Senate Tax, Business and Transportation heard extended testimony on Senate Bill 323, a measure that would change race-day scheduling language, require state-auditor audits of racetracks and identify the New Mexico Horsemen's Association as the recognized horsemen's group for purposes of interstate simulcasting and related distributions.

Sponsor Senator Zell (presenting) said the bill resolves inconsistencies between the horse racing act and the gaming control statute, aligns simulcast rules with the intent of earlier legislature and restores statutory recognition to the New Mexico Horsemen's Association (an organization the sponsor said has existed since 1966). The sponsor and supporters argued the changes would help revitalize live racing, increase purses and protect the horsemen's role in negotiations over signals.

But witnesses from the New Mexico Racing Commission, tribal gaming interests and several racetrack and casino operators opposed the bill. They argued the measure conflicts with the federal Interstate Horseracing Act, undermines a recent federal court interpretation that the tracks and multiple horsemen groups can be recognized, and could reduce racing animals available for live race days by pushing additional race-day demand onto a shrinking national breeding pool. Several industry witnesses warned of negative fiscal impacts to gaming receipts and cautioned that the 1990s-era number of race days cannot be restored without more horses and without economic effects on purses and gaming revenue.

Nut graf: The committee heard competing legal and industry arguments: the sponsor framed the bill as statutory cleanup and reinvigoration of racing; opponents cited federal law, a recent federal judicial decision, declining breeding numbers and potential fiscal consequences. After hearing testimony from horsemen, commission staff, tracks and industry groups, the committee placed the bill on hold for further review.

Key details and concerns
- Sponsor wants weeks-based race-day language and state-auditor auditing authority over races and machine-related records; sponsor says the goal is to protect New Mexico's racing industry and the horsemen's association that has historically handled benevolence functions.
- Opponents include the New Mexico Racing Commission (which has authority to manage racing matters), casino operators and the horsemen's association's judicial opponents; they cite a federal judge's recent finding and argue naming a single group in statute is legally fraught.

Outcome
Committee held the bill to allow for more study; the fiscal-impact report showed a negative revenue impact under some interpretations and committee members requested further legal and fiscal review before moving forward.