SB7

requires two-thirds majority vote (§ 9)

S.B. 7

Senate Bill No. 7–Committee of the Whole

June 12, 2003

____________

Referred to Committee of the Whole

SUMMARY—Makes various changes pertaining to regulation of gaming. (BDR 41‑16)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State: No.

EXPLANATION – Matter in bolded italics is new; matter between brackets [~~omitted material]~~ is material to be omitted.

Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

AN ACT relating to gaming; revising the provisions pertaining to the acquisition or disposition of an interest in a business entity that holds a state gaming license or the option to purchase such an interest; authorizing the Nevada Gaming Commission to adopt regulations prescribing the manner for submission of payments by licensees; requiring a person employed as a gaming employee to be registered as a gaming employee by the State Gaming Control Board; requiring the Board to investigate each person applying for registration or renewal of registration as a gaming employee; providing for a fee for processing an application for registration as a gaming employee; authorizing the Commission to adopt regulations allowing a person who owns antique gaming devices to sell such devices without procuring a license; authorizing a gaming licensee or his officers, employees or agents who have reasonable cause to believe that a person has committed a felony to take into custody and detain such a person; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

2-1 Section 1. Chapter 463 of NRS is hereby amended by adding

2-2 thereto the provisions set forth as sections 2 to 6, inclusive, of this

2-3 act.

2-4 Sec. 2. “Registered as a gaming employee” means authorized

2-5 to be employed as a gaming employee in this state or to serve as an

2-6 independent agent.

2-7 Sec. 3. “Temporarily registered as a gaming employee”

2-8 means authorized to be employed as a gaming employee in this

2-9 state or serve as an independent agent from the date of submitting

2-10 a complete application for registration or renewal of registration

2-11 for a period not to exceed 120 days following receipt of the

2-12 complete application by the Board, including classifiable

2-13 fingerprints, unless otherwise suspended.

2-14 Sec. 4. 1. The purported granting of an option to purchase

2-15 any security issued by a corporation, other than a publicly traded

2-16 corporation, which holds a state gaming license, or the purported

2-17 sale, assignment, transfer, pledge or other disposition of an

2-18 existing option to acquire such a security is void unless

2-19 administratively approved in advance by the Chairman of the

2-20 Board.

2-21 2. A request for administrative approval pursuant to

2-22 subsection 1 must:

2-23 (a) Be made on forms approved by the Chairman of the Board;

2-24 and

2-25 (b) To the extent consistent with this section, be considered in

2-26 all respects as an application.

2-27 3. The Chairman of the Board may refer a request

2-28 for administrative approval to the Board and Commission for

2-29 consideration or deny the request for administrative approval for

2-30 any reasonable cause. A denial may be submitted for review by the

2-31 Board and Commission in the manner set forth by the regulations

2-32 of the Commission pertaining to the review of administrative

2-33 approval decisions.

2-34 4. The Commission, upon recommendation by the Board,

2-35 may require a person to apply for a finding of suitability to hold

2-36 an option to purchase such a security.

2-37 Sec. 5. 1. The purported granting of an option to purchase

2-38 any interest in a limited partnership which holds a state gaming

2-39 license or the purported sale, assignment, transfer, pledge or other

2-40 disposition of an existing option to acquire such an interest is

2-41 ineffective unless administratively approved in advance by the

2-42 Chairman of the Board.

2-43 2. A request for administrative approval pursuant to

2-44 subsection 1 must:

3-1 (a) Be made on forms approved by the Chairman of the Board;

3-2 and

3-3 (b) To the extent consistent with this section, be considered in

3-4 all respects as an application.

3-5 3. The Chairman of the Board may refer a request for

3-6 administrative approval to the Board and Commission

3-7 for consideration or deny the request for administrative approval

3-8 for any reasonable cause. A denial may be submitted for review by

3-9 the Board and Commission in the manner set forth by the

3-10 regulations of the Commission pertaining to the review of

3-11 administrative approval decisions.

3-12 4. The Commission, upon recommendation by the Board,

3-13 may require a person to apply for a finding of suitability to hold

3-14 an option to purchase such an interest.

3-15 Sec. 6. 1. The purported granting of an option to purchase

3-16 any interest in a limited-liability company which holds a state

3-17 gaming license or the purported sale, assignment, transfer, pledge

3-18 or other disposition of an existing option to acquire such an

3-19 interest is ineffective unless administratively approved in advance

3-20 by the Chairman of the Board.

3-21 2. A request for administrative approval pursuant to

3-22 subsection 1 must:

3-23 (a) Be made on forms approved by the Chairman of the Board;

3-24 and

3-25 (b) To the extent consistent with this section, be considered in

3-26 all respects as an application.

3-27 3. The Chairman of the Board may refer a request for

3-28 administrative approval to the Board and Commission for

3-29 consideration or deny the request for administrative approval

3-30 for any reasonable cause. A denial may be submitted for review by

3-31 the Board and Commission in the manner set forth by the

3-32 regulations of the Commission pertaining to the review of

3-33 administrative approval decisions.

3-34 4. The Commission, upon recommendation by the Board,

3-35 may require a person to apply for a finding of suitability to hold

3-36 an option to purchase such an interest.

3-37 Sec. 7. NRS 463.013 is hereby amended to read as follows:

3-38 463.013 As used in this chapter, unless the context otherwise

3-39 requires, the words and terms defined in NRS 463.0133 to

3-40 [463.0197,] 463.01967, inclusive, and sections 2 and 3 of this act

3-41 have the meanings ascribed to them in those sections.

3-42 Sec. 8. NRS 463.1595 is hereby amended to read as follows:

3-43 463.1595 1. The Commission shall adopt regulations,

3-44 consistent with NRS 463.370, 463.371[, which] and 463.3715, that

3-45 prescribe the manner in which winnings, compensation from games

4-1 and gaming devices, and gross revenue must be computed and

4-2 reported by the licensee.

4-3 2. The Commission may adopt regulations that prescribe the

4-4 manner in which a licensee must submit to the Commission any

4-5 fees, interest, penalties or tax required to be paid based upon the

4-6 information reported in subsection 1.

4-7 Sec. 9. NRS 463.335 is hereby amended to read as follows:

4-8 463.335 1. The Legislature finds that, to protect and promote

4-9 the health, safety, morals, good order and general welfare of the

4-10 inhabitants of the State of Nevada and to carry out the policy

4-11 declared in NRS 463.0129, it is necessary that the Board:

4-12 (a) Ascertain and keep itself informed of the identity, prior

4-13 activities and present location of all gaming employees and

4-14 independent agents in the State of Nevada; and

4-15 (b) Maintain confidential records of such information.

4-16 2. Except as otherwise provided in subsection [3,] 4, a person

4-17 may not be employed as a gaming employee or serve as an

4-18 independent agent unless he is [the holder of a valid work permit to

4-19 work] temporarily registered or registered as a gaming employee

4-20 [issued] pursuant to this section. [A work permit to work as a

4-21 gaming employee may be issued by the Board or by a county or city

4-22 licensing authority.] An applicant for [a work permit shall file his]

4-23 registration or renewal of registration as a gaming employee must

4-24 file an application for [a work permit with the licensing authority of

4-25 the city in which he resides if that city requires a work permit. If the

4-26 city in which he resides does not require such a permit, the applicant

4-27 shall file his application with the licensing authority of the county in

4-28 which he resides if that county requires a work permit. If the county

4-29 in which he resides does not require such a permit, the applicant

4-30 shall file his application with the Board.] registration or renewal of

4-31 registration with the Board. Whenever a registered gaming

4-32 employee, whose registration has not expired, has not been

4-33 objected to by the Board, or has not been suspended or revoked

4-34 becomes employed as a gaming employee at another or additional

4-35 gaming establishment, he must file a change of employment notice

4-36 within 10 days with the Board. The application for registration

4-37 and change of employment notice must be filed through the

4-38 licensee for whom the applicant will commence or continue

4-39 working as a gaming employee, unless otherwise filed with the

4-40 Board as prescribed by regulation of the Commission.

4-41 3. The Board shall [, by regulation,] prescribe the [form for an]

4-42 forms for the application for [a work permit to work] registration as

4-43 a gaming employee[. The fee for such a permit may be charged

4-44 only to cover the actual investigative and administrative costs

5-1 related to processing an application for such a permit and must not

5-2 exceed $75.

5-3 3.] and the change of employment notice.

5-4 4. An independent agent is not required to [hold a work permit]

5-5 be registered as a gaming employee if he is not a resident of this

5-6 state and has registered with the Board in accordance with the

5-7 provisions of the regulations adopted by the Commission.

5-8 [4. Upon receipt of an application for a work permit to work as

5-9 a gaming employee, the Board or licensing authority]

5-10 5. A complete application for registration or renewal of

5-11 registration as a gaming employee or a change of employment

5-12 notice received by a licensee must be mailed or delivered to the

5-13 Board within 5 business days of receipt unless the date is

5-14 administratively extended by the Chairman of the Board for good

5-15 cause. A licensee is not responsible for the accuracy or

5-16 completeness of any application for registration or renewal of

5-17 registration as a gaming employee or any change of employment

5-18 notice.

5-19 6. The Board shall immediately conduct an investigation of

5-20 [the applicant] each person who files an application for

5-21 registration or renewal of registration as a gaming employee to

5-22 determine whether he is eligible for [the permit.] registration as a

5-23 gaming employee. In conducting the investigation, [the Board or

5-24 licensing authority shall forward a complete set] two complete sets

5-25 of the applicant’s fingerprints must be submitted to the Central

5-26 Repository for Nevada Records of Criminal History for

5-27 [submission] :

5-28 (a) A report concerning the criminal history of the applicant;

5-29 and

5-30 (b) Submission to the Federal Bureau of Investigation for a

5-31 report concerning the criminal history of the applicant.

5-32 The investigation need not be limited solely to consideration of the

5-33 results of the report concerning the criminal history of the applicant.

5-34 [5. A work permit issued to a gaming employee or an

5-35 independent agent must have clearly imprinted thereon a statement

5-36 that it is valid for gaming purposes only.

5-37 6. Unless denied or] The fee for processing an application for

5-38 registration or renewal of registration as a gaming employee may

5-39 be charged only to cover the actual investigative and

5-40 administrative costs related to processing the application and the

5-41 fees charged by the Central Repository for Nevada Records of

5-42 Criminal History and the Federal Bureau of Investigation to

5-43 process the fingerprints of an applicant pursuant to this

5-44 subsection.

6-1 7. Upon receipt of a change of employment notice, the Board

6-2 may conduct any investigations of the gaming employee that the

6-3 Board deems appropriate to determine whether the gaming

6-4 employee may remain registered as a gaming employee. The filing

6-5 of a change of employment notice constitutes an application for

6-6 registration as a gaming employee and if the Board, after

6-7 conducting its investigation, suspends or objects to the continued

6-8 registration of the gaming employee, the provisions of subsections

6-9 13 to 19, inclusive, apply to such suspension by or objection of the

6-10 Board. No fee may be charged by the Board to cover the actual

6-11 investigative and administrative costs related to processing a

6-12 change of employment notice.

6-13 8. Except as otherwise prescribed by regulation of the

6-14 Commission, an applicant for registration or renewal of

6-15 registration as a gaming employee is deemed temporarily

6-16 registered as a gaming employee as of the date a complete

6-17 application for registration or renewal of registration is submitted

6-18 to the licensee for which he will commence or continue working as

6-19 a gaming employee. Unless objected to by the Board [at the time

6-20 that the permittee filed a notice of a change in his place of

6-21 employment pursuant to subsection 8 and unless suspended or

6-22 revoked, such a permit expires on the fifth anniversary of the

6-23 permittee’s birthday, measured from the birthday nearest the date of

6-24 issuance or renewal. If the date of birth of a permittee is on

6-25 February 29 in a leap year, for the purposes of this section, his date

6-26 of birth shall be deemed to be on February 28.

6-27 7. Whenever any person applies to a county or city licensing

6-28 authority for the issuance or renewal of a work permit, the county or

6-29 city officer or employee to whom the application is made shall

6-30 within 24 hours mail or deliver a copy thereof to the Board, and may

6-31 at the discretion of the county or city licensing authority issue a

6-32 temporary work permit that is valid for 120 days.] or suspended or

6-33 revoked, the initial registration of an applicant as a gaming

6-34 employee expires 5 years after the date employment commences

6-35 with the applicable licensee or, in the case of an independent

6-36 agent, 5 years after the date he contracts with an applicable

6-37 licensee. Any subsequent renewal of registration as a gaming

6-38 employee, unless objected to by the Board or suspended or

6-39 revoked, expires 5 years after the expiration date of the most

6-40 recent registration or renewal of registration of the gaming

6-41 employee.

6-42 9. If , within 120 days after receipt by the Board of [the copy of

6-43 the application,] a complete application for registration or renewal

6-44 of registration as a gaming employee, including classifiable

6-45 fingerprints, or a change of employment notice, the Board has not

7-1 notified the [county or city licensing authority] applicable licensee

7-2 of any suspension or objection, the [authority may issue, renew or

7-3 deny a permanent work permit to the applicant.

7-4 8. A gaming employee who is issued a work permit] applicant

7-5 shall be deemed to be registered as a gaming employee. A complete

7-6 application for registration or renewal of registration as a gaming

7-7 employee is comprised of:

7-8 (a) The fully completed form for application for registration as

7-9 a gaming employee prescribed in subsection 3;

7-10 (b) Two complete sets of the fingerprints of the applicant,

7-11 unless directly forwarded electronically or by another means to the

7-12 Central Repository for Nevada Records of Criminal History;

7-13 (c) The fee for processing the application for registration or

7-14 renewal of registration as a gaming employee prescribed by the

7-15 Board pursuant to subsection 6, unless otherwise prescribed by

7-16 regulation of the Commission; and

7-17 (d) A completed statement as prescribed in subsections 1 and 2

7-18 of NRS 463.3351.

7-19 If the Board determines after receiving an application for

7-20 registration or renewal of registration as a gaming employee that

7-21 the application is incomplete, the Board may suspend the

7-22 temporary registration as a gaming employee of the applicant who

7-23 filed the incomplete application. An applicant whose temporary

7-24 registration is suspended shall not be eligible to work as a gaming

7-25 employee until such time as he files a complete application.

7-26 10. A person who is temporarily registered or registered as a

7-27 gaming employee is eligible for employment in any licensed gaming

7-28 establishment in this state until [the work permit is denied or] such

7-29 registration is objected to by the Board, expires or is suspended or

7-30 revoked. [However, each such employee shall notify the Board

7-31 within 10 days following any change of his place of employment at

7-32 a gaming establishment. Such a notification shall be deemed an

7-33 application for a work permit that the Board may deny or object to

7-34 after conducting any investigations the Board deems appropriate.

7-35 The provisions of subsections 9 to 16, inclusive, apply to any such

7-36 objection of the Board.] The Commission shall adopt regulations to:

7-37 (a) [Facilitate] Establish uniform procedures for the [issuance of

7-38 work permits by counties and cities;] registration of gaming

7-39 employees;

7-40 (b) Establish uniform criteria for [denial by a county or city

7-41 licensing authority] objection by the Board of an application for [a

7-42 work permit;] registration; and

7-43 (c) Provide for the creation and maintenance of a system of

7-44 records that contain information regarding the current place of

7-45 employment of each person who [possesses a valid work permit.

8-1 9.] is registered as a gaming employee and each person whose

8-2 registration as a gaming employee has expired, was objected to by

8-3 the Board, or was suspended or revoked. The system of records

8-4 must be accessible by licensees for the limited purpose of

8-5 complying with subsection 2.

8-6 11. If the Board, within the 120-day period[,] prescribed in

8-7 subsection 9, notifies:

8-8 (a) The [county or city licensing authority;] applicable licensee;

8-9 and

8-10 (b) The applicant,

8-11 that the Board suspends or objects to the [granting of a work permit

8-12 to the applicant, the authority shall deny the work permit and shall

8-13 immediately revoke and repossess any temporary work permit

8-14 which it may have issued.] temporary registration of an applicant

8-15 as a gaming employee, the licensee shall immediately terminate

8-16 the applicant from employment or reassign him to a position that

8-17 does not require registration as a gaming employee. The notice of

8-18 suspension or objection by the Board which is sent to the applicant

8-19 must include a statement of the facts upon which the Board relied in

8-20 making its suspension or objection.

8-21 [10. Whenever an application for a work permit is made to the

8-22 Board and the Board denies such an application, it shall include in

8-23 its notice of the denial a statement of the facts upon which it relied

8-24 in denying the application.

8-25 11.] 12. Any person whose application for [a work permit has

8-26 been denied because of an objection by the Board or whose

8-27 application has been denied] registration or renewal of registration

8-28 as a gaming employee has been suspended or objected to by the

8-29 Board may, not later than 60 days after receiving notice of the

8-30 [denial] suspension or objection, apply to the Board for a hearing. A

8-31 failure of a person whose application has been [denied] objected to

8-32 or suspended to apply for a hearing within 60 days or his failure to

8-33 appear at a hearing of the Board conducted pursuant to this section

8-34 shall be deemed to be an admission that the [denial] suspension or

8-35 objection is well-founded, and the failure precludes administrative

8-36 or judicial review. At the hearing, the Board shall take any

8-37 testimony deemed necessary. After the hearing, the Board shall

8-38 review the testimony taken and any other evidence, and shall ,

8-39 within 45 days after the date of the hearing , mail to the applicant its

8-40 decision sustaining or reversing the [denial of the work permit]

8-41 suspension or the objection to the [issuance of a work permit.

8-42 12.] registration of the applicant as a gaming employee.

8-43 13. The Board may suspend or object to the [issuance of a

8-44 work permit or may refuse to issue a work permit] registration of

8-45 an applicant as a gaming employee for any cause deemed

9-1 reasonable by the Board. The Board may object [or refuse] to or

9-2 suspend the registration if the applicant has:

9-3 (a) Failed to disclose or misstated information or otherwise

9-4 attempted to mislead the Board with respect to any material fact

9-5 contained in the application for [the issuance or renewal of a work

9-6 permit;] registration as a gaming employee;

9-7 (b) Knowingly failed to comply with the provisions of this

9-8 chapter or chapter 463B, 464 or 465 of NRS or the regulations of

9-9 the Commission at a place of previous employment;

9-10 (c) Committed, attempted or conspired to commit any crime of

9-11 moral turpitude, embezzlement or larceny or any violation of any

9-12 law pertaining to gaming, or any crime which is inimical to the

9-13 declared policy of this state concerning gaming;

9-14 (d) Committed, attempted or conspired to commit a crime which

9-15 is a felony or gross misdemeanor in this state or an offense in

9-16 another state or jurisdiction which would be a felony or gross

9-17 misdemeanor if committed in this state;

9-18 (e) Been identified in the published reports of any federal or

9-19 state legislative or executive body as being a member or associate of

9-20 organized crime, or as being of notorious and unsavory reputation;

9-21 (f) Been placed and remains in the constructive custody of any

9-22 federal, state or municipal law enforcement authority; or

9-23 (g) Had [a work permit] registration as a gaming employee

9-24 revoked or committed any act which is a ground for the revocation

9-25 of [a work permit] registration as a gaming employee or would

9-26 have been a ground for revoking [his work permit if he] registration

9-27 as a gaming employee if the applicant had then [held a work

9-28 permit.] been registered as a gaming employee.

9-29 If the Board [issues] registers or does not suspend or object to the

9-30 [issuance of a work permit to] registration of an applicant[,] as a

9-31 gaming employee, it may specially limit the period for which the

9-32 [permit] registration is valid, limit the job classifications for which

9-33 the [holder of the permit] registered gaming employee may be

9-34 employed and establish such individual conditions for the

9-35 [issuance,] renewal and effectiveness of the [permit] registration as

9-36 the Board deems appropriate, including required submission to

9-37 unscheduled tests for the presence of alcohol or controlled

9-38 substances.

9-39 [13.] 14. Any applicant aggrieved by the decision of the Board

9-40 may, within 15 days after the announcement of the decision, apply

9-41 in writing to the Commission for review of the decision. Review is

9-42 limited to the record of the proceedings before the Board. The

9-43 Commission may sustain, modify or reverse the Board’s decision.

9-44 The decision of the Commission is subject to judicial review

9-45 pursuant to NRS 463.315 to 463.318, inclusive.

10-1 [14. Except as otherwise provided in this subsection, all

10-2 records acquired or compiled by the Board or Commission relating

10-3 to any application made pursuant to this section and all lists of

10-4 persons to whom work permits have been issued or denied and all

10-5 records of the names or identity of persons engaged in the gaming

10-6 industry in this state are confidential and must not be disclosed

10-7 except in the proper administration of this chapter or to an

10-8 authorized law enforcement agency. Upon receipt of a request from

10-9 the Welfare Division of the Department of Human Resources

10-10 pursuant to NRS 425.400 for information relating to a specific

10-11 person who has applied for or holds a work permit, the Board shall

10-12 disclose to the Division his social security number, residential

10-13 address and current employer as that information is listed in the files

10-14 and records of the Board. Any record of the Board or Commission

10-15 which shows that the applicant has been convicted of a crime in

10-16 another state must show whether the crime was a misdemeanor,

10-17 gross misdemeanor, felony or other class of crime as classified by

10-18 the state in which the crime was committed. In a disclosure of the

10-19 conviction, reference to the classification of the crime must be based

10-20 on the classification in the state where it was committed.]

10-21 15. The Chairman of the Board may designate a member of the

10-22 Board or the Board may appoint a hearing examiner and authorize

10-23 that person to perform on behalf of the Board any of the following

10-24 functions required of the Board by this section concerning [work

10-25 permits:] the registration or renewal of registration of gaming

10-26 employees:

10-27 (a) Conducting a hearing and taking testimony;

10-28 (b) Reviewing the testimony and evidence presented at the

10-29 hearing;

10-30 (c) Making a recommendation to the Board based upon the

10-31 testimony and evidence or rendering a decision on behalf of the

10-32 Board to sustain or reverse the [denial of a work permit] suspension

10-33 of or the objection to the [issuance or renewal of a work permit;]

10-34 registration of an applicant as a gaming employee; and

10-35 (d) Notifying the applicant of the decision.

10-36 16. Notice by the Board as provided pursuant to this section is

10-37 sufficient if it is mailed to the applicant’s last known address as

10-38 indicated on the application for [a work permit,] registration as a

10-39 gaming employee or the record of the hearing, as the case may be.

10-40 The date of mailing may be proven by a certificate signed by an

10-41 officer or employee of the Board which specifies the time the notice

10-42 was mailed. The notice shall be deemed to have been received by

10-43 the applicant 5 days after it is deposited with the United States

10-44 Postal Service with the postage thereon prepaid.

11-1 17. Except as otherwise provided in this subsection, all

11-2 records acquired or compiled by the Board or Commission

11-3 relating to any application made pursuant to this section, all lists

11-4 of persons registered as gaming employees, all lists of persons

11-5 suspended or objected to by the Board and all records of the

11-6 names or identity of persons engaged in the gaming industry in

11-7 this state are confidential and must not be disclosed except in the

11-8 proper administration of this chapter or to an authorized law

11-9 enforcement agency. Upon receipt of a request from the Welfare

11-10 Division of the Department of Human Resources pursuant to NRS

11-11 425.400 for information relating to a specific person who has

11-12 applied for registration as a gaming employee or is registered as a

11-13 gaming employee, the Board shall disclose to the Division his

11-14 social security number, residential address and current employer

11-15 as that information is listed in the files and records of the Board.

11-16 Any record of the Board or Commission which shows that the

11-17 applicant has been convicted of a crime in another state must

11-18 show whether the crime was a misdemeanor, gross misdemeanor,

11-19 felony or other class of crime as classified by the state in which the

11-20 crime was committed. In a disclosure of the conviction, reference

11-21 to the classification of the crime must be based on the

11-22 classification in the state where it was committed.

11-23 Sec. 10. NRS 463.3351 is hereby amended to read as follows:

11-24 463.3351 1. An applicant for [the issuance] registration or

11-25 renewal of [a work permit] registration as a gaming employee [or

11-26 independent agent] shall submit to the [agency issuing work permits

11-27 pursuant to NRS 463.335] Board the statement prescribed by the

11-28 Welfare Division of the Department of Human Resources pursuant

11-29 to NRS 425.520. The statement must be completed and signed by

11-30 the applicant.

11-31 2. The [issuing agency] Board shall include the statement

11-32 required pursuant to subsection 1 in:

11-33 (a) The application or any other forms that must be submitted

11-34 for [the issuance] registration or renewal of [the work permit;]

11-35 registration as a gaming employee; or

11-36 (b) A separate form prescribed by the [issuing agency.

11-37 3. A work permit] Board.

11-38 3. An applicant may not be [issued or renewed by the issuing

11-39 agency] registered as a gaming employee if the applicant:

11-40 (a) Fails to submit the statement required pursuant to subsection

11-41 1; or

11-42 (b) Indicates on the statement submitted pursuant to subsection

11-43 1 that he is subject to a court order for the support of a child and is

11-44 not in compliance with the order or a plan approved by the district

12-1 attorney or other public agency enforcing the order for the

12-2 repayment of the amount owed pursuant to the order.

12-3 4. If an applicant indicates on the statement submitted pursuant

12-4 to subsection 1 that he is subject to a court order for the support of a

12-5 child and is not in compliance with the order or a plan approved by

12-6 the district attorney or other public agency enforcing the order for

12-7 the repayment of the amount owed pursuant to the order, the

12-8 [issuing agency] Board shall advise the applicant to contact the

12-9 district attorney or other public agency enforcing the order to

12-10 determine the actions that the applicant may take to satisfy the

12-11 arrearage.

12-12 Sec. 11. NRS 463.3352 is hereby amended to read as follows:

12-13 463.3352 1. If [an agency that issues work permits pursuant

12-14 to NRS 463.335] the Board receives a copy of a court order issued

12-15 pursuant to NRS 425.540 that provides for the suspension of all

12-16 professional, occupational and recreational licenses, certificates ,

12-17 and permitsissued to a person who is [the holder of a work permit]

12-18 registered as a gaming employee [or independent agent issued by

12-19 the agency, the agency] , the Board shall deem the [work permit

12-20 issued to] registration of that person to be suspended at the end of

12-21 the 30th day after the date on which the court order was issued

12-22 unless the [agency] Board receives a letter issued to the [holder of

12-23 the work permit] registered gaming employee by the district

12-24 attorney or other public agency pursuant to NRS 425.550 stating

12-25 that the [holder of the work permit] registered gaming employee has

12-26 complied with the subpoena or warrant or has satisfied the arrearage

12-27 pursuant to NRS 425.560.

12-28 2. [An agency that issues work permits pursuant to NRS

12-29 463.335] The Board shall reinstate [a work permit] the registration

12-30 as a gaming employee of a person that has been suspended by a

12-31 district court pursuant to NRS 425.540 if the [agency] Board

12-32 receives a letter issued by the district attorney or other public agency

12-33 pursuant to NRS 425.550 to the person whose [work permit]

12-34 registration was suspended stating that the person whose [work

12-35 permit] registration was suspended has complied with the subpoena

12-36 or warrant or has satisfied the arrearage pursuant to NRS 425.560.

12-37 Sec. 12. NRS 463.3354 is hereby amended to read as follows:

12-38 463.3354 An application for [the issuance of a work permit]

12-39 registration or renewal of registration as a gaming employee [or

12-40 independent agent] must include the social security number of the

12-41 applicant.

12-42 Sec. 13. NRS 463.336 is hereby amended to read as follows:

12-43 463.336 1. The Commission may issue an order summarily

12-44 suspending a person’s [work permit] registration as a gaming

12-45 employee upon a finding that the suspension is necessary for the

13-1 immediate preservation of the public peace, health, safety, morals,

13-2 good order or general welfare. The order becomes effective when

13-3 served upon the [holder of the permit.] person registered.

13-4 2. The order of summary suspension must state the facts upon

13-5 which the finding of necessity for the suspension is based. For

13-6 purposes of this section, the order of summary suspension shall be

13-7 deemed a complaint.

13-8 3. An order of summary suspension must be signed by at least

13-9 three members of the Commission.

13-10 4. The person whose [work permit] registration as a gaming

13-11 employee is summarily suspended:

13-12 (a) Has a right to a hearing on the order. The Commission shall

13-13 schedule a hearing within 5 days after receipt of the person’s notice

13-14 of defense.

13-15 (b) Must file a notice of defense within 30 days after the

13-16 effective date of the order of summary suspension. Failure to file

13-17 this notice in a timely manner waives his right to a hearing before

13-18 the Commission and to judicial review of the final decision.

13-19 5. All affirmative defenses must be specifically stated in the

13-20 notice of defense and unless an objection is stated to the form or

13-21 manner of the order, all objections to the form of the complaint shall

13-22 be deemed waived.

13-23 6. Except as otherwise provided in this section, the procedures

13-24 for a disciplinary action in NRS 463.312 to 463.3145, inclusive,

13-25 must be followed.

13-26 Sec. 14. NRS 463.337 is hereby amended to read as follows:

13-27 463.337 1. If any gaming employee or independent agent ,

13-28 who is registered as a gaming employee with the Board, is

13-29 convicted of any violation of this chapter or chapter 463B, 464 or

13-30 465 of NRS, or if in investigating an alleged violation of this chapter

13-31 by any licensee the Commission finds that a registered gaming

13-32 employee employed by or [an] a registered independent agent

13-33 contracting with the licensee has been guilty of cheating, the

13-34 Commission shall , after a hearing as provided in NRS 463.310 and

13-35 463.312 to 463.3145, inclusive[:

13-36 (a) If the gaming employee or independent agent holds a work

13-37 permit issued by the Board, revoke it.

13-38 (b) If the gaming employee or independent agent holds a work

13-39 permit issued by a county or city licensing authority, notify the

13-40 authority to revoke it, and the county or city licensing authority shall

13-41 revoke it.] , revoke the registration.

13-42 2. The Commission may revoke [a work permit issued by the

13-43 Board or, if issued by a county or city licensing authority, notify the

13-44 authority to revoke it,] the registration of a gaming employee or

13-45 independent agent if the Commission finds , after a hearing as

14-1 provided in NRS 463.310 and 463.312 to 463.3145, inclusive, that

14-2 the gaming employee or independent agent has failed to disclose,

14-3 misstated or otherwise misled the Board in respect to any fact

14-4 contained within any application for [a work permit] registration as

14-5 a gaming employee or, subsequent to being [issued a work permit:]

14-6 registered as a gaming employee:

14-7 (a) Committed, attempted or conspired to do any of the acts

14-8 prohibited by this chapter or chapter 463B, 464 or 465 of NRS;

14-9 (b) Knowingly possessed or permitted to remain in or upon any

14-10 licensed premises any cards, dice, mechanical device or any other

14-11 cheating device whatever, the use of which is prohibited by statute

14-12 or ordinance;

14-13 (c) Concealed or refused to disclose any material fact in any

14-14 investigation by the Board;

14-15 (d) Committed, attempted or conspired to commit larceny or

14-16 embezzlement against a gaming licensee or upon the premises of a

14-17 licensed gaming establishment;

14-18 (e) Been convicted in any jurisdiction other than Nevada of any

14-19 offense involving or relating to gambling;

14-20 (f) Accepted employment without prior Commission approval in

14-21 a position for which he could be required to be licensed under this

14-22 chapter after having been denied a license for a reason involving

14-23 personal unsuitability or after failing to apply for licensing when

14-24 requested to do so by the Commission;

14-25 (g) Been refused the issuance of any license, permit or approval

14-26 to engage in or be involved with gaming or pari-mutuel wagering in

14-27 any jurisdiction other than Nevada, or had any such license, permit

14-28 or approval revoked or suspended;

14-29 (h) Been prohibited under color of governmental authority from

14-30 being present upon the premises of any gaming establishment or any

14-31 establishment where pari-mutuel wagering is conducted for any

14-32 reason relating to improper gambling activities or any illegal act;

14-33 (i) Contumaciously defied any legislative investigative

14-34 committee or other officially constituted bodies acting on behalf of

14-35 the United States or any state, county or municipality which seeks to

14-36 investigate crimes relating to gaming, corruption of public officials,

14-37 or any organized criminal activities; or

14-38 (j) Been convicted of any felony or gross misdemeanor, other

14-39 than one constituting a violation of this chapter or chapter 463B,

14-40 464 or 465 of NRS.

14-41 3. [A work permit must not be issued by any authority in this

14-42 state to a person whose work permit has previously been revoked

14-43 pursuant to this section, or to whom the issuance or renewal of a

14-44 work permit has been denied, except with the unanimous approval

14-45 of the Commission members.

15-1 4.] A gaming employee or independent agent whose [work

15-2 permit] registration as a gaming employee has been revoked

15-3 pursuant to this section is entitled to judicial review of the

15-4 Commission’s action in the manner prescribed by NRS 463.315 to

15-5 463.318, inclusive.

15-6 [5.] 4. Nothing in this section limits or prohibits the

15-7 enforcement of NRS 463.165, 463.560, 463.595, 463.637 or

15-8 463.645.

15-9 Sec. 15. NRS 463.339 is hereby amended to read as follows:

15-10 463.339 An applicant for licensing, registration, finding of

15-11 suitability[, work permit] or any approval or consent required by

15-12 this chapter or chapter 462 of NRS shall make full and true

15-13 disclosure of all information to the Board, Commission or other

15-14 relevant governmental authority as necessary or appropriate in the

15-15 public interest or as required in order to carry out the policies of this

15-16 state relating to licensing and control of the gaming industry and the

15-17 operation of charitable lotteries.

15-18 Sec. 16. NRS 463.3403 is hereby amended to read as follows:

15-19 463.3403 Any information obtained by the Board from any

15-20 licensee, his employer or agent relating to the termination of the

15-21 employment of a gaming employee or the services of an

15-22 independent agent is confidential and must not be disclosed except:

15-23 1. Such information obtained from the former employer of an

15-24 applicant for [a work permit] registration as a gaming employee

15-25 must be disclosed to the applicant to the extent necessary to permit

15-26 him to respond to any suspension or objection made by the Board to

15-27 his application for [the permit;] such registration;

15-28 2. In the necessary administration of this chapter; or

15-29 3. Upon the lawful order of a court of competent jurisdiction.

15-30 Sec. 17. NRS 463.482 is hereby amended to read as follows:

15-31 463.482 As used in NRS 463.160 to 463.170, inclusive,

15-32 463.368, 463.386, 463.482 to 463.645, inclusive, and sections 4, 5

15-33 and 6 of this act, and 463.750, unless the context otherwise

15-34 requires, the words and terms defined in NRS 463.4825 to 463.488,

15-35 inclusive, have the meanings ascribed to them in those sections.

15-36 Sec. 18. NRS 463.510 is hereby amended to read as follows:

15-37 463.510 1. The purported sale, assignment, transfer, pledge ,

15-38 exercise of an option to purchase or other disposition of any

15-39 security issued by a corporation, other than a publicly traded

15-40 corporation, which holds a state gaming license [or granting of an

15-41 option to purchase such a security] is void unless approved in

15-42 advance by the Commission.

15-43 2. If at any time the Commission finds that an individual owner

15-44 of any such security is unsuitable to continue as a gaming licensee

15-45 in this state, the owner shall immediately offer the security to the

16-1 issuing corporation for purchase. The corporation shall purchase the

16-2 security so offered, for cash at fair market value, within 10 days

16-3 after the date of the offer.

16-4 3. Beginning upon the date when the Commission serves notice

16-5 of a determination of unsuitability pursuant to subsection 2 upon the

16-6 corporation, it is unlawful for the unsuitable owner:

16-7 (a) To receive any dividend or interest upon any such security;

16-8 (b) To exercise, directly or through any trustee or nominee, any

16-9 voting right conferred by such security; or

16-10 (c) To receive any remuneration in any form from the

16-11 corporation, for services rendered or otherwise.

16-12 4. Every security issued by a corporation, other than a publicly

16-13 traded corporation, which holds a state gaming license must bear a

16-14 statement, on both sides of the certificate evidencing the security, of

16-15 the restrictions imposed by this section.

16-16 Sec. 19. NRS 463.567 is hereby amended to read as follows:

16-17 463.567 1. The purported sale, assignment, transfer, pledge,

16-18 [granting] exercise of an option to purchase, or other disposition of

16-19 any interest in a limited partnership which holds a state gaming

16-20 license is ineffective unless approved in advance by the

16-21 Commission.

16-22 2. If at any time the Commission finds that an individual owner

16-23 of any such interest is unsuitable to hold that interest, the

16-24 Commission shall immediately notify the limited partnership of that

16-25 fact. The limited partnership shall, within 10 days from the date that

16-26 it receives the notice from the Commission, return to the unsuitable

16-27 owner, in cash, the amount of his capital account as reflected on the

16-28 books of the partnership.

16-29 3. Beginning on the date when the Commission serves notice

16-30 of a determination of unsuitability pursuant to subsection 2 upon the

16-31 limited partnership, it is unlawful for the unsuitable owner:

16-32 (a) To receive any share of the profits or interest upon any

16-33 limited partnership interest;

16-34 (b) To exercise, directly or through any trustee or nominee, any

16-35 voting right conferred by such interest; or

16-36 (c) To receive any remuneration in any form from the limited

16-37 partnership, for services rendered or otherwise.

16-38 4. The certificate of limited partnership of any limited

16-39 partnership holding a state gaming license must contain a statement

16-40 of the restrictions imposed by this section.

16-41 Sec. 20. NRS 463.5733 is hereby amended to read as follows:

16-42 463.5733 1. The purported sale, assignment, transfer, pledge,

16-43 [granting] exercise of an option to purchase or other disposition of

16-44 any interest in a limited-liability company which holds a state

17-1 gaming license is ineffective unless approved in advance by the

17-2 Commission.

17-3 2. If at any time the Commission finds that a member is

17-4 unsuitable to hold an interest in a limited-liability company, the

17-5 Commission shall immediately notify the limited-liability company

17-6 of that fact. The limited-liability company shall, within 10 days after

17-7 it receives the notice from the Commission, return to the member, in

17-8 cash, the amount of his capital account as reflected on the books of

17-9 the company.

17-10 3. Except as otherwise provided in subsection 2, beginning on

17-11 the date when the Commission serves notice of a determination of

17-12 unsuitability pursuant to subsection 2 upon the limited-liability

17-13 company, it is unlawful for the unsuitable member:

17-14 (a) To receive any share of the distribution of profits of the

17-15 limited-liability company or any payments upon dissolution of the

17-16 company;

17-17 (b) To exercise any voting right conferred by the member’s

17-18 interest in the limited-liability company;

17-19 (c) To participate in the management of the limited-liability

17-20 company; or

17-21 (d) To receive any remuneration in any form from the limited-

17-22 liability company, for services rendered or otherwise.

17-23 4. The articles of organization of any limited-liability company

17-24 holding a state gaming license must contain a statement of the

17-25 restrictions imposed by this section.

17-26 Sec. 21. NRS 463.650 is hereby amended to read as follows:

17-27 463.650 1. Except as otherwise provided in subsections 2 to

17-28 5, inclusive, it is unlawful for any person, either as owner, lessee or

17-29 employee, whether for hire or not, to operate, carry on, conduct or

17-30 maintain any form of manufacture, selling or distribution of any

17-31 gaming device, cashless wagering system or interactive gaming

17-32 system for use or play in Nevada or for distribution outside of

17-33 Nevada without first procuring and maintaining all required federal,

17-34 state, county and municipal licenses.

17-35 2. A lessor who specifically acquires equipment for a capital

17-36 lease is not required to be licensed under this section or

17-37 NRS 463.660.

17-38 3. The holder of a state gaming license or the holding company

17-39 of a corporation, partnership, limited partnership, limited-liability

17-40 company or other business organization holding a license may,

17-41 within 2 years after cessation of business or upon specific approval

17-42 by the Board, dispose of by sale in a manner approved by the Board,

17-43 any or all of its gaming devices, including slot machines, and

17-44 cashless wagering systems, without a distributor’s license. In cases

17-45 of bankruptcy of a state gaming licensee or foreclosure of a lien by a

18-1 bank or other person holding a security interest for which gaming

18-2 devices are security in whole or in part for the lien, the Board may

18-3 authorize the disposition of the gaming devices without requiring a

18-4 distributor’s license.

18-5 4. The Commission may, by regulation, authorize a person who

18-6 owns [gaming] :

18-7 (a) Gaming devices for home use in accordance with NRS

18-8 463.160 ; or

18-9 (b) Antique gaming devices,

18-10 to sell such devices without procuring a license therefor[.] to

18-11 residents of jurisdictions wherein ownership of such devices is

18-12 legal.

18-13 5. Upon approval by the Board, a gaming device owned by:

18-14 (a) A law enforcement agency;

18-15 (b) A court of law; or

18-16 (c) A gaming device repair school licensed by the Commission

18-17 on Postsecondary Education,

18-18 may be disposed of by sale, in a manner approved by the Board,

18-19 without a distributor’s license. An application for approval must be

18-20 submitted to the Board in the manner prescribed by the Chairman.

18-21 6. Any person whom the Commission determines is a suitable

18-22 person to receive a license under the provisions of this section and

18-23 NRS 463.660 may be issued a manufacturer’s or distributor’s

18-24 license. The burden of proving his qualification to receive or hold a

18-25 license under this section and NRS 463.660 is at all times on the

18-26 applicant or licensee.

18-27 7. Every person who must be licensed pursuant to this section

18-28 is subject to the provisions of NRS 463.482 to 463.645, inclusive,

18-29 unless exempted from those provisions by the Commission.

18-30 8. The Commission may exempt, for any purpose, a

18-31 manufacturer, seller or distributor from the provisions of NRS

18-32 463.482 to 463.645, inclusive, if the Commission determines that

18-33 the exemption is consistent with the purposes of this chapter.

18-34 9. As used in this section[, “holding] :

18-35 (a) “Antique gaming device” means a gaming device that was

18-36 manufactured before 1951.

18-37 (b) “Holding company” has the meaning ascribed to it in

18-38 NRS 463.485.

18-39 Sec. 22. NRS 171.1235 is hereby amended to read as follows:

18-40 171.1235 1. As used in this section:

18-41 (a) “Establishment” means any premises whereon any gaming is

18-42 done or any premises owned or controlled by a licensee for the

18-43 purpose of parking motor vehicles owned or operated by patrons of

18-44 such licensee.

18-45 (b) “Licensee” has the meaning ascribed to it in NRS 463.0171.

19-1 2. Any licensee or his officers, employees or agents may take

19-2 into custody and detain any person when [:

19-3 (a) Such person has committed a felony, whether or not in the

19-4 presence of such licensee or his officers, employees or agents; or

19-5 (b) A felony has been committed, and] such licensee [,] or his

19-6 officers, employees or agents have reasonable cause to believe

19-7 [such] the person detained has committed [it.] a felony, whether or

19-8 not in the presence of such licensee or his officers, employees or

19-9 agents.

19-10 3. Detention pursuant to this section shall be in the

19-11 establishment, in a reasonable manner, for a reasonable length of

19-12 time and solely for the purpose of notifying a peace officer. Such

19-13 taking into custody and detention shall not render the licensee or his

19-14 officers, employees or agents criminally or civilly liable for false

19-15 arrest, false imprisonment, slander or unlawful detention unless such

19-16 taking into custody and detention are unreasonable under all the

19-17 circumstances.

19-18 4. No licensee [,] or his officers, employees or agents are

19-19 entitled to the immunity from liability provided for in this section

19-20 unless there is displayed in a conspicuous place in his establishment

19-21 a notice in boldface type clearly legible and in substantially this

19-22 form:

19-23 Any gaming licensee [,] or his officers, employees or

19-24 agents who have reasonable cause to believe that any person

19-25 has committed a felony may detain such person in the

19-26 establishment for the purpose of notifying a peace officer.

19-27 Sec. 23. NRS 179.301 is hereby amended to read as follows:

19-28 179.301 1. The State Gaming Control Board and Nevada

19-29 Gaming Commission and their employees, agents and

19-30 representatives may inquire into and inspect any records sealed

19-31 pursuant to NRS 179.245 or 179.255, if the event or conviction was

19-32 related to gaming, for purposes of determining the suitability or

19-33 qualifications of any person to hold a state gaming license,

19-34 manufacturer’s, seller’s or distributor’s license or [gaming work

19-35 permit] registration as a gaming employee pursuant to chapter 463

19-36 of NRS. Events and convictions, if any, which are the subject of an

19-37 order sealing records may form the basis for recommendation,

19-38 denial or revocation of those licenses or work permits.

19-39 2. The Central Repository and its employees may inquire into

19-40 and inspect any records sealed pursuant to NRS 179.245 or 179.255

19-41 that constitute information relating to sexual offenses, and may

19-42 notify employers of the information in accordance with NRS

19-43 179A.180 to 179A.240, inclusive.

20-1 3. Records which have been sealed pursuant to NRS 179.245

20-2 or 179.255 and which are retained in the statewide registry

20-3 established pursuant to NRS 179B.200 may be inspected pursuant to

20-4 chapter 179B of NRS by an officer or employee of the Central

20-5 Repository or a law enforcement officer in the regular course of his

20-6 duties.

20-7 Sec. 24. NRS 646.020 is hereby amended to read as follows:

20-8 646.020 1. Every pawnbroker doing business in any

20-9 incorporated city or unincorporated town in this state shall maintain

20-10 in his place of business a book or other permanent record in which

20-11 must be legibly written in the English language, at the time of each

20-12 loan or purchase a record thereof containing:

20-13 (a) The date and time of the transaction.

20-14 (b) The name or other identification of the person or employee

20-15 conducting the transaction.

20-16 (c) The name, age, street and house number, the serial number

20-17 of one piece of positive identification [or a work permit issued

20-18 pursuant to NRS 463.335] and a general description of the

20-19 complexion, color of hair and facial appearance of the person with

20-20 whom the transaction is had. In lieu of recording the serial number

20-21 of a piece of positive identification [or a work permit,] , the record

20-22 may contain an indication that the pawnbroker knows the person

20-23 with whom the transaction is had.

20-24 (d) A description of the property received in pledge. In the case

20-25 of watches, the description must contain the name of the maker and

20-26 the number of the works or the case. In the case of jewelry, all

20-27 letters and marks inscribed thereon must be included in the

20-28 description.

20-29 (e) The amount loaned.

20-30 (f) The number of any pawn ticket issued therefor.

20-31 2. The person with whom a transaction is had shall, at the time

20-32 of the transaction, certify in writing that he has the legal right to

20-33 pledge or sell the property.

20-34 3. The record and all goods received must at all times during

20-35 the ordinary hours of business be open to the inspection of the

20-36 prosecuting attorney or of any peace officer.

20-37 Sec. 25. NRS 244.353, 463.0195, and 463.0197 are hereby

20-38 repealed.

20-39 Sec. 26. Notwithstanding the amendatory provisions of this

20-40 act, a person who holds a valid work permit on October 1, 2003,

20-41 issued before October 1, 2003, shall be deemed to be registered as a

20-42 gaming employee on October 1, 2003, and the registration of such a

20-43 person shall be deemed to expire on the expiration date set forth on

20-44 the work permit, unless objected to by the Board or suspended or

20-45 revoked. If the work permit of such a person does not set forth an

21-1 expiration date, the registration of such a person shall be deemed to

21-2 expire on the person’s birthday in 2005, unless objected to by the

21-3 Board or suspended or revoked.

21-4 Sec. 27. 1. This section and section 21 of this act become

21-5 effective upon passage and approval.

21-6 2. Section 9 of this act becomes effective upon passage and

21-7 approval for purposes related to the adoption and dissemination of

21-8 regulations by the Nevada Gaming Commission and on January 1,

21-9 2004, for all other purposes.

21-10 3. Sections 1, 4, 5, 6 and 17 to 20, inclusive, of this act become

21-11 effective on July 1, 2003.

21-12 4. Sections 8 and 22 of this act become effective on October 1,

21-13 2003.

21-14 5. Sections 2, 3, 7, 10 to 16, inclusive, and 23 to 26, inclusive,

21-15 of this act become effective on January 1, 2004.

21-16 TEXT OF REPEALED SECTIONS

21-17 244.353 Revocation or suspension of work permit or

21-18 identification card for licensed gambling establishment: Appeal

21-19 to county commissioners.

21-20 Whenever under the provisions of any law or county ordinance a

21-21 person is required to obtain a work permit or identification card

21-22 from the sheriff or other county officer as a condition of

21-23 employment in a licensed gambling establishment, and such work

21-24 permit or identification card is revoked or suspended by the sheriff

21-25 or other county officer, the person aggrieved may appeal therefrom

21-26 to the board of county commissioners.

21-27 463.0195 “Temporary work permit” defined.

21-28 “Temporary work permit” means a work permit which is valid

21-29 only for a period not to exceed 90 days from its date of issue and is

21-30 not renewable.

21-31 463.0197 “Work permit” defined.

21-32 “Work permit” means any card, certificate or permit issued by

21-33 the Board or by a county or city licensing authority, whether

21-34 denominated as a work permit, registration card or otherwise,

21-35 authorizing the holder to be employed as a gaming employee in this

21-36 state or to serve as an independent agent. A document issued by any

21-37 governmental authority for any employment other than gaming is

21-38 not a valid work permit for the purposes of this chapter.

21-39 H