N.M. Code R. § 15.1.8.18 – Nonprofit Licensees; Separate Operating Accounts

A. Nonprofit licensees shall establish and maintain a separate operating account exclusively for the deposit of all gaming funds. The account shall be in a financial institution that is licensed by the state, in a national bank with an office in the state, or in another financial institution acceptable to the board. The bank or other financial institution shall not be an affiliate of the nonprofit licensee.
B. The operating account is subject to the following restrictions and requirements:
1. (1) all net revenue after replenishment of imprest funds shall be deposited into the gaming operating account;
2. (2) if required by the board, a nonprofit gaming licensee shall deposit all gaming funds into their gaming operating account after each drop and count; and, once the deposit is made, shall write a check back to the cashier cage or vault (if applicable) for replenishment;
3. (3) by the end of the month, the required charity and educational funds shall be transferred from the operating account into the charity account;
4. (4) by the end of the month, the required gaming tax shall be transferred from the operating account into the gaming tax account;
5. (5) by the end of the month, any discretionary funds shall be transferred from the gaming operating account shall be transferred to the licensee’s general operating account;
6. (6) after making the required tax, charity and discretionary fund transfers, the remaining funds in the gaming operating bank account are the property of the licensee. The balance in the gaming operating bank account shall not exceed twenty thousand ($20,000) dollars. All funds in excess of twenty thousand ($20,000) dollars shall be transferred to the license’s general operations bank account. The remaining funds in the gaming operating bank account balance shall be maintained as a cash reserve to replenish gaming funds, if needed; and
7. (7) the nonprofit licensee shall maintain detailed records of all deposits into, and withdrawals and disbursements from, the operating account.
C. A non-profit licensee shall not commingle gaming funds and other monies of the nonprofit licensee or use any monies in the operating account for any purpose other than the transfers as identified in this section.
D. Non-profit licensees shall establish and maintain a separate charity and education bank account exclusively for the deposit of all required charitable and educational funds. The account shall be in a financial institution that is licensed by the state, a national bank with an office in the state, or in another financial institution accepted by the board. The bank or other financial institution shall not be an affiliate of the non-profit organization gaming operator licensee.
E. The charitable and education account is subject to the following restrictions and requirements:
1. (1) non-profit licensees shall deposit the required charity/educational percentage of net revenue (gross revenues less jackpot payouts) into their charity/educational account by the end of each month;
2. (2) the non-profit licensee shall maintain detailed records of all deposits into, and withdrawals, and disbursements from, the charity/educational account;
3. (3) monies in the charity/educational account shall be used exclusively for charitable and educational payments as set forth in the charity and educational guidelines; and
4. (4) charitable/educational funds shall not be commingled with any other monies of the non-profit gaming licensee.
  [12/31/98; 15.1.8.18 NMAC -Rn, 15 NMAC 1.8.18, 10/15/00; A, 5/14/04; A, 6/30/08; A, 10/15/15]