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. A person who has:

1-4 (a) Been denied a license by the commission;

1-5 (b) Been found unsuitable by the commission; or

1-6 (c) Had a license or finding of suitability revoked by the commission,

1-7 shall not enter or attempt to enter into any contract or agreement with a

1-8 licensee, either directly or indirectly, through any business organization

1-9 under such a person’s control, that involves the operations of a licensee

1-10 without the prior approval of the commission. This provision does not

1-11 prohibit any person from purchasing any goods or services for personal

1-12 use from a licensee at retail prices that are available to the general

1-13 public.

1-14 2. Every contract or agreement with a person that is subject to the

1-15 provisions of subsection 1 shall be deemed to include a provision for its

1-16 termination without liability on the part of the licensee. Failure to

1-17 expressly include that condition in the contract or agreement is not a

2-1 defense in any action brought pursuant to this section to terminate the

2-2 agreement.

2-3 3. Any person, contract or agreement subject to the provisions of

2-4 subsection 1 is subject to being enjoined pursuant to and in accordance

2-5 with the provisions of NRS 463.346.

2-6 Sec. 2. NRS 463.165 is hereby amended to read as follows:

2-7 463.165 1. Except for persons associated with licensed corporations,

2-43 with a person who is found unsuitable or who is denied a license or whose

3-1 license is revoked by the commission , and whose name has been placed

3-2 on the list maintained pursuant to subsection 8, or with any business

3-3 enterprise that the licensee knows or under the circumstances reasonably

3-4 should know is under the control of that person after the date of receipt of

3-5 notice of the action by the commission. Every contract or agreement for

3-6 personal services to a gaming licensee or an affiliate or for the conduct of

3-7 any activity at a licensed gaming establishment shall be deemed to include

3-8 a provision for its termination without liability on the part of the licensee or

3-9 [registered holding company] affiliate upon a finding by the commission

3-10 that the person is unsuitable to be associated with a gaming enterprise.

3-11 Failure expressly to include such a condition in the agreement is not a

3-12 defense in any action brought pursuant to this section to terminate the

3-13 agreement.

3-14 6. A gaming licensee or an affiliate of the licensee shall not , without

3-15 the prior approval of the commission, employ any person in a capacity for

3-16 which he is required to be licensed, if he has been found unsuitable or

3-17 denied a license, or whose license has been revoked by the commission,

3-18 and whose name has been placed on the list maintained pursuant to

3-19 subsection 8, after the date of receipt of notice of the action by the

3-20 commission . [, without prior approval of the commission.] Every contract

3-21 or agreement for employment with a gaming licensee or an affiliate shall

3-22 be deemed to include a provision for its termination without liability on

3-23 the part of the licensee or affiliate upon a finding by the commission that

3-24 the person is unsuitable to be associated with a gaming enterprise.

3-25 Failure to expressly include such a condition in the agreement is not a

3-26 defense in any action brought pursuant to this section to terminate the

3-27 agreement.

3-28 7. As used in this section, "affiliate" means a person who, directly or

3-29 indirectly through one or more intermediaries, controls, is controlled by or

3-30 is under common control with a licensee.

3-31 8. The board shall maintain and make available to every licensee a

3-32 complete and current list containing the names of every person the

3-33 commission has denied a license, who has been found unsuitable or who

3-34 has had a license or finding of suitability revoked. The list must also

3-35 contain the names of any business organization under the control of any

3-36 such person known to the board.

3-37 Sec. 3. NRS 463.167 is hereby amended to read as follows:

3-38 463.167 1. The commission may determine the suitability, or may

3-43 of this chapter and with the regulations of the commission. If the

4-1 commission determines that any such person is unsuitable, it may require

4-2 the arrangement to be terminated.

4-3 2. If the premises of a licensed gaming establishment are directly or

4-4 indirectly owned or under the control of the licensee therein, or of any

4-5 person controlling, controlled by, or under common control with the

4-6 licensee, the commission may, upon recommendation of the board, require

4-7 the application of any person for a determination of suitability to be

4-8 associated with a gaming enterprise if the person:

4-9 (a) Does business on the premises of the licensed gaming establishment;

4-10 (b) Is an independent agent or does business with a licensed gaming

4-11 establishment as a ticket purveyor, a tour operator, the operator of a bus

4-12 program, or as the operator of any other type of casino travel program or

4-13 promotion; or

4-14 (c) Provides any goods or services to the licensed gaming establishment

4-15 for a compensation which the board finds to be grossly disproportionate to

4-16 the value of the goods or services.

4-17 3. If the commission determines that the person is unsuitable to be

4-18 associated with a gaming enterprise, the association must be terminated.

4-19 Any agreement which entitles a business other than gaming to be conducted

4-20 on the premises, or entitles a person other than gaming to conduct business

4-21 with the licensed gaming establishment as set forth in paragraph (b) or (c)

4-22 of subsection 2, is subject to termination upon a finding of unsuitability of

4-23 the person associated therewith. Every such agreement must be deemed to

4-24 include a provision for its termination without liability on the part of the

4-25 licensee upon a finding by the commission that the person associated

4-26 therewith is unsuitable to be associated with a gaming enterprise. Failure

4-27 expressly to include that condition in the agreement is not a defense in any

4-28 action brought pursuant to this section to terminate the agreement. If the

4-29 application is not presented to the board within 30 days following demand

4-30 or the unsuitable association is not terminated, the commission may pursue

4-31 any remedy or combination of remedies provided in this chapter.

4-32 4. The name of any person determined to be unsuitable pursuant to

4-33 this section must be included on the list required pursuant to subsection 8

4-34 of NRS 463.165.

4-35 Sec. 4. NRS 463.387 is hereby amended to read as follows:

4-36 463.387 1. State gaming license fees or taxes paid in excess of the

4-42 claim in any court of competent jurisdiction for the recovery of the whole

5-1 or any part of the amount with respect to which the claim has been

5-2 disallowed.

5-3 3. Failure to bring an action within the time specified in subsection 2

5-4 constitutes a waiver of any demand against the state on account of alleged

5-5 overpayments.

5-6 4. Within 20 days after the mailing of the notice of the commission’s

5-7 action upon a claim for refund filed pursuant to this chapter, the

5-8 claimant may file a motion for rehearing with the commission. The

5-9 commission must take action on the motion for rehearing within 50 days

5-10 after it has been filed with the commission. If the motion for rehearing is

5-11 granted, the commission’s earlier action upon the claim for refund is

5-12 rescinded and the 90-day period specified in subsection 2 does not begin

5-13 until the commission mails notice of its action upon the claim following

5-14 the rehearing.

5-15 5. If the commission fails to mail its notice of action on a claim within

5-16 6 months after the claim is filed [,] or reheard, the claimant may consider

5-17 the claim disallowed and bring an action against the commission on the

5-18 grounds set forth in the claim for the recovery of the whole or any part of

5-19 the amount claimed as an overpayment.

5-20 [5.] 6. In any case where a refund is granted, interest must be allowed

5-21 at the rate prescribed in NRS 17.130 upon the amount found to have been

5-22 erroneously paid from the first day of the first month following the date of

5-23 overpayment until paid. The commission may in its discretion deny or limit

5-24 the payment of interest if it finds that the claimant has failed to file a claim

5-25 for a refund within 90 days after receiving written notification of

5-26 overpayment from the board or has impeded the board’s ability to process

5-27 the claim in a timely manner.

5-28 [6.] 7. Notwithstanding the provisions of NRS 353.115, any claim for

5-29 refund of state gaming license fees or taxes paid in excess of the amount

5-30 required to be reported and paid, must be filed with the commission within

5-31 5 years after the date of overpayment and not thereafter.

5-32 [7.] 8. The provisions of this chapter must not be construed to permit

5-33 the proration of state gaming taxes or license fees for purposes of a refund.

5-34 Sec. 5. NRS 463.401 is hereby amended to read as follows:

5-35 463.401 1. In addition to any other license fees and taxes imposed by

5-43 gratuities directly or indirectly remitted to employees of the licensee or for

6-1 service charges , including those imposed in connection with use of credit

6-2 cards or debit cards, that are collected and retained by persons other than

6-3 the licensee are not taxable pursuant to this section.

6-4 2. A licensed gaming establishment is not subject to tax pursuant to

6-5 this section if:

6-6 (a) The establishment is licensed for less than 51 slot machines, less

6-7 than six games, or any combination of slot machines and games within

6-8 those respective limits;

6-9 (b) The entertainment is presented in a facility that would not have been

6-10 subject to taxation pursuant to 26 U.S.C. § 4231(6) as that provision

6-11 existed in 1965;

6-12 (c) The entertainment is presented in a facility that would have been

6-13 subject to taxation pursuant to 26 U.S.C. § 4231(1), (2), (3), (4) or (5) as

6-14 those provisions existed in 1965; or

6-15 (d) In other cases, if:

6-16 (1) No distilled spirits, wine or beer is served or permitted to be

6-17 consumed;

6-18 (2) Only light refreshments are served;

6-19 (3) Where space is provided for dancing, no charge is made for

6-20 dancing; and

6-21 (4) Where music is provided or permitted, the music is provided

6-22 without any charge to the owner, lessee or operator of the establishment or

6-23 to any concessionaire.

6-24 3. The tax imposed by this section does not apply to merchandise sold

6-25 outside the facility in which the entertainment is presented, unless the

6-26 purchase of the merchandise entitles the purchaser to admission to the

6-27 entertainment.

6-28 4. The tax imposed by this section must be paid by the licensee of the

6-29 establishment.

6-30 Sec. 6. NRS 463.645 is hereby amended to read as follows:

6-31 463.645 1. If any person who is required by or pursuant to this

6-43 common control with the corporation, partnership, limited partnership,

7-1 limited-liability company, business organization, holding company or

7-2 intermediary company shall not, after receipt of written notice from the

7-3 commission:

7-4 [1.] (a) Pay him any remuneration for any service relating to the

7-5 activities of a licensee, except for amounts due for services rendered before

7-6 the date of receipt of notice of such action by the commission. Any contract

7-7 or agreement for personal services or the conduct of any activity at a

7-8 licensed gaming establishment between a former employee whose

7-9 employment was terminated because of failure to apply for a license or a

7-10 finding of suitability, denial of a license or finding of suitability, or

7-11 revocation of a license or a finding of suitability, or any business enterprise

7-12 under the control of that employee and the licensee, holding or

7-13 intermediary company or registered publicly traded corporation is subject

7-14 to termination. Every such agreement shall be deemed to include a

7-15 provision for its termination without liability on the part of the licensee

7-16 upon a finding by the commission that the business or any person

7-17 associated therewith is unsuitable to be associated with a gaming enterprise.

7-18 Failure expressly to include such a condition in the agreement is not a

7-19 defense in any action brought pursuant to this section to terminate the

7-20 agreement.

7-21 [2.] (b) Enter into any contract or agreement with him or with a

7-22 business organization that the licensee knows or under the circumstances

7-23 reasonably should know is under his control which involves the operations

7-24 of a licensee, without the prior approval of the commission.

7-25 [3.] (c) Employ him in any position involving the activities of a licensee

7-26 without prior approval of the commission.

7-27 2. The name of any person who has been denied a license, been

7-28 found unsuitable or had a license or finding of suitability revoked

7-29 pursuant to subsection 1 must be included on the list required pursuant

7-30 to subsection 8 of NRS 463.165.

7-31 Sec. 7. The amendatory provisions of section 5 of this act do not apply

7-32 to any taxes levied pursuant to NRS 463.401 on any amounts paid before

7-33 the effective date of this act.

7-34 Sec. 8. This act becomes effective upon passage and approval.