Assembly Bill No. 578–Committee on Judiciary

 

(On Behalf of Gaming Control Board)

 

March 26, 2001

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Revises various provisions relating to gaming. (BDR 41‑531)

 

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; revising the definition of “manufacturer” for the purposes of the Nevada Gaming Control Act; revising the computation of interest payable by the Nevada gaming commission on the overpayment of certain fees and taxes; revising provisions relating to persons who acquire a certain beneficial ownership in a publicly traded corporation registered with the commission; 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. NRS 463.0172 is hereby amended to read as follows:

1-2    463.0172  “Manufacturer” means a person who:

1-3    1.  Manufactures, assembles, programs or makes modifications to a

1-4  gaming device or cashless wagering system; or

1-5    2.  Designs, assumes responsibility for the design of, controls the

1-6  design or assembly of, or maintains a copyright over the design of , a

1-7  mechanism, electronic circuit or computer program which cannot be

1-8  reasonably demonstrated to have any application other than in a gaming

1-9  device or in a cashless wagering system, for use or play in this state or for

1-10  distribution outside of this state.

1-11    Sec. 2.  NRS 463.370 is hereby amended to read as follows:

1-12    463.370  1.  Except as otherwise provided in NRS 463.373, the

1-13  commission shall charge and collect from each licensee a license fee based

1-14  upon all the gross revenue of the licensee as follows:

1-15    (a) Three percent of all the gross revenue of the licensee which does not

1-16  exceed $50,000 per calendar month;

2-1    (b) Four percent of all the gross revenue of the licensee which exceeds

2-2  $50,000 per calendar month and does not exceed $134,000 per calendar

2-3  month; and

2-4    (c) Six and one-quarter percent of all the gross revenue of the licensee

2-5  which exceeds $134,000 per calendar month.

2-6    2.  Unless the licensee has been operating for less than a full calendar

2-7  month, the commission shall charge and collect the fee prescribed in

2-8  subsection 1, based upon the gross revenue for the preceding calendar

2-9  month, on or before the 24th day of the following month. Except for the fee

2-10  based on the first full month of operation, the fee is an estimated payment

2-11  of the license fee for the third month following the month whose gross

2-12  revenue is used as its basis.

2-13    3.  When a licensee has been operating for less than a full calendar

2-14  month, the commission shall charge and collect the fee prescribed in

2-15  subsection 1, based on the gross revenue received during that month, on or

2-16  before the 24th day of the following calendar month of operation. After the

2-17  first full calendar month of operation, the commission shall charge and

2-18  collect the fee based on the gross revenue received during that month, on or

2-19  before the 24th day of the following calendar month. The payment of the

2-20  fee due for the first full calendar month of operation must be accompanied

2-21  by the payment of a fee equal to three times the fee for the first full

2-22  calendar month. This additional amount is an estimated payment of the

2-23  license fees for the next 3 calendar months. Thereafter, each license fee

2-24  must be paid in the manner described in subsection 2. Any deposit held by

2-25  the commission on July 1, 1969, must be treated as an advance estimated

2-26  payment.

2-27    4.  All revenue received from any game or gaming device which is

2-28  operated on the premises of a licensee, regardless of whether any portion of

2-29  the revenue is shared with any other person, must be attributed to the

2-30  licensee for the purposes of this section and counted as part of the gross

2-31  revenue of the licensee. Any other person, including, without limitation, an

2-32  operator of an inter-casino linked system, who is authorized to receive a

2-33  share of the revenue from any game, gaming device or inter-casino linked

2-34  system that is operated on the premises of a licensee is liable to the licensee

2-35  for that person’s proportionate share of the license fees paid by the licensee

2-36  pursuant to this section and shall remit or credit the full proportionate share

2-37  to the licensee on or before the 24th day of each calendar month. The

2-38  proportionate share of an operator of an inter-casino linked system must be

2-39  based on all compensation and other consideration received by the operator

2-40  of the inter-casino linked system, including, without limitation, amounts

2-41  that accrue to the meter of the primary progressive jackpot of the inter-

2-42  casino linked system and amounts that fund the reserves of such a jackpot,

2-43  subject to all appropriate adjustments for deductions, credits, offsets and

2-44  exclusions that the licensee is entitled to take or receive pursuant to the

2-45  provisions of this chapter. A licensee is not liable to any other person

2-46  authorized to receive a share of the licensee’s revenue from any game,

2-47  gaming device or inter-casino linked system that is operated on the

2-48  premises of the licensee for that person’s proportionate share of the license

3-1  fees to be remitted or credited to the licensee by that person pursuant to this

3-2  section.

3-3    5.  An operator of an inter-casino linked system shall not enter into any

3-4  agreement or arrangement with a licensee that provides for the operator of

3-5  the inter-casino linked system to be liable to the licensee for less than its

3-6  full proportionate share of the license fees paid by the licensee pursuant to

3-7  this section, whether accomplished through a rebate, refund, charge-back

3-8  or otherwise.

3-9    6.  Any person required to pay a fee pursuant to this section shall file

3-10  with the commission, on or before the 24th day of each calendar month, a

3-11  report showing the amount of all gross revenue received during the

3-12  preceding calendar month. Each report must be accompanied by:

3-13    (a) The fee due based on the revenue of the month covered by the

3-14  report; and

3-15    (b) An adjustment for the difference between the estimated fee

3-16  previously paid for the month covered by the report, if any, and the fee due

3-17  for the actual gross revenue earned in that month. If the adjustment is less

3-18  than zero, a credit must be applied to the estimated fee due with that report.

3-19    7.  If the amount of license fees required to be reported and paid

3-20  pursuant to this section is later determined to be greater or less than the

3-21  amount actually reported and paid, the commission shall:

3-22    (a) Charge and collect the additional license fees determined to be due,

3-23  with interest thereon until paid; or

3-24    (b) Refund any overpayment to the person entitled thereto pursuant to

3-25  this chapter, with interest thereon.

3-26  Interest pursuant to paragraph (a) must be computed at the rate prescribed

3-27  in NRS 17.130 from the first day of the first month following [either] the

3-28  due date of the additional license fees [or the date of overpayment] until

3-29  paid. Interest pursuant to paragraph (b) must be computed at one-half

3-30  the rate prescribed in NRS 17.130 from the first day of the first month

3-31  following the date of overpayment until paid.

3-32    8.  Failure to pay the fees provided for in this section shall be deemed a

3-33  surrender of the license at the expiration of the period for which the

3-34  estimated payment of fees has been made, as established in subsection 2.

3-35    9.  Except as otherwise provided in NRS 463.386, the amount of the

3-36  fee prescribed in subsection 1 must not be prorated.

3-37    10.  Except as otherwise provided in NRS 463.386, if a licensee ceases

3-38  operation, the commission shall:

3-39    (a) Charge and collect the additional license fees determined to be due

3-40  with interest[;] computed pursuant to paragraph (a) of subsection 7; or

3-41    (b) Refund any overpayment[, with interest thereon,] to the licensee[,]

3-42  with interest computed pursuant to paragraph (b) of subsection 7,

3-43  based upon the gross revenue of the licensee during the last 3 months

3-44  immediately preceding the cessation of operation, or portions of those last

3-45  3 months.

3-46    11.  If in any month, the amount of gross revenue is less than zero, the

3-47  licensee may offset the loss against gross revenue in succeeding months

3-48  until the loss has been fully offset.

4-1    12.  If in any month, the amount of the license fee due is less than zero,

4-2  the licensee is entitled to receive a credit against any license fees due in

4-3  succeeding months until the credit has been fully offset.

4-4    Sec. 3.  NRS 463.387 is hereby amended to read as follows:

4-5    463.387  1.  State gaming license fees or taxes paid in excess of the

4-6  amount required to be reported and paid may be refunded, upon the

4-7  approval of the commission, as other claims against the state are paid.

4-8    2.  Within 90 days after the mailing of the notice of the commission’s

4-9  action upon a claim for refund filed pursuant to this chapter, the claimant

4-10  may bring an action against the commission on the grounds set forth in the

4-11  claim in any court of competent jurisdiction for the recovery of the whole

4-12  or any part of the amount with respect to which the claim has been

4-13  disallowed.

4-14    3.  Failure to bring an action within the time specified in subsection 2

4-15  constitutes a waiver of any demand against the state on account of alleged

4-16  overpayments.

4-17    4.  Within 20 days after the mailing of the notice of the commission’s

4-18  action upon a claim for refund filed pursuant to this chapter, the claimant

4-19  may file a motion for rehearing with the commission. The commission

4-20  must take action on the motion for rehearing within 50 days after it has

4-21  been filed with the commission. If the motion for rehearing is granted, the

4-22  commission’s earlier action upon the claim for refund is rescinded and the

4-23  90-day period specified in subsection 2 does not begin until the

4-24  commission mails notice of its action upon the claim following the

4-25  rehearing.

4-26    5.  If the commission fails to mail its notice of action on a claim within

4-27  6 months after the claim is filed or reheard, the claimant may consider the

4-28  claim disallowed and bring an action against the commission on the

4-29  grounds set forth in the claim for the recovery of the whole or any part of

4-30  the amount claimed as an overpayment.

4-31    6.  In any case where a refund is granted, interest must be allowed at

4-32  one-half the rate prescribed in NRS 17.130 upon the amount found to have

4-33  been erroneously paid from the first day of the first month following the

4-34  date of overpayment until paid. The commission may in its discretion deny

4-35  or limit the payment of interest if it finds that the claimant has failed to file

4-36  a claim for a refund within 90 days after receiving written notification of

4-37  overpayment from the board or has impeded the board’s ability to process

4-38  the claim in a timely manner.

4-39    7.  Notwithstanding the provisions of NRS 353.115, any claim for

4-40  refund of state gaming license fees or taxes paid in excess of the amount

4-41  required to be reported and paid[,] must be filed with the commission

4-42  within 5 years after the date of overpayment and not thereafter.

4-43    8.  The provisions of this chapter must not be construed to permit the

4-44  proration of state gaming taxes or license fees for purposes of a refund.

4-45    Sec. 4.  NRS 463.403 is hereby amended to read as follows:

4-46    463.403  1.  Every person required to pay the tax imposed by NRS

4-47  463.401 shall file with the commission, on or before the 24th day of each

4-48  month, a report showing the amount of all taxable receipts for the

4-49  preceding month.

5-1    2.  Each report must be accompanied by the amount of tax which is due

5-2  for the month covered by the report.

5-3    3.  If the amount of tax required to be reported and paid pursuant to

5-4  NRS 463.401 is later determined to be greater or less than the amount

5-5  actually reported and paid, the commission shall:

5-6    (a) Charge and collect the additional tax determined to be due, with

5-7  interest thereon until paid; or

5-8    (b) Refund any overpayment to the person entitled thereto pursuant to

5-9  this chapter, with interest thereon.

5-10  Interest [is] pursuant to paragraph (a) must be computed at the rate

5-11  prescribed in NRS 17.130 from the first day of the first month following

5-12  [either] the due date of the additional tax [or the date of overpayment] until

5-13  paid. Interest pursuant to paragraph (b) must be computed at one-half

5-14  the rate prescribed in NRS 17.130 from the first day of the first month

5-15  following the date of overpayment until paid.

5-16    Sec. 5.  NRS 463.450 is hereby amended to read as follows:

5-17    463.450  1.  Any disseminator of such information obtaining a license

5-18  under NRS 463.430 to 463.480, inclusive, shall pay to the commission a

5-19  fee of 4.25 percent of the total fees collected from users each calendar

5-20  month for the dissemination of live broadcasts.

5-21    2.  The commission shall collect the fee on or before the last day of

5-22  each calendar month for the preceding calendar month.

5-23    3.  If the amount of the fee required by this section to be reported and

5-24  paid is determined to be different than the amount reported or paid by the

5-25  licensee, the commission shall:

5-26    (a) Charge and collect any additional fee determined to be due, with

5-27  interest thereon until paid; or

5-28    (b) Refund any overpaid fees to the person entitled thereto pursuant to

5-29  this chapter, with interest thereon.

5-30  Interest [is] pursuant to paragraph (a) must be computed at the rate

5-31  prescribed in NRS 17.130 from the first day of the first calendar month

5-32  following [either] the due date of the additional license fees [or the date of

5-33  overpayment] until paid. Interest pursuant to paragraph (b) must be

5-34  computed at one-half the rate prescribed in NRS 17.130 from the first

5-35  day of the first month following the date of overpayment until paid.

5-36    4.  The commission shall remit all fees collected, less any fees refunded

5-37  pursuant to subsection 3, to the state treasurer for deposit to the credit of

5-38  the state general fund.

5-39    Sec. 6.  NRS 463.643 is hereby amended to read as follows:

5-40    463.643  1.  Each person who acquires, directly or indirectly,

5-41  beneficial ownership of any voting security in a publicly traded corporation

5-42  which is registered with the commission may be required to be found

5-43  suitable if the commission has reason to believe that his acquisition of

5-44  [such] that ownership would otherwise be inconsistent with the declared

5-45  policy of this state.

5-46    2.  Each person who acquires, directly or indirectly, beneficial

5-47  ownership of any debt security in a publicly traded corporation which is

5-48  registered with the commission may be required to be found suitable if the

5-49  commission has reason to believe that his acquisition of [such] the debt

6-1  security would otherwise be inconsistent with the declared policy of this

6-2  state.

6-3    3.  Each person who, individually or in association with others,

6-4  acquires, directly or indirectly, beneficial ownership of more than 5 percent

6-5  of any class of voting securities of a publicly traded corporation registered

6-6  with the Nevada gaming commission, and who is required to report, or

6-7  voluntarily reports, [such] the acquisition to the Securities and Exchange

6-8  Commission pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities

6-9  Exchange Act of 1934, as amended , [(]15 U.S.C. §§ 78m(d)(1), 78m(g)

6-10  and 78p(a), respectively , [),] shall file a copy of that report, and any

6-11  amendments thereto, with the Nevada gaming commission within 10 days

6-12  after filing that report with the Securities and Exchange Commission.

6-13    4.  Each person who, individually or in association with others,

6-14  acquires, directly or indirectly, the beneficial ownership of more than 10

6-15  percent of any class of voting securities of a publicly traded corporation

6-16  registered with the commission, [and] or who is required to report, or

6-17  voluntarily reports, the acquisition pursuant to section 13(d)(1), 13(g) or

6-18  16(a) of the Securities Exchange Act of 1934, as amended , [(]15 U.S.C.

6-19  §§ 78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall apply to the

6-20  commission for a finding of suitability within 30 days after the chairman of

6-21  the board mails the written notice.

6-22    5.  A person who acquires beneficial ownership of any voting security

6-23  or debt security in a publicly traded corporation created under the laws of a

6-24  foreign country which is registered with the commission shall file such

6-25  reports and is subject to such a finding of suitability as the commission

6-26  may prescribe.

6-27    6.  Any person required by the commission or by this section to be

6-28  found suitable shall:

6-29    (a) Except as otherwise required in subsection 4, apply for a finding of

6-30  suitability within 30 days after the commission requests that he do so; and

6-31    (b) Together with the application, deposit with the board a sum of

6-32  money which, in the opinion of the board, will be adequate to pay the

6-33  anticipated costs and charges incurred in the investigation and processing

6-34  of the application, and deposit such additional sums as are required by the

6-35  board to pay final costs and charges.

6-36    7.  Any person required by the commission or this section to be found

6-37  suitable who is found unsuitable by the commission shall not hold directly

6-38  or indirectly the beneficial ownership of any voting security or debt

6-39  security of a publicly traded corporation which is registered with the

6-40  commission beyond the time prescribed by the commission.

6-41    8.  The violation of subsection 6 or 7 is a gross misdemeanor.

6-42    9.  As used in this section, “debt security” means any instrument

6-43  generally recognized as a corporate security representing money owed and

6-44  reflected as debt on the financial statement of a publicly traded corporation,

6-45  including, but not limited to, bonds, notes and debentures.

6-46    Sec. 7.  This act becomes effective on July 1, 2001.

 

6-47  H