HB 441 — LOTTERY CHANGES

Harper and Matthew McQueen and Rod Montoya 6Pursuant 8to 10House ANRule ACT24-1, RELATINGthis TOdocument THEincorporates NEWamendments MEXICOthat LOTTERYhave AUTHORITY;been adopted prior to consideration of this measure by the House.

TYINGIt THEis AMOUNTa OFtool BONUSESto PAIDshow TOthe LOTTERYamendments EMPLOYEESin ANDcontext VENDORSand TOis THEnot INCREASEto INbe THEused AMOUNTfor OFthe LOTTERYpurpose TICKETof SALESamendments. REVENUES 14 DELIVERED TO THE LOTTERY TUITION FUND;

PROVIDINGAN THATACT UNCLAIMEDRELATING ANDTO FORFEITEDTHE LOTTERYNEW PRIZESMEXICO BE PAID INTO THE LOTTERY TUITIONAUTHORITY; FUND;

PROHIBITINGTYING VIDEOTHE LOTTERYAMOUNT GAMES,h MOBILEOF PHONEBONUSES GAMES,PAID ANYTO eLOTTERY tEMPLOYEES 17HflºAND TYPEVENDORS»Hfl OFTO SPORTSg BETTINGo ORTHE BETTINGINCREASE ONIN OTHERTHE REALAMOUNT EVENTS,OF "PAYLOTTERY ATTICKET wSALES lREVENUES nt dhr 18g THEe PUMP"i ANDk AUTOMATEDDELIVERED TELLERTO MACHINETHE DEVICES THAT SELL = = 19 LOTTERY TICKETS;TUITION FUND;

PROVIDING FORTHAT SEMIANNUALUNCLAIMED DEPOSITSh TOr THEi as lAND iFORFEITED aLOTTERY ePRIZES rBE 20PAID INTO THE LOTTERY TUITION FUND.h , t, FUND;

aPROHIBITING tVIDEO mLOTTERY mGAMES, 21MOBILE dPHONE rGAMES, ANY e 22u BEg ITe ENACTEDb BYl THEe LEGISLATUREe h TYPE OF SPORTS BETTING OR BETTING ON OTHER REAL EVENTS, "PAY AT n d d i = = o h THE STATEPUMP" OFAND NEWAUTOMATED MEXICO:TELLER MACHINE DEVICES THAT SELL l ] b ,d i a º e LOTTERY TICKETS;

cPROVIDING FOR SEMIANNUAL DEPOSITS TO THE r i = r t e sw kd 23m SECTIONa 1.n o LOTTERY TUITION FUND.

Sectiond 6-24-6m NMSA: 1978 (being Laws 1995, e a n b 24 Chapter 155, Section 6, as amended) is amended to read:

b e d s º o t n = .212113.2 s k m e e a n e d r e l u [ "6-24-6.A d BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

POWERSSECTION OF1. THE AUTHORITY.-- .212113.2 A.

Section 6-24-6 NMSA 1978 (being Laws 1995, Chapter 155, Section 6, as amended) is amended to read:

"6-24-6.

POWERS OF THE AUTHORITY.-- A.

(5) hold copyrights, trademarks and service h g marks and enforce its rights with respect thereto;

o t hr (6) initiate, supervise and administer the g e i k operation of the lottery in accordance with the provisions of eh er 17i s h the New Mexico Lottery Act and rules, policies and procedures e, t, e nu dg 18 adopted pursuant to that act;

=e =b l ]e 19e h (7) enter into written agreements or contracts an ld rd i 20= = o h for the operation, participation in or marketing or promotion tl e] b ,d i a tº e r i = r of a joint lottery or joint lottery games with operators of a mt m 21 e w d rm ea 22n o lottery:

cd em r: c 23 (a) in one or more other states;

b e ad s º o t n b= 24.212113.2 (b)s ink m e e a territoryn ofe thed Unitedr States;e l u [ A d (a) in one or more other states;

u(b) [ (c) in onea or more political .212113.2 - 2 - subdivisions of another state or territory of the United States;

(c) in one or more political subdivisions of another state or territory of the United States;

(8) acquire or lease real property and make improvements thereon and acquire by lease or by purchase personal property, including computers, mechanical, electronic and [on-line][on-line ] online equipment and terminals and intangible property, including computer programs, systems and software;

(9) enter into contracts to incur debt and h borrow money in its own name and enter into financing g o t hr agreements with the state, with agencies or instrumentalities g e i k of the state or with any commercial bank or credit provider;

eh er 17i s (10) receive and expend, in accordance with eh e, nt, d 18 the provisions of the New Mexico Lottery Act, all money =e =u g e b l ]e 19e h received from any lottery or nonlottery source for effectuating an ld rd i 20= = o h the purposes of the New Mexico Lottery Act;

tl e] b ,d i a tº e (11) administer oaths, take depositions, issue mr mi 21= r t e w d rm ea 22n o subpoenas and compel the attendance of witnesses and the cd em r: c 23 production of books, papers, documents and other evidence e a n b 24 relative to any investigation or proceeding conducted by the u [ authority;

.212113.2b -e 3d -s (12)º appointo andt prescriben the= duties.212113.2 ofs officers,k agentsm ande employees- of3 the- authority,e includinga professionaln ande administratived staffr ande personnel,l andu to[ fixA theird compensation,production payof theirbooks, expensespapers, documents and provideother aevidence benefitrelative program,to includingany ainvestigation retirementor planproceeding andconducted aby groupthe insuranceauthority; plan;

(12) appoint and prescribe the duties of officers, agents and employees of the authority, including professional and administrative staff and personnel, and to fix their compensation, pay their expenses and provide a benefit program, including a retirement plan and a group insurance plan;

Hflº provided that bonus or incentive h compensation committed or paid to a lottery contractor or u » r lottery vendor shall be calculated based on the increase in the t h g e l i amount of lottery ticket sales revenue transmitted to the state eh er 17i s treasurer in a fiscal year for deposit in the lottery tuition eh , e nh d 18 fund and shall not be calculated based on the authority's gross t u g e b l e e , gh revenues or other factors;»Hfl n d d i = = o h (14) enter into contracts or agreements with l ] 19b revenues,d i a º r state, local or federal law enforcement agencies or private e r = t e w d m a n o investigators or other factors;persons for the performance of law d m :

ab l r ie 20 (14) enter into contracts or agreements with t eº ao t state,n local= or.212113.2 federals lawk enforcementm agenciese or- private4 m- me 21a n e d r e 22l investigatorsu or[ otherA personsd for the performance of law c e r c 23 enforcement, background investigations and security checks;

e a n b 24 (15) enter into contracts of all types on such u [ terms and conditions as the authority may determine;

.212113.2 - 4 - (16) establish and maintain banking relationships, including establishment of checking and savings accounts and lines of credit;

and (19) adopt, repeal and amend such rules, policies and procedures as necessary to carry out and implement its powers and duties, organize and operate the authority, conduct lottery games and any other matters necessary or h desirable for the efficient and effective operation of the u » r lottery and the convenience of the public.

t h g e l i B.

The powers enumerated in this section are eh er 17i s cumulative of and in addition to those powers enumerated eh , e nh d 18 elsewhere in the New Mexico Lottery Act, and no such powers =t =u g e b l ]e 19e , gh limit or restrict any other powers of the authority." an ld rd i 20= = o h SECTION 2.

Section 6-24-21 NMSA 1978 (being Laws 1995, tl e] b ,d i a tº r Chapter 155, Section 21, as amended) is amended to read:

me mr 21= t e w d rm ea 22n o "6-24-21.

DRAWINGS FOR AND PAYMENT OF PRIZES--UNCLAIMED cd em r: c 23 PRIZES--APPLICABILITY OF TAXATION.-- e a n b 24 A.

Allb lotteryr prizee drawingst shallº beo opent ton the= .212113.2 s k m e - 5 - e a n e d r e l u [ public.A d PRIZES--APPLICABILITY OF TAXATION.-- A.

IfAll thelottery priorprize writtendrawings approvalshall of the chief executive .212113.2 - 5 - officer and the executive vice president for security are obtained, the selection of winning entries may be performedopen byto an employee of the lottery.public.

If the prior written approval of the chief executive officer and the executive vice president for security are obtained, the selection of winning entries may be performed by an employee of the lottery.

All lottery drawing equipment used in public drawings to select winning numbers or entries or h participants for prizes shall be examined and tested by the g o t hr chief executive officer's staff and the internal auditor of the g e i k authority or [his ] the internal auditor's designee prior to and authorityh orr [hisi es e 17 after each public drawing.