EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 463 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 15, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 15, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3, 4

1-5 and 5 of this act have the meanings ascribed to them in those sections.

1-6 Sec. 3. "Division" means the housing division of the department of

1-7 business and industry.

1-8 Sec. 4. "Nonrestricted licensee" means a person who holds a

1-9 nonrestricted license.

1-10 Sec. 5. "Persons of low income" has the meaning ascribed to it in

1-11 NRS 315.260.

1-12 Sec. 6. 1. A nonrestricted licensee may apply to the division for a

1-13 credit against the fees imposed pursuant to NRS 463.370. Such an

1-14 application must be submitted not later than March 1 of the calendar

1-15 year immediately preceding the calendar year in which the applicant will

1-16 apply a credit pursuant to subsection 1 of section 12 of this act.

2-1 2. An applicant for a credit against the fees imposed pursuant to

2-2 NRS 463.370 shall:

2-3 (a) Provide proof satisfactory to the division that the applicant intends

2-4 to provide grants to one or more nonprofit organizations or otherwise

2-5 sponsor the construction and completion within 2 years of a housing

2-6 project which includes dwellings that are affordable to persons of low

2-7 income;

2-8 (b) Provide a description of the housing project;

2-9 (c) Specify the number of dwellings in the housing project that will be

2-10 occupied by persons of low income, which number must be at least one-

2-11 third of the total number of dwellings in the housing project;

2-12 (d) Specify the amount of monthly rent or other payments that persons

2-13 of low income will be required to pay to occupy dwellings within the

2-14 housing project; and

2-15 (e) Provide other information concerning the housing project as

2-16 requested by the division.

2-17 3. The division shall make a determination as to the sufficiency of

2-18 each such application not later than June 1 of the year in which the

2-19 division received the application. From the applications received, the

2-20 division shall, within the limits set forth in section 8 of this act, select one

2-21 or more of the proposed housing projects that the division determines are

2-22 appropriate to assist the division in evaluating the effectiveness of

2-23 sections 2 to 15, inclusive, of this act in providing affordable housing for

2-24 persons of low income.

2-25 Sec. 7. 1. If the division determines that such an application is

2-26 appropriate and qualifies for eligibility for a credit against the fees

2-27 imposed pursuant to NRS 463.370, the division shall, not later than July

2-28 1 of the year in which the division received the application:

2-29 (a) Provide written notice of its determination to the nonrestricted

2-30 licensee who submitted the application; and

2-31 (b) Transmit to the commission a certificate of eligibility which

2-32 authorizes the nonrestricted licensee to apply a credit against the fees

2-33 imposed pursuant to NRS 463.370.

2-34 2. Not more than 30 days after a nonrestricted licensee receives

2-35 written notice from the division pursuant to paragraph (a) of subsection

2-36 1, the nonrestricted licensee shall provide to the commission a written

2-37 estimate of liability which provides an estimate of the total amount of

2-38 fees that the nonrestricted licensee will owe pursuant to NRS 463.370 for

2-39 the next succeeding calendar year. If the nonrestricted licensee has been

2-40 operating for at least 12 calendar months, the written estimate of liability

2-41 must be based upon the total amount of fees that the nonrestricted

2-42 licensee paid to the commission pursuant to NRS 463.370 for the

2-43 immediately preceding 12 calendar months. If the nonrestricted licensee

3-1 has been operating for fewer than 12 calendar months, the written

3-2 estimate of liability must be based upon the total amount of fees that the

3-3 nonrestricted licensee has paid pursuant to NRS 463.370 for each month

3-4 that he has been in operation.

3-5 3. Upon receipt of a written estimate of liability from a nonrestricted

3-6 licensee and a certificate of eligibility issued by the division for that

3-7 nonrestricted licensee, the commission shall, on or before November 1 of

3-8 the calendar year in which the division received the certificate of

3-9 eligibility, determine the total amount of credit, specified as a percentage,

3-10 it will grant to the nonrestricted licensee who may apply the credit

3-11 against the fees imposed pursuant to NRS 463.370. The percentage

3-12 specified by the commission must be:

3-13 (a) Based upon a pro rata allocation of the total amount of credits

3-14 available in that calendar year, as set forth in section 8 of this act; and

3-15 (b) Equal to or less than 25 percent of the nonrestricted licensee’s

3-16 written estimate of liability.

3-17 4. The commission shall provide written notice to the nonrestricted

3-18 licensee and the division of its determination.

3-19 Sec. 8. The commission shall not approve more than $500,000 in

3-20 credits pursuant to section 7 of this act in one calendar year. The

3-21 commission shall allocate the credits available in one calendar year to

3-22 each nonrestricted licensee for whom the commission has received a

3-23 certificate of eligibility from the division on or before July 1 of that

3-24 calendar year. The commission shall apply the credit for the fiscal year

3-25 that begins during the calendar year for which the credits were allocated.

3-26 Sec. 9. 1. Upon receipt of written notice from the commission

3-27 pursuant to section 7 of this act, the nonrestricted licensee may enter into

3-28 a written agreement with the division not later than December 31 of the

3-29 calendar year in which the division approved the application of the

3-30 nonrestricted licensee. The written agreement must include:

3-31 (a) The amount of the credit granted to the nonrestricted licensee

3-32 pursuant to section 7 of this act;

3-33 (b) The number of dwellings in the housing project that will be

3-34 occupied by persons of low income, which number must equal at least

3-35 one-third of the total number of dwellings in the housing project;

3-36 (c) The minimum period for which the dwellings specified in

3-37 paragraph (b) must be occupied by persons of low income only;

3-38 (d) The amount of monthly rent or other payments that persons of low

3-39 income will be required to pay to occupy dwellings within the housing

3-40 project;

3-41 (e) The term of the agreement; and

3-42 (f) The signatures of the administrator of the division and the

3-43 nonrestricted licensee.

4-1 2. A written agreement entered into pursuant to subsection 1

4-2 becomes effective on January 1 of the calendar year immediately

4-3 succeeding the date on which the division and the nonrestricted licensee

4-4 entered into the agreement.

4-5 Sec. 10. The division shall oversee and monitor the progress of a

4-6 housing project that is covered by a written agreement entered into

4-7 pursuant to section 9 of this act. The division may provide assistance to a

4-8 nonrestricted licensee to ensure that a housing project is completed

4-9 within 2 years after the effective date of the written agreement.

4-10 Sec. 11. 1. If a housing project is completed by a nonrestricted

4-11 licensee and approved by the division, the division shall conduct a review

4-12 to ensure that the housing project of the nonrestricted licensee complies

4-13 with the conditions set forth in the written agreement entered into

4-14 pursuant to section 9 of this act. The nonrestricted licensee shall comply

4-15 with all requests for information by the division that are related to the

4-16 review. A review must be conducted at least annually for the term of the

4-17 written agreement.

4-18 2. If, as a result of a review, the division determines that a

4-19 nonrestricted licensee has violated a condition of the written agreement,

4-20 the division shall provide written notice of the violation to the

4-21 nonrestricted licensee. The written notice must prescribe a period, not

4-22 fewer than 30 days, for the nonrestricted licensee to correct the violation.

4-23 If the nonrestricted licensee does not correct the violation within the

4-24 prescribed period, the division shall provide written notice of the

4-25 violation to the commission. Upon receipt of a written notice of such a

4-26 violation, the commission shall issue to the nonrestricted licensee a

4-27 written order to repay, in accordance with subsection 2 of section 13 of

4-28 this act, the full amount of the credit that the nonrestricted licensee

4-29 applied pursuant to section 12 of this act.

4-30 Sec. 12. If a nonrestricted licensee has entered into a written

4-31 agreement pursuant to section 9 of this act, the nonrestricted licensee

4-32 may:

4-33 1. In the year in which the written agreement becomes effective,

4-34 apply a credit against the fees imposed pursuant to NRS 463.370 in an

4-35 amount which is less than or equal to 60 percent of the total credit that

4-36 was specified in the written agreement pursuant to paragraph (a) of

4-37 subsection 1 of section 9 of this act. The credit must be applied in

4-38 accordance with the regulations adopted by the commission pursuant to

4-39 section 15 of this act.

4-40 2. If the housing project is completed by the nonrestricted licensee

4-41 and approved by the division within 2 years after the effective date of the

4-42 written agreement, apply a credit against the fees imposed pursuant to

4-43 NRS 463.370 for the 12 months immediately succeeding the approval of

5-1 the housing project in an amount which is equal to the remaining

5-2 balance of the total credit that was specified in the written agreement

5-3 pursuant to paragraph (a) of subsection 1 of section 9 of this act. The

5-4 credit must be applied in accordance with the regulations adopted by the

5-5 commission pursuant to section 15 of this act.

5-6 Sec. 13. 1. If a housing project is not completed by a nonrestricted

5-7 licensee and approved by the division within 2 years after the effective

5-8 date of the written agreement, the nonrestricted licensee shall repay to

5-9 the commission the amount of the credit that he applied pursuant to

5-10 subsection 1 of section 12 of this act. The nonrestricted licensee shall pay

5-11 interest on the amount due at the rate most recently established pursuant

5-12 to NRS 99.040 for each month, or portion thereof, from the last day of

5-13 the month following the period for which the payment would have been

5-14 made had the credit on the fees not been granted until the date of the

5-15 actual payment of the fees.

5-16 2. If a nonrestricted licensee receives a written order to repay from

5-17 the commission pursuant to subsection 2 of section 11 of this act, the

5-18 nonrestricted licensee shall repay to the commission the amount of the

5-19 credit that he applied pursuant to section 12 of this act. The nonrestricted

5-20 licensee shall pay interest on the amount due at the rate most recently

5-21 established pursuant to NRS 99.040 for each month, or portion thereof,

5-22 from the last day of the month following the period for which the

5-23 payment would have been made had the credit on the fees not been

5-24 granted until the date of the actual payment of the fees.

5-25 Sec. 14. 1. The division shall adopt regulations that:

5-26 (a) Set forth the criteria for approval of:

5-27 (1) An application for a credit against the fees imposed pursuant to

5-28 NRS 463.370; and

5-29 (2) A housing project, including, without limitation, a requirement

5-30 that a nonrestricted licensee demonstrate to the satisfaction of the

5-31 division that the number of dwellings specified in the written agreement

5-32 pursuant to paragraph (b) of subsection 1 of section 9 of this act will be

5-33 occupied by persons of low income;

5-34 (b) Ensure that a licensee who receives a credit pursuant to sections 2

5-35 to 15, inclusive, of this act offers affordable housing for persons of low

5-36 income for a time deemed acceptable by the division; and

5-37 (c) Prescribe the manner in which the division will:

5-38 (1) Oversee and monitor a housing project pursuant to section 10 of

5-39 this act; and

5-40 (2) Conduct a review pursuant to section 11 of this act.

5-41 2. The division may adopt regulations necessary to carry out the

5-42 provisions of sections 6, 9, 10 and 11 of this act.

6-1 Sec. 15. 1. The commission shall adopt regulations that prescribe:

6-2 (a) The formula that the commission will use to determine the total

6-3 amount of credit against the fees imposed pursuant to NRS 463.370 that

6-4 will be granted to an applicant pursuant to section 7 of this act. The

6-5 formula must grant to a licensee an equal amount of credit for each

6-6 dollar that he spends on the project, up to the maximum amount of credit

6-7 that he is allowed in 1 year.

6-8 (b) The manner in which the credit may be applied by the licensee

6-9 against his monthly payment of the fees imposed pursuant to NRS

6-10 463.370; and

6-11 2. The commission may adopt regulations necessary to carry out the

6-12 provisions of sections 7, 8, 12 and 13 of this act.

6-13 Sec. 16. NRS 463.370 is hereby amended to read as follows:

6-14 463.370 1. Except as otherwise provided in NRS 463.373, and

6-15 sections 2 to 15, inclusive, of this act, the commission shall charge and

6-16 collect from each licensee a license fee based upon all the gross revenue of

6-17 the licensee as follows:

6-18 Three percent of all the gross revenue of the licensee which does not

6-19 exceed $50,000 per calendar month;

6-20 Four percent of all the gross revenue of the licensee which exceeds

6-21 $50,000 per calendar month and does not exceed $134,000 per

6-22 calendar month; and

6-23 Six and one-quarter percent of all the gross revenue of the licensee

6-24 which exceeds $134,000 per calendar month.

6-25 2. Unless the licensee has been operating for less than a full calendar

6-26 month, the commission shall charge and collect the fee prescribed in

6-27 subsection 1, based upon the gross revenue for the preceding calendar

6-28 month, on or before the 24th day of the following month. Except for the fee

6-29 based on the first full month of operation, the fee is an estimated payment

6-30 of the license fee for the third month following the month whose gross

6-31 revenue is used as its basis.

6-32 3. When a licensee has been operating for less than a full calendar

6-33 month, the commission shall charge and collect the fee prescribed in

6-34 subsection 1, based on the gross revenue received during that month, on or

6-35 before the 24th day of the following calendar month of operation. After the

6-36 first full calendar month of operation, the commission shall charge and

6-37 collect the fee based on the gross revenue received during that month, on or

6-38 before the 24th day of the following calendar month. The payment of the

6-39 fee due for the first full calendar month of operation must be accompanied

6-40 by the payment of a fee equal to three times the fee for the first full

6-41 calendar month. This additional amount is an estimated payment of the

7-1 license fees for the next 3 calendar months. Thereafter, each license fee

7-2 must be paid in the manner described in subsection 2. Any deposit held by

7-3 the commission on July 1, 1969, must be treated as an advance estimated

7-4 payment.

7-5 4. All revenue received from any game or gaming device which is

7-6 operated on the premises of a licensee, regardless of whether any portion of

7-7 the revenue is shared with any other person, must be attributed to the

7-8 licensee for the purposes of this section and counted as part of the gross

7-9 revenue of the licensee. Any other person who is authorized to receive a

7-10 share of the revenue is liable to the licensee for his proportionate share of

7-11 the license fees paid pursuant to this section.

7-12 5. Any person required to pay a fee pursuant to this section shall file

7-13 with the commission, on or before the 24th day of each calendar month, a

7-14 report showing the amount of all gross revenue received during the

7-15 preceding calendar month. Each report must be accompanied by:

7-16 (a) The fee due based on the revenue of the month covered by the

7-17 report; and

7-18 (b) An adjustment for the difference between the estimated fee

7-19 previously paid for the month covered by the report, if any, and the fee due

7-20 for the actual gross revenue earned in that month. If the adjustment is less

7-21 than zero, a credit must be applied to the estimated fee due with that report.

7-22 6. If the amount of license fees required to be reported and paid

7-23 pursuant to this section is later determined to be greater or less than the

7-24 amount actually reported and paid, the commission shall:

7-25 (a) Charge and collect the additional license fees determined to be due,

7-26 with interest thereon until paid; or

7-27 (b) Refund any overpayment to the person entitled thereto pursuant to

7-28 this chapter, with interest thereon.

7-29 Interest must be computed at the rate prescribed in NRS 17.130 from the

7-30 first day of the first month following either the due date of the additional

7-31 license fees or the date of overpayment until paid.

7-32 7. Failure to pay the fees provided for in this section shall be deemed a

7-33 surrender of the license at the expiration of the period for which the

7-34 estimated payment of fees has been made, as established in subsection 2.

7-35 8. Except as otherwise provided in NRS 463.386, the amount of the fee

7-36 prescribed in subsection 1 must not be prorated.

7-37 9. Except as otherwise provided in NRS 463.386, if a licensee ceases

7-38 operation, the commission shall:

7-39 (a) Charge and collect the additional license fees determined to be due

7-40 with interest; or

7-41 (b) Refund any overpayment, with interest thereon, to the licensee,

8-1 based upon the gross revenue of the licensee during the last 3 months

8-2 immediately preceding the cessation of operation, or portions of those last

8-3 3 months.

8-4 10. If in any month, the amount of gross revenue is less than zero, the

8-5 licensee may offset the loss against gross revenue in succeeding months

8-6 until the loss has been fully offset.

8-7 11. If in any month, the amount of the license fee due is less than zero,

8-8 the licensee is entitled to receive a credit against any license fees due in

8-9 succeeding months until the credit has been fully offset.

8-10 Sec. 17. This act becomes effective on January 1, 2001.