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 If an operator of an inter-casino linked system makes the inter-casino

1-4 linked system available to a nonrestricted licensee, the operator shall also

1-5 make the inter-casino linked system available to any other eligible

1-6 nonrestricted licensee on similar terms and conditions subject to the

1-7 provisions of this chapter. For purposes of this section, a nonrestricted

1-8 licensee shall be deemed to be eligible if the licensee is a Group I licensee

1-9 or a Group II licensee, as determined pursuant to the regulations of the

1-10 commission and otherwise meets the requirements of the commission

1-11 regarding locations for games that are part of an inter-casino linked

1-12 system.

1-13 Sec. 2. NRS 463.0129 is hereby amended to read as follows:

1-14 463.0129 1. The legislature hereby finds, and declares to be the

1-15 public policy of this state, that:

2-1 (a) The gaming industry is vitally important to the economy of the state

2-2 and the general welfare of the inhabitants.

2-3 (b) The continued growth and success of gaming is dependent upon

2-4 public confidence and trust that licensed gaming [is] and the manufacture,

2-5 sale and distribution of gaming devices and associated equipment are

2-6 conducted honestly and competitively, that establishments where gaming is

2-7 conducted and where gambling devices are operated do not unduly impact

2-8 the quality of life enjoyed by residents of the surrounding neighborhoods,

2-9 that the rights of the creditors of licensees are protected and that gaming is

2-10 free from criminal and corruptive elements.

2-11 (c) Public confidence and trust can only be maintained by strict

2-12 regulation of all persons, locations, practices, associations and activities

2-13 related to the operation of licensed gaming establishments , [and] the

2-14 manufacture , sale or distribution of [gambling] gaming devices and

2-15 associated equipment [.] and the operation of inter-casino linked systems.

2-16 (d) All establishments where gaming is conducted and where [gambling]

2-17 gaming devices are operated, and manufacturers, sellers and distributors of

2-18 certain [gambling] gaming devices and equipment , and operators of inter-

2-19 casino linked systems must therefore be licensed, controlled and assisted to

2-20 protect the public health, safety, morals, good order and general welfare of

2-21 the inhabitants of the state, to foster the stability and success of gaming and

2-22 to preserve the competitive economy and policies of free competition of the

2-23 State of Nevada.

2-24 (e) To ensure that gaming is conducted honestly, competitively and free

2-25 of criminal and corruptive elements, all gaming establishments in this state

2-26 must remain open to the general public and the access of the general public

2-27 to gaming activities must not be restricted in any manner except as

2-28 provided by the legislature.

2-29 2. No applicant for a license or other affirmative commission approval

2-30 has any right to a license or the granting of the approval sought. Any

2-31 license issued or other commission approval granted pursuant to the

2-32 provisions of this chapter or chapter 464 of NRS is a revocable privilege,

2-33 and no holder acquires any vested right therein or thereunder.

2-34 3. This section does not:

2-35 (a) Abrogate or abridge any common law right of a gaming

2-36 establishment to exclude any person from gaming activities or eject any

2-37 person from the premises of the establishment for any reason; or

2-38 (b) Prohibit a licensee from establishing minimum wagers for any

2-39 gambling game or slot machine.

2-40 Sec. 3. NRS 463.01805 is hereby amended to read as follows:

2-41 463.01805 "Operator of an inter-casino linked system" means a person

2-43 right to place an inter-casino linked system, engages in the business of

3-1 placing and operating an inter-casino linked system upon the premises of

3-2 two or more licensed gaming establishments . [, and who is authorized to

3-3 share in the revenue from the linked games without having been

3-4 individually licensed to conduct gaming at the establishment.]

3-5 Sec. 4. NRS 463.15993 is hereby amended to read as follows:

3-6 463.15993 1. The commission [may] shall adopt regulations

3-34 system or participation agreement.

3-35 Sec. 5. NRS 463.160 is hereby amended to read as follows:

3-36 463.160 1. Except as otherwise provided in subsection 4 and NRS

3-42 (b) To provide or maintain any information service; or

4-1 (c) To receive, directly or indirectly, any compensation or reward or any

4-2 percentage or share of the money or property played, for keeping, running

4-3 or carrying on any gambling game, slot machine, gaming device, race book

4-4 or sports pool,

4-5 without having first procured, and thereafter maintaining in effect, all

4-6 federal, state, county and municipal gaming licenses as required by statute,

4-7 regulation or ordinance or by the governing board of any unincorporated

4-8 town.

4-9 2. The licensure of an operator of an inter-casino linked system is not

4-10 required if [:

4-11 (a) A] a gaming licensee is operating an inter-casino linked system on

4-12 the premises of an affiliated licensee . [; or

4-13 (b) An operator of a slot machine route is operating an inter-casino

4-14 linked system consisting of slot machines only.]

4-15 3. Except as otherwise provided in subsection 4, it is unlawful for any

4-16 person knowingly to permit any gambling game, slot machine, gaming

4-17 device, inter-casino linked system, race book or sports pool to be

4-18 conducted, operated, dealt or carried on in any house or building or other

4-19 premises owned by him, in whole or in part, by a person who is not

4-20 licensed pursuant to this chapter, or his employee.

4-21 4. The commission may, by regulation, authorize a person to own or

4-22 lease gaming devices for the limited purpose of display or use in the

4-23 person’s private residence without procuring a state gaming license.

4-24 5. As used in this section, "affiliated licensee" has the meaning

4-25 ascribed to it in NRS 463.430.

4-26 Sec. 6. NRS 463.170 is hereby amended to read as follows:

4-27 463.170 1. Any person who the commission determines is qualified

4-43 state or to the effective regulation and control of gaming or charitable

5-1 lotteries, or create or enhance the dangers of unsuitable, unfair or illegal

5-2 practices, methods and activities in the conduct of gaming or charitable

5-3 lotteries or in the carrying on of the business and financial arrangements

5-4 incidental thereto; and

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

5-6 consistently with the declared policy of the state.

5-7 3. A license to operate a gaming establishment or an inter-casino

5-8 linked system must not be granted unless the applicant has satisfied the

5-9 commission that:

5-10 (a) [He] The applicant has adequate business probity, competence and

5-11 experience, in gaming or generally; and

5-12 (b) The proposed financing of the entire operation is:

5-13 (1) Adequate for the nature of the proposed operation; and

5-14 (2) From a suitable source.

5-15 Any lender or other source of money or credit which the commission finds

5-16 does not meet the standards set forth in subsection 2 may be deemed

5-17 unsuitable.

5-18 4. An application to receive a license or be found suitable constitutes a

5-19 request for a determination of the applicant’s general character, integrity,

5-20 and ability to participate or engage in, or be associated with gaming or the

5-21 operation of a charitable lottery, as appropriate. Any written or oral

5-22 statement made in the course of an official proceeding of the board or

5-23 commission by any member thereof or any witness testifying under oath

5-24 which is relevant to the purpose of the proceeding is absolutely privileged

5-25 and does not impose liability for defamation or constitute a ground for

5-26 recovery in any civil action.

5-27 5. The commission may in its discretion grant a license to:

5-28 (a) A publicly traded corporation which has complied with the

5-29 provisions of NRS 463.625 to 463.643, inclusive;

5-30 (b) Any other corporation which has complied with the provisions of

5-31 NRS 463.490 to 463.530, inclusive;

5-32 (c) A limited partnership which has complied with the provisions of

5-33 NRS 463.564 to 463.571, inclusive; and

5-34 (d) A limited-liability company which has complied with the provisions

5-35 of NRS 463.5731 to 463.5737, inclusive.

5-36 6. No limited partnership, except one whose sole limited partner is a

5-37 publicly traded corporation which has registered with the commission, or a

5-38 limited-liability company, or business trust or organization or other

5-39 association of a quasi-corporate character is eligible to receive or hold any

5-40 license under this chapter unless all persons having any direct or indirect

5-41 interest therein of any nature whatever, whether financial, administrative,

5-42 policymaking or supervisory, are individually qualified to be licensed under

5-43 the provisions of this chapter.

6-1 7. The commission may, by regulation:

6-2 (a) Limit the number of persons who may be financially interested and

6-3 the nature of their interest in any corporation, other than a publicly traded

6-4 corporation, limited partnership, limited-liability company or other

6-5 organization or association licensed under this chapter; and

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

6-7 discretion, deem to be in the public interest and consistent with the declared

6-8 policy of the state.

6-9 Sec. 7. NRS 463.245 is hereby amended to read as follows:

6-10 463.245 1. Except as otherwise provided in [subsection 3, all]

6-36 for games other than slot machines.

6-37 Sec. 8. NRS 463.305 is hereby amended to read as follows:

6-38 463.305 1. Any person who operates or maintains in this state any

6-42 subject to disciplinary action by the board or commission.

7-1 2. The board shall maintain a list of approved gaming devices [.] and

7-2 inter-casino linked systems.

7-3 3. The commission shall adopt regulations relating to gaming devices

7-4 and their significant modification [.] and inter-casino linked systems.

7-5 Sec. 9. NRS 463.370 is hereby amended to read as follows:

7-6 463.370 1. Except as otherwise provided in NRS 463.373, the

7-41 revenue of the licensee. Any other person , including, without limitation,

8-1 an operator of an inter-casino linked system, who is authorized to receive

8-2 a share of the revenue from any game, gaming device or inter-casino

8-3 linked system that is operated on the premises of a licensee is liable to the

8-4 licensee for [his] that person’s proportionate share of the license fees paid

8-5 by the licensee pursuant to this section [.] and shall remit or credit the full

8-6 proportionate share to the licensee on or before the 24th day of each

8-7 calendar month. A licensee is not liable to any other person authorized to

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

8-9 or inter-casino linked system that is operated on the premises of the

8-10 licensee for that person’s proportionate share of the license fees to be

8-11 remitted or credited to the licensee pursuant to this section.

8-12 5. An operator of an inter-casino linked system shall not enter into

8-13 any agreement or arrangement with a licensee that provides for the

8-14 operator of the inter-casino linked system to be liable to the licensee for

8-15 less than its full proportionate share of the license fees paid by the

8-16 licensee pursuant to this section, whether accomplished through a rebate,

8-17 refund, charge-back or otherwise.

8-18 6. Any person required to pay a fee pursuant to this section shall file

8-19 with the commission, on or before the 24th day of each calendar month, a

8-20 report showing the amount of all gross revenue received during the

8-21 preceding calendar month. Each report must be accompanied by:

8-22 (a) The fee due based on the revenue of the month covered by the

8-23 report; and

8-24 (b) An adjustment for the difference between the estimated fee

8-25 previously paid for the month covered by the report, if any, and the fee due

8-26 for the actual gross revenue earned in that month. If the adjustment is less

8-27 than zero, a credit must be applied to the estimated fee due with that report.

8-28 [6.] 7. If the amount of license fees required to be reported and paid

8-29 pursuant to this section is later determined to be greater or less than the

8-30 amount actually reported and paid, the commission shall:

8-31 (a) Charge and collect the additional license fees determined to be due,

8-32 with interest thereon until paid; or

8-33 (b) Refund any overpayment to the person entitled thereto pursuant to

8-34 this chapter, with interest thereon.

8-35 Interest must be computed at the rate prescribed in NRS 17.130 from the

8-36 first day of the first month following either the due date of the additional

8-37 license fees or the date of overpayment until paid.

8-38 [7.] 8. Failure to pay the fees provided for in this section shall be

8-39 deemed a surrender of the license at the expiration of the period for which

8-40 the estimated payment of fees has been made, as established in subsection

8-41 2.

8-42 [8.] 9. Except as otherwise provided in NRS 463.386, the amount of

8-43 the fee prescribed in subsection 1 must not be prorated.

9-1 [9.] 10. Except as otherwise provided in NRS 463.386, if a licensee

9-2 ceases operation, the commission shall:

9-3 (a) Charge and collect the additional license fees determined to be due

9-4 with interest; or

9-5 (b) Refund any overpayment, with interest thereon, to the licensee,

9-6 based upon the gross revenue of the licensee during the last 3 months

9-7 immediately preceding the cessation of operation, or portions of those last

9-8 3 months.

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

9-10 zero, the licensee may offset the loss against gross revenue in succeeding

9-11 months until the loss has been fully offset.

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

9-13 zero, the licensee is entitled to receive a credit against any license fees due

9-14 in succeeding months until the credit has been fully offset.

9-15 Sec. 10. NRS 463.375 is hereby amended to read as follows:

9-16 463.375 1. In addition to any other state gaming license fees

9-43 slot machine that is operated on the premises of a licensee for that

10-1 person’s proportionate share of the license fees to be remitted or credited

10-2 to the licensee pursuant to this section.

10-3 Sec. 11. NRS 463.385 is hereby amended to read as follows:

10-4 463.385 1. In addition to any other license fees and taxes imposed by

10-42 higher education; and

11-1 (c) The remainder of the tax in the state distributive school account in

11-2 the state general fund.

11-3 [5.] 6. There is hereby appropriated from the balance in the special

11-4 capital construction fund for higher education on July 31 of each year the

11-5 amount necessary to pay the principal and interest due in that fiscal year on

11-6 the bonds issued pursuant to section 5 of chapter 679, Statutes of Nevada

11-7 1979, as amended by chapter 585, Statutes of Nevada 1981, at page 1251,

11-8 the bonds authorized to be issued by section 2 of chapter 643, Statutes of

11-9 Nevada 1987, at page 1503, the bonds authorized to be issued by section 2

11-10 of chapter 614, Statutes of Nevada 1989, at page 1377, the bonds

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

11-12 1991 , at page 2382, and the bonds authorized to be issued by section 2 of

11-13 chapter 629, Statutes of Nevada 1997 [.] , at page 3106. If in any year the

11-14 balance in that fund is not sufficient for this purpose, the remainder

11-15 necessary is hereby appropriated on July 31 from the capital construction

11-16 fund for higher education. The balance remaining unappropriated in the

11-17 capital construction fund for higher education on August 1 of each year and

11-18 all amounts received thereafter during the fiscal year must be transferred to

11-19 the state general fund for the support of higher education. If bonds

11-20 described in this subsection are refunded and if the amount required to pay

11-21 the principal of and interest on the refunding bonds in any fiscal year

11-22 during the term of the bonds is less than the amount that would have been

11-23 required in the same fiscal year to pay the principal of and the interest on

11-24 the original bonds if they had not been refunded, there is appropriated to

11-25 the University and Community College System of Nevada an amount

11-26 sufficient to pay the principal of and interest on the original bonds, as if

11-27 they had not been refunded. The amount required to pay the principal of

11-28 and interest on the refunding bonds must be used for that purpose from the

11-29 amount appropriated. The amount equal to the saving realized in that fiscal

11-30 year from the refunding must be used by the University and Community

11-31 College System of Nevada to defray, in whole or in part, the expenses of

11-32 operation and maintenance of the facilities acquired in part with the

11-33 proceeds of the original bonds.

11-34 [6.] 7. After the requirements of subsection [5] 6 have been met for

11-35 each fiscal year, when specific projects are authorized by the legislature,

11-36 money in the capital construction fund for higher education and the special

11-37 capital construction fund for higher education must be transferred by the

11-38 state controller and the state treasurer to the state public works board for

11-39 the construction of capital improvement projects for the University and

11-40 Community College System of Nevada, including, but not limited to,

11-41 capital improvement projects for the community colleges of the University

11-42 and Community College System of Nevada. As used in this subsection,

11-43 "construction" includes, but is not limited to, planning, designing, acquiring

12-1 and developing a site, construction, reconstruction, furnishing, equipping,

12-2 replacing, repairing, rehabilitating, expanding and remodeling. Any money

12-3 remaining in either fund at the end of a fiscal year does not revert to the

12-4 state general fund but remains in those funds for authorized expenditure.

12-5 [7.] 8. The money deposited in the state distributive school account in

12-6 the state general fund under this section must be apportioned as provided in

12-7 NRS 387.030 among the several school districts of the state at the times

12-8 and in the manner provided by law.

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

12-10 money in the capital construction fund for higher education and the special

12-11 capital construction fund for higher education for the payment of interest

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

12-13 before, on or after July 1, 1979, to defray in whole or in part the costs of

12-14 any capital project authorized by the legislature.

12-15 Sec. 12. An inter-casino linked system that is being operated on the

12-16 effective date of this act may continue to be operated in accordance with

12-17 the provisions of this act until the earlier of December 31, 1999, or the date

12-18 on which the operator of the inter-casino linked system is separately

12-19 licensed and the inter-casino linked system is separately approved by the

12-20 commission pursuant to regulations adopted by the commission. No inter-

12-21 casino linked system may be operated or exposed for play after December

12-22 31, 1999, unless all licenses and approvals have been obtained by the

12-23 operator of the inter-casino linked system in accordance with the provisions

12-24 of this act and the regulations adopted by the commission pursuant thereto.

12-25 Sec. 13. This act becomes effective upon passage and approval.