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MATTHEW M. GRIFFIN, ESQ.
Nevada Bar No. 8097
Matthew Griffin, PLLC
401 s. Curty Stteet
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3 Carson City, NV 89703 ‫؛‬
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Telephone: (775) 882-4002
4 BY,
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5 Attorney ior Plaintiff
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IN THE FIRST JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA

IN AND FOR CARSON CITY

10 NEVADA RESORT ASSOCIATION РАС, a

CaseNo.:^ d 0‫ق<ةك‬٦ ١b
registered Nevada Political Action Committee, Dept. No.^_
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12 Plaintiff, COMPLAINT FOR

V.
DECLARATORY RELIEF
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‫ي‬
‫ل‬ NEVADANS FOR FAIR GAM^G TAXES
pL, 14
Priority Claimed: NRS 295.061(1)
РАС, a registered Nevada Political Action
Ss Committee; and BARBARA CEGAVSKE, in
15 Arbitration Exemption:
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her official capacity as Secretaty of State of
Nevada,
Request for Declarator and Injunctive
Relief.

ΐ (3 17 Defendants.
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Plaintiff, Nevada Resort Association РАС, by and through counsel. Matt Griffin, Esq. of
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MATTHEW GRIFFIN PLLC, seeks declaratoty and injunctive relief against Defendants that Petition

21 02-01-2020 does not comply with the requirements of state law and therefore cannot appear on the

22 general election ballot in 2022. Plaintiff alleges and complains as follows:

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I. JURISDICTION
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1 This Court has jurisdiction pursuant to Nev. Const. Art. 6, § 6 and NRS 295.061(1).
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II. PARTIES
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2. Plaintiff Nevada Resort Association РАС is a registered Nevada Political Action
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Committee.
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 3 Defendant Nevadans for Fair Gaming Taxes PAC (“Proponent") is a proponent of a
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2 statutory initiative petition designated as #3-01-2020 by the Secretai^ of State. The initiative petition
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seeks to amend state law to require that certain nonrestricted gaming licensees pay a gross gaming fee
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of 9.75% on monthly revenue in excess of $250,000, instead of the current fee of 6.75% for such
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licensees (“the Petition").
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4. Defendant Barbara Cegavske is Nevada's duly elected Secretary of State. She is sued in
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her official capacity only. The Secretary's duties include certifying the number of signatoes on an

9 initiative petition and other processing necessaty to place an initiative petition on the ballot.
10 III. GENERAL ALLEGATIONS

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5, On January 13, 2020, Defendant Nevadans for Fair Gaming Taxes PAC,filed with the
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Secretaty of State a Notice ofIntent to Circulate Petition and a copy ofthe Petition.
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6. Under current law, certain nonrestricted gaming licensees must pay a gaming fee based
‫ه‬ o 14
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ชิ 15 on their gross monthly revenues. NRS 463.370(1) provides for three tiers of gaming fees:

16 a. 3.5% of gross revenue up to $50,000 per month;

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b. 4.5% of gross revenues between $50,000 and $134,000 per month; and.
‫ة‬ 18
c. 6.75% of all gross revenue which exceeds $134,000 per month.
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The Petition proposes to add a new subsection l(d) to NRS 463.370 that would apply
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to certain nonrestricted gaming licensees with monthly gross gaming revenue In excess of $250,000.

22 The Petition would create a fourth tier of fees that would apply a fee of 9.750‫ ها‬to all

23 monthly gross gaming revenue above $250,000. The 6.75% fee would still apply to all monthly gross
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gaming revenue that is over $134,000 but does not exceed $250,000 per month.
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9. The Description of Effect of the Petition states in filli:

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The Nevada Gaming Commission collects a monthly fee based on the
28 licensee's monthly gross gaming revenue. Cuưentlv■ for ηοη-resưicted

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 !icensees. the maximum percentage collected is 6 3/4 percent ofany
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mondily gross gaming revenue over $134.000■ This initiative would
2 increase that percentage to 9 У4 percent for any montMv gross gling
revenue over $250.000. The fee Increase proposed bv this ‫؛‬n‫؛‬tiative won!¿
3 not affect gaming licensees whose monthly gross gaming revenue is !ess

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Initiative would not affect restricted licensees. Le. those
consisting of 15 or fewer slot machines. The initiative will increase the
5 potential, bond amount the Commission can require for licensure under
NRS 463.225(2). The initiative may increase the amount of money that
6 goes to augment stakes of pari-mutuel horse racing in counties with
populations of under 100,000 under NRS 463.320(2)(c)-(d). The initiative
will go into effect on July 1, 2021 if enacted by the Legislature and
approved by the Governor, and on Januaty I, 2023 if approved by voters in
the 2022 general election, (emphasis in oiriginal)
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10. The Initiative Petition states in foil:
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THE PEOPLE OF THE STATE OF NEVADA DO ENACT AS
12 FOLLOWS:

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Section 1. This act provides for the imposition of a nine and three
Pi 14 quarters percent license fee on non-restricted gaming licensees' gross
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revenue in excess O«250,000 per calendar month.
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15 Section 2. Subsection I ofNRS 463.370 is hereby amended to read as
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16 follows:
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17 1. Except as otherwise provided in NRS 463.373, the Commission shall
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charge and collect from each licensee a license fee based upon all the
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gross revenue of the licensee as follows:
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(a) Three and one-half percent of all the gross revenue of the licensee
20 which does not exceed $50,000 per calendar month;

21 (b) Four and one-half percent of all the gross revenue of the licensee
which exceeds $50,000 per calendar month and does not exceed
22 $ 134,000 per calendar month; ể
23 (c) Six and three-quarters percent of all the gross revenue of the licensee
which exceeds $134,000 per calendar month and does not exceed
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$250,000 per calendar month; and
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(d) Nine and three-qwarters percent of all the gross revenue of the
26 licensee which exceeds $250,000per calendar montli.

27 Section 3. Severability. If any provision of this act, or the application

thereof to any person, thing or circumstance is held invalid or
28 unconstitutional by a court of competent jurisdiction, such invalidity or

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 1 unconst‫؛‬tutiona!‫؛‬ty sha!! not affect the validity or constitutionality of this
act as a whole or any provision or application of this act which can be
2 given effect without the invalid or unconstitutional provision or
application, and to this end the provisions of this act are declared to be
3 severable.

4 Section 4. Effective Date. This act shall become effective On July 1,

5 2021 if enacted by the Legislahire and approved by the Governor, and
on January I, 2023 if approved by voters in the 2022 general election.
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{bold italics represents new language, - is language
to be deleted)

FIRST CAUSE OF ACTION

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Invalid Effective Date Clause
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1 Section 4 of the Petition states: “This act shall become effective on July 1,2021 if enacted
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by the legislature and approved by the Governor, or on January 1,2023 if approved by the voters in the
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2022 general election.
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2, Section 4 is invalid because it conflicts with Nev. Const. Art. 19, § 2(3), which states
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15 that a stahitoty amendment approved by the voters becomes effective upon the canvass of the votes by
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the Nevada Supreme Court.
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ส 3 The Description ofEffect likewise incorrectly infoms potential signers ofthe measure’s
‫ة‬ 18
effective date in violation of Nev. Const. Art, § 2(3) and NRS 295.061.
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4. The canvas of the votes by the Supreme Court occurs on the fourth Tuesday of
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21 November following the election. NRS 293.395.

22 5 Accordingly, Nev. Const. Art. 19, § 2(3) requires that the measure becomes effective
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on November 24, 2022 if it is approved by the voters.
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6. The increase in the gross gaming fee would therefore go into effect more than a month
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before the date set forth in the Petition and the Description of Effect.
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7, Consequently, the misrepresentation in the Initiative of the effective date will mislead

28 voters as to when the measure goes into effect. It will also create legal uncertainty related to

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 1 ‫؛‬mp^ementatlon because the State of Nevada and its relevant boards and commissions, and the gaming

2 properties subject to the fee, will be unaware of the actual effective date of the Petiton.

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SECOND CAUSE OF ACTION
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Misleading Description of Effect: Omission of Material Information
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6 1 The Petition's Description of Effect is materially misleading and fails to comply with

NRS 295.٥09(l)(b) because the Description of Effect fails to inform potential signers of material facts.

NRS 463.320(2)(а) requires that, with a few minor exceptions, all state gaming license
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fees collected pursuant to NRS 463.370 (gross gaming fee) be deposited for credit to the State General
Fund.
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12 3 Funds deposited in the State General Fund can be used for essentially any purpose.

٩ 13 These increased fees are not dedicated to education or to any other particular purpose.
‫أل‬ 14
4. Nevertheless, Proponent has promoted the Petition as part of a tax package to raise a

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billion dollars for Nevada's schools.

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5 Nowhere in the Description of Effect is a potential voter informed of where the revenue
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‫ج‬ 18 will be deposited or for what purposes the new revenue can used. The Description of Effect fails to tell

19 voters that these additional fees will not go to fund education. Nor does it even explain that these
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increased fees will go into the General Fund, and can be used any purpose, ftom state employee salaries
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to construction of state buildings, etc.
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6. When voters are being asked to substantially increase a fee or a tax, they are entitled to
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24 clear inforjnatlon explaining where the money will be deposited and what it can or will be used for.

25 This information is critical for a potential signer to be able to evaluate before signing the Petition.
26 Thus, the Description of Effect omits and material fact and is misleading by failing to inform voters of
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the effects of the measure.
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 7 The Petition’s Description of Effect therefore violates NRS 295.009(l)(b) and cannot
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2 appear on the 2022 general election ballot.

3 WHEREFORE, the Plaintiff Nevada Resort Association PAC respectfully requests that the
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Court enter an order:

1. Declaring that the Petition does not comply with NRS 295.009(1)(b)and is therefore invalid;
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2. Declaring that the Petition does not comply with Nev. Const. Art, § 2(3) and is therefore
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invalid;

9 3. Prohibiting the Secretary of State from placing the Petition on any ballot; and.
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4. Granting any other relief the Court deems just.
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‫ال‬ 1 Dated thisiday of February, 2020.

‫د‬

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Matthew Griffin PLEC

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17 By:.
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,ESQ.
‫ج‬ 18 Nevada Bar No. 8097
Matthew Griffin, PLLC
19
401 South Curry Street
Carson City, N٧ 89703
20 Telephone: (775) 882-4002
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