exempt

                                                  (Reprinted with amendments adopted on May 30, 2003)

 

Senate Bill No. 3–Senator  Rhoads

 

Prefiled January 24, 2003

____________

 

Referred to  Committee on Judiciary

 

SUMMARY—Makes various changes to off-track pari-mutuel wagering. (BDR 41‑41)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to gaming; reserving a portion of certain gaming license fees collected from persons licensed to conduct off-track pari-mutuel wagering to augment purses for horse racing in certain counties; revising certain provisions concerning the regulation of certain off-track pari-mutuel wagering; 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 463.320 is hereby amended to read as follows:

1-2  463.320  1.  All gaming license fees imposed by the provisions

1-3  of NRS 463.370, 463.373 to 463.383, inclusive, and 463.3855 must

1-4  be collected and disposed of as provided in this section.

1-5  2.  All state gaming license fees and penalties must be collected

1-6  by the Commission and paid over immediately to the State

1-7  Treasurer to be disposed of as follows:

1-8  (a) [All] Except as otherwise provided in paragraphs (c) and

1-9  (d), all state gaming license fees and penalties other than the license

1-10  fees imposed by the provisions of NRS 463.380 must be deposited

1-11  for credit to the State General Fund.

1-12      (b) All state gaming license fees imposed by the provisions of

1-13  NRS 463.380 must, after deduction of costs of administration and

1-14  collection, be divided equally among the various counties and

1-15  transmitted to the respective county treasurers. Such fees, except as

2-1  otherwise provided in this section, must be deposited by the county

2-2  treasurer in the county general fund and be expended for county

2-3  purposes. If the board of county commissioners desires to apportion

2-4  and allocate all or a portion of such fees to one or more cities or

2-5  towns within the county, the board of county commissioners shall,

2-6  annually, before the preparation of the city or town budget or

2-7  budgets as required by chapter 354 of NRS, adopt a resolution so

2-8  apportioning and allocating a percentage of such fees anticipated to

2-9  be received during the coming fiscal year to such city or cities or

2-10  town or towns for the next fiscal year commencing July 1. After the

2-11  adoption of the resolution , the percentage so apportioned and

2-12  allocated must be converted to a dollar figure and included in the

2-13  city or town budget or budgets as an estimated receipt for the next

2-14  fiscal year. Quarterly , upon receipt of the money from the State, the

2-15  county treasurer shall deposit an amount of money equal to the

2-16  percentage so apportioned and allocated to the credit of the city or

2-17  town fund to be used for city or town purposes, and the balance

2-18  remaining must be deposited in the county general fund and must be

2-19  expended for county purposes.

2-20      (c) One twenty-fifth of the license fee imposed by the

2-21  provisions of NRS 463.370 on gross revenue which exceeds

2-22  $134,000 per calendar month that is paid pursuant to subsection 2

2-23  of NRS 464.045 by persons licensed to conduct off-track pari-

2-24  mutuel wagering must, after the deduction of costs of

2-25  administration and collection, be allocated pro rata among the

2-26  counties in this state in which on-track pari-mutuel wagering is

2-27  conducted. The allocation must be based upon the amounts paid

2-28  from each such county pursuant to subsection 2 of NRS 466.125

2-29  and transmitted to the respective county treasurers. Money

2-30  received by a county treasurer pursuant to this paragraph must be

2-31  deposited in the county general fund and expended to augment

2-32  any stakes, purses or rewards which are offered with respect to

2-33  horse races conducted in that county by a state fair association,

2-34  agricultural society or county fair and recreation board.

2-35      (d) Five percent of the amount of the license fee imposed by

2-36  the provisions of NRS 463.370 that is paid pursuant to subsection

2-37  2 of NRS 464.045 by persons licensed to conduct off-track pari-

2-38  mutuel wagering which exceeds $5,036,938 per calendar year

2-39  must, after the deduction of costs of administration and collection,

2-40  be allocated pro rata among the counties in this state in which on-

2-41  track pari-mutuel wagering is conducted. The allocation must be

2-42  based upon the amounts paid from each such county pursuant to

2-43  subsection 2 of NRS 466.125 and must be transmitted to the

2-44  respective county treasurers as provided in this paragraph. On

2-45  March 1 of each year, the Board shall calculate the amount of

3-1  money to be allocated to the respective county treasurers and

3-2  notify the State Treasurer of the appropriate amount of each

3-3  allocation. The State Treasurer shall transfer the money to the

3-4  respective county treasurers. Money received by a county treasurer

3-5  pursuant to this paragraph must be deposited in the county

3-6  general fund and expended to augment any stakes, purses or

3-7  rewards which are offered with respect to horse races conducted in

3-8  that county by a state fair association, agricultural society or

3-9  county fair and recreation board.

3-10      Sec. 2.  NRS 464.020 is hereby amended to read as follows:

3-11      464.020  1.  The Nevada Gaming Commission is charged with

3-12  the administration of this chapter for the protection of the public and

3-13  in the public interest.

3-14      2.  The Nevada Gaming Commission may issue licenses

3-15  permitting the conduct of the pari-mutuel system of wagering,

3-16  including off-track pari-mutuel wagering, and may adopt, amend

3-17  and repeal regulations relating to the conduct of such wagering.

3-18      3.  The wagering must be conducted only by the licensee at the

3-19  times determined by the Nevada Gaming Commission and only:

3-20      (a) Within the enclosure wherein the race or other sporting event

3-21  which is the subject of the wagering occurs; or

3-22      (b) Within a licensed gaming establishment which has been

3-23  approved to conduct off-track pari-mutuel wagering.

3-24  This subsection does not prohibit a person licensed to accept,

3-25  pursuant to regulations adopted by the Nevada Gaming

3-26  Commission, off-track pari-mutuel wagers from accepting wagers

3-27  made by wire communication from patrons within the State of

3-28  Nevada , [or] from other states in which such wagering is legal [.]

3-29  or from places outside the United States in which such wagering is

3-30  legal.

3-31      4.  The regulations of the Nevada Gaming Commission may

3-32  include, without limitation:

3-33      (a) Requiring fingerprinting of an applicant or licensee, or other

3-34  method of identification.

3-35      (b) Requiring information concerning an applicant’s

3-36  antecedents, habits and character.

3-37      (c) Prescribing the method and form of application which any

3-38  applicant for a license issued pursuant to this chapter must follow

3-39  and complete before consideration of his application by the Nevada

3-40  Gaming Commission.

3-41      (d) Prescribing the permissible communications technology

3-42  and requiring the implementation of border control technology

3-43  that will ensure that a person cannot place a wager with a race

3-44  book in this state from another state or another location where

3-45  placing such a wager is illegal.

4-1  5.  The Nevada Gaming Commission may appoint an Off-Track

4-2  Pari-Mutuel Wagering Committee consisting of nine persons who

4-3  are licensed to engage in off-track pari-mutuel wagering. If the

4-4  Commission appoints such a Committee, it shall appoint to the

4-5  Committee:

4-6  (a) Five members from a list of nominees provided by the State

4-7  Association of Gaming Establishments whose members collectively

4-8  paid the most gross revenue fees to the State pursuant to NRS

4-9  463.370 in the preceding year;

4-10      (b) Two members who, in the preceding year, paid gross

4-11  revenue fees pursuant to NRS 463.370 in an amount that was less

4-12  than the average amount of gross revenue fees paid by licensees

4-13  engaged in off-track pari-mutuel wagering in the preceding year;

4-14  and

4-15      (c) Two other members.

4-16  If a vacancy occurs in a position on the Committee for any reason,

4-17  including, but not limited to, termination of a member, the

4-18  Commission shall appoint a successor member who satisfies the

4-19  same criteria in paragraph (a), (b) or (c) that applied to the member

4-20  whose position has been vacated.

4-21      6.  If the Nevada Gaming Commission appoints an Off-Track

4-22  Pari-Mutuel Wagering Committee pursuant to subsection 5, the

4-23  Commission shall:

4-24      (a) Grant to the Off-Track Pari-Mutuel Wagering Committee the

4-25  exclusive right to negotiate an agreement relating to off-track pari-

4-26  mutuel wagering with:

4-27          (1) A person who is licensed or otherwise permitted to

4-28  operate a wagering pool in another state; and

4-29          (2) A person who is licensed pursuant to chapter 464 of NRS

4-30  as an operator of a system.

4-31      (b) Require the Off-Track Pari-Mutuel Wagering Committee to

4-32  grant to each person licensed pursuant to this chapter to operate an

4-33  off-track pari-mutuel race pool the right to receive, on a fair and

4-34  equitable basis, all services concerning wagering in such a race pool

4-35  that the Committee has negotiated to bring into or provide within

4-36  this state.

4-37      7.  The Nevada Gaming Commission shall, and it is granted the

4-38  power to, demand access to and inspect all books and records of any

4-39  person licensed pursuant to this chapter pertaining to and affecting

4-40  the subject of the license.

4-41      Sec. 3.  NRS 464.075 is hereby amended to read as follows:

4-42      464.075  1.  [A] Except as otherwise provided in subsection

4-43  4, a person who is licensed to engage in off-track pari-mutuel

4-44  wagering shall not:

5-1  (a) Accept from a patron less than the full face value of an off-

5-2  track pari-mutuel wager;

5-3  (b) Agree to refund or rebate to a patron any portion or

5-4  percentage of the full face value of an off-track pari-mutuel wager;

5-5  or

5-6  (c) Increase the payoff of, or pay a bonus on, a winning off-track

5-7  pari-mutuel wager.

5-8  2.  A person who is licensed to engage in off-track pari-mutuel

5-9  wagering and who:

5-10      (a) Attempts to evade the provisions of subsection 1 by offering

5-11  to a patron a wager that is not posted and offered to all patrons; or

5-12      (b) Otherwise violates the provisions of subsection 1,

5-13  is subject to the investigatory and disciplinary proceedings that are

5-14  set forth in NRS 463.310 to 463.318, inclusive, and shall be

5-15  punished as provided in those sections.

5-16      3.  The Nevada Gaming Commission shall adopt regulations to

5-17  carry out the provisions of subsections 1 and 2 of this section.

5-18      4.  The Nevada Gaming Commission may, by regulation,

5-19  exempt certain bets, refunds, rebates, payoffs or bonuses from the

5-20  provisions of subsection 1 if the Commission determines that such

5-21  exemptions are in the best interests of the State of Nevada and

5-22  licensed gaming in this state. Any bets, refunds, rebates, payoffs or

5-23  bonuses that would result in the amount of such bets, refunds,

5-24  rebates, payoffs or bonuses being directly or indirectly deductible

5-25  from gross revenue may not be exempt.

5-26      Sec. 4.  This act becomes effective on July 1, 2003.

 

5-27  H