(REPRINTED WITH ADOPTED AMENDMENTS)

 

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

 

March 19, 2001

____________

 

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.

 

~

 

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 issuance of the gaming tokens by a holder of a nonrestricted license under certain circumstances; 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

1-20  paid from the account, each member is entitled to receive the per diem

2-1  allowance and travel expenses provided for state officers and employees

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

2-3  engaged in the business of the committee, but only to the extent of the

2-4  balance of money in the account.

2-5    Sec. 3. 1.  If sufficient funding is provided by the advisory

2-6  committee on gaming tokens created pursuant to section 2 of this act, the

2-7  administrator of the division of museums and history of the department

2-8  of museums, library and arts, after consulting with the executive director

2-9  of the commission on tourism and the administrator of the division of

2-10  minerals of the commission on mineral resources, may contract with:

2-11    (a) A holder of a nonrestricted license issued pursuant to chapter 463

2-12  of NRS to supply gaming tokens to the holder of the nonrestricted license

2-13  pursuant to this section and sections 2 and 4 of this act; and

2-14    (b) A person who has experience in minting tokens to mint gaming

2-15  tokens for the holder of the nonrestricted license on Press No. 1 of the

2-16  Carson City Mint or at such other locations as the administrator deems

2-17  appropriate.

2-18    2.  Each contract to supply gaming tokens to the holder of a

2-19  nonrestricted license entered into pursuant to paragraph (a) of

2-20  subsection 1 must include a provision requiring the holder of the

2-21  nonrestricted license to pay the fair market value of the tokens as

2-22  determined by the administrator of the division of museums and history.

2-23  In making that determination, the administrator shall consider:

2-24    (a) The cost of producing the gaming tokens or similar gaming

2-25  tokens;

2-26    (b) The average margin of profit in the industry for producing gaming

2-27  tokens; and

2-28    (c) The value to collectors of gaming tokens minted pursuant to this

2-29  section and sections 2 and 4 of this act.

2-30    3.  The administrator of the division of museums and history may

2-31  cause the dies for the tokens to be made by contracting with an engraver

2-32  directly or may include the making of the dies in the contract for the

2-33  minting of the tokens, but the dies used to produce the tokens must

2-34  become and remain property of the State of Nevada.

2-35    4.  Each token must contain 1 ounce of fine silver. The tokens must

2-36  be minted from silver refined from ore mined in Nevada if available at

2-37  the current United States market price. If it is not so available, ore newly

2-38  mined in the United States may be used. The amount of fine silver used

2-39  must be clearly indicated on each token.

2-40    5.  Each person who enters into a contract with the administrator of

2-41  the division of museums and history pursuant to this section shall comply

2-42  with all applicable statutes and regulations relating to gaming tokens.

2-43  The administrator shall ensure that each contract entered into with the

2-44  person includes a provision that requires the person to comply with those

2-45  statutes and regulations.

2-46    Sec. 4.  1.  Each token minted pursuant to section 3 of this act must

2-47  bear on its obverse The Great Seal of the State of Nevada and on its

2-48  reverse, in an appropriate design selected by the holder of a nonrestricted

2-49  license for whom the token is minted:

3-1    (a) A designation of the face value of the token;

3-2    (b) The Carson City Mint Mark on those tokens struck at the Nevada

3-3  State Museum and an appropriate mint mark on those tokens struck at

3-4  other locations;

3-5    (c) If the token is numbered, the number of the order in which that

3-6  particular token was minted;

3-7    (d) The phrase “Contains 1 Ounce of Fine Silver”; and

3-8    (e) The year in which the token was minted.

3-9    2.  Not more than 500 numbered tokens may be minted in each

3-10  design selected pursuant to subsection 1.

3-11    3.  A holder of a nonrestricted license who purchases gaming tokens

3-12  pursuant to a contract entered into in accordance with paragraph (a) of

3-13  subsection 1 of section 3 of this act may issue those gaming tokens to the

3-14  members of the general public. The gaming tokens may be redeemed only

3-15  by the holder of the nonrestricted license.

3-16    4.  The proceeds of the sale of gaming tokens by the administrator of

3-17  the division of museums and history pursuant to section 3 of this act

3-18  must be deposited in an account in the state general fund and accounted

3-19  for separately. Interest and income earned on the money in the account

3-20  must be credited to the account and the balance in the account at the end

3-21  of the fiscal year up to $300,000 does not revert to the state general fund.

3-22  The money in the account must be used to pay the costs of making and

3-23  selling additional tokens in accordance with this section and sections 2

3-24  and 3 of this act.

3-25    Sec. 5.  This act becomes effective on July 1, 2001.

 

3-26  H