officers may request and receive
criminal history information from the federal bureau of
investigation or any other law enforcement agency or
organization.  The board's law enforcement officers shall
maintain confidentiality regarding information received from a
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law enforcement agency that may be imposed by the agency as a
condition for providing the information to the board."
SECTION 11. Section 60-2E-27 NMSA 1978 (being Laws 1997,
Chapter 190, Section 29, as amended) is amended to read:
"60-2E-27.  GAMING OPERATOR LICENSEES--SPECIAL CONDITIONS
FOR RACETRACKS--NUMBER OF GAMING MACHINES--DAYS AND HOURS OF
OPERATIONS.--
A.  A racetrack licensed by the state racing
commission pursuant to the Horse Racing Act to conduct live
horse races or simulcast races may be issued a gaming
operator's license to operate gaming machines at the
racetrack's licensed premises.  The gaming operator's license
issued pursuant to this subsection shall allow the licensee
to conduct live racing either on its licensed premises [where
live racing is conducted ] or at another licensed premises
that has been authorized by the state racing commission .
B.  A racetrack's gaming operator's license shall
[automatically] become void only upon a decision of the board
and if:
(1)  the racetrack no longer holds an active
license to conduct pari-mutuel wagering; or
(2)  the racetrack [paid gaming tax to the
state on its net take in an amount greater than eight million
dollars ($8,000,000) in the prior fiscal year pursuant to
Section 60-2E-47 NMSA 1978 and ] fails to maintain a minimum
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of [four] three live race days a week with at least [nine ]
ten live races on each race day during its licensed race
meet, except as provided in [Subsection F ] Subsections E and
F of this section [or
(3)  the racetrack paid gaming tax to the
state on its net take in an amount equal to eight million
dollars ($8,000,000) or less in the prior fiscal year
pursuant to Section 60-2E-47 NMSA 1978 and fails to maintain
a minimum of three live race days a week with at least ten
live races on each day during its licensed race meets, except
as provided in Subsection F of this section ].
C.  Unless a larger number is allowed pursuant to
Subsection D of this section, a gaming operator licensee that
is a racetrack may have up to six hundred licensed gaming
machines.
D.  By execution of an allocation agreement,
signed by both the allocating racetrack and the racetrack to
which the allocation is made, a gaming operator licensee that
is a racetrack may allocate any number of its authorized
gaming machines to another gaming operator licensee that is a
racetrack.  To be valid, the allocation agreement must bear
the written approval of the board and the state racing
commission, and this approval shall make specific reference
to the meeting at which the action of approval was taken and
the number of votes cast both for and against the approval. 
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By allocating a number of its authorized machines to another
racetrack, the allocating racetrack automatically surrenders
all rights to operate the number of machines allocated.  No
racetrack shall operate or be authorized to operate more than
seven hundred fifty gaming machines.
E.  Gaming machines on a racetrack gaming operator
licensee's premises may be played only on days when the
racetrack is either conducting live horse races or
simulcasting horse race meets, unless there are no live or
simulcast race meets due to acts, events or occurrences that
the board finds are not within the control of the licensee,
even with the licensee's exercise of reasonable diligence or
care.  On days when gaming machines are permitted to be
operated, a racetrack gaming operator licensee may offer
gaming machines for operation for up to eighteen hours per
day; provided that the total number of hours in which gaming
machines are operated does not exceed one hundred twelve
hours in a one-week period beginning on Tuesday at 8:00 a.m.
and ending at 8:00 a.m. on the following Tuesday.  A
racetrack gaming operator licensee may offer gaming machines
for play at any time during a day; provided that the total
hours of operation in each day from just after midnight of
the previous day until midnight of the current day does not
exceed eighteen hours.  A racetrack gaming operator licensee
shall determine, within the limitations imposed by this
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subsection, the hours it will offer gaming machines for
operation each day and shall notify the board in writing of
those hours.
F.  Maintaining fewer live race days or fewer live
races on each race day during a licensed race meet does not
constitute a failure to maintain the minimum number of live
race days or races as required by [Paragraphs ] Paragraph (2)
[and (3)] of Subsection B of this section if the licensee
submits to the board written approval by the state racing
commission for the licensee to vary the minimum number of
live race days or races, and the variance is due to:
(1)  the inability of a racetrack gaming
operator licensee to fill races as published in the
licensee's condition book as long as the same type of
canceled race is run within the following two race weeks as
the race season permits;
(2)  severe weather or other act, event or
occurrence resulting from natural forces;
(3)  a strike or work stoppage by jockeys or
other persons necessary to conduct a race or meet;
(4)  a power outage, electrical failure or
failure or unavailability of any equipment or supplies
necessary to conduct a race or meet;
(5)  hazardous conditions or other threats to
the public health or safety; or
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(6)  any other act, event or occurrence that
the board finds is not within the control of the licensee
even with the exercise of reasonable diligence or care.
G.  Alcoholic beverages shall not be sold, served,
delivered or consumed in the area restricted pursuant to
Subsection F of Section 60-2E-26 NMSA 1978."
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