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 a

1-2 new section to read as follows:

1-3 1. If an operator of an inter-casino linked system makes the inter-

1-4 casino linked system available to a nonrestricted licensee, other than

1-5 during a trial period, the operator shall also make the inter-casino linked

1-6 system available to any other eligible nonrestricted licensee subject to the

1-7 provisions of this chapter and reasonable production and delivery

1-8 schedules. For purposes of this section, a nonrestricted licensee shall be

1-9 deemed to be eligible if the licensee is a Group I licensee or a Group II

1-10 licensee, as determined pursuant to the regulations of the commission

1-11 and otherwise meets the requirements of the commission regarding

1-12 locations for games that are part of an inter-casino linked system.

1-13 2. The provisions of subsection 1 do not prevent the imposition by an

1-14 operator of an inter-casino linked system of different terms and

1-15 conditions, including prices, based on:

2-1 (a) The quantity or volume of gaming devices connected to an inter-

2-2 casino linked system that are sold or leased to a licensee or to affiliated

2-3 licensees by the operator; or

2-4 (b) Credit considerations.

2-5 Sec. 2. NRS 463.0129 is hereby amended to read as follows:

2-6 463.0129 1. The legislature hereby finds, and declares to be the

3-1 3. This section does not:

3-2 (a) Abrogate or abridge any common law right of a gaming

3-3 establishment to exclude any person from gaming activities or eject any

3-4 person from the premises of the establishment for any reason; or

3-5 (b) Prohibit a licensee from establishing minimum wagers for any

3-6 gambling game or slot machine.

3-7 Sec. 3. NRS 463.120 is hereby amended to read as follows:

3-8 463.120 1. The board and the commission shall cause to be made and

3-43 without specific authorization by the board or commission.

4-1 5. Before the beginning of each legislative session, the board shall

4-2 submit to the legislative commission for its review and for the use of the

4-3 legislature a report on the gross revenue, net revenue and average

4-4 depreciation of all licensees, categorized by class of licensee and

4-5 geographical area and the assessed valuation of the property of all

4-6 licensees, by category, as listed on the assessment rolls.

4-7 6. Notice of the content of any information or data furnished or

4-8 released pursuant to subsection 4 may be given to any applicant or licensee

4-9 in a manner prescribed by regulations adopted by the commission.

4-10 7. The files, records and reports of the board are open at all times to

4-11 inspection by the commission and its authorized agents.

4-12 8. All files, records, reports and other information pertaining to gaming

4-13 matters in the possession of the Nevada tax commission must be made

4-14 available to the board and the Nevada gaming commission as is necessary

4-15 to the administration of this chapter.

4-16 9. The Nevada gaming commission, by the affirmative vote of a

4-17 majority of its members, may remove from its records the name of a debtor

4-18 and the amount of tax, penalty and interest, or any of them, owed by him, if

4-19 after 5 years it remains impossible or impracticable to collect such

4-20 amounts. The commission shall establish a master file containing the

4-21 information removed from its official records by this section.

4-22 Sec. 4. NRS 463.15993 is hereby amended to read as follows:

4-23 463.15993 1. The commission [may] shall adopt regulations

4-40 Sec. 5. (Deleted by amendment.)

4-41 Sec. 6. NRS 463.170 is hereby amended to read as follows:

4-42 463.170 1. Any person who the commission determines is qualified

4-43 to receive a license, to be found suitable or to receive any approval

5-1 required under the provisions of this chapter, or to be found suitable

5-2 regarding the operation of a charitable lottery under the provisions of

5-3 chapter 462 of NRS, having due consideration for the proper protection of

5-4 the health, safety, morals, good order and general welfare of the inhabitants

5-5 of the State of Nevada and the declared policy of this state, may be issued a

5-6 state gaming license, be found suitable or receive any approval required by

5-7 this chapter, as appropriate. The burden of proving his qualification to

5-8 receive any license, be found suitable or receive any approval required by

5-9 this chapter is on the applicant.

5-10 2. An application to receive a license or be found suitable must not be

5-11 granted unless the commission is satisfied that the applicant is:

5-12 (a) A person of good character, honesty and integrity;

5-13 (b) A person whose prior activities, criminal record, if any, reputation,

5-14 habits and associations do not pose a threat to the public interest of this

5-15 state or to the effective regulation and control of gaming or charitable

5-16 lotteries, or create or enhance the dangers of unsuitable, unfair or illegal

5-17 practices, methods and activities in the conduct of gaming or charitable

5-18 lotteries or in the carrying on of the business and financial arrangements

5-19 incidental thereto; and

5-20 (c) In all other respects qualified to be licensed or found suitable

5-21 consistently with the declared policy of the state.

5-22 3. A license to operate a gaming establishment or an inter-casino

5-23 linked system must not be granted unless the applicant has satisfied the

5-24 commission that:

5-25 (a) [He] The applicant has adequate business probity, competence and

5-26 experience, in gaming or generally; and

5-27 (b) The proposed financing of the entire operation is:

5-28 (1) Adequate for the nature of the proposed operation; and

5-29 (2) From a suitable source.

5-30 Any lender or other source of money or credit which the commission finds

5-31 does not meet the standards set forth in subsection 2 may be deemed

5-32 unsuitable.

5-33 4. An application to receive a license or be found suitable constitutes a

5-34 request for a determination of the applicant’s general character, integrity,

5-35 and ability to participate or engage in, or be associated with gaming or the

5-36 operation of a charitable lottery, as appropriate. Any written or oral

5-37 statement made in the course of an official proceeding of the board or

5-38 commission by any member thereof or any witness testifying under oath

5-39 which is relevant to the purpose of the proceeding is absolutely privileged

5-40 and does not impose liability for defamation or constitute a ground for

5-41 recovery in any civil action.

5-42 5. The commission may in its discretion grant a license to:

6-1 (a) A publicly traded corporation which has complied with the

6-2 provisions of NRS 463.625 to 463.643, inclusive;

6-3 (b) Any other corporation which has complied with the provisions of

6-4 NRS 463.490 to 463.530, inclusive;

6-5 (c) A limited partnership which has complied with the provisions of

6-6 NRS 463.564 to 463.571, inclusive; and

6-7 (d) A limited-liability company which has complied with the provisions

6-8 of NRS 463.5731 to 463.5737, inclusive.

6-9 6. No limited partnership, except one whose sole limited partner is a

6-10 publicly traded corporation which has registered with the commission, or a

6-11 limited-liability company, or business trust or organization or other

6-12 association of a quasi-corporate character is eligible to receive or hold any

6-13 license under this chapter unless all persons having any direct or indirect

6-14 interest therein of any nature whatever, whether financial, administrative,

6-15 policymaking or supervisory, are individually qualified to be licensed under

6-16 the provisions of this chapter.

6-17 7. The commission may, by regulation:

6-18 (a) Limit the number of persons who may be financially interested and

6-19 the nature of their interest in any corporation, other than a publicly traded

6-20 corporation, limited partnership, limited-liability company or other

6-21 organization or association licensed under this chapter; and

6-22 (b) Establish such other qualifications for licenses as it may, in its

6-23 discretion, deem to be in the public interest and consistent with the declared

6-24 policy of the state.

6-25 Sec. 7. NRS 463.245 is hereby amended to read as follows:

6-26 463.245 1. Except as otherwise provided in [subsection 3, all]

6-43 operated by a person who has been issued a nonrestricted license.

7-1 4. Nothing in this section limits or prohibits an operator of an inter-

7-2 casino linked system from placing and operating such a system on the

7-3 premises of two or more gaming licensees and receiving, either directly or

7-4 indirectly, any compensation or any percentage or share of the money or

7-5 property played from the linked games [.] in accordance with the

7-6 provisions of this chapter and the regulations adopted by the commission.

7-7 An inter-casino linked system must not be used to link games other than

7-8 slot machines, unless such games are located at an establishment that is

7-9 licensed for games other than slot machines.

7-10 Sec. 8. NRS 463.305 is hereby amended to read as follows:

7-11 463.305 1. Any person who operates or maintains in this state any

7-19 and their significant modification [.] and inter-casino linked systems.

7-20 Sec. 9. NRS 463.370 is hereby amended to read as follows:

7-21 463.370 1. Except as otherwise provided in NRS 463.373, the

7-41 before the 24th day of the following calendar month of operation. After the

8-1 first full calendar month of operation, the commission shall charge and

8-2 collect the fee based on the gross revenue received during that month, on or

8-3 before the 24th day of the following calendar month. The payment of the

8-4 fee due for the first full calendar month of operation must be accompanied

8-5 by the payment of a fee equal to three times the fee for the first full

8-6 calendar month. This additional amount is an estimated payment of the

8-7 license fees for the next 3 calendar months. Thereafter, each license fee

8-8 must be paid in the manner described in subsection 2. Any deposit held by

8-9 the commission on July 1, 1969, must be treated as an advance estimated

8-10 payment.

8-11 4. All revenue received from any game or gaming device which is

8-12 operated on the premises of a licensee, regardless of whether any portion of

8-13 the revenue is shared with any other person, must be attributed to the

8-14 licensee for the purposes of this section and counted as part of the gross

8-15 revenue of the licensee. Any other person , including, without limitation,

8-16 an operator of an inter-casino linked system, who is authorized to receive

8-17 a share of the revenue from any game, gaming device or inter-casino

8-18 linked system that is operated on the premises of a licensee is liable to the

8-19 licensee for [his] that person’s proportionate share of the license fees paid

8-20 by the licensee pursuant to this section [.] and shall remit or credit the full

8-21 proportionate share to the licensee on or before the 24th day of each

8-22 calendar month. The proportionate share of an operator of an inter-

8-23 casino linked system must be based on all compensation and other

8-24 consideration received by the operator of the inter-casino linked system,

8-25 including, without limitation, amounts that accrue to the meter of the

8-26 primary progressive jackpot of the inter-casino linked system and

8-27 amounts that fund the reserves of such a jackpot, subject to all

8-28 appropriate adjustments for deductions, credits, offsets and exclusions

8-29 that the licensee is entitled to take or receive pursuant to the provisions of

8-30 this chapter. A licensee is not liable to any other person authorized to

8-31 receive a share of the licensee’s revenue from any game, gaming device

8-32 or inter-casino linked system that is operated on the premises of the

8-33 licensee for that person’s proportionate share of the license fees to be

8-34 remitted or credited to the licensee by that person pursuant to this

8-35 section.

8-36 5. An operator of an inter-casino linked system shall not enter into

8-37 any agreement or arrangement with a licensee that provides for the

8-38 operator of the inter-casino linked system to be liable to the licensee for

8-39 less than its full proportionate share of the license fees paid by the

8-40 licensee pursuant to this section, whether accomplished through a rebate,

8-41 refund, charge-back or otherwise.

8-42 6. Any person required to pay a fee pursuant to this section shall file

8-43 with the commission, on or before the 24th day of each calendar month, a

9-1 report showing the amount of all gross revenue received during the

9-2 preceding calendar month. Each report must be accompanied by:

9-3 (a) The fee due based on the revenue of the month covered by the

9-4 report; and

9-5 (b) An adjustment for the difference between the estimated fee

9-6 previously paid for the month covered by the report, if any, and the fee due

9-7 for the actual gross revenue earned in that month. If the adjustment is less

9-8 than zero, a credit must be applied to the estimated fee due with that report.

9-9 [6.] 7. If the amount of license fees required to be reported and paid

9-10 pursuant to this section is later determined to be greater or less than the

9-11 amount actually reported and paid, the commission shall:

9-12 (a) Charge and collect the additional license fees determined to be due,

9-13 with interest thereon until paid; or

9-14 (b) Refund any overpayment to the person entitled thereto pursuant to

9-15 this chapter, with interest thereon.

9-16 Interest must be computed at the rate prescribed in NRS 17.130 from the

9-17 first day of the first month following either the due date of the additional

9-18 license fees or the date of overpayment until paid.

9-19 [7.] 8. Failure to pay the fees provided for in this section shall be

9-20 deemed a surrender of the license at the expiration of the period for which

9-21 the estimated payment of fees has been made, as established in subsection

9-22 2.

9-23 [8.] 9. Except as otherwise provided in NRS 463.386, the amount of

9-24 the fee prescribed in subsection 1 must not be prorated.

9-25 [9.] 10. Except as otherwise provided in NRS 463.386, if a licensee

9-26 ceases operation, the commission shall:

9-27 (a) Charge and collect the additional license fees determined to be due

9-28 with interest; or

9-29 (b) Refund any overpayment, with interest thereon, to the licensee,

9-30 based upon the gross revenue of the licensee during the last 3 months

9-31 immediately preceding the cessation of operation, or portions of those last

9-32 3 months.

9-33 [10.] 11. If in any month, the amount of gross revenue is less than

9-34 zero, the licensee may offset the loss against gross revenue in succeeding

9-35 months until the loss has been fully offset.

9-36 [11.] 12. If in any month, the amount of the license fee due is less than

9-37 zero, the licensee is entitled to receive a credit against any license fees due

9-38 in succeeding months until the credit has been fully offset.

9-39 Sec. 10. NRS 463.375 is hereby amended to read as follows:

9-40 463.375 1. In addition to any other state gaming license fees

9-42 applicant for a nonrestricted operation, the commission shall charge and

10-1 collect from the applicant a license fee of $80 for each slot machine for

10-2 each calendar year.

10-3 2. The commission shall charge and collect the fee prescribed in

10-4 subsection 1, at the rate of $20 for each slot machine for each calendar

10-5 quarter:

10-6 (a) On or before the last day of the last month in a calendar quarter, for

10-7 the ensuing calendar quarter, from a licensee whose operation is

10-8 continuing.

10-9 (b) In advance from a licensee who begins operation or puts additional

10-10 slot machines into play during a calendar quarter.

10-11 3. Except as provided in NRS 463.386, no proration of the quarterly

10-12 amount prescribed in subsection 2 may be allowed for any reason.

10-13 4. The operator of the location where slot machines are situated shall

10-14 pay the fee prescribed in subsection 1 upon the total number of slot

10-15 machines situated in that location, whether the machines are owned by one

10-16 or more licensee-owners.

10-17 5. Any other person, including, without limitation, an operator of an

10-18 inter-casino linked system, who is authorized to receive a share of the

10-19 revenue from any slot machine that is operated on the premises of a

10-20 licensee is liable to the licensee for that person’s proportionate share of

10-21 the license fees paid by the licensee pursuant to this section and shall

10-22 remit or credit the full proportionate share to the licensee on or before

10-23 the dates set forth in subsection 2. A licensee is not liable to any other

10-24 person authorized to receive a share of the licensee’s revenue from any

10-25 slot machine that is operated on the premises of a licensee for that

10-26 person’s proportionate share of the license fees to be remitted or credited

10-27 to the licensee by that person pursuant to this section.

10-28 Sec. 11. NRS 463.385 is hereby amended to read as follows:

10-29 463.385 1. In addition to any other license fees and taxes imposed by

10-43 collected.

11-1 3. Any other person, including, without limitation, an operator of an

11-2 inter-casino linked system, who is authorized to receive a share of the

11-3 revenue from any slot machine that is operated on the premises of a

11-4 licensee is liable to the licensee for that person’s proportionate share of

11-5 the license fees paid by the licensee pursuant to this section and shall

11-6 remit or credit the full proportionate share to the licensee on or before

11-7 the dates set forth in subsection 2. A licensee is not liable to any other

11-8 person authorized to receive a share of the licensee’s revenue from any

11-9 slot machine that is operated on the premises of a licensee for that

11-10 person’s proportionate share of the license fees to be remitted or credited

11-11 to the licensee by that person pursuant to this section.

11-12 4. The commission shall pay over the tax as collected to the state

11-13 treasurer to be deposited to the credit of the state distributive school

11-14 account in the state general fund, and the capital construction fund for

11-15 higher education and the special capital construction fund for higher

11-16 education, which are hereby created in the state treasury as special revenue

11-17 funds, in the amounts and to be expended only for the purposes specified in

11-18 this section.

11-19 [4.] 5. During each fiscal year the state treasurer shall deposit the tax

11-20 paid over to him by the commission as follows:

11-21 (a) The first $5,000,000 of the tax in the capital construction fund for

11-22 higher education;

11-23 (b) Twenty percent of the tax in the special capital construction fund for

11-24 higher education; and

11-25 (c) The remainder of the tax in the state distributive school account in

11-26 the state general fund.

11-27 [5.] 6. There is hereby appropriated from the balance in the special

11-28 capital construction fund for higher education on July 31 of each year the

11-29 amount necessary to pay the principal and interest due in that fiscal year on

11-30 the bonds issued pursuant to section 5 of chapter 679, Statutes of Nevada

11-31 1979, as amended by chapter 585, Statutes of Nevada 1981, at page 1251,

11-32 the bonds authorized to be issued by section 2 of chapter 643, Statutes of

11-33 Nevada 1987, at page 1503, the bonds authorized to be issued by section 2

11-34 of chapter 614, Statutes of Nevada 1989, at page 1377, the bonds

11-35 authorized to be issued by section 2 of chapter 718, Statutes of Nevada

11-36 1991 , at page 2382, and the bonds authorized to be issued by section 2 of

11-37 chapter 629, Statutes of Nevada 1997 [.] , at page 3106. If in any year the

11-38 balance in that fund is not sufficient for this purpose, the remainder

11-39 necessary is hereby appropriated on July 31 from the capital construction

11-40 fund for higher education. The balance remaining unappropriated in the

11-41 capital construction fund for higher education on August 1 of each year and

11-42 all amounts received thereafter during the fiscal year must be transferred to

11-43 the state general fund for the support of higher education. If bonds

12-1 described in this subsection are refunded and if the amount required to pay

12-2 the principal of and interest on the refunding bonds in any fiscal year

12-3 during the term of the bonds is less than the amount that would have been

12-4 required in the same fiscal year to pay the principal of and the interest on

12-5 the original bonds if they had not been refunded, there is appropriated to

12-6 the University and Community College System of Nevada an amount

12-7 sufficient to pay the principal of and interest on the original bonds, as if

12-8 they had not been refunded. The amount required to pay the principal of

12-9 and interest on the refunding bonds must be used for that purpose from the

12-10 amount appropriated. The amount equal to the saving realized in that fiscal

12-11 year from the refunding must be used by the University and Community

12-12 College System of Nevada to defray, in whole or in part, the expenses of

12-13 operation and maintenance of the facilities acquired in part with the

12-14 proceeds of the original bonds.

12-15 [6.] 7. After the requirements of subsection [5] 6 have been met for

12-16 each fiscal year, when specific projects are authorized by the legislature,

12-17 money in the capital construction fund for higher education and the special

12-18 capital construction fund for higher education must be transferred by the

12-19 state controller and the state treasurer to the state public works board for

12-20 the construction of capital improvement projects for the University and

12-21 Community College System of Nevada, including, but not limited to,

12-22 capital improvement projects for the community colleges of the University

12-23 and Community College System of Nevada. As used in this subsection,

12-24 "construction" includes, but is not limited to, planning, designing, acquiring

12-25 and developing a site, construction, reconstruction, furnishing, equipping,

12-26 replacing, repairing, rehabilitating, expanding and remodeling. Any money

12-27 remaining in either fund at the end of a fiscal year does not revert to the

12-28 state general fund but remains in those funds for authorized expenditure.

12-29 [7.] 8. The money deposited in the state distributive school account in

12-30 the state general fund under this section must be apportioned as provided in

12-31 NRS 387.030 among the several school districts of the state at the times

12-32 and in the manner provided by law.

12-33 [8.] 9. The board of regents of the University of Nevada may use any

12-34 money in the capital construction fund for higher education and the special

12-35 capital construction fund for higher education for the payment of interest

12-36 and amortization of principal on bonds and other securities, whether issued

12-37 before, on or after July 1, 1979, to defray in whole or in part the costs of

12-38 any capital project authorized by the legislature.

12-39 Sec. 12. An inter-casino linked system that is being operated on the

12-40 effective date of this act may continue to be operated in accordance with

12-41 the provisions of this act until the earlier of July 1, 2000, or the date on

12-42 which the inter-casino linked system is separately approved by the

12-43 commission pursuant to regulations adopted by the commission. No inter

13-1 casino linked system may be operated or exposed for play after July 1,

13-2 2000, unless all licenses and approvals have been obtained by the operator

13-3 of the inter-casino linked system in accordance with the provisions of this

13-4 act and the regulations adopted by the commission pursuant thereto.

13-5 Sec. 13. This act becomes effective upon passage and approval.