requires two-thirds majority vote (§ 4)                                                                                                                 

                                                                                                  

 

Senate Bill No. 271–Senator Schneider

 

March 13, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Authorizes certain licensees to move their locations and transfer their licenses under certain circumstances and provides for imposition of additional monthly licensing fees and distribution of such additional fees to at-risk schools. (BDR 41‑1176)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to gaming; authorizing certain licensees to move their locations and transfer their licenses under certain circumstances; requiring such licensees to pay additional monthly fees for licensing; providing that the additional monthly fees for licensing must be allocated to the school district and distributed to at-risk schools; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 463.225 is hereby amended to read as follows:

1-2  463.225  1.  If satisfied that an applicant is eligible to receive a

1-3  state gaming, manufacturing, selling, distributing or pari-mutuel

1-4  wagering license, and upon tender of:

1-5  (a) All license fees and taxes as required by law and regulation

1-6  of the Commission; and

1-7  (b) A bond executed by the applicant as principal, and by a

1-8  corporation qualified under the laws of this state as surety, payable

1-9  to the State of Nevada, and conditioned upon the payment of license

1-10  fees and taxes and the faithful performance of all requirements

2-1  imposed by law or regulation or the conditions of the

2-2  license,

2-3  the Commission shall issue and deliver to the applicant a license

2-4  entitling him to engage in the gaming, manufacturing, selling,

2-5  distributing or pari-mutuel wagering operation for which he is

2-6  licensed, together with an enumeration of the specific terms and

2-7  conditions of the license. The Commission shall prepare and

2-8  maintain a written record of the specific terms and conditions of any

2-9  license issued and of any modification to the license. A duplicate of

2-10  the record must be delivered to the applicant or licensee upon

2-11  request.

2-12      2.  The Commission shall fix the amount of the bond to be

2-13  required pursuant to subsection 1 at no more than the total amount

2-14  of license fees and taxes estimated to become due from the licensee

2-15  before his full compliance with the requirements of subsection [3] 4

2-16  of NRS 463.370. The bond so furnished may be applied by the

2-17  Commission to the payment of any unpaid liability of the licensee

2-18  pursuant to this chapter.

2-19      3.  In lieu of a bond an applicant may deposit with the

2-20  Commission a like amount of lawful money of the United States or

2-21  any other form of security authorized by NRS 100.065. If security is

2-22  provided in the form of a savings certificate, certificate of deposit or

2-23  investment certificate, the certificate must state that the amount is

2-24  unavailable for withdrawal except upon order of the Commission.

2-25      4.  If the requirement for a bond is satisfied in:

2-26      (a) Cash, the Commission shall deposit the money in the State

2-27  Treasury for credit to the Account for Bonds of State Gaming

2-28  Licensees, which is hereby created in the State Agency Fund for

2-29  Bonds.

2-30      (b) Any other authorized manner, the security must be placed

2-31  without restriction at the disposal of the Commission, but any

2-32  income must inure to the benefit of the licensee.

2-33      Sec. 2.  NRS 463.308 is hereby amended to read as follows:

2-34      463.308  1.  [The] Except as otherwise provided in subsection

2-35  4, the Commission shall not approve a nonrestricted license for an

2-36  establishment in a county whose population is 400,000 or more

2-37  unless the establishment is located in a gaming enterprise district.

2-38      2.  The location of an establishment within a gaming enterprise

2-39  district may not be expanded unless the expansion of the location of

2-40  the establishment is also within a gaming enterprise district.

2-41      3.  If an establishment is not located within a gaming enterprise

2-42  district, the establishment may not increase the number of games or

2-43  slot machines operated at the establishment beyond the number of

2-44  games or slot machines authorized for such a classification of

2-45  establishment by local ordinance on December 31, 1996.

3-1  4.  Notwithstanding any other provision of law and except as

3-2  otherwise provided in this subsection, the Commission may, in its

3-3  sole and absolute discretion, allow a licensee whose establishment

3-4  is not located in a gaming enterprise district to move the location

3-5  of its establishment and transfer its nonrestricted license to

3-6  another location that is not within a gaming enterprise district.

3-7  The Commission shall not approve a move and transfer pursuant

3-8  to this subsection unless, before the move and transfer, the

3-9  licensee receives all necessary approvals from the local

3-10  government having jurisdiction over the location to which the

3-11  establishment wants to move and transfer its license. Before a

3-12  move and transfer pursuant to this subsection, the Commission

3-13  may require the licensee to apply for a new license pursuant to the

3-14  provisions of this chapter.

3-15      Sec. 3.  NRS 463.320 is hereby amended to read as follows:

3-16      463.320  1.  All gaming license fees imposed by the provisions

3-17  of NRS 463.370, 463.373 to 463.383, inclusive, and 463.3855 must

3-18  be collected and disposed of as provided in this section.

3-19      2.  All state gaming license fees and penalties must be collected

3-20  by the Commission and paid over immediately to the State

3-21  Treasurer to be disposed of as follows:

3-22      (a) [All] Except as otherwise provided in paragraph (c), all

3-23  state gaming license fees and penalties other than the license fees

3-24  imposed by the provisions of NRS 463.380 must be deposited for

3-25  credit to the State General Fund.

3-26      (b) All state gaming license fees imposed by the provisions of

3-27  NRS 463.380 must, after deduction of costs of administration and

3-28  collection, be divided equally among the various counties and

3-29  transmitted to the respective county treasurers. Such fees, except as

3-30  otherwise provided in this section, must be deposited by the county

3-31  treasurer in the county general fund and be expended for county

3-32  purposes. If the board of county commissioners desires to apportion

3-33  and allocate all or a portion of such fees to one or more cities or

3-34  towns within the county, the board of county commissioners shall,

3-35  annually, before the preparation of the city or town budget or

3-36  budgets as required by chapter 354 of NRS, adopt a resolution so

3-37  apportioning and allocating a percentage of such fees anticipated to

3-38  be received during the coming fiscal year to such city or cities or

3-39  town or towns for the next fiscal year commencing July 1. After the

3-40  adoption of the resolution the percentage so apportioned and

3-41  allocated must be converted to a dollar figure and included in city or

3-42  town budget or budgets as an estimated receipt for the next fiscal

3-43  year. Quarterly upon receipt of the money from the State, the county

3-44  treasurer shall deposit an amount of money equal to the percentage

3-45  so apportioned and allocated to the credit of the city or town fund to

4-1  be used for city or town purposes, and the balance remaining must

4-2  be deposited in the county general fund and must be expended for

4-3  county purposes.

4-4  (c) All license fees and penalties imposed by the provisions of

4-5  subsection 2 of NRS 463.370 must, after the deduction of costs of

4-6  administration and collection, be allocated to the school district in

4-7  the county in which the licensee is located. A school district that

4-8  receives money pursuant to this paragraph shall distribute the

4-9  money equally to all at-risk schools within the school district. As

4-10  used in this paragraph, “at-risk school” means a school where, for

4-11  that school year, at least 65 percent of the pupils who are enrolled

4-12  in the school are children who are eligible for free and reduced-

4-13  price lunches pursuant to 42 U.S.C. §§ 1751 et seq.

4-14      Sec. 4.  NRS 463.370 is hereby amended to read as follows:

4-15      463.370  1.  Except as otherwise provided in NRS 463.373,

4-16  the Commission shall charge and collect from each licensee a

4-17  license fee based upon all the gross revenue of the licensee as

4-18  follows:

4-19      (a) Three percent of all the gross revenue of the licensee which

4-20  does not exceed $50,000 per calendar month;

4-21      (b) Four percent of all the gross revenue of the licensee which

4-22  exceeds $50,000 per calendar month and does not exceed $134,000

4-23  per calendar month; and

4-24      (c) Six and one-quarter percent of all the gross revenue of the

4-25  licensee which exceeds $134,000 per calendar month.

4-26      2.  In addition to the license fee charged and collected

4-27  pursuant to subsection 1, the Commission shall charge and collect

4-28  from a licensee that has moved its location and transferred its

4-29  license pursuant to subsection 4 of NRS 463.308 a license fee of

4-30  1.75 percent of all the gross revenue of the licensee which exceeds

4-31  $134,000 per calendar month.

4-32      3.  Unless the licensee has been operating for less than a full

4-33  calendar month, the Commission shall charge and collect the fee

4-34  prescribed in subsection 1[,] and the fee prescribed in subsection

4-35  2, based upon the gross revenue for the preceding calendar month,

4-36  on or before the 24th day of the following month. Except for the fee

4-37  based on the first full month of operation, [the] each fee is an

4-38  estimated payment of the license fee for the third month following

4-39  the month whose gross revenue is used as its basis.

4-40      [3.] 4. When a licensee has been operating for less than a full

4-41  calendar month, the Commission shall charge and collect the fee

4-42  prescribed in subsection 1[,] and the fee prescribed in subsection

4-43  2, based on the gross revenue received during that month, on or

4-44  before the 24th day of the following calendar month of operation.

4-45  After the first full calendar month of operation, the Commission

5-1  shall charge and collect [the] each fee based on the gross revenue

5-2  received during that month, on or before the 24th day of the

5-3  following calendar month. The payment of [the] each fee due for

5-4  the first full calendar month of operation must be accompanied by

5-5  the payment of a fee equal to three times the fee for the first full

5-6  calendar month. This additional amount is an estimated payment of

5-7  the license fees for the next 3 calendar months. Thereafter, each

5-8  license fee must be paid in the manner described in subsection [2.]

5-9  3. Any deposit held by the Commission on July 1, 1969, must be

5-10  treated as an advance estimated payment.

5-11      [4.] 5. All revenue received from any game or gaming device

5-12  which is operated on the premises of a licensee, regardless of

5-13  whether any portion of the revenue is shared with any other person,

5-14  must be attributed to the licensee for the purposes of this section and

5-15  counted as part of the gross revenue of the licensee. Any other

5-16  person, including, without limitation, an operator of an inter-casino

5-17  linked system, who is authorized to receive a share of the revenue

5-18  from any game, gaming device or inter-casino linked system that is

5-19  operated on the premises of a licensee is liable to the licensee for

5-20  that person’s proportionate share of the license fees paid by the

5-21  licensee pursuant to this section and shall remit or credit the full

5-22  proportionate share to the licensee on or before the 24th day of each

5-23  calendar month. The proportionate share of an operator of an inter-

5-24  casino linked system must be based on all compensation and other

5-25  consideration received by the operator of the inter-casino linked

5-26  system, including, without limitation, amounts that accrue to the

5-27  meter of the primary progressive jackpot of the inter-casino linked

5-28  system and amounts that fund the reserves of such a jackpot, subject

5-29  to all appropriate adjustments for deductions, credits, offsets and

5-30  exclusions that the licensee is entitled to take or receive pursuant to

5-31  the provisions of this chapter. A licensee is not liable to any other

5-32  person authorized to receive a share of the licensee’s revenue from

5-33  any game, gaming device or inter-casino linked system that is

5-34  operated on the premises of the licensee for that person’s

5-35  proportionate share of the license fees to be remitted or credited to

5-36  the licensee by that person pursuant to this section.

5-37      [5.] 6. An operator of an inter-casino linked system shall not

5-38  enter into any agreement or arrangement with a licensee that

5-39  provides for the operator of the inter-casino linked system to be

5-40  liable to the licensee for less than its full proportionate share of the

5-41  license fees paid by the licensee pursuant to this section, whether

5-42  accomplished through a rebate, refund, charge-back or otherwise.

5-43      [6.] 7. Any person required to pay a fee pursuant to this section

5-44  shall file with the Commission, on or before the 24th day of each

5-45  calendar month, a report showing the amount of all gross revenue

6-1  received during the preceding calendar month. Each report must be

6-2  accompanied by:

6-3  (a) The fee due based on the revenue of the month covered by

6-4  the report; and

6-5  (b) An adjustment for the difference between the estimated fee

6-6  previously paid for the month covered by the report, if any, and

6-7  the fee due for the actual gross revenue earned in that month. If the

6-8  adjustment is less than zero, a credit must be applied to the

6-9  estimated fee due with that report.

6-10      [7.] 8. If the amount of license fees required to be reported and

6-11  paid pursuant to this section is later determined to be greater or less

6-12  than the amount actually reported and paid, the Commission shall:

6-13      (a) Charge and collect the additional license fees determined to

6-14  be due, with interest thereon until paid; or

6-15      (b) Refund any overpayment to the person entitled thereto

6-16  pursuant to this chapter, with interest thereon.

6-17  Interest pursuant to paragraph (a) must be computed at the rate

6-18  prescribed in NRS 17.130 from the first day of the first month

6-19  following the due date of the additional license fees until paid.

6-20  Interest pursuant to paragraph (b) must be computed at one-half the

6-21  rate prescribed in NRS 17.130 from the first day of the first month

6-22  following the date of overpayment until paid.

6-23      [8.] 9. Failure to pay the fees provided for in this section shall

6-24  be deemed a surrender of the license at the expiration of the period

6-25  for which the estimated payment of fees has been made, as

6-26  established in subsection [2.

6-27      9.] 3.

6-28      10. Except as otherwise provided in NRS 463.386, the amount

6-29  of the fee prescribed in subsection 1 or 2 must not be prorated.

6-30      [10.] 11. Except as otherwise provided in NRS 463.386, if a

6-31  licensee ceases operation, the Commission shall:

6-32      (a) Charge and collect the additional license fees determined to

6-33  be due with interest computed pursuant to paragraph (a) of

6-34  subsection [7;] 8; or

6-35      (b) Refund any overpayment to the licensee with interest

6-36  computed pursuant to paragraph (b) of subsection [7,] 8,

6-37  based upon the gross revenue of the licensee during the last 3

6-38  months immediately preceding the cessation of operation, or

6-39  portions of those last 3 months.

6-40      [11.] 12. If in any month, the amount of gross revenue is less

6-41  than zero, the licensee may offset the loss against gross revenue in

6-42  succeeding months until the loss has been fully offset.

6-43      [12.] 13. If in any month, the amount of the license fee due is

6-44  less than zero, the licensee is entitled to receive a credit against any

7-1  license fees due in succeeding months until the credit has been fully

7-2  offset.

 

7-3  H