2001 REGULAR SESSION (71st) A AB578 R1 621
Adoption of this amendment will MAINTAIN a 2/3s majority vote requirement for final passage of AB578 R1 (§§ 3, 5, 6, 8, 9).
ASSEMBLY ACTION Initial and Date |SENATE ACTION Initial and Date
Adopted Lost | Adopted Lost
Concurred In Not |Concurred In Not
Receded Not | Receded Not
Amend the bill as a whole by deleting sections 1 through 15 and adding new sections designated sections 1 through 25, following the enacting clause, to read as follows:
“Section 1. Chapter 463 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 9, inclusive, of this act.
Sec. 2. 1. “Interactive gaming” means the conduct of gambling games through the use of communications technology that allows a person outside or within an establishment, utilizing money, checks, electronic checks, electronic transfers of money, credit cards, debit cards or any other instrumentality, to transmit to a computer within the establishment information to assist in the placing of a bet or wager and corresponding information related to the display of the game, game outcomes or other similar information.
2. As used in this section, “communications technology” means any method used and the components employed by an establishment to facilitate the transmission of information, including, without limitation, transmission and reception by systems based on wire, cable, radio, microwave, light, optics or computer data networks, including, without limitation, the Internet and intranets.
Sec. 3. 1. Except as otherwise provided in subsections 2 and 3, the commission may, with the advice and assistance of the board, adopt regulations governing the licensing and operation of interactive gaming.
2. The commission may not adopt regulations governing the licensing and operation of interactive gaming until the commission first determines that:
(a) Interactive gaming can be operated in compliance with all applicable laws;
(b) Interactive gaming systems are secure and reliable, and provide reasonable assurance that players will be of lawful age and communicating only from jurisdictions where it is lawful to make such communications; and
(c) Adoption of such regulations is consistent with the public policy of the state to foster the stability and success of gaming.
3. The regulations adopted by the commission pursuant to this section must:
(a) Establish the investigation fees for:
(1) A license to operate interactive gaming; and
(2) A license for a manufacturer of interactive gaming components.
(b) Provide that:
(1) A person must hold a license for a manufacturer of interactive gaming components to supply or provide any component part of an interactive gaming system, including, without limitation, any piece of proprietary software or hardware; and
(2) A manufacturer of interactive gaming components must be specifically licensed as a manufacturer of a gaming device for interactive gaming, manufacturer of equipment associated with a gaming device for interactive gaming or manufacturer of peripheral equipment related to a gaming device for interactive gaming.
(c) Set forth standards for the suitability of a person to be licensed as a manufacturer of interactive gaming components that are as stringent as the standards for a nonrestricted license.
(d) Provide that gross revenue received by an establishment from the operation of interactive gaming is subject to the same license fee provisions of NRS 463.370 as the games and gaming devices of the establishment.
(e) Define “interactive gaming system,” “manufacturer of a gaming device for interactive gaming,” “manufacturer of equipment associated with a gaming device for interactive gaming,” “manufacturer of interactive gaming components,” “manufacturer of peripheral equipment related to a gaming device for interactive gaming” and “operate interactive gaming” as the terms are used in this chapter.
4. The commission shall not approve a license for an establishment to operate interactive gaming unless:
(a) In a county whose population is 400,000 or more, the establishment is a resort hotel.
(b) In a county whose population is more than 100,000 but less than 400,000, the establishment is a resort hotel or the establishment:
(1) Holds a nonrestricted license for the operation of games and gaming devices;
(2) Has more than 120 rooms available for sleeping accommodations in the same county;
(3) Has at least one bar with permanent seating capacity for more than 30 patrons that serves alcoholic beverages sold by the drink for consumption on the premises;
(4) Has at least one restaurant with permanent seating capacity for more than 60 patrons that is open to the public 24 hours each day and 7 days each week; and
(5) Has a gaming area that is at least 18,000 square feet in area with at least 1,600 slot machines, 40 table games, and a sports book and race pool.
(c) In all other counties, the establishment is a resort hotel or the establishment:
(1) Has held a nonrestricted license for the operation of games and gaming devices for at least 10 years before the date of its application for a license to operate interactive gaming;
(2) Meets the definition of group 1 licensee as set forth in the regulations of the board on the date of its application for a license to operate interactive gaming; and
(3) Operates either:
(I) More than 100 rooms for sleeping accommodations in connection therewith; or
(II) More than 135 gaming devices in connection therewith.
5. It is unlawful for any person, either as owner, lessee or employee, whether for hire or not, either solely or in conjunction with others, to operate interactive gaming:
(a) Until the commission adopts regulations pursuant to this section; and
(b) Unless the person first procures, and thereafter maintains in effect, all appropriate licenses as required by the regulations adopted by the commission pursuant to this section.
6. A person who violates subsection 5 is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years or by a fine of not more than $50,000, or both.
Sec. 4. A debt incurred by a patron for play at an interactive gaming system of an establishment licensed to operate interactive gaming is valid and may be enforced by legal process.
Sec. 5. 1. An application for a license for an establishment to operate interactive gaming or for a manufacturer of a gaming device for interactive gaming, manufacturer of equipment associated with a gaming device for interactive gaming or manufacturer of peripheral equipment related to a gaming device for interactive gaming:
(a) Must be accompanied by a nonrefundable application fee in the amount set forth in subsection 2 when the application is filed with the board.
(b) May be filed with the board, on a form approved by the board:
(1) Not later than 90 days after July 1, 2001; or
(2) Not earlier than 181 days after the commission issues the first license for an establishment to operate interactive gaming pursuant to this chapter.
2. The nonrefundable application fees for the licenses described in subsection 1 are:
(a) For a license for an establishment to operate interactive gaming, $100,000.
(b) For a license for a manufacturer of a gaming device for interactive gaming, $50,000.
(c) For a license for a manufacturer of equipment associated with a gaming device for interactive gaming, $25,000.
(d) For a license for a manufacturer of peripheral equipment related to a gaming device for interactive gaming, $10,000.
3. The board shall not accept an application for a license described in subsection 1 filed on any date other than a date described in paragraph (b) of subsection 1.
Sec. 6. 1. Before issuing a license for an establishment to operate interactive gaming, the commission shall charge and collect from the establishment a license fee of $500,000.
2. Each license for an establishment to operate interactive gaming must be issued for a 2-year period beginning on January 1 of the first year and ending on December 31 of the second year.
3. Notwithstanding the provisions of subsections 1 and 2 to the contrary, a license for an establishment to operate interactive gaming may be issued after January 1 of a calendar year for a period beginning on the date of issuance of the license and ending on the second December 31 following the date of issuance of the license. Before issuing a license pursuant to this subsection, the commission shall charge and collect from the establishment a license fee of $500,000 prorated by 1/24 for each full month between January 1 of the calendar year and the date of issuance of the license.
4. Before renewing a license issued pursuant to this section, but in no case later than the second December 31 after the license was issued or previously renewed, the commission shall charge and collect a renewal fee of $250,000 for the renewal of the license for the immediately following 1-year period.
Sec. 7. The operation of interactive gaming is exempt from the fees and taxes imposed pursuant to NRS 463.375, 463.380, 463.383 and 463.385.
Sec. 8. 1. Before issuing a license for a manufacturer of a gaming device for interactive gaming, manufacturer of equipment associated with a gaming device for interactive gaming or manufacturer of peripheral equipment related to a gaming device for interactive gaming, the commission shall charge and collect a license fee of:
(a) Two hundred and fifty thousand dollars for a license for a manufacturer of a gaming device for interactive gaming;
(b) One hundred thousand dollars for a license for a manufacturer of equipment associated with a gaming device for interactive gaming; or
(c) Fifty thousand dollars for a license for a manufacturer of peripheral equipment related to a gaming device for interactive gaming.
2. Each license issued pursuant to this section must be issued for a 1-year period that begins on the date the license is issued.
3. Before renewing a license issued pursuant to this section, but in no case later than 1 year after the license was issued or previously renewed, the commission shall charge and collect a renewal fee for the renewal of the license for the immediately following 1-year period. The renewal fee for a license for a:
(a) Manufacturer of a gaming device for interactive gaming is an amount equal to the greater of:
(1) Fifty thousand dollars; or
(2) Fifty thousand dollars multiplied by the number of establishments licensed to operate interactive gaming that, on the date of renewal, have an agreement with the manufacturer of a gaming device for interactive gaming to share the revenue from an interactive gaming system.
(b) Manufacturer of equipment associated with a gaming device for interactive gaming is $50,000.
(c) Manufacturer of peripheral equipment related to a gaming device for interactive gaming is $25,000.
Sec. 9. 1. In addition to the fees set forth in section 8 of this act, a licensed manufacturer of a gaming device for interactive gaming shall pay a monthly license fee pursuant to this section for each agreement to share the revenue from an interactive gaming system into which the manufacturer of a gaming device for interactive gaming has entered with an establishment licensed to operate interactive gaming.
2. Each establishment licensed to operate interactive gaming with which the manufacturer of a gaming device for interactive gaming has an agreement to share the revenue from an interactive gaming system shall transmit the license fee required by subsection 1 on behalf of the manufacturer of a gaming device for interactive gaming based upon the amount of revenue to which the manufacturer of a gaming device for interactive gaming is entitled pursuant to the agreement, which must be 6.25 percent of the revenue from the previous calendar month.
3. For the purposes of subsection 2, the amount of revenue to which the manufacturer of a gaming device for interactive gaming is entitled pursuant to an agreement to share the revenue from an interactive gaming system:
(a) Includes all revenue of the manufacturer of a gaming device for interactive gaming that is his share of the revenue from the interactive gaming system pursuant to the agreement; and
(b) Does not include revenue that is the fixed purchase price for the sale of a component of the interactive gaming system.
4. Each establishment licensed to operate interactive gaming described in subsection 2 shall:
(a) Withhold the amount necessary to pay the license fee from the share due the manufacturer of a gaming device for interactive gaming pursuant to the agreement; and
(b) Transmit the license fee on behalf of the manufacturer of a gaming device for interactive gaming on the same date and in the same manner as the establishment pays license fees pursuant to NRS 463.370.
5. Revenue upon which a license fee is paid pursuant to this section is not subject to the provisions of NRS 463.370.
Sec. 10. NRS 463.013 is hereby amended to read as follows:
463.013 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 463.0133 to 463.0197, inclusive, and section 2 of this act, have the meanings ascribed to them in those sections.
Sec. 11. NRS 463.0161 is hereby amended to read as follows:
463.0161 1. “Gross revenue” means the total of all:
(a) Cash received as winnings;
(b) Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and
(c) Compensation received for conducting any game in which the licensee is not party to a wager,
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less the total of all cash paid out as losses to patrons,
those amounts paid to fund periodic payments and any other items made
deductible as losses by NRS 463.3715. For the purposes of this section, cash or
the value of noncash prizes awarded to patrons in a contest or tournament are
not losses, except that losses in a contest or tournament conducted in
conjunction with an inter-casino linked system may be deducted to the extent of
the compensation received for the right to participate in that contest or
tournament.
2. The term does not include:
(a) Counterfeit facsimiles of money, chips, tokens, wagering instruments or wagering credits;
(b) Coins of other countries which are received in gaming devices;
(c) Any portion of the face value of any chip, token or other representative of value won by a licensee from a patron for which the licensee can demonstrate that it or its affiliate has not received cash;
(d) Cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed;
(e) Cash received as entry fees for contests or tournaments in which patrons compete for prizes, except for a contest or tournament conducted in conjunction with an inter-casino linked system;
(f) Uncollected baccarat commissions; [or]
(g) Cash provided by the licensee to a patron and subsequently won by the licensee, for which the licensee can demonstrate that it or its affiliate has not been reimbursed [.] ; or
(h) Revenue from an interactive gaming system to which a manufacturer of a gaming device for interactive gaming is entitled pursuant to an agreement to share revenue between the manufacturer of a gaming device for interactive gaming and the licensee.
3. As used in this section, “baccarat commission” means:
(a) A fee assessed by a licensee on cash paid out as a loss to a patron at baccarat to modify the odds of the game; or
(b) A rate or fee charged by a licensee for the right to participate in a baccarat game.
Sec. 12. NRS 463.0172 is hereby amended to read as follows:
463.0172 “Manufacturer” means a person who:
1. Manufactures, assembles, programs or makes modifications to a gaming device , [or] cashless wagering system[;] or interactive gaming system; or
2. Designs, assumes responsibility for the design of, controls the design or assembly of, or maintains a copyright over the design of , a mechanism, electronic circuit or computer program which cannot be reasonably demonstrated to have any application other than in a gaming device , [or in a] cashless wagering system[,] or interactive gaming system for use or play in this state or for distribution outside of this state.
Sec. 13. NRS 463.3557 is hereby amended to read as follows:
463.3557 [An]
1. Except as otherwise provided in subsection 2, an electronic transfer of money from a financial institution directly to a game or gaming device may not be made with a credit card.
2. The provisions of subsection 1 do not apply to an interactive gaming system.
Sec. 14. NRS 463.361 is hereby amended to read as follows:
463.361 1. Except as otherwise provided in section 4 of this act and NRS 463.361 to 463.366, inclusive, gaming debts that are not evidenced by a credit instrument are void and unenforceable and do not give rise to any administrative or civil cause of action.
2. A claim by a patron of a licensee for payment of a gaming debt that is not evidenced by a credit instrument may be resolved in accordance with NRS 463.362 to 463.366, inclusive:
(a) By the board; or
(b) If the claim is for less than $500, by a hearing examiner designated by the board.
Sec. 15. NRS 463.370 is hereby amended to read as follows:
463.370 1. Except as otherwise provided in NRS 463.373, the commission shall charge and collect from each licensee a license fee based upon all the gross revenue of the licensee as follows:
(a) Three percent of all the gross revenue of the licensee which does not exceed $50,000 per calendar month;
(b) Four percent of all the gross revenue of the licensee which exceeds $50,000 per calendar month and does not exceed $134,000 per calendar month; and
(c) Six and one-quarter percent of all the gross revenue of the licensee which exceeds $134,000 per calendar month.
2. Unless the licensee has been operating for less than a full calendar month, the commission shall charge and collect the fee prescribed in subsection 1, based upon the gross revenue for the preceding calendar month, on or before the 24th day of the following month. Except for the fee based on the first full month of operation, the fee is an estimated payment of the license fee for the third month following the month whose gross revenue is used as its basis.
3. When a licensee has been operating for less than a full calendar month, the commission shall charge and collect the fee prescribed in subsection 1, based on the gross revenue received during that month, on or before the 24th day of the following calendar month of operation. After the first full calendar month of operation, the commission shall charge and collect the fee based on the gross revenue received during that month, on or before the 24th day of the following calendar month. The payment of the fee due for the first full calendar month of operation must be accompanied by the payment of a fee equal to three times the fee for the first full calendar month. This additional amount is an estimated payment of the license fees for the next 3 calendar months. Thereafter, each license fee must be paid in the manner described in subsection 2. Any deposit held by the commission on July 1, 1969, must be treated as an advance estimated payment.
4. All revenue received from any game or gaming device which is operated on the premises of a licensee, regardless of whether any portion of the revenue is shared with any other person, must be attributed to the licensee for the purposes of this section and counted as part of the gross revenue of the licensee. Any other person, including, without limitation, an operator of an inter-casino linked system, who is authorized to receive a share of the revenue from any game, gaming device or inter-casino linked system that is operated on the premises of a licensee is liable to the licensee for that person’s proportionate share of the license fees paid by the licensee pursuant to this section and shall remit or credit the full proportionate share to the licensee on or before the 24th day of each calendar month. The proportionate share of an operator of an inter-casino linked system must be based on all compensation and other consideration received by the operator of the inter-casino linked system, including, without limitation, amounts that accrue to the meter of the primary progressive jackpot of the inter-casino linked system and amounts that fund the reserves of such a jackpot, subject to all appropriate adjustments for deductions, credits, offsets and exclusions that the licensee is entitled to take or receive pursuant to the provisions of this chapter. A licensee is not liable to any other person authorized to receive a share of the licensee’s revenue from any game, gaming device or inter-casino linked system that is operated on the premises of the licensee for that person’s proportionate share of the license fees to be remitted or credited to the licensee by that person pursuant to this section.
5. An operator of an inter-casino linked system shall not enter into any agreement or arrangement with a licensee that provides for the operator of the inter-casino linked system to be liable to the licensee for less than its full proportionate share of the license fees paid by the licensee pursuant to this section, whether accomplished through a rebate, refund, charge-back or otherwise.
6. Any person required to pay a fee pursuant to this section shall file with the commission, on or before the 24th day of each calendar month, a report showing the amount of all gross revenue received during the preceding calendar month. Each report must be accompanied by:
(a) The fee due based on the revenue of the month covered by the report; and
(b) An adjustment for the difference between the estimated fee previously paid for the month covered by the report, if any, and the fee due for the actual gross revenue earned in that month. If the adjustment is less than zero, a credit must be applied to the estimated fee due with that report.
7. If the amount of license fees required to be reported and paid pursuant to this section is later determined to be greater or less than the amount actually reported and paid, the commission shall:
(a) Charge and collect the additional license fees determined to be due, with interest thereon until paid; or
(b) Refund any overpayment to the person entitled thereto pursuant to this chapter, with interest thereon.
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Interest pursuant
to paragraph (a) must be computed at the rate prescribed in NRS
17.130 from the first day of the first month following [either]
the due date of the additional license fees [or the date of overpayment] until paid. Interest pursuant to paragraph (b) must be computed at
one-half the rate prescribed in NRS 17.130 from the first day of the first
month following the date of overpayment until paid.
8. Failure to pay the fees provided for in this section shall be deemed a surrender of the license at the expiration of the period for which the estimated payment of fees has been made, as established in subsection 2.
9. Except as otherwise provided in NRS 463.386, the amount of the fee prescribed in subsection 1 must not be prorated.
10. Except as otherwise provided in NRS 463.386, if a licensee ceases operation, the commission shall:
(a) Charge and collect the additional license fees determined to be due with interest[;] computed pursuant to paragraph (a) of subsection 7; or
(b) Refund any overpayment[, with interest thereon,] to the licensee[,] with interest computed pursuant to paragraph (b) of subsection 7,
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based upon the gross revenue of the licensee during the last 3
months immediately preceding the cessation of operation, or portions of those
last 3 months.
11. If in any month, the amount of gross revenue is less than zero, the licensee may offset the loss against gross revenue in succeeding months until the loss has been fully offset.
12. If in any month, the amount of the license fee due is less than zero, the licensee is entitled to receive a credit against any license fees due in succeeding months until the credit has been fully offset.
Sec. 16. NRS 463.387 is hereby amended to read as follows:
463.387 1. State gaming license fees or taxes paid in excess of the amount required to be reported and paid may be refunded, upon the approval of the commission, as other claims against the state are paid.
2. Within 90 days after the mailing of the notice of the commission’s action upon a claim for refund filed pursuant to this chapter, the claimant may bring an action against the commission on the grounds set forth in the claim in any court of competent jurisdiction for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.
3. Failure to bring an action within the time specified in subsection 2 constitutes a waiver of any demand against the state on account of alleged overpayments.
4. Within 20 days after the mailing of the notice of the commission’s action upon a claim for refund filed pursuant to this chapter, the claimant may file a motion for rehearing with the commission. The commission must take action on the motion for rehearing within 50 days after it has been filed with the commission. If the motion for rehearing is granted, the commission’s earlier action upon the claim for refund is rescinded and the 90-day period specified in subsection 2 does not begin until the commission mails notice of its action upon the claim following the rehearing.
5. If the commission fails to mail its notice of action on a claim within 6 months after the claim is filed or reheard, the claimant may consider the claim disallowed and bring an action against the commission on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.
6. In any case where a refund is granted, interest must be allowed at one-half the rate prescribed in NRS 17.130 upon the amount found to have been erroneously paid from the first day of the first month following the date of overpayment until paid. The commission may in its discretion deny or limit the payment of interest if it finds that the claimant has failed to file a claim for a refund within 90 days after receiving written notification of overpayment from the board or has impeded the board’s ability to process the claim in a timely manner.
7. Notwithstanding the provisions of NRS 353.115, any claim for refund of state gaming license fees or taxes paid in excess of the amount required to be reported and paid[,] must be filed with the commission within 5 years after the date of overpayment and not thereafter.
8. The provisions of this chapter must not be construed to permit the proration of state gaming taxes or license fees for purposes of a refund.
Sec. 17. NRS 463.400 is hereby amended to read as follows:
463.400 Any person who willfully fails to report, pay or truthfully account for and pay over the license fees imposed by NRS 463.370, 463.373 to 463.3855, inclusive, and sections 6 to 9, inclusive, of this act, 463.390 and 463.450, or willfully attempts in any manner to evade or defeat any such tax or payment thereof, or any licensee who puts additional games into play without authority of the commission to do so or any licensee who fails to remit any license fee provided for by this chapter when due is in addition to the amount due liable for a penalty of the amount of the license fee evaded or not paid, collected or paid over. The penalty must be assessed and collected in the same manner as are other charges, license fees and penalties under this chapter.
Sec. 18. NRS 463.403 is hereby amended to read as follows:
463.403 1. Every person required to pay the tax imposed by NRS 463.401 shall file with the commission, on or before the 24th day of each month, a report showing the amount of all taxable receipts for the preceding month.
2. Each report must be accompanied by the amount of tax which is due for the month covered by the report.
3. If the amount of tax required to be reported and paid pursuant to NRS 463.401 is later determined to be greater or less than the amount actually reported and paid, the commission shall:
(a) Charge and collect the additional tax determined to be due, with interest thereon until paid; or
(b) Refund any overpayment to the person entitled thereto pursuant to this chapter, with interest thereon.
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Interest [is] pursuant to paragraph (a) must be computed at
the rate prescribed in NRS 17.130 from the first day of the first month
following [either] the due date of the
additional tax [or the date of
overpayment] until
paid. Interest pursuant to
paragraph (b) must be computed at one-half the rate prescribed in NRS 17.130
from the first day of the first month following the date of overpayment until
paid.
Sec. 19. NRS 463.450 is hereby amended to read as follows:
463.450 1. Any disseminator of such information obtaining a license under NRS 463.430 to 463.480, inclusive, shall pay to the commission a fee of 4.25 percent of the total fees collected from users each calendar month for the dissemination of live broadcasts.
2. The commission shall collect the fee on or before the last day of each calendar month for the preceding calendar month.
3. If the amount of the fee required by this section to be reported and paid is determined to be different than the amount reported or paid by the licensee, the commission shall:
(a) Charge and collect any additional fee determined to be due, with interest thereon until paid; or
(b) Refund any overpaid fees to the person entitled thereto pursuant to this chapter, with interest thereon.
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Interest [is] pursuant to paragraph (a) must be computed at
the rate prescribed in NRS 17.130 from the first day of the first calendar
month following [either] the due date of the
additional license fees [or the date
of overpayment] until
paid. Interest pursuant to
paragraph (b) must be computed at one-half the rate prescribed in NRS 17.130
from the first day of the first month following the date of overpayment until
paid.
4. The commission shall remit all fees collected, less any fees refunded pursuant to subsection 3, to the state treasurer for deposit to the credit of the state general fund.
Sec. 20. NRS 463.482 is hereby amended to read as follows:
463.482 As used in NRS 463.160 to 463.170, inclusive, and section 3 of this act, 463.368, 463.386 and 463.482 to 463.645, inclusive, unless the context otherwise requires, the words and terms defined in NRS 463.4825 to 463.488, inclusive, have the meanings ascribed to them in those sections.
Sec. 21. NRS 463.643 is hereby amended to read as follows:
463.643 1. Each person who acquires, directly or indirectly, beneficial ownership of any voting security in a publicly traded corporation which is registered with the commission may be required to be found suitable if the commission has reason to believe that his acquisition of [such] that ownership would otherwise be inconsistent with the declared policy of this state.
2. Each person who acquires, directly or indirectly, beneficial ownership of any debt security in a publicly traded corporation which is registered with the commission may be required to be found suitable if the commission has reason to believe that his acquisition of [such] the debt security would otherwise be inconsistent with the declared policy of this state.
3. Each person who, individually or in association with others, acquires, directly or indirectly, beneficial ownership of more than 5 percent of any class of voting securities of a publicly traded corporation registered with the Nevada gaming commission, and who is required to report, or voluntarily reports, [such] the acquisition to the Securities and Exchange Commission pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended , [(]15 U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall file a copy of that report, and any amendments thereto, with the Nevada gaming commission within 10 days after filing that report with the Securities and Exchange Commission.
4. Each person who, individually or in association with others, acquires, directly or indirectly, the beneficial ownership of more than 10 percent of any class of voting securities of a publicly traded corporation registered with the commission, [and] or who is required to report, or voluntarily reports, the acquisition pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended , [(]15 U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall apply to the commission for a finding of suitability within 30 days after the chairman of the board mails the written notice.
5. A person who acquires beneficial ownership of any voting security or debt security in a publicly traded corporation created under the laws of a foreign country which is registered with the commission shall file such reports and is subject to such a finding of suitability as the commission may prescribe.
6. Any person required by the commission or by this section to be found suitable shall:
(a) Except as otherwise required in subsection 4, apply for a finding of suitability within 30 days after the commission requests that he do so; and
(b) Together with the application, deposit with the board a sum of money which, in the opinion of the board, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application, and deposit such additional sums as are required by the board to pay final costs and charges.
7. Any person required by the commission or this section to be found suitable who is found unsuitable by the commission shall not hold directly or indirectly the beneficial ownership of any voting security or debt security of a publicly traded corporation which is registered with the commission beyond the time prescribed by the commission.
8. The violation of subsection 6 or 7 is a gross misdemeanor.
9. As used in this section, “debt security” means any instrument generally recognized as a corporate security representing money owed and reflected as debt on the financial statement of a publicly traded corporation, including, but not limited to, bonds, notes and debentures.
Sec. 22. NRS 463.650 is hereby amended to read as follows:
463.650 1. Except as otherwise provided in subsections 2 to 5, inclusive, it is unlawful for any person, either as owner, lessee or employee, whether for hire or not, to operate, carry on, conduct or maintain any form of manufacture, selling or distribution of any gaming device , [or] cashless wagering system or interactive gaming system for use or play in Nevada or for distribution outside of Nevada without first procuring and maintaining all required federal, state, county and municipal licenses.
2. A lessor who specifically acquires equipment for a capital lease is not required to be licensed under this section or NRS 463.660.
3. The holder of a state gaming license or the holding company of a corporation, partnership, limited partnership, limited-liability company or other business organization holding a license may, within 2 years after cessation of business or upon specific approval by the board, dispose of by sale in a manner approved by the board, any or all of its gaming devices, including slot machines, and cashless wagering systems, without a distributor’s license. In cases of bankruptcy of a state gaming licensee or foreclosure of a lien by a bank or other person holding a security interest for which gaming devices are security in whole or in part for the lien, the board may authorize the disposition of the gaming devices without requiring a distributor’s license.
4. The commission may, by regulation, authorize a person who owns gaming devices for home use in accordance with NRS 463.160 to sell such devices without procuring a license therefor.
5. Upon approval by the board, a gaming device owned by:
(a) A law enforcement agency;
(b) A court of law; or
(c) A gaming device repair school licensed by the commission on postsecondary education,
may be disposed of by sale, in a manner approved by the board, without a distributor’s license. An application for approval must be submitted to the board in the manner prescribed by the chairman.
6. [Any] Except as is otherwise required for the licensure of a manufacturer of interactive gaming components, any person whom the commission determines is a suitable person to receive a license under the provisions of this section and NRS 463.660 may be issued a manufacturer’s or distributor’s license. The burden of proving his qualification to receive or hold a license under this section and NRS 463.660 is at all times on the applicant or licensee.
7. Every person who must be licensed pursuant to this section is subject to the provisions of NRS 463.482 to 463.645, inclusive, unless exempted from those provisions by the commission.
8. The commission may exempt, for any purpose, a manufacturer, seller or distributor from the provisions of NRS 463.482 to 463.645, inclusive, if the commission determines that the exemption is consistent with the purposes of this chapter.
9. As used in this section, “holding company” has the meaning ascribed to it in NRS 463.485.
Sec. 23. NRS 463.670 is hereby amended to read as follows:
463.670 1. The legislature finds and declares as facts:
(a) That the inspection of gaming devices, associated equipment , [and] cashless wagering systems and interactive gaming systems is essential to carry out the provisions of this chapter; and
(b) That inspection of gaming devices, associated equipment , [and] cashless wagering systems and interactive gaming systems is greatly facilitated by the opportunity to inspect components before assembly and to examine the methods of manufacture.
2. The board may inspect every gaming device which is manufactured, sold or distributed:
(a) For use in this state, before the gaming device is put into play.
(b) In this state for use outside this state, before the gaming device is shipped out of this state.
3. The board may inspect every gaming device which is offered for play within this state by a licensee.
4. The board may inspect all associated equipment , [and] every cashless wagering system and every interactive gaming system which is manufactured, sold or distributed for use in this state before the equipment or system is installed or used by a licensee and at any time while the licensee is using the equipment or system.
5. In addition to all other fees and charges imposed by this chapter, the board may determine, charge and collect an inspection fee from each manufacturer, seller or distributor which must not exceed the actual cost of inspection and investigation.
Sec. 24. The amendatory provisions of this act do not apply to offenses committed before July 1, 2001.
Sec. 25. This act becomes effective on July 1, 2001.”.
Amend the title of the bill to read as follows:
“AN ACT relating to gaming; authorizing the Nevada gaming commission to adopt regulations governing the licensing and operation of interactive gaming if the commission first makes certain determinations; providing that a license to operate interactive gaming may be issued only to resort hotels or certain other establishments holding nonrestricted licenses; providing for certain application fees and license fees relating to interactive gaming; providing that gross revenue received from interactive gaming is subject to taxation in the same manner as gross revenue received from other games; exempting the operation of interactive gaming from certain other fees and taxes; revising the computation of interest payable by the commission on the overpayment of certain fees and taxes; prohibiting a person from operating interactive gaming until the commission adopts regulations and unless the person procures and maintains all licenses required pursuant to the regulations; providing for the enforceability of gaming debts incurred pursuant to an interactive gaming system; providing for the licensure and regulation of manufacturers of interactive gaming components; revising provisions relating to persons who acquire a certain beneficial ownership in a publicly traded corporation registered with the commission; revising the definitions of “gross revenue” and “manufacturer” for the purposes of the Nevada Gaming Control Act; providing penalties; and providing other matters properly relating thereto.”.
Amend the summary of the bill to read as follows: