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Current through Nov. 1, 2016

462.064. "Charitable lottery" defined

"Charitable lottery " means a lottery operated by a bona fide charitable or nonprofit organization pursuant to the provisions of this chapter.

General Provisions

462.075. "Charitable or nonprofit activity" defined

"Charitable or nonprofit activity " means an activity in support of the arts, amateur athletics, peace officers or health or social services, or conducted for any benevolent, civic, educational, eleemosynary, fraternal, humanitarian, patriotic, political or religious purpose, including the operation of a qualified organization.

462.130. Administration of chapter; regulations

1. The board and commission shall administer the provisions of this chapter for the protection of the public and in the public interest in accordance with the policy of this state.

2. The commission, upon the recommendation of the board:

(a) May adopt such regulations as it deems desirable to enforce the provisions of this chapter; and

(b) Shall adopt regulations providing a procedure to appeal the denial of the approval of the executive director pursuant to NRS 462.150, pursuant to the procedure set forth in NRS 463.145.

462.140. Conditions for operation of charitable lottery

A qualified organization may operate a charitable lottery if:

1. The organization is approved by the executive director and the total value of all the prizes offered in charitable lotteries operated by the organization during the same calendar year does not exceed $500,000;

2. The organization registers with the executive director and the total value of all the prizes offered in charitable lotteries operated by the organization during the same calendar year does not exceed $25,000; or

3. The total value of the prizes offered in the charitable lottery does not exceed $2,500 and:

(a) The organization operates no more than two charitable lotteries per calendar year; or

(b) The tickets or chances for the charitable lottery are sold only to members of the organization, and to guests of those members while attending a special event sponsored by the organization, and the total value of all the prizes offered in charitable lotteries operated by the organization during the same calendar year does not exceed $15,000.

462.150. Registration or approval of qualified organization: Conditions; revocation; period of validity

1. The executive director shall:

(a) Register a qualified organization that complies with the requirements of NRS 462.160.

(b) Approve a qualified organization if:

(1) The organization complies with the requirements of NRS 462.160; and

(2) The executive director determines that the approval of the organization would not be contrary to the public interest.

(c) Provide a qualified organization, within 30 days after its submission of an application pursuant to NRS 462.160, with written notification of the basis for any refusal by the executive director to register or approve the qualified organization pursuant to this section.

2. The registration or approval of a qualified organization is a revocable privilege. No person has any right to be registered or approved by the executive director or acquires any vested right upon being registered or approved by the executive director.

3. Unless earlier revoked, the registration or approval of a qualified organization is valid for the calendar year and expires on December 31.

462.160. Registration or approval of qualified organization: Application; fee; expenditure of application fees

1. To register with or request the approval of the executive director, a qualified organization must submit to him:

(a) A written application containing:

(1) The name, address and nature of the organization.

(2) Proof that the organization is a qualified organization.

(3) The names of the officers or principals of the organization, and of any person responsible for the management, administration or supervision of the organization's charitable lotteries and any activities related to those lotteries.

(4) A description of all the prizes to be offered in charitable lotteries operated by the organization during the calendar year to which the application pertains and, if the approval of the executive director is required, a summary of the anticipated expenses of conducting those lotteries, including copies of any proposed agreements between the organization and any suppliers of material for the operation of those lotteries.

(5) A description of the intended use of the net proceeds of charitable lotteries operated by the organization during the calendar year to which the application pertains.

(6) The designation of a primary county in which charitable lotteries will be conducted by the organization during the calendar year to which the application pertains.

(7) Any other information the executive director deems appropriate.

(b) A nonrefundable fee of:

(1) For registration, $5; or

(2) For a request for approval, $25.

2. A qualified organization shall submit such additional information as necessary to correct or complete any information submitted pursuant to this section that becomes inaccurate or incomplete. The approval of a qualified organization is suspended during the period that any of the information is inaccurate or incomplete. The executive director may reinstate the approval of the organization only after all information has been corrected and completed.

3. The money collected pursuant to this section must be expended to administer and enforce the provisions of this chapter.

462.170. Registration or approval of qualified organization: Commission may require finding of suitability; costs of investigation; effect of failure to submit application for finding; effect of finding of unsuitability

1. The commission may, upon recommendation of the board, require:

(a) A qualified organization that registers with or requests the approval of the executive director to file an application pursuant to chapter 463 of NRS for a finding of suitability to operate a charitable lottery in this state.

(b) Any person who is employed by, a member of or otherwise associated with such an organization to file an application pursuant to chapter 463 of NRS for a finding of suitability to be associated with the operation of a charitable lottery in this state.

2. The board may conduct an investigation of the qualified organization or associated person and submit recommendations to the commission. The qualified organization or associated person must deposit with the board a sum of money which the board determines will be adequate to pay the anticipated costs of the investigation and shall upon the completion of the investigation pay to the board any additional money necessary to reimburse the board for the actual cost of the investigation. The board shall refund any overpayments.

3. The commission may revoke the registration or approval of a qualified organization if:

(a) An application for a finding of suitability is not submitted to the board, together with the deposit required by subsection 2, within 30 days after the qualified organization receives written notice that it is required pursuant to paragraph (a) of subsection 1 to file an application for a finding of suitability.

(b) The qualified organization is found unsuitable to operate a charitable lottery in this state.

(c) An application for a finding of suitability is not submitted to the board, together with the deposit required by subsection 2, or the association of the person with the organization is not terminated, within 30 days after the qualified organization receives written notice that an associated person is required pursuant to paragraph (b) of subsection 1 to file an application for a finding of suitability.

(d) The associated person is found unsuitable to be associated with the operation of a charitable lottery in this state and the qualified organization does not terminate its association with that person within 30 days after receiving written notice of the finding of unsuitability.

462.180. Sale of ticket or chance for charitable lottery prohibited in certain areas; limitation on number of lotteries conducted by approved organization without specific authorization

A qualified organization shall not:

1. Sell any ticket or chance for a charitable lottery outside of:

(a) The primary county in which the charitable lottery is being conducted; and

(b) Any counties that border on the primary county.

2. If the organization has been approved by the executive director, conduct more than one charitable lottery in any calendar quarter without the specific authorization of the executive director.

462.190. Limitations on compensation for prizes and supplies and compensation of persons for services; exceptions

A qualified organization shall not:

1. Compensate any person for the provision of prizes and supplies used in the operation of a charitable lottery, except to pay the fair market value of the prizes and supplies necessary for the operation of the charitable lottery.

2. Provide:

(a) Any compensation to a person who is not a regular employee of the organization; and

(b) Any additional compensation to a person who is a regular employee of the organization,

for his services in organizing or operating a charitable lottery or assisting in the organization or operation of a charitable lottery. This subsection does not prohibit a qualified organization from compensating a person for the fair market value of services that are ancillary to the organization or operation of a charitable lottery.

462.200. Limitation on expenditure of net proceeds of charitable lottery; annual financial report required

1. A qualified organization shall expend the net proceeds of a charitable lottery only for the benefit of charitable or nonprofit activities in this state.

2. A qualified organization approved by the executive director shall, after the completion of a charitable lottery and no later than the end of the same calendar year, submit to the executive director a financial report on the charitable lottery. The financial report must include a statement of:

(a) The expenses incurred in the operation of the charitable lottery; and

(b) The amount and use of the net proceeds of the charitable lottery.

462.250. Penalty for unauthorized lottery

A person who contrives, prepares, sets up, proposes or draws any lottery, except as authorized pursuant to this chapter, is guilty of a misdemeanor

462.280. Penalty for assisting in unauthorized lottery

A person who intentionally aids or assists, either by printing, writing, advertising, publishing or otherwise, in setting up, managing or drawing any lottery in violation of this chapter, or in selling or disposing of any ticket, chance or share therein, is guilty of a misdemeanor.

463.409. Approval by board of game operated by charitable organization; conditions; exceptions

Except as otherwise provided in NRS 463.4091 to 463.40965, inclusive, the board may approve the operation of a game or games by a charitable or educational organization subject to such conditions and limitations as the board may impose, but no such approval shall be given by the board for the operation of a game or games for more than one event or function conducted or sponsored by one charitable or educational organization during any 1 calendar quarter.

463.4091. Definitions

As used in NRS 463.4091 to 463.40965, inclusive, unless the context otherwise requires, the words and terms defined in NRS 463.40915 to 463.4093, inclusive, have the meanings ascribed to them in those sections.

463.40915. "Calendar quarter" defined

"Calendar quarter " means a period of 3 consecutive months commencing on the first day of January, April, July or October in any year.

463.4092. "Charitable or nonprofit activity" defined

"Charitable or nonprofit activity " means an activity in support of the arts, amateur athletics, peace officers or health or social services, or conducted for any benevolent, civic, educational, eleemosynary, fraternal, humanitarian, patriotic, political or religious purpose, including the operation of a qualified organization.

463.40925. "Net proceeds" defined

"Net proceeds " means the total amount of money collected from charitable bingo games, less the total amount of money expended for prizes, supplies, advertising, promotion, printing, administration and other direct expenses necessary to operate charitable bingo.

463.4093. "Qualified organization" defined

"Qualified organization" means a bona fide charitable, civic, educational, fraternal, patriotic, political, religious or veterans' organization that is not operated for profit.

463.40935. Administration of provisions by board and commission; adoption of regulations

1. The board and commission shall administer the provisions of NRS 463.4091 to 463.40965, inclusive, for the protection of the public and in the public interest in accordance with the policy of this state.

2. The commission, upon the recommendation of the board, may adopt such regulations as it deems desirable to enforce the provisions of NRS 463.4091 to 463.40965, inclusive, pursuant to the procedure set forth in NRS 463.145.

463.4094. Requirements for operation of charitable bingo game without gaming license

A qualified organization may operate a charitable bingo game without obtaining a license pursuant to NRS 463.160 if:

1. The organization is approved by the executive director and the total value of all the prizes offered in charitable bingo games operated by the organization during the same calendar year does not exceed $500,000;

2. The organization registers with the executive director and the total value of all the prizes offered in charitable bingo games operated by the organization during the same calendar year does not exceed $50,000; or

3. The total value of the prizes offered in the charitable bingo games does not exceed $2,500 per calendar quarter.

463.40945. Registration and approval of qualified organization: Duties of executive director; revocable privilege; expiration

1. The executive director shall:

(a) Register a qualified organization that complies with the requirements of NRS 463.4095.

(b) Approve a qualified organization if:

(1) The organization complies with the requirements of NRS 463.4095; and

(2) The executive director determines that the approval of the organization would not be contrary to the public interest.

(c) Provide a qualified organization, within 60 days after its submission of an application pursuant to NRS 463.4095, with written notification of the basis for any refusal by the executive director to register or approve the qualified organization pursuant to this section.

2. The registration or approval of a qualified organization is a revocable privilege. No person has any right to be registered or approved by the executive director or acquires any vested right upon being registered or approved by the executive director.

3. Unless earlier revoked, the registration or approval of a qualified organization is valid for the calendar year and expires on December 31.

463.4095. Requirements for registration and approval of executive director

1. To register with or request the approval of the Executive Director, a qualified organization must submit to him:

(a) A written application containing:

(1) The name, address and nature of the organization.

(2) Proof that the organization is a qualified organization.

(3) The names of the officers or principals of the organization, and of any person responsible for the management, administration or supervision of the organization's charitable bingo games and any activities related to those bingo games.

(4) A description of all the prizes to be offered in charitable bingo games operated by the organization during the calendar year to which the application pertains and, if the approval of the Executive Director is required, a summary of the anticipated expenses of conducting those bingo games, including copies of any proposed agreements between the organization and any suppliers of material for the operation of those bingo games.

(5) A description of the intended use of the net proceeds of charitable bingo games operated by the organization during the calendar year to which the application pertains.

(6) The address of the location where charitable bingo games will be conducted by the organization during the calendar year to which the application pertains.

(7) A statement that charitable bingo games will be conducted in accordance with standards of honesty and integrity applicable to licensed bingo games in this state.

(8) Any other information the Executive Director deems appropriate.

(b) A nonrefundable fee of:

(1) For registration, $10; or

(2) For a request for approval, $25.

(c) If the qualified organization requests approval of the Executive Director, it must:

(1) Submit a complete set of the fingerprints of its officers, principals and persons responsible for management of the bingo games, on forms approved by the Executive Director, which the Executive Director may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

(2) Reimburse the Board for its costs incurred in submitting the fingerprints for review.

2. A qualified organization shall submit such additional information as necessary to correct or complete any information submitted pursuant to this section that becomes inaccurate or incomplete. The approval of a qualified organization is suspended during the period that any of the information is inaccurate or incomplete. The Executive Director may reinstate the approval of the organization only after all information has been corrected and completed.

3. The money collected pursuant to this section must be expended to administer and enforce the provisions of NRS 463.4091 to 463.40965, inclusive.

463.40955. Commission may require finding of suitability

1. The commission may, upon recommendation of the board, require:

(a) A qualified organization that registers with or requests the approval of the executive director to file an application pursuant to this chapter for a finding of suitability to operate charitable bingo in this state.

(b) Any person who is employed by, a member of, a supplier of or otherwise associated with such an organization to file an application pursuant to this chapter for a finding of suitability to be associated with the operation of charitable bingo in this state.

2. The commission may revoke the registration or approval of a qualified organization if:

(a) An application for a finding of suitability is not submitted to the board within 30 days after the qualified organization receives written notice that it is required pursuant to paragraph (a) of subsection 1 to file an application for a finding of suitability.

(b) The qualified organization is found unsuitable to operate charitable bingo in this state.

(c) A complete application for a finding of suitability is not submitted to the board or the association of the person with the organization is not terminated, within 30 days after the qualified organization receives written notice that an associated person is required pursuant to paragraph (b) of subsection 1 to file an application for a finding of suitability.

(d) The associated person is found unsuitable to be associated with the operation of charitable bingo in this state and the qualified organization does not terminate its association with that person within 30 days after receiving written notice of the finding of unsuitability. Every contract or agreement for personal services to a qualified organization or for the conduct of any activity relating to the operation of charitable bingo shall be deemed to include a provision for its termination without liability on the part of the qualified organization upon a finding by the commission that the person is unsuitable to be associated with a qualified organization. Failure expressly to include such a condition in the agreement is not a defense in any action brought pursuant to this section to terminate the agreement.

463.4096. Prohibited acts concerning compensation of employees of qualified organizations and other persons

A qualified organization shall not:

1. Compensate any person for the provision of prizes and supplies used in the operation of charitable bingo in an amount that exceeds the fair market value of the prizes and supplies necessary for the operation of charitable bingo.

2. Provide:

(a) Any compensation to a person who is not a regular employee of the organization; and

(b) Any additional compensation to a person who is a regular employee of the organization, for his services in organizing or operating charitable bingo or assisting in the organization or operation of charitable bingo. This subsection does not prohibit a qualified organization from compensating a person for the fair market value of services that are ancillary to the organization or operation of charitable bingo.

463.40965. Reporting and expenditure of net proceeds of charitable bingo

1. A qualified organization shall expend the net proceeds of charitable bingo only for the benefit of charitable or nonprofit activities in this state.

2. On or before February 1 of each year, a qualified organization approved by the executive director shall submit to the executive director a financial report on its charitable bingo activities for the preceding calendar year. The financial report must include a statement of:

(a) The expenses incurred in the operation of charitable bingo games; and

(b) The amount and use of the net proceeds of charitable bingo games.