NRS 462.170 Registration 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.

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1. The Commission may, upon recommendation of the Board, require:

(a)A qualified organization that registers with the Chair to file an application pursuant to chapter 463 of NRS for a finding of suitability to operate a charitable lottery or charitable game 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 or charitable game 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 of a qualified organization to operate a charitable lottery or charitable game 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 or charitable game 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 or charitable game 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.

4. If the Commission finds that an associated person is unsuitable to be associated with the operation of a charitable lottery or charitable game in this State, any contract or agreement between the associated person and a qualified organization for the provision of personal services to the qualified organization or for conducting any activity relating to the operation of the charitable lottery or charitable game shall be deemed to be terminated without liability on the part of the qualified organization. Failure to expressly include such a condition in a contract or agreement is not a defense in any action brought pursuant to this section to terminate the contract or agreement.