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From YouTube: 2/4/2021 - Joint Meeting of the Assembly Revenue and Senate Revenue and Economic Development
Description
For agenda and additional meeting information: https://www.leg.state.nv.us/App/Calendar/A/
Videos of archived meetings are made available as a courtesy of the Nevada Legislature.
The videos are part of an ongoing effort to keep the public informed of and involved in the legislative process.
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A
A
Thank
you,
and
I
am
here,
madam
secretary,
please
mark
the
members
who
are
in
other
meetings
present
as
they
arrive.
A
So
I'd
like
to
welcome
everyone
watching
or
listening
over
the
internet
to
this
virtual
meeting,
our
meeting
for
the
time
being
will
be
held
in
this
format.
Only
with
assembly
revenue
meeting
time
is
regularly
scheduled
for
4
pm
on
tuesdays
and
thursdays
and
senate
revenue
and
economic
development
meetings
are
normally
on
tuesdays
and
thursdays
at
1pm.
A
So
thank
you,
senators
for
joining
us
before
we
begin
I'd
like
to
go
over
some
housekeeping
members
and
presenters.
Please
silence
your
electronic
devices,
courtesy
and
respect
in
our
interactions
during
the
meeting
is
required.
Additionally,
cr
courtesy
of
respect
when
working
with
staff.
Before
and
after
the
the
meeting
is
required,
committee
members
will
be
using
laptops
and
possibly
other
screens
and
devices
to
not
only
participate
in
this
meeting
virtually,
but
to
view
view
exhibits
due
to
that,
you
may
see
members
looking
at
multiple
screens
or
hard
copies
of
printouts
or
the
like.
A
So
please
don't
take
that
as
a
sign
of
inattention
or
disrespect
we're
just
still
trying
to
navigate
our
way
through
this
new
reality
of
virtual
committee
meetings.
As
a
reminder,
and
as
stated
on
our
agenda,
we
will
have
public
comment
which
will
occur
at
the
end
of
the
meeting
and
may
be
limited
in
duration.
D
B
A
How
to
participate
during
public
comment
are
available
on
nellis
we're
now
going
to
move
on
to
our
presentations
for
the
public.
You
can
find
the
exhibits
brought
by
the
presenters
also
on
nellis.
The
first
presentation
is
from
the
department
of
taxation
and
presenting
is
executive
director,
melanie
young
executive
director
young.
Please
go
ahead.
D
All
right,
thank
you,
so
greetings
members
of
the
committees
again
for
the
record,
my
name
is
melanie
young
executive
director
for
the
nevada
department
of
taxation
and
with
me
here
today
are
members
of
my
executive
team.
We
do
have
a
lot
of
information
to
cover
and
to
keep
the
presentation
in
the
allotted
time.
This
is
intended
to
be
a
high
level
overview.
D
So
this
is
the
agenda
for
our
presentation.
We
will
provide
an
overview
of
our
agency
fiscal
year,
2020
revenues
and
distributions
changes
that
have
affected
the
department
since
fiscal
year
2015
and
cover
all
the
tax
types
fees
and
licenses
listed
here.
D
In
fiscal
year,
2020
the
department
distributed
7.21
billion
dollars
for
19
different
taxes
and
various
fees
licenses
and
penalties,
starting
in
fiscal
year
21
we
no
longer
license
or
regulate
medical
or
adult
use
of
marijuana
businesses.
However,
we
are
still
responsible
for
the
collection
of
the
taxes.
D
D
D
D
And
this
is
one
of
our
most
informational
slides
here,
showing
our
fiscal
year
2020
revenue
collections
for
the
different
tax
types
in
the
distributions
and
again
we
collect
from
19
different
taxes,
numerous
fees,
penalties
and
licenses,
and
each
one
of
these
funds
essential
government
services.
The
funding
is
distributed
to
the
general
fund,
local
governments
and
schools.
D
D
D
D
D
D
Since
fiscal
year
2015
the
department's
revenue
distributions
has
increased
by
a
by
1.84
billion
dollars
annually
and
additionally,
the
department's
taxpayer
accounts
with
filing
obligations,
has
changed
from
june
30
of
2015,
where
we
had
196
797
taxpayer
accounts
to
date
and
well
actually
to
june
30
2020.
We
have
527
937
taxpayer
accounts.
D
This
is
a
list
of
some
of
the
major
legislation
passed
from
the
2019
session.
Eb-445
the
marketplace
facilitator
bill
was
effective
october.
In
2019,
in
fiscal
year
2020
the
department
distributed
108
million
dollars
in
tax
revenue
from
those
businesses
who
are
registered
with
the
department
as
a
marketplace
facilitator.
D
D
D
The
tax
amnesty
program
requires
the
department
to
relieve
a
person
who
has
not
paid
a
tax
fee
or
assessment
collected
by
the
department
of
taxation
of
all
monetary
penalties
and
interest
imposed
during
the
program
period
of
not
more
than
90
days
if,
first,
the
person
requests
relief
from
the
department
and
second
pays
the
tax
fee
or
assessment
in
full
for
the
period.
It's
important
to
note
that
this
does
not
include
taxes
such
as
the
real
property
transfer,
tax
property
taxes,
lodging
taxes
or
taxes
that
are
not
directly
remitted
to
the
department.
D
The
goals
of
the
amnesty
program
is
to
reduce
the
tax
debt
owed
to
the
state
and
provide
an
influx
of
funding
to
state
local
governments
and
schools.
The
second
goal
is
to
help
bring
taxpayers
into
compliance,
the
benefit
to
the
taxpayers,
paying
the
tax
debt
owed
to
the
state
and
ending
the
department's
collection
efforts.
Additionally,
interest
would
not
continue
to
accrue
on
taxpayer
accounts,
which
would
decrease
their
debt
burden
since
the
passage
of
senate
bill
3
in
july
of
2020,
the
department
has
worked
to
implement
the
amnesty
program.
D
First,
we
developed
the
ability
for
an
electronic
submission
where
taxpayers
can
apply
and
pay
through
our
online
portal
and
then,
with
the
expanded
ability
for
electronic
submission.
More
taxpayers
may
be
able
to
access
this
program.
Alternatively,
for
those
that
do
not
have
the
ability
to
submit
electronically
taxpayers
will
still
have
the
option
for
a
manual
submission
to
the
department.
D
Then
the
department
developed
a
multi-faceted
communication
plan
to
start
to
announce
the
start
of
the
program
in
december.
The
department
placed
information
on
our
website
along
with
frequently
asked
questions,
and
then
we
mailed
out
paper
notices
in
tax
returns
that
for
the
january
2021
monthly
mailings
in
january,
we
made
announcements
that
were
emailed
through
the
department's
list
serve
post
on
social
media
via
twitter,
as
well
as
the
press
release
was
provided
to
the
media.
D
Additionally,
announcements
of
the
program
have
been
sent
in
various
newsletters
from
the
governor's
office,
business
and
industries,
the
federation
of
tax
administrators
and
the
nevada
taxpayers
association,
as
well
as
ongoing.
Through
the
90-day
program,
we
will
provide
frequent
notices
via
email,
social
media
outlets
to
continue
providing
important
information
and
reach
the
taxpayers
who
are
in
need
of
this
program.
D
Finally,
the
changes
to
the
net
proceeds
and
mineral
taxes
imposed
in
senate
bill.
Three,
the
department
held
workshops
with
the
industry
modified
the
forms
and
instructions
which
were
approved
by
the
nevada
tax
commission
and
the
forms
were
sent
to
the
industry
and
are
due
to
the
department
in
march,
along
with
an
estimated
payment
for
next
year,
the
current
payments,
the
current
year
payments
will
be
due
may
10th.
D
D
Then
there
is
a
2.6
percent
known
as
the
local
school
support
tax.
In
fiscal
year
2020
the
department
distributed
1.33
billion
to
school
districts
where
businesses
are
located,
tax
returns
from
out-of-state
businesses
distribute
to
the
state
distributive
school
account,
and
in
fiscal
year
2020
we
distributed
229.78
million
dollars.
D
There
is
a
general
fund
commission
of
0.75,
which
distributed
11.77
million
to
the
general
fund,
then
there's
a
5.5
for
basic
city,
county
relief
tax
and
in
fiscal
year
2020
the
distribution
was
295.02
million
dollars,
in-state
cells
are
distributed,
in-state
cells
are
distributed
to
counties
where
the
cells
or
delivery
are
made.
Out-Of-State
cells
are
distributed
based
upon
the
population
ratio
through
the
consolidated
tax
program
to
the
local
governments.
D
B
D
A
1.75
commission,
where
5.2
million
was
distributed
to
the
general
fund
next,
is
a
1.75
for
supplemental
city,
county
relief
tax
and
in
fiscal
year
2020.
That
distribution
was
1.03
billion
dollars
to
local
governments
based
on
the
consolidated
tax
program
formula,
and
there
is
a
1.75
commission
which
distributed
18.3
million
dollars
to
the
general
fund.
D
Finally,
there
is
an
option
tax
and
this
is
a
multi-component
tax
which
allows
the
county
the
ability
to
impose
a
tax
for
pursuant
to
interest
three,
seven,
four,
a
up
to
one
eighth
of
one
percent
for
the
cost
of
extraordinary
maintenance
repairs
or
improvements
of
school
facilities.
D
D
The
most
recent
change
was
implemented
in
ab-309
from
the
2019
legislative
session,
which
is
codified
into
nrs
377d,
which
allows
an
auction
tax
for
miscellaneous
local
purposes.
Clark
county
implemented
this
provision
for
educational
programs,
effective
january
1
in
2020,
which
brought
in
an
additional
23.2
million
dollars.
D
The
department
distributed
770
million
in
state
fiscal
year,
2020
in
local
option
taxes.
There
is
a
1.75
percent
commission,
which
is
just
distributed.
13.8
million
to
the
general
fund
on
our
on
page
27
of
our
annual
report
is
a
breakdown
of
all
the
local
governments
that
have
option
taxes.
D
D
D
D
The
commerce
tax
was
enacted
in
the
2015
legislative
session.
This
tax
is
imposed
on
each
entity
engaged
in
business
in
the
state
whose
gross
revenue
exceeds
four
million
dollars.
The
rate
is
based
on
the
industry
that
the
business
is
primarily
engaged
in
in
state
fiscal
year,
2020
the
department
distributed
204.98
million
dollars
to
the
state
general
fund.
This
was
a
decline
of
9.6
from
fiscal
year.
2019.
D
three
industries
made
up
most
half
of
all
the
distributions.
In
fiscal
year,
2020
41.2
million
came
from
retail
trade,
36.8
million
was
from
wholesale
trade,
and
20.4
million
was
from
manufacturing
in
prior
years.
Commerce
tax
distributions
accommodations
held
the
third
highest
spot,
but
because
of
the
pandemic,
accommodations
fell
to
fourth
and
manufacturing
rose
to
third.
D
Moving
on
to
insurance
premium
tax,
the
department
began
collecting
the
insurance
premium
tax
in
1993,
the
department
distributed
435.46
million
dollars
to
the
general
fund
in
fiscal
year
2020,
and
this
is
an
increase
of
6.32
over
fiscal
year.
2019.,
a
rate
of
3.5
percent
is
imposed
on
insurers
for
transacting
business
in
the
state.
However,
in
june
2005
a
rate
was
reduced
to
2
percent
for
risk
retention
groups.
D
This
tax
is
assessed
upon
net
direct
premiums
and
net
direct
considerations.
Written
the
premium
tax
is
due
to
the
department
on
march
15
of
each
year
on
premiums
written
in
the
prior
calendar
year.
However,
insurers
who
are
required
to
pay
a
tax
of
at
least
two
thousand
dollars
the
preceding
calendar
year
from
the
preceding
calendar
year,
must
pay
quarterly
for
the
tax
payments
based
on
the
actual
direct
net
direct
premiums
and
net
direct
considerations
written
for
the
current
reporting
period.
D
D
The
department
has
received
numerous
refund
requests,
which
have
impacted
the
fiscal
year
2021
through
november
distributions,
where
we've
only
distributed
548
000
after
those
refunds,
the
funding
is
distributed
to
the
general
fund,
except
for
the
first
150
000
is
an
annual
distribution
to
the
nevada
arts
council.
D
The
real
property
transfer
tax
was
enacted
in
1967.
The
department
distributed
one
point,
143.1
million,
which
is
a
slight
reduction
over
2019
and
0.79
percent.
The
rate
is
1.95
on
each
500
in
value
for
the
transfer
of
real
property,
except
in
churchill
and
washoe
counties
where
the
rate
is
two
dollars
and
five
cents
and
in
clark
county.
The
rate
is
two
dollars
and
fifty
five
cents.
This
revenue
is
collected
by
the
county
recorders
and
remitted
to
the
department
on
a
form
prescribed
by
the
nevada
tax
commission.
D
The
distribution
is
a
dollar
30
to
the
state
general
fund,
55
cents
is
distributed.
Counties
through
the
consolidated
tax,
10
cents
is
distributed
to
the
account
for
low-income
housing.
Churchill
and
washoe
counties
distribute
the
additional
10
cents
for
the
local
government's
tax
act
and
clark
county
distributes
the
additional
60
cents
to
the
school
districts.
D
The
department
depar
determines
the
tax
on
the
net
proceeds
of
minerals
pursuant
to
nrs
362
producers
report
annually
the
growth
shield
of
each
separate
extractive
operation,
as
well
as
expenses
related
to
extraction,
processing,
transportation
and
marketing
of
the
minerals
royalty
recipients
report.
Only
the
amount
of
royalties
received,
the
minimum
tax
rate
is
two
percent
or
the
combined
property
tax
rate
where
the
business
is
located.
D
Taxpayers
are
required
to
report
the
current
year's
taxes
and
then
the
department
certifies
and
bills
the
net
proceeds
each
year
in
april,
with
the
final
payment
due
may
10th,
there
are
approximately
103
net
proceeds
operators
currently
reporting
to
the
department,
as
well
as
388
royalty.
Reporters.
D
Due
to
the
passage
of
senate
bill
3
from
the
31st
special
session
that
proceeds
and
mineral
taxpayers
will
make
an
extra
estimated
payment
this
fiscal
year
for
the
general
fund
portion.
Only
the
prepayment
will
continue
until
the
method
of
determining
the
taxes
due
returns
to
the
actual
net
proceeds
starting
in
calendar
year.
2024.
D
D
The
distribution
is
5
ml
per
cigarette
to
eligible
local
governments
through
the
consolidated
tax
distribution
and
85
cents
per
person.
85
mills
per
cigarette
to
the
state
general
fund,
less
the
administrative
fees
determined
by
the
legislature
and
is
appropriated
to
fund
the
enforcement
efforts
of
the
department.
Other
tobacco
products
is
distributed
to
the
state
general
fund.
D
Assembly
bill
535
from
the
2019
legislative
session,
revised
the
wholesale
cigarette
dealer,
licensing
fees
and
established
licensing
fees
for
cigarette
manufacturers,
wholesale
dealers
and
other
tobacco
products
and
tobacco
retailers.
As
you
can
see
here,
the
listing
and
the
prices
of
each
license.
D
Moving
on
to
liquor,
taxes,
fees
and
fines,
the
tax
was
originally
enacted
in
the
1935
and
was
originally
enacted
in
1935
as
a
stamp
tax
liquor.
Tax
rates
is
three
dollars
and
sixty
cents
per
gallon
of
20
alcohol
content
by
volume,
then
14
to
22
alcohol
content
by
volume
is
a
dollar
thirty
per
gallon
alcohol
content
of
0.5
percent
to
14
percent
is
70
cents
per
gallon,
and
beer
is
16
per
gallon.
Licensing
ranges
from
fifty
dollars
for
a
certain
certificate
of
compliance
to
an
importer
of
five
hundred
dollars.
D
D
D
Additional
fees
are
imposed
for
applications,
licensing
agent
cards,
time
and
effort,
billing
and
civil
penalties.
As
of
july
1
2020,
these
fees
have
been
fees
imposed,
have
been
transferred
to
the
cannabis
compliance
board.
However,
the
department
will
continue
to
collect
them.
Wholesale
marijuana
and
retail
marijuana
taxes.
D
D
D
Previous
to
fiscal
year,
2019
that
the
marijuana
revenue,
retail
marijuana
revenue
was
distributed
to
the
account
to
stabilize
the
operation
of
the
state
government,
otherwise
known
as
the
rainy
day
fund,
effective
january
1
or
july
1
2019.
The
revenue
is
now
being
distributed
to
the
state
distributive
school
account.
D
The
wholesale
marijuana
funding
starting
july
1
of
2020
is
now
being
distributed
to
the
cannabis
compliance
board,
which
is
used
to
pay
their
costs.
First,
then,
there's
five
million
distributed
to
local
governments
and
the
remaining
funding
at
fiscal
y
at
year.
End
is
distributed
to
the
distributive
school
account
collectively.
D
Between
these
two
tax
types
for
fiscal
year
2020,
the
distribution
was
for
the
distributive
school
account
was
100.15
million
distributed
to
local
governments
was
5
million
distributed
to
the
department
of
taxation
was
4.8
million,
and
that
was
to
cover
the
cost
of
operating
in
overseeing
the
cannabis
industry.
The
transfer
to
the
health
division
was
335.41
000,
and
then
there
was
a
transfer
to
the
attorney
general's
office
of
134.57
000.
D
Moving
on
to
lodging
tax,
the
this
covers
lodging
tax,
that's
received
by
the
department
of
taxation
lodging
taxes
are
remitted
to
local
governments,
and
certain
percentages
are
distributed
to
the
department
of
taxation
to
be
distributed
to
the
tourism
promotion
fund.
In
the
state
supplemental
school
fund,
the
amount
received
by
the
department
received
by
the
department
in
state
fiscal
year,
2020
was
157.1
million,
and
this
was
a
reduction
of
24.64
from
fiscal
year
2019.
D
The
remaining
five-eighths
of
one
percent
is
distributed
to
the
county
treasurer
to
the
county
school
districts
for
capital
projects
in
counties
whose
population
is
less
than
seven
hundred
thousand
eighths
of
one
percent
is
distributed
to
the
state
to
fund
the
promotion
of
tourism.
The
remaining
five
eighty
one
percent
must
be
deposited
with
the
county,
fair
or
recreation
board.
If
no
board
exists.
The
funding
goes
to
the
county
commissioners
to
be
used
to
advertise
resources
in
that
county
related
to
tourism.
D
D
D
With
point
one
percent
of
that
money
going
to
the
department
for
the
collection
allowance
in
fiscal
year,
2020
45.2
million
was
distributed
to
the
general
fund,
1.44
million
to
washable
county
and
7.3
million
to
clark
county
and
10.
972
dollars
is
the
collection
allowance
for
the
department,
the
fiscal
year.
2020
distributions
are
down
20.91
percent
over
fiscal
year,
2019.
D
Next
is
the
transportation
connection
tax,
which
was
enacted
in
the
2015
legislative
session.
This
tax
imposes
an
excise
tax
on
the
transportation
of
a
passenger
by
a
network,
a
transportation
network
company,
common
motor
carrier
of
passengers
or
taxi
cabs.
At
the
rate
of
three
percent
of
the
total
fare
charged,
the
first
five
million
every
biennium
is
distributed
to
the
state
highway
fund
and
the
remaining
is
distributed
to
the
state
general
fund.
D
D
Next
is
the
big
excise
tax
which
was
enacted
in
the
2003
legislative
session.
This
tax
is
imposed
on
each
bank
at
the
rate
of
1
750,
for
each
branch
in
excess
of
one
maintained
in
any
county.
On
the
first
day
of
each
calendar
quarter,
the
distribution
is
to
the
state
general
fund
and
in
fiscal
year
2020
the
department
distributed
2.6
million,
and
this
is
a
reduction
of
6.91
over
fiscal
year.
2019.
D
D
The
revenue
is
distributed
to
the
department
to
be
deposited
for
the
credit
of
the
solid
waste
management
account
in
the
state
general
fund.
The
state
controller
distributes
quarterly
0.5
percent
to
the
department
of
taxation
44.5
to
the
department,
the
state
department
of
conservation
and
natural
resources,
30
to
clark
county
district
board
of
health
and
25
to
washoe
county
district
board
of
health.
In
fiscal
year
2020
the
department
distributed
2.05
million,
which
is
a
reduction
of
3.08
over
fiscal
year.
D
D
And
finally,
our
last
slide:
the
exhibition
facility
fee
is
a
5.5
000
annual
fee.
However,
alternatively,
if
the
fee
is
paid
quarterly,
the
fee
is
equal
to
the
number
of
businesses
without
a
state
business
license
taking
part
in
an
exhibition,
and
that
is
calculated
by
multiplying
the
number
of
days
that
that
business
is
participating
in
the
exhibition
multiplied
by
a
dollar
twenty
five.
D
D
A
Thank
you,
executive
director,
young.
I
do
have
questions
the
order
so
far
is
senator
neil
assemblyman
roberts
and
then
assemblywoman
anderson.
So,
let's
start
with
senator
neil.
Please
go
ahead.
Thank.
B
You,
madam
chair
director,
young,
I
have
two
separate
questions.
The
first
is
on
the
led.
Do
you
know
the
origin
of
the
sports
exemption
in
the
led
like
minutes
or
the
origin
of
the
creation
of
it
on
the?
Do
you
just
want
me
to
go
to
my
second
question,
even
though
it's
a
different
topic.
A
D
I
apologize
melanie
young
executive
director
to
restate
your
question:
senator
neal
you're,
asking
for
the
lat
the
origin
of
the
sports
exemption.
B
D
B
D
B
Good
afternoon,
senator
neil
this
is
shelley
hughes
chief
deputy
for
the
department
of
taxation.
For
your
first
question
for
the
exemption
for
professional
sports.
A
Teams,
I
did
some
research
and
I
saw
that.
B
It
was
added
to
nrs360a,
200,
subsection
40
and
with
senate
bill
266
in
the
2015
session,
and
in
particularly
it
was
added
with
amendment
number
1036,
and
that
was
in
the
city,
revenue
and
economic
development
minutes
of
may
28,
2015.
B
and
basically
those
minutes
say.
The
next
relevant
change
is
the
exemption
of
professional
sports
teams.
As
long
as
the
team
is
based
in
nevada
and
the
home-based
team
is
a
participant
in
the
contest.
Previously,
the
exemption
applied
only
to
minor
league
baseball
proposed
amendment
to
266
extends
the
exemption
to
nevada-based
professional
athletic
teams.
In
the
events
they
conduct.
B
Thank
you
good
to
know,
and
as
to
your
second
question
you
were
asking
about:
when
does
the
distribution
of
mbt
to
tesla
expire?
That
question
I
would
have
to
get
back
to
you
on.
I
don't
have
that
information
available
right
now,
but
we
can't
get
that
answer
to
you.
Okay,
thank
you.
Thank
you,
madam
chair.
A
Thank
you,
and
with
that
we'll
go
to
assemblyman
roberts.
B
E
About
the
liquor
taxes,
and
so
at
the
top,
you
have
the
rates
that.
B
Are
graduated
based
on
the
alcohol
volume,
and
so
one
question
that
I
have
is:
is
that
retail
and
wholesale,
or
just
one
of
the
other.
D
Thank
you,
melanie
young
executive
director,
for
the
record.
I
do
have
my
deputy
terry
upton,
who
is
over
that
section,
and
she
should
be
able
to
answer
that
question.
Thank
you.
B
Thank
you.
Yes,
terry
upton,
deputy
of
compliance
for
the
department
that
it
that
taxes
on
the
supplier
to
the
wholesaler
there
is
a
sales
tax
on
the
retail
sale
of
liquor
that
these
rates
are
on
the
distribution.
Okay,.
B
F
B
F
When
they,
when
they
originally
adopted
a
tax,
or
has
it
been
changed
or
adjusted
since
then,
and
if
you
don't
know
that
that's
not
a
big
issue,
I
can
always
get
it
later.
F
F
B
A
Thank
you
and
for
the
record
that
was
miss
upton.
Next,
we
will
go
to
assemblywoman
anderson.
Thank
the
mentor.
B
To
through
you
to
executive
director
young,
thank
you
for
the
presentation
eye-opening
in
so
many
parts.
So
I'm
going
to
be
asking
a
pretty.
I
think
it's
a
simple
question
that
I'm
I'm
not
sure
on
slide.
29
and
30,
there's
mention
of
fines
so,
and
I
think
that
was
with
alcohol,
but
I
believe
later
there's
another
mission
of
fines
when
it
comes
to
other
entity
entities.
Excuse
me
who
sets
those
fines
and
also,
when
was
last
very
similar
to
assemblymember
robert's.
B
D
Thank
you,
melanie
young
executive
director
for
the
record
great
questions.
Terry
upton
should
be
able
to
answer
most
of
those.
If
we
don't
have
those
for
you
today,
we'll
be
able
to
get
those
for
you.
B
B
The
fines
are
set
by
statute,
and
I'm
not
certain
about
your
third
question,
and
if
you
could
repeat
that,
I
will
make
sure
to
note
it
and
get
you
an
answer
on
that.
Thank
you
thank
you
and
thank
you
for
that.
The
quick
responses
with
it.
What
percentage
is
there
any
sort
of
budget
that
is
based
upon
these
fines
or
in
anticipation
based
upon
past
practices,
is
kind
of
where
that's
coming
from?
A
Okay
and
if
you
could
just
share
the
responses
with
the
full
committee,
we
appreciate
it
or
send
it
to
to
me
our
staff
and
we'll
distribute
it.
Okay,
with
that,
I
will
go
to
an
assemblyman
or
liquor.
B
C
D
Thank
you,
mona
young
executive
director
for
the
nevada
department
of
taxation.
Unfortunately,
I
wasn't
a
part
of
the
decision-making
process
when
those
taxes
were
implemented,
so
I
would
probably
have
to
defer
to
your
legislative
staff
staff,
your
tax
team,
to
maybe
provide
some
information
on
that.
F
So
obviously
it
significantly
predates
the
commerce
tax
being
put
in
place
in
the
2015
session.
So
as
to
the
economic
logic,
that's
the
difficult
part
to
answer,
because
it
right
the
the
legislature
in
its
deliberations,
made
the
decision
to
put
the
modified
business
tax
in
place
in
2003
to
generate
revenue
for
the
state
to
be
able
to
fund
its
general
fund
budget
and
then
made
the
decision
in
2015
the
in
2015
session.
The
modified
business
taxes
were
raised,
but
and
that's
when
they
also
put
in
place
the
commerce
tax.
F
But
there
is
a
credit
mechanism
of
that.
Fifty
percent
of
the
commerce
tax
that
you
paid
can
be
taken
as
a
credit
against
your
modified
business
tax,
so
they're.
So,
in
some
sense,
that
would
be
possibly
the.
What
I
would
offer
to
you
is
somewhat
of
an
economic
logic,
or
the
logic
was:
is
that
yes,
the
the
ones
on
payroll,
the
ones
on
gross
receipts,
but
then
you're
trying
to
get
some
balance
by
allowing
a
credit
of
the
commerce
tax
back
against
the
modified
business
tax.
A
Thank
you,
mr
gindin.
Assemblymen
aren't
liquor
any
any
follow-up.
A
Okay
with
that,
we
will
move
to
assemblyman
yeager,
and
then
I
don't
have
anyone
else
on
the
list.
So
if
you
do
have
a
question,
please
let
me
know.
F
Thank
you,
madam
chair.
If
you,
if
you
allow,
I
have
just
a
couple
questions,
I
don't
think
they'll
be
too
complicated.
F
It's
good
to
see
you
director,
young,
and
I
was
thinking
back
to
working
with
you
and
miss
hughes
on
the
cannabis,
compliance
board
legislation
and
just
wanted
to
say
thank
you
again
for
making
that
happen,
and
my
first
question
is
related
to
that
piece
of
legislation.
Obviously,
there
were
a
lot
of
reasons
we
processed
that
bill
and
passed
it,
but
one
of
them
was
to
free
up
the
department
of
taxation
to
not
have
to
be
burdened
with
all
the
regulatory
side
of
of
the
cannabis
industry,
and
so
I
just
wanted.
F
D
D
You
know,
the
department
had
started
working
on
our
strategic
plan
and
our
executive
team
was
working
very
diligently
on
what
would
would
have
been
our
you
know
our
budget
proposal
that's
before
you
today
and
then
we
were
hit
with
kovid,
which
is
really
been
difficult
to
manage
through
these
almost
last
year,
and
so
you
know,
fortunately,
we
weren't
trying
to
manage
the
cannabis
industry
and
they've
got
dedicated
resources,
as
we
were
trying
to
manage
through
the
the
covet
situation.
D
But
but
what
I
would
really
like
to
share
is
some
exciting
things
that
the
department
has
done
and
that's
one
of
them
is
implementing
credit
cards.
That
is
something
the
department
has
wanted
to
do
for
a
long
period
of
time,
and
we
finally
have
that
and
so
we're
pleased
to
be
able
to.
As
of
december
2020
for
most
of
our
tax
types,
especially
in
our
online
tax
portal,
we're
able
to
accept
credit
card
payments
and
the
way
that
works
I'll
share
a
little
bit
about
that.
D
D
The
department
does
receive
100
percent
of
the
tax
revenue,
and
our
payment
processor
collects
the
2.2
percent
fee
so
that
it
doesn't
pass
through
the
department
and
and
so
being
able
to
provide
that
opportunity
for
our
taxpayers
to
be
able
to
do
that,
and
that
is
definitely
something
we
have
been
working
on
again
for
some
time.
So
we're
grateful
to
be
able
to
return
our
focus
back
to
the
department
of
taxation
and
its
resources
to
be
able
to
collect
the
7.2
billion
dollars
that
we
do
collect
on
an
annual
basis.
A
F
Thank
you,
madam
chair.
The
other
question
was
about
the
tax
amnesty
program.
I
know
you
said
it
just
really
just
started
february
1st,
but
I
think
there
were
some
efforts
to
publicize
it,
and
I
just
wondered
if
taxpayers
delinquent
taxpayers
have
come
forward
to
express
interest
or
ask
and
just
a
general
update
for
any
conclusions.
You
can
make
four
days
into
the
program.
D
Again,
melanie
young
for
the
record.
Yes,
we
are
pleased
to
be
able
to
offer
tax
amnesty
program
to
be
able
to
assist
taxpayers
during
this
time.
We
have
had
quite
a
bit
of
outreach,
we're
getting
a
lot
of
responses
and
hits
through
our
social
media
and
the
media
outlets
that
have
provided
that
information.
D
I
did
a
presentation
recently
at
the
nevada
taxpayers
association,
we're
hoping
to
try
and
reach
as
many
outlets
as
we
can,
so
that
we
can
relieve
the
taxpayers
of
the
additional
penalties
and
interests
that
have
been
imposed
while
they
are
allowed
to
just
pay
the
base
taxes
for
any
period
that
they
are
owing
right
now.
So
it
is
early
to
tell
how
much
we're
going
to
be
able
to
collect
through
this
process.
D
B
D
Month
that
they
would
owe
taxes
for
so
the
month
of
january,
by
the
last
day
of
that
month,
they
will
have
paid
and
remitted
on
their
tax
returns
for
the
month
of
december.
D
So
we
probably
won't
have
really
good
data
on
the
tax
amnesty
program,
we're
anticipating
in
mid
to
late
april
and
so
we'll
be
able
to
provide
a
better
update
at
that
point
in
time.
A
You're
welcome
and
before
we
move
on
to
assemblywoman
kasama,
I
want
to
go
back
to
the
amnesty
now.
Did
we
have
the
amnesty
in
for
the
great
recession
and,
if
so,
okay,
and
do
you
or
your
staff,
can
you
give
us
a
little
bit
of
general
information
about
about
how
it
went
when
we
did
it
then.
D
During
the
great
recession,
we
held
two
amnesty
periods
and
unfortunately
I
don't
have
those
at
my
fingertips,
and
maybe
I
could
have
some
staff
look
that
up
for
me
real
quick,
but
it
was
2008
and
2010
and
there
it
was
a
significant
benefit
to
the
state
to
operate
that
program.
Back
then,.
A
Okay,
thank
you
yeah.
If
you
can
get
us
our
that
information,
unless
mr
dendon,
that
information
you
have
off
the
top
of
your
head.
F
It
is
not
madam
chair,
okay,
because
the
interesting
thing
is
is
for
us
is
yeah.
Taxation
would
have
to
provide
that
because
we
really
see
when
the
amnesty
payments
are
being
made,
they're
being
paid
against
the
tax
for
which
the
amnesty
paid,
so
they
get
blended
in
with
the
other
tax
payments
so
yeah.
We
would
need
that
information
to
be
provided
by
the
department
of
taxation.
B
B
So
my
question
is
on
slide
19
under
the
commerce
tax
and
you
kind
of
rattled
this
off
quickly,
and
I
really
like
the
information
where
you
talked
about
the
amount
distributed
to
the
general
fund,
205
million
and
you
broke
it
down
by
retail,
wholesale
manufacturing
and
hospitality.
D
D
So
the
top
three
industries
made
up
half
of
the
distribution.
So
in
fiscal
year
20
we
collected
41.2
million
for
retail
trade.
D
F
Madam
chair,
this
is
russell,
if
you
don't
mind
I'll
I'll,
just
the
piggyback
on
to
the
question
and
then
the
response
by
director
young
that
if
any
of
the
members
are
interested
in
additional
information
on
the
commerce
tax
and
the
statistics
on
that
at
the
no
to
the
november
10th
meeting
at
the
economic
forum,
there
was
a
significant
amount
of
information
that
was
compiled
on
the
history
of
that
tax,
from
fy
2016
through
fy
2020,
which
actually
there
are
tables
there,
that
break
it
out
by
the
26
categories,
as
well
as
there's
some
pie,
charts
and
so
again
that
is,
and
that
is
available
on
the
legislative
council,
bureau
websites
under
interim
committees
or
if
any
of
the
members
are
specifically
interested.
F
They
can
email
me
and
we
can
send
you
the
link
to
that
information.
So
I
just
thought
since
assemblywoman
kasama
asked
that
question
and
if
there
is
interest
in
that
we
have
compiled
quite
a
bit
of
that
actual
statistical
data
for
that
tax.
Thank
you,
manager.
A
Great
thank
you.
Do
we
have
any
other
questions?
A
Okay,
I
was
wondering-
and
I
don't
know
if
this
is
more
enforcement
or
if
you'd
have
this
information
executive
director
young
over
the
last
year
with
covid.
Are
you
seeing
an
uptick
in
in
black
market
with
the
as
far
as
liquor
and
cigarettes
go
or
is
that
staying
about
the
same
as
usual.
D
B
Thank
you,
terry
upton,
for
the
record.
In
fiscal
year
2019
we
did
686
inspections
and
14
of
those
inspections
resulted
in
a
seizure
and
in
2020
we
did
677
inspections
that
year
and
99
resulted
in
a
seizure.
So
for
the
last
six
month
period
we've
had
407
inspections
with
18,
resulting
in
seizure.
So
there
has
been
an
uptick
in
that
black
market.
A
Okay,
thank
you
very
much.
A
With
that,
I
don't
think
I
see
any
other
questions,
so
thank
you,
director,
young,
thank
you,
deputy
hughes
and
deputy
upton.
We
really
appreciate
the
information
and
you
know
we'll
be
hearing
from
you
again
in
this
session.
I'm
sure.
D
D
A
Sorry
about
that,
I'm
having
some
trouble
with
my
mouse
so
with
that
we
will
move
on
to
a
presentation
from
the
gaming
control
board
so
presenting
as
board
member
terry
johnson,
as
well
as
michael
lawton
and
michael
morton,
who
are
both
senior
research
specialists
with
the
administrative
administration
division.
E
I'll
get
started
good
afternoon,
chair
cohen
members
of
the
assembly
committee
on
revenue
and
chair
neo,
members
of
the
senate
revenue
and
economic
development
committee.
My
name
is
terry
johnson.
I
am
a
member
of
the
nevada
gaming
control
board.
I'm
here
this
afternoon
on
behalf
of
gaming
control
board,
chairman
brynne
gibson,
chairman
gibson,
regrets
that
he
was
not
able
to
join
you
this
afternoon.
E
E
So
I
am
joined
this
afternoon
by
mr
michael
morton,
one
of
our
senior
research
analysts
at
the
gaming
control
board.
I
believe
mr
lawton
had
to
leave.
I
was
not
able
to
stay,
unfortunately,
but
we'll
give
you
a
brief
overview
of
the
gaming
regulatory
system
here
in
the
state
of
nevada,
as
well
as
the
revenue
that
we
collect
on
behalf
of
the
state
and
also
give
you
an
update
on
online
gaming.
And
so
we
do
have
a
presentation
that
has
been
prepared
for
you
and
provided.
E
All
right,
so
I
wanted
to
give
you
an
overview
of
just
how
the
gaming
regulatory
system
is
structured
before
we
talk
about
the
revenue
that's
collected
into
that
system,
but
we
do
have
a
two-tiered
system.
You
hear
a
lot
about
the
gaming
control
board
and
the
gaming
commission,
and
there
are
two
separate
entities-
gaming
control
board,
having
day-to-day
operation
that
it
administers,
and
day-to-day
supervision
over.
The
folks
that
carry
that
out,
and
so
we'll
talk
a
little
bit
about
how
the
gaming
control
board
is
structured
and
the
duties
that
it
administers
as
well.
E
But
the
gaming
control
board
does
conduct
the
investigations
of
our
audits
that
are
out
there
and
makes
recommendations
on
licensing
matters
and
provides
that
day-to-day
24
7
enforcement
of
the
gaming
laws
and
regulations
that
are
out
there,
as
well
as
being
the
body
responsible
for
collecting
the
fees
and
taxes
on
behalf
of
the
state,
the
gaming
commission
comprised
of
five
persons,
in
contrast
with
the
three
persons
that
serve
on
the
gaming
control
board,
the
gaming
commission,
essentially
disposes
of
the
matters
that
the
gaming
control
board
forwards
to
it
for
recommended
action.
E
So
you
can
think
of
the
two-tiered
system
as
one
body
that
proposes
one
body
that
disposes,
and
it
is
the
commission
that
has
the
final
say
on
all
matters
of
licensing
disciplinary
issues,
policy
formulation,
including
the
authority
solely
to
enact
gaming
related
regulations.
E
In
terms
of
the
or
broader
picture
of
what
the
regulatory
structure
looks
like
for
gaming
in
the
state
of
nevada,
there's
an
additional
component
as
well,
and
so
I've
talked
about
the
gaming
control
board
and
the
gaming
commission.
There's
a
third
body,
the
gaming
policy
committee,
and
it
is
comprised
of
members
of
the
legislature,
members
of
the
gaming
community,
as
well
as
tribal
representatives
and.
E
That
work
in
the
gaming
space
as
well,
so
it
is
a
broadly
representative
body
that
needs
to
provide
policy,
advice
and
recommendations
to
the
gaming
control
board
and
the
gaming
commission.
I
believe,
the
last
matter
they
took
up
as
part
of
their
politics
policy.
Discussions
was
related
to
gaming
policy
and
cannabis,
and
that
was
perhaps
within
the
last
three
years
or
so.
They
have
also
previously
made
recommendations
related
to
online
gaming
daily
fantasy
sports.
E
So
that
is
a
place
where
just
a
gathering
of
ideas
and
input
from
the
public
and
other
interested
stakeholders
takes
place
in
policy
recommendations
into
thereafter.
The
governor
does
make
appointments
to
all
of
those
bodies.
The
gaming
control
board
the
gaming
commission,
as
well
as
the
gaming
policy
committee
and
the
governor,
serves
as
the
chair
of
the
gaming
policy
committee.
E
So
our
mission,
just
briefly
stated
it
is
to
preparation
of
anything
related
to
gaming.
All
the
persons
involved
in
gaming,
employee
gaming,
gaming
locations
practices,
associations,
anything
related
to
the
conduct
of
gaming.
E
We
do
have
offices
located
throughout
the
state.
The
bulk
of
our
personnel
are
in
the
las
vegas
area,
followed
by
carson
city,
our
enforcement
division
and
I'll
talk
just
in
a
moment
about
what
the
different
divisions
do.
So
you'll
have
my
idea
of
that,
but
they
actually
have
locations
throughout
the
state.
In
the
five
locales
that
you
see
listed
there,
we
have
a
little
under
400
employees
on
a
full-time
basis
throughout
the.
E
E
That
you've
heard
about
so
far
is
our
operational
unit
here
our
administration
division
and
they
are
the
administrative
backbone
of
our
operations.
All
the
financial
issues,
budget
issues,
records
retention,
just
giving
us
the
operational
support
that
we
need
to
carry
out
our
business
on
a
day-to-day
basis,
including
human
resources,
and
providing
that
training
function
as
well,
our
audit
division.
Those
are
the
folks
that
are
out
there
auditing
the
gaming
companies
on
a
day-to-day
basis.
E
They
actually
will
touch
just
about
every
large
gaming
enterprise,
at
least
once
every
two
to
three
years
to
ensure
that
the
taxes
are
being
collected
and
we
kind
of
break
them
up
into
licensees.
That
grows
more
than
six
and
a
half
million
per
year
and
versus
licensees
that
grows
less
than
six
and
a
half
million
in
gaining
revenue
per
year.
We
have
two
divisions
that
work
on
each
of
those
sets
of
licensees
respectively,
to
ensure
proper.
E
Collections,
our
enforcement
division
is
a
24
7
365
operation.
That's
our
in-house
unit
of
certified
peace
officers,
post-certified
peace
officers
and
they
do
everything
from
conducting
criminal
and
regulatory
investigations
themselves,
oftentimes
working
with
our
partners
in
law
enforcement
at
the
local
level,
as
well
as
other
state
and
federal
entities.
E
Our
investigations
division
they
before
the
pandemic
would
travel
far
and
wide
to
investigate
thoroughly
the
backgrounds
of
any
persons
looking
to
do
business
in
the
gaming
industry
in
the
state
of
nevada.
They
conduct
all
of
the
initial
investigations
of
applicants
and
forward
their
recommendations
through
reports
onto
the
board
and
thereafter
they
have
a
monitoring
role,
particularly
as
it
relates
to
publicly
traded
corporations
to
ensure
that
their
activities
comport
with
state
laws,
especially
in
any
of
their
subsidiaries
as
well
involved
in
the
gaming
industry.
E
The
tax
and
license
division
is
our
unit
that
collects
those
gaming
taxes,
fees,
penalties,
interest,
fines
and
especially
focuses
on
the
smaller
entities,
and
so
we
do
generally
have
two
classes
of
licensees,
non-restricted
and
restricted
non-restricted.
Being
your
larger
casinos
that
you
most
frequently
are
rather
most
familiar
with
in
all
likelihood
and
our
restricted
locations
are
your
bars.
Restaurants,
taverns
convenience
stores,
supermarkets
that
have
slot
machines
only
and
15
or
fewer
in
number,
and
so
our
taxing
license.
E
Division
mostly
handles
that
ladder
group,
and
they
are
also
responsible
for
ensuring
that
if
the
bordering
information
imposes
conditions
on
a
licensee
as
part
of
the
process
of
being
able
to
operate
in
nevada
or
is
responsible
for
ensuring
that
those
conditions
are
satisfied
and
monitored
for
compliance,
as
well
as
monitoring
tribal
gaming,
compacts
between
nevada
and
tribal
entities,
and
on
that
last
point
somewhat
related
just
a
few
months
ago,
I
believe
it
was
in
october,
the
gaming
control
board
and
gaming
commission
licensed
the
first
tribal
http
tribe
to
operate
a
gaming
operation
in
the
las
vegas
strip
corridor.
E
And
then
we
have
our
technology
division
and
so
before
any
game
device
software.
What
have
you
can
go
on
the
floor?
E
We
have
folks
that
do
testing
to
make
sure
that
it
meets
with
certain
criteria
before
being
public
facing,
and
they
also
work
with
the
independent
test
labs
as
well
to
ensure
that
products
and
devices
and
equipment
are
up
to
the
standards
set
by
nevada
before
they
make
it
onto
the
floor,
and
they
are
our
eyes
and
ears
in
terms
of
monitoring
trends
and
providing
policy
recommendations
on
potential
changes
to
technology
related
provisions,
and
they
also
provide
forensic
support.
E
And
now
we're
going
to
talk
a
little
bit
about
the
revenue
that
is
collected
and
go
through
some
slides
that
we've
prepared
to
assist
the
committees
in
that
front.
So
we
look
at
over
the
past
seven
or
eight
fiscal
years
and
you'll
see
the
general
fund
appropriations
that
have
been
made
to
the
gaming
control
board
the
gaming
commission
to
carry
out
its
duties,
as
well
as
the
other
funds
at
the
boards
and
commission's
disposal,
and
that
includes
everything
from
the
fees
that
employees
paid
to
work
in
the
gaming
industry.
E
You
may
have
heard
the
term
over
the
years
a
work
card
or
a
gaming
card
to
work
in
the
gaming
industry.
They
pay
a
fee
to
do
so,
and
that's
what
that
relates
to
as
well
as
fees
that
we
might
conduct
of
applicants
for
conducting
investigations
and
those
gaming
lab
fees
as
well
and
nevada
is
an
exporter
of
its
technical
competencies.
E
By
way
of
the
training
fees
that
we
charge.
So
we
might
have
jurisdictions
that
want
to
learn
about
the
nevada
gaming
regulatory
system
and
our
staff
will
provide
training
for
a
fee
as
well
as
working
with
universities.
Both
here
in
nevada
and
elsewhere
as
necessary
to
provide
training
assistance
on
gaming
regulatory.
E
Systems
this
chart
shows
the
revenues
collected
for
fy20
by
geographic
area
for
clark,
washington,
elko,
south
lake
tahoe
and
carson
valley,
and
that
showed
for
fiscal
year.
2617
million
dollars
having
been
collected
in
total
gaming
collections.
E
And
then
this
breaks
it
down
by
category
and
so
the
largest
category
being
the
percentage
fees
and
I'll
talk
a
little
bit
about
that
in
a
second
and
the
source
of
those
percentage
fees
and
how
that
breaks
down.
But
other
fees
collected
are
listed
there,
the
next
largest
source
being
the
live,
entertainment
tax
and
I'll
go
through
we'll
briefly,
what
those
followers
look
like
in
greater
detail,
but
you
have
there
for
your
partaking,
the
various
categories
that
we
collect
gaming
regularly.
E
This
shows
the
total
collections
as
well
as
collections
based
on
some
sources:
the
percentage
fees,
the
live,
entertainment
tax
and
just
as
a
bit
of
background,
I
was
listening
to
director
young's
remarks
earlier
for
members.
That
might
not
be
aware.
The
gaming
control
board
and
the
department
of
taxation
essentially
split
responsibilities
for
collecting
live
entertainment
tax.
E
If
the
live
entertainment
is
provided
at
an
establishment
that
has
gaming,
the
gaming
control
board
will
include
those
tax
collections
as
part
of
its
responsibilities
and
for
non-gaming
related
live
entertainment
attacks,
those
who
would
be
collected
and
administered
by
the
department
of
taxation,
and
we
do
have
a
statutory
charge
to
work
cooperatively
with
each
other
in
the
administration
of
the
live
entertainment
tax
statutes
to
provide
for
consistency
in
that
administration
and
collection,
and
we
work
closely
with
them
in
doing
so,
including
in
the
last
few
years.
E
So
the
percentage
fees
I
talked
about
the
collections
that
are
there
obviously
as
a
decline
in
fy20
versus
fy19.
E
This
is
the
non-restricted
licensees
and
the
monthly
taxable
revenue
generated
based
on
those
tables
that
you
see
there.
So
most
of
them
are
going
to
be
in
that
category
of
6.75
of
all
revenue
exceeding
134
000,
resulting
in
the
percentage
fees
collected
that
you
see.
E
There
the
live,
entertainment
tax,
as
I
mentioned,
for
live
entertainment
occurring
on
the
premises
of
a
gaming
establishment.
So
this
has
been
an
extremely
piece
of
helpful
legislation
that
was
enacted
in
2015
senate
bill
266
that
really
cleaned
up
a
lot
of
the
some
of
the
ambiguities
in
the
statute
and
not
only
that
it
really
reduced
the
amount
of
litigation
and
contested
cases
that
we
had
over
interpretations
of
when
the
live
entertainment
tax
applies.
E
Now,
it's
just
a
straight
nine
percent
when
there
is
an
admission
charge,
that's
levied
and
we
by
and
large
do
not
have
the
same
degree
of
challenges
to
those
tax,
determinations
or
litigations
in
front
of
the
gaming
commission
or
in
the
courts.
When.
B
E
So
these
are
non-restricted
fees
on
slots
that
are
charged,
and
so
that's
based
on
a
quarterly
fee
of
20
per
machine
by
those
larger
non-restricted
licensees.
And
then
you
have
the
restricted
slot
fees
as
well.
For
those
smaller
locations
that
I
talked
about,
tavern's
convenience
stores,
laundromats
any
place
that
has
just
slot
machines
and
fewer
than
15.
E
Non-Restricted
game
fees
so,
for
the
number
of
beams
that
a
non-restricted
licensee
might
operate
mostly
table
games,
we're
talking
here,
they
pay
taxes
on
that,
and
these
are
the
amounts
that
reflect
that
and
then
advanced
license
fees.
Basically,
your
prepays
that
a
licensee
might
pay
once
they
receive
a
gaming
license
and
that
would
be
equal
to
three
times
the
amount
of
percentage
fees
anticipated
to
be
owed.
E
And
then
you
have
some
collections
for
manufacturers
and
distributors,
and
so
when
we
talk
about
the
gaming
industry,
we
tend
to
think
of
it
in
terms
of
casinos
and
perhaps
to
a
smaller
degree,
on
the
restricted
locations.
But
we
actually
have
probably
a
little
under
3
000
gaming
licenses
throughout
the
state
of
nevada,
in
addition
to
the
casinos
and
restricted
locations.
E
But
it
includes
everything
from
service
providers
to
equipment,
manufacturers
and
device
distributors,
and
so
these
are
some
of
the
other
licensees
that
are
governed
by
the
gaming
control
act
and
the
fees
that
would
be
paid,
as
well
as
those
who
operate
slot
routes.
And
so,
if
you
have
a
licensee,
that's
responsible
for
taking
care
of
the
machines
at
a
convenience
store
or
restaurant.
Sometimes,
if
you
see
those
machines
inside
those
different
locations,
the
operator
of
that
business
might
not
be
the
gaming
licensee.
E
E
Fees,
these
are
annual
slot
taxes
based
on
250
per
slot
machine,
based
on
all
the
amounts
paid
by
all
licensees,
and
you
see
some
information
there
related
to
how
those
monies
are
distributed.
Once
collected
the
first
five
million
going
to
the
capital
construction
fund
for
hydration,
followed
by
another
one
fifth,
going
to
the
special
capital
construction
fund
and.
B
E
The
balance
of
it
is
deposited
into
the
dsa.
E
We
also
have
that
annual
gains
fee
based
on
the
number
of
games
and
non-restricted
licensees
operating
and
those
are
split
in
this
case
between
nevada's
17
counties
on
an
equal
basis.
E
And
then
we
have
a
requirement
placed
upon
licensees
that
if
they
are
in
possession
of
slot
machine
wagering
vouchers
where
monies,
how
are
owed
but
not
yet
paid
not
yet
redeemed,
they
have
a
requirement
to
emit
75
percent
of
the
value
of
those
unredeemed
slot
machine
vouchers
quarterly,
and
this
amount
reflects
the
fiscal
year
collections
of
about
10
million
dollars
for
the
last
two
fiscal
years
for
expired.
Slot
machine
wagering
vouchers.
E
E
All
right,
so
this
is
the
revenue
collected
for
interactive
gaming
service
provider
license
and,
as
I
mentioned
a
few
moments
ago,
there
are
others
involved
in
the
regulation
and
activities
of
the
gaming
industry
and
those
who
are
service
providers
of
various
types
pay,
an
annual
fee
for
the
license
and
privilege
of
providing
those
services.
And
these
are
the
collections
for
fy
19
and
20
53
000
13
000,
respectively.
E
E
We
continue
to
collect
the
amounts
due
the
state
and
we
continue
to
regulate
the
gaming
industry
with
professional,
timely,
strict
regulation
to
implement
the
public
policy
mandates
of
this
state
and
maintain
the
integrity
of
regulated
gaming
and
the
reputation
of
regulated
gaming
here
in
this
state
for
our
visitors,
as
well
as
our
gaming
employees,
to
ensure
that
they
have
the
resources
that
they
need
to
be
successful
in
their
professional
endeavors.
E
So
mr
morton
will
finish
up
by
giving
you
an
update
on
online
gaming
in
nevada,
and
we
look
forward
to
the
community's
questions.
Mr
morgan.
C
Thank
you,
member
johnson,
good
evening,
committee
members.
This
is
mike
morton
with
the
gaming
control
board
for
the
record.
The
committee
have
asked
for
a
brief
history
and
summary
and
trends
of
online
gaming,
both
here
in
nevada
and
nationally.
C
The
nevada
legislature
first
authorized
interactive
gaming
in
2001,
which
allowed
gaming
licensees
to
use
communications
technology,
namely
the
internet,
to
place
bets
or
wagers
into
display
games
over
the
internet.
However,
online
gaming,
as
we
know
it
today,
was
the
result
of
the
legislature
passing
assembly
bill
number
258
in
2011
this
bill,
specifically
added
internet
poker
to
the
definition
of
interactive
gaming.
C
B
C
Pursuant
to
the
authority
granted
by
the
nevada
legislature,
governor
sandoval,
entered
in
to
the
multi-state
internet
gaming
agreement
with
delaware
on
february
25
2014.
new
jersey
became
a
party
to
that
agreement.
Three
years
later,
the
multi-state
internet
gaming
agreement
allows
patrons
who
reside
in
member
states
to
avail
themselves
to
patrons
and
other
member
states
for
internet
poker
and
other
internet
gaming.
C
C
C
C
A
Thank
you,
mr
morton
and
mr
johnson.
I
do
have
some
people
in
line
for
questions.
Assemblywoman,
bilbray,
axelrod,.
B
Thank
you
chair.
I
was
just
wondering
you
had
made
reference
to
a
tribal
casino
in
the
strip
corridor
and
I
was
just
wondering
I
wasn't
aware
of
that,
and
so,
if
you
could
just
give
me
some
additional
information
about
that,
I'd
appreciate
it.
E
For
terry
johnson,
for
the
record-
and
that
was
at
the
it
used
to
be
the
hard
rock
over
on
harmon
in
paradise
and
has
been
rebranded
as
a
virgin
hotels,
property.
And
it
will
have
as
its
gaming
operator
on
the
mohegan
tribe.
A
Thank
you
and
assemblyman
yeager.
F
Thank
you,
madam
chair
appreciate
it.
I
think
this
first
question
is
for
mr
johnson,
probably
I
wanted
to
ask
about
sports
wagering.
I
know
there's,
I
think
around
the
country.
There's
sort
of
been
this
idea
that
sports
wagering
is
going
to
be
the
panacea
for
all
state
budget
problems
which
you
know,
I
think
is,
is
not
the
case.
It's
not
a
huge
amount
of
revenue,
but
I
wondered
on
that.
Chart
you
showed
collections
by
category
is
support
the
revenue
generated
from
sports
wagering.
Would
that
fit
into
other
collections?
F
E
Cherry
johnson
for
the
record-
and
while
I
look
for
that
and
mr
morton
looks
through
it
and
probably
get
to
her
quicker
than
I
do,
I
will
concur
at
the
outset
with
your
your
thoughts
about
whether
or
not
sports
betting
is
going
to
be
a
budget
panacea.
E
I
think
you
will
see
in
jurisdictions
like,
for
example,
in
new
jersey.
They
are
doing
extremely
well
in
sports
betting
and
they
were,
as
you
will
recall,
the
primary
drivers
of
getting
the
repeal
of
passport
at
the
u.s
supreme
court
and
they've
done
very
well
kudos
to
them
for
their
successes.
E
But
part
of
their
success
is
based
on
the
fact
that
they
are
surrounded
by
non-sports
betting
jurisdictions
that
have
very
large
populations,
and
so
people
in
new
york
will
catch
subway
or
other
public
transportation
and
ride
from
new
york
into
new
jersey,
not
even
get
off
of
the
public
transportation,
but
merely
stay
there
long
enough
to
place
their
wager
online
and
then
go
back
across
the
state
line
into
new
york.
So
I
think
when
you
see
other
states
start
to
get
into
sports
betting
you'll
see
that
those
numbers
start
to
level
off.
E
In
new
jersey,
it
is
proliferating
around
the
country
in
significant
form,
and
I
would
concur
that
it's
not
going
to
be
the
panacea.
I
know
that
on
a
percentage
basis,
it's
about
a
little
under
three
percent
of
the
total
amount
collected,
because
I
frequently
include
a
pie
chart
and
various
presentations
showing
what
a
small
sliver
it
is
to
nevada,
because
people
were
concerned
that
it
would
have
this
significantly
negative
effect
on
the
fiscal
operations
of
nevada.
E
F
We
appreciate
that,
thank
you
so
much,
I
guess,
and
maybe
everything
is
legal
in
new
jersey.
After
all,
I
just
was
fascinated
by
this
folks
in
new
york
driving
to
the
tunnel,
the
tunnel
to
go
sports
bet
and
I'm
anxious
to
see
what
our
handle
is
here
for
the
big
game
here
on
sunday
and
how
that
might
be
affected
by
the
pandemic.
F
Thank
you,
madam
chair,
and
you
know
I
think
this
is
for
either
one,
but
I'm
just
very
interested
in
the
online
gaming
compact.
I
know
when
the
legislation
was
passed
in
2013.
There
was,
you
know,
big
hope
that
multiple
states
would
join
in
and
this
would
sort
of
rival
what
used
to
be
the
size
of
the
black
market
operators
poker
stars.
What
have
you
and
it
doesn't
seem
like
that's-
come
to
pass?
Obviously,
new
jersey
jumping
on
the
compact's
been
huge
in
terms
of
population,
but
you
know
what
are
the
prospects
going
forward?
F
Do
we
expect
states,
like
pennsylvania,
michigan,
perhaps
new
york
at
some
point
to
join
those
compacts?
And
you
know,
if
so,
do
we
think
that
would
have
some
kind
of
significant
revenue
bump
to
the
state?
I
know
poker
also
is
not
a
huge
margin
game
in
terms
of
the
rate
that's
taken,
but
just
wanted
to
kind
of
get
your
take
on
where
that
might
be
going
in
the
next
10
years
or
so.
I
really
would
have
thought
with
the
pandemic.
E
Turkey,
johnson,
for
the
record,
I
think
if
there
is
going
to
be
an
increase
in
activity,
now
is
the
time
as
jurisdictions
around
the
country
look
at
expanding
their
offering
of
legal
wagering.
I
think
you
had
a
you
know,
a
factor
back
in
you
know:
2011
2013,
whatever
there
was
that
uncertainty
at
the
federal
level
about
what
was
legal
and
what
was
still
illegal
and
just
the
I
think,
with
the
change
over
from
the
administration
at
that
time
to
the
administration
at
the
federal
level.
E
Prior
to
this
one,
and
now
to
the
current
present
federal
administration,
I
think
you're
going
to
see
some
movement
along
those
lines.
Obviously,
here
in
nevada
we
just
get
into
the
online
poker,
and
so
that's
a
policy
decision
as
to
whether
we
should
expand
those
offerings
beyond
poker
and
try
to
avail
ourselves
of
other
other
opportunities.
And,
as
you
know,
we
are
population
challenged
here
in
nevada
and
so
that
lack
of
liquidity
has
had
some
competitive
disadvantages
to
us.
E
We
don't
have
the
population
of
new
jersey,
definitely
the
population
of
a
pennsylvania,
but
we
do
have
the
reputational
expertise
and
we
do
bring
things
to
the
table
that
I
think
want
that
perhaps
add
some
additional
legitimacy
to
some
of
the
compact
participants
that
might
be
in
the
offing.
So
I
would
be
optimistic
that
we
can
see
some
expansion
progress
here
in
the
in
this
year,
starting
this
year.
C
C
C
They
just
passed
their
online
gaming
legislation
less
than
a
month
ago,
but
I
do
know
that
they
modeled
that
legislation
off
of
off
of
nrs
we
had
been
in
talks
with
them.
We
gave
them
some
some
support
and
some
expertise
on
how
to
go
about
doing
that.
So
I
imagine
that
those
two
states
will
probably
be
the
first
ones
that
you
might
see
during
the
compact
and
add
some
more
liquidity
to
that
market.
B
B
It
says
that
the
collections
are
earmarked
and
split
equally
among
nevada's
17
counties.
I'm
just
wondering,
since
the
revenues
are
probably
the
great
portions
collected
by
clark
and
washoe,
I'm
just
wondering
why
those
revenues
are
not
dispersed
more
on
a
percentage
basis
from
where
they're
collected
versus
evenly
split
on
the
counties.
What's
the
history
for
that,
or
is
there
any
explanation
for
that.
E
Terry
johnson,
for
the
record,
if
there
is
an
explanation
which
I'm
sure
there
is,
I
don't
have
it.
I
can
certainly
look
into
that
further
for
you
to
see
if
we
have
some
additional
background
on
that
policy.
Question.
C
I'm
happy
mike
morton
for
the
record,
I'm
happy
to
get
that
research
to
the
committee.
I
know
it's
statutory
based,
so
it's
not
a
decision
of
the
board,
but
it's
done
in
statute.
Thank
you.
A
Okay,
thank
you
with
that.
I
have
a
question.
Don't
know
exactly
how
to
say
this,
because
I
don't
know
the
terms
because
I'm
not
young,
so
you
at
the
school
at
unlv
gaming
or
the
the
center
on
gaming
at
unlv.
A
I
know
over
the
last
couple
of
years,
they've
been
looking
at
more
of
the
trends,
with
the
understanding
that
young
people
today,
and
especially
over
the
next
few
years,
are
not
going
to
want
to
do,
are
not
going
to
be
interested
in
gaming
at
casinos.
A
The
way
we
traditionally
think
of
what
we've
had
to
date,
it'll
be
more
gaming
than
gambling
for
certainly
so
with
that
in
mind,
if
what
are
you
doing
to
kind
of
prepare
yourself
for
when
that
trend,
we
see
that
trend
actually
take
hold
and
where
it's
not
people
sitting
at
a
craps
table
or
sitting
in
front
of
a
a
slot
machine
but
doing
some
other
type
of
gaming
as
their
form
of
gambling?
A
E
And
so
we
rely
on
the
industry
to
bring
forward
concepts
and
ideas
for
making
gaming
activities
more
attractive
to
millennials,
for
example.
And
so
we
don't
necessarily
commit
ourselves
as
regulators
to
developing
new
games
or
new
devices
that
might
attract
and
that's
the
job
of
the
the
marketplace
to
maintain
its
competitive.
But
to
assist
the
marketplace.
E
We
certainly
let
the
world
go
forward,
that
we
have
a
regulatory
structure,
that's
nimble
and
responsive,
and
we
can
get
products
of
matters
through
the
pipeline
fairly
efficiently.
With
our
system
that
we
have
here
in
nevada
and
a
large
part
of
that
is
the
considerable
amount
of
responsibility
and
discretion
that
the
legislature
has
given
the
gaming
commission
to
make
ready
approvals
of
new
proposals
and
new
games
and
new
devices.
E
And
so
there
was
an
item
on
the
agenda
of
the
gaming
control
board.
Just
yesterday,
if
you're
not
mistaken,
where
an
applicant
who
has
been
working
on
essentially
gamblifying
video
games
and
so
taking
those
video
game
concepts
and
putting
them
onto
slot
machines,
and
so
those
types
of
activities
will
continue
to
be
examined,
and
we
will
do
our
part
that,
when
the
industry
in
maintaining
its
competitiveness
amongst
millennials,
especially
when
they
bring
forward
new
proposals,
to
help
them
thrive
and
be
successful,
we'll
get
it
through
and
get
it
through
quickly.
A
A
Okay,
seeing
none.
Thank
you
very
much,
remember
johnson,
mr
morton
and
mr
latin.
We
appreciate
the
information
and
and
the
important
job
that
you're
doing
for
the
state
and
with
that
we're
going
to
move
on
next
part
of
our
agenda
and
I'd
like
to
open
the
meeting
for
public
comment.
A
Time
all
right,
okay!
So
with
that
cheering
any
comments
or.