AB 202 — Revises provisions relating to charitable lotteries and charitable games. (BDR 41-581)

EXEMPTAssembly (ReprintedBill withNo. amendments adopted on April 12, 2021) FIRST REPRINT A.B.

202202–Assemblyman AYeager SSEMBLYCHAPTER.......... B ILLN O.

202–A SSEMBLYMAN Y EAGER M ARCH 8, 2021 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to charitable lotteries and charitable games.

(BDR 41-581) 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.

revising the definition of “qualified organization”;

revising provisions relating to the prohibition against the registration of a qualified organization to operate a charitable lottery or charitable game in certain circumstances;

establishing provisions concerning online ticket sales conducted by qualified professional sports organizations;

LegUnderLegiUnder existing law, a qualified organization must register with the Chair of the Nevada Gaming Control Board before operating a charitable lottery.

(NRS 462.140) Existing law defines a “qualified organization” as an alumni, charitable, civic, educational, fraternal, patriotic, religious or veterans’ organization or a state or local bar association that doeshas been certified by the Department of Taxation or the Internal Revenue Service as not operateoperated for profit.

(NRS 462.125) Also,Section existing1 of this bill additionally provides that any such organization or state or local bar association is a qualified organization if it is registered with the Secretary of State as aExisting law requires the Nevada Gaming Commission, upon recommendation by the Board, to adopt regulations establishing the fees that a qualified organization must submit to the Chair to operate a charitable lottery or charitable game.

(NRSon(NRS 462.160) ThisSection 2 of this bill provides that if the total value of the prizes offered by the qualified organization in the same calendar year is less than $100,000:

operate a charitable lottery or charitable game outside this State.

(NRS 462.180) Section 2.5 of this bill additionally prohibits the Chair from registering a qualified organization to operate a charitable lottery or charitable game through the use of a video lottery terminal or any other mechanical, electromechanical or electronic device or machine that performs all the functions of a lottery by itself or when networked with other similar devices or machines.

Existing law provides that online ticket sales for a charitable lottery or 2.5 provides that a qualified professional sports organization is authorized to conduct approved online ticket sales in conjunction with a charitable lottery offering a cash prize only:

(1) on a day that the professional sports team franchise affiliated with the qualified professional sports organization is playing a home game in this State;

and (2) if such online ticket sales are restricted to the use of mobile devices in the arena or stadium of the professional sports team franchise or on any parcel of land upon which the arena or stadium is situated.

- 81st Session (2021) – 2 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

NRS 462.125 is hereby amended to read as follows:

462.125 “Qualified organization” means an alumni, charitable, civic, educational, fraternal, patriotic, religious or veterans’ organization or a state or local bar association that [has] :

1.

Has been certified by the Department of Taxation or the Internal Revenue Service as not operated for profit [.] ;

or 2.

Is registered with the Secretary of State as a charitable organization that solicits charitable contributions pursuant to NRS 82A.100.

Sec.

2.

[To] Except as otherwise provided in subsection 3, to register with the Chair to operate a charitable lottery or charitable game, a qualified organization must submit to the Chair:

- *AB202_R1* – 2 – (1) The name, address and nature of the organization.

(8)or Thecharitable addressgame ofwill be conducted by the locationorganization.le wherelottery (9) The operational controls for each charitable lottery or charitable gamegame, willincluding, bewithout conductedlimitation: by the organization.

(9)- 81st Session (2021) – 3 – (I) The operationalmethods controlsproposed for eachticket charitablesales lotteryand, if proposing mobile, online or charitabletelephone game,sales, including,the withoutprocedures limitation:for such sales;

(I)(II) The methodsaudit proposedcontrols for all ticket sales and,in ifthis proposingState mobile,to onlineensure orcom(III) telephoneThe sales,rules which will be presented to the procedurespublic for sucheach sales;charitable lottery or charitable game;

(II) The audit controls for all ticket sales in this State to ensure compliance with NRS 462.180;

(III) The rules which will be presented to the public for each charitable lottery or charitable game;

A qualified organization shall submit such additional information as necessary to correct or complete any information - *AB202_R1* – 3 – submitted pursuant to this section that becomes inaccurate or incomplete.