Assembly Bill No. 456–Assemblymen Gustavson, Price, Angle, Beers, Berman, Carpenter, Cegavske, Gibbons, Hettrick, Humke, Mortenson and Neighbors

 

March 19, 2001

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Referred to Committee on Government Affairs

 

SUMMARY—Provides for issuance of gaming tokens by State of Nevada. (BDR 19‑506)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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

 

AN ACT relating to gaming tokens; creating an advisory committee on gaming tokens; authorizing the minting of gaming tokens of the State of Nevada; providing for the use of the gaming tokens in gaming establishments; 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.  Chapter 235 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2, 3 and 4 of this act.

1-3    Sec. 2.  1.  The governor shall appoint an advisory committee on

1-4  gaming tokens consisting of five interested persons.

1-5    2.  The committee shall advise the administrator of the division of

1-6  museums and history of the department of museums, library and arts

1-7  concerning the minting of gaming tokens of the State of Nevada.

1-8    3.  The committee may solicit and accept gifts, grants and other

1-9  contributions to pay the costs relating to minting the first issuance of the

1-10  gaming tokens and the expenses of the committee. Any such

1-11  contributions must be deposited in the account for the minting of gaming

1-12  tokens of the State of Nevada that is hereby created in the state general

1-13  fund. The account must be administered by the administrator of the

1-14  division of museums and history.

1-15    4.  The members of the committee shall serve without compensation

1-16  or reimbursement of expenses until the balance in the account for the

1-17  minting of gaming tokens is sufficient, as determined by the

1-18  administrator, to pay the expenses of the committee. Once the

1-19  administrator has determined that the expenses of the committee may be

2-1  paid from the account, each member is entitled to receive the per diem

2-2  allowance and travel expenses provided for state officers and employees

2-3  generally for each day or portion of a day in which the member is

2-4  engaged in the business of the committee, but only to the extent of the

2-5  balance of money in the account.

2-6    Sec. 3. 1.  If sufficient funding is provided by the advisory

2-7  committee on gaming tokens created pursuant to section 2 of this act, the

2-8  administrator of the division of museums and history of the department

2-9  of museums, library and arts, after consulting with the executive director

2-10  of the commission on tourism and the administrator of the division of

2-11  minerals of the commission on mineral resources, shall contract with a

2-12  person to mint gaming tokens of the State of Nevada on Press No. 1 of

2-13  the Carson City Mint and at such other locations as he deems

2-14  appropriate.

2-15    2.  The administrator of the division of museums and history may

2-16  cause the dies for the tokens to be made by contracting with an engraver

2-17  directly or may include the making of the dies in the contract for the

2-18  minting of the tokens, but the dies used to produce the tokens must

2-19  become and remain property of the State of Nevada.

2-20    3.  Each token must contain 1 ounce of fine silver. The tokens must

2-21  be minted from silver refined from ore mined in Nevada if available at

2-22  the current United States market price. If it is not so available, ore newly

2-23  mined in the United States may be used. The amount of fine silver used

2-24  must be clearly indicated on each token.

2-25    Sec. 4.  1.  Each token minted pursuant to section 3 of this act must

2-26  bear on its obverse The Great Seal of the State of Nevada and on its

2-27  reverse, in an appropriate design selected pursuant to subsection 2:

2-28    (a) The phrase “State of Nevada Gaming Token”;

2-29    (b) A designation of the $25 face value of the token;

2-30    (c) The Carson City Mint Mark on those tokens struck at the Nevada

2-31  State Museum and an appropriate mint mark on those tokens struck at

2-32  other locations;

2-33    (d) If the token is numbered, the number of the order in which that

2-34  particular token was minted;

2-35    (e) The phrase “Contains 1 Ounce of Fine Silver”; and

2-36    (f) The year in which the token was minted.

2-37    2.  A contest must be conducted to select each design. The artist must

2-38  be a resident of this state. The chief of the purchasing division of the

2-39  department of administration shall determine the rules for the contests,

2-40  including the number and the identity of the judges.

2-41    3.  Not more than 500 numbered tokens may be minted in each

2-42  design. The artist whose design is selected to appear on a token is entitled

2-43  to receive the first token of his design that is minted, as his prize for

2-44  winning the contest.

2-45    4.  The next 499 numbered tokens of each design that are minted

2-46  must be offered for sale by the administrator for at least $25 each

3-1  through a drawing that awards the numbered tokens randomly to not

3-2  more than 499 persons who have paid for the tokens before the drawing

3-3  is held.

3-4    5.  The additional unnumbered tokens must be sold for $25 each by

3-5  the administrator in such a manner as the administrator deems

3-6  appropriate. The administrator shall sell the tokens to any Nevada

3-7  gaming licensee for $23.75 per token. The administrator shall provide a

3-8  procedure whereby a gaming licensee may redeem gaming tokens. The

3-9  tokens must be redeemed for $23.75.

3-10    6.  The proceeds of the sale of the tokens must be deposited in an

3-11  account in the state general fund and accounted for separately. Interest

3-12  and income earned on the money in the account must be credited to the

3-13  account and the balance in the account at the end of the fiscal year up to

3-14  $300,000 does not revert to the state general fund. The money in the

3-15  account must be used to pay the costs of making and selling additional

3-16  tokens.

3-17    Sec. 5.  Chapter 463 of NRS is hereby amended by adding thereto a

3-18  new section to read as follows:

3-19    A nonrestricted licensee shall accept gaming tokens minted by the State

3-20  of Nevada pursuant to sections 2, 3 and 4 of this act at the face value of

3-21  $25 for all table games for which chips are accepted and may accept the

3-22  tokens for use in other gambling games if practicable.

3-23    Sec. 6.  This act becomes effective on July 1, 2001.

 

3-24  H