N.M. Admin. Code § 15.1.10.32 - USE OF GAMING RECEIPTS BY NONPROFIT OPERATOR LICENSEE
A. A nonprofit operator licensee may utilize
up to sixty five percent of net take, after payment of the gaming tax, to pay
allowable expenses in reasonable amounts for conducting gaming activities on
its licensed premises. If the nonprofit operator licensee has entered into a
valid lease or other arrangement for furnishing gaming machines, the sixty five
percent maximum shall be distributed as follows:
(1) the maximum of forty percent of net take
after gaming taxes or no greater than the contract amount if less than forty
percent for payment to licensed distributors pursuant to a lease or other
arrangement for furnishing a gaming machine;
(2) for payment of other allowable gaming
expenses, an amount equal to the difference between sixty five percent of net
take less the amount paid to the distributor as described above.
B. The percentage set forth in
this section constitutes the maximum amount that may be paid annually for
allowable gaming expenses from net take. No other expenses related to or
arising out of gaming activities shall be paid from net take or gaming
revenues, including but not limited to supplies, fees for management and other
services, and repairs to and maintenance of licensed premises and gaming
devices. These funds shall be transferred each month to the licensed
organization's operating account.
C. A nonprofit operator licensee shall not
under any circumstances pay to any distributor licensee the percentage payment
allowed in this section, until the required charitable and educational deposits
have been made, gaming tax and other applicable taxes have been paid and all
taxes and fees are current.
D. The
nonprofit operator licensee shall distribute at least twenty percent of the
balance of net take to charitable or educational purposes, which purposes do
not include gaming expenses. All funds required to be spent for charitable or
educational purposes must be expended each year within 120 days after close of
the nonprofit operator licensee's fiscal year end. The maximum forty percent of
net take, after gaming taxes, remaining after such distribution may be used for
other expenses at the discretion of the nonprofit operator licensee, provided
none of those expenses shall be incurred to compensate a licensed distributor
for the furnishing of gaming machines.
E. Distributions for charitable purposes
shall be made solely for benevolent, social welfare, philanthropic, humane,
public health, civic or other objectives or activities to benefit the welfare
of the public at large or an indefinite number of persons.
(1) Charitable distributions shall not be
used to fund operating or capital expenses of any nonprofit gaming operator or
any affiliated organization of a nonprofit gaming operator.
(2) A charitable distribution shall be made
to an organization outside the state of New Mexico only if the organization is
either a charitable organization under Section
501(c)(3) of the Internal
Revenue Code or the organization is the nonprofit gaming operator's national
organization and the distribution is used for charitable purposes.
F. Educational distributions shall
be expended solely to benefit an educational institution or organization or to
provide financial assistance to individuals in their pursuit of educational
goals.
G. The board shall maintain
and publish guidelines that establish the allowed and disallowed uses for
charitable and educational funds. The nonprofit operator licensee shall comply
with these guidelines in making distributions from its charitable and
educational account.
H. The
executive director of the board shall disallow any distribution for charitable
and educational purposes not in compliance with this rule. If a charitable or
educational distribution is disallowed by the executive director, the nonprofit
gaming operator may appeal that decision to the board pursuant to Section
60-2E-59 of the act.
Notes
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