Assembly Bill No. 70–Assemblyman Collins
Prefiled January 28, 1999
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Referred to Committee on Judiciary
SUMMARY—Requires licensure of manufacturer, seller or distributor of associated equipment used in gaming. (BDR 41-365)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. NRS 463.0172 is hereby amended to read as follows: 463.0172 "Manufacturer" means a person who:1-3
1. Manufactures, assembles, programs or makes modifications to a1-4
gaming device or cashless wagering system;1-5
2. Manufactures, assembles or produces associated equipment for use1-6
by a licensee; or1-7
3. Designs, controls the design or assembly or maintains a copyright1-8
over the design of a mechanism, electronic circuit or computer program1-9
which cannot be reasonably demonstrated to have any application other1-10
than in a gaming device or in a cashless wagering system, for use or play in1-11
this state or for distribution outside of this state.1-12
Sec. 2. NRS 463.650 is hereby amended to read as follows: 463.650 1. Except as otherwise provided in subsections 2 to 5,1-14
inclusive, it is unlawful for any person, either as owner, lessee or employee,1-15
whether for hire or not, to operate, carry on, conduct or maintain any form1-16
of manufacture, selling or distribution of any gaming device , associated1-17
equipment or cashless wagering system for use or play in Nevada or for1-18
distribution outside of Nevada without first procuring and maintaining all2-1
required federal, state, county and municipal licenses2-2
without limitation, a manufacturer’s, seller’s or distributor’s license2-3
issued by the commission.2-4
2. A lessor who specifically acquires equipment for a capital lease is2-5
not required to be licensed under this section or NRS 463.660.2-6
3. The holder of a state gaming license or the holding company of a2-7
corporation, partnership, limited partnership, limited-liability company or2-8
other business organization holding a license may, within 2 years after2-9
cessation of business or upon specific approval by the board, dispose of by2-10
sale in a manner approved by the board, any or all of its gaming devices,2-11
including slot machines, and its associated equipment and cashless2-12
wagering systems, without a distributor’s license. In cases of bankruptcy of2-13
a state gaming licensee or foreclosure of a lien by a bank or other person2-14
holding a security interest for which gaming devices are security in whole2-15
or in part for the lien, the board may authorize the disposition of the gaming2-16
devices without requiring a distributor’s license.2-17
4. The commission may, by regulation, authorize a person who owns2-18
gaming devices for home use in accordance with NRS 463.160 to sell such2-19
devices without procuring a license therefor.2-20
5. Upon approval by the board, a gaming device owned by:2-21
(a) A law enforcement agency;2-22
(b) A court of law; or2-23
(c) A gaming device repair school licensed by the commission on2-24
postsecondary education,2-25
may be disposed of by sale, in a manner approved by the board, without a2-26
distributor’s license. An application for approval must be submitted to the2-27
board in the manner prescribed by the chairman.2-28
6. Any person whom the commission determines is a suitable person to2-29
receive a license under the provisions of this section and NRS 463.660 may2-30
be issued a manufacturer’s , seller’s or distributor’s license. The burden of2-31
proving his qualification to receive or hold a license under this section and2-32
NRS 463.660 is at all times on the applicant or licensee.2-33
7. Every person who must be licensed pursuant to this section is subject2-34
to the provisions of NRS 463.482 to 463.645, inclusive, unless exempted2-35
from those provisions by the commission.2-36
8. The commission may exempt, for any purpose, a manufacturer,2-37
seller or distributor from the provisions of NRS 463.482 to 463.645,2-38
inclusive, if the commission determines that the exemption is consistent2-39
with the purposes of this chapter.2-40
9. As used in this section, "holding company" has the meaning ascribed2-41
to it in NRS 463.485.3-1
Sec. 3. NRS 463.651 is hereby amended to read as follows: 463.651 1. A natural person who applies for the issuance or renewal3-3
of a manufacturer’s, seller’s or distributor’s license3-4
3-5
statement prescribed by the welfare division of the department of human3-6
resources pursuant to NRS 425.520. The statement must be completed and3-7
signed by the applicant.3-8
2. The commission shall include the statement required pursuant to3-9
subsection 1 in:3-10
(a) The application or any other forms that must be submitted for the3-11
issuance or renewal of the license; or3-12
(b) A separate form prescribed by the commission.3-13
3. A manufacturer’s, seller’s or distributor’s license3-14
3-15
renewed by the commission if the applicant is a natural person who:3-16
(a) Fails to submit the statement required pursuant to subsection 1; or3-17
(b) Indicates on the statement submitted pursuant to subsection 1 that he3-18
is subject to a court order for the support of a child and is not in compliance3-19
with the order or a plan approved by the district attorney or other public3-20
agency enforcing the order for the repayment of the amount owed pursuant3-21
to the order.3-22
4. If an applicant indicates on the statement submitted pursuant to3-23
subsection 1 that he is subject to a court order for the support of a child and3-24
is not in compliance with the order or a plan approved by the district3-25
attorney or other public agency enforcing the order for the repayment of the3-26
amount owed pursuant to the order, the commission shall advise the3-27
applicant to contact the district attorney or other public agency enforcing3-28
the order to determine the actions that the applicant may take to satisfy the3-29
arrearage.3-30
Sec. 4. NRS 463.652 is hereby amended to read as follows: 463.652 1. If the commission receives a copy of a court order issued3-32
pursuant to NRS 425.540 that provides for the suspension of all3-33
professional, occupational and recreational licenses, certificates and permits3-34
issued to a person who is the holder of a manufacturer’s, seller’s or3-35
distributor’s license ,3-36
3-37
suspended at the end of the 30th day after the date on which the court order3-38
was issued unless the commission receives a letter issued to the holder of3-39
the license by the district attorney or other public agency pursuant to NRS3-40
425.550 stating that the holder of the license has complied with the3-41
subpoena or warrant or has satisfied the arrearage pursuant to NRS3-42
425.560.4-1
2. The commission shall reinstate a manufacturer’s, seller’s or4-2
distributor’s license4-3
4-4
425.540 if the commission receives a letter issued by the district attorney or4-5
other public agency pursuant to NRS 425.550 to the person whose license4-6
was suspended stating that the person whose license was suspended has4-7
complied with the subpoena or warrant or has satisfied the arrearage4-8
pursuant to NRS 425.560.4-9
Sec. 5. NRS 463.653 is hereby amended to read as follows: 463.653 The application of a natural person who applies for the4-11
issuance of a manufacturer’s, seller’s or distributor’s license4-12
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social security number of the applicant.4-14
Sec. 6. NRS 463.665 is hereby repealed.4-15
Sec. 7. The amendatory provisions of this act do not apply to offenses4-16
that are committed before October 1, 1999.4-17
Sec. 8. The amendatory provisions of sections 3, 4 and 5 of this act4-18
expire by limitation on the date on which the provisions of 42 U.S.C. § 6664-19
requiring each state to establish procedures under which the state has4-20
authority to withhold or suspend, or to restrict the use of professional,4-21
occupational and recreational licenses of persons who:4-22
1. Have failed to comply with a subpoena or warrant relating to a4-23
proceeding to determine the paternity of a child or to establish or enforce4-24
an obligation for the support of a child; or4-25
2. Are in arrears in the payment for the support of one or more4-27
are repealed by the Congress of the United States.
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TEXT OF REPEALED SECTION463.665 Finding of suitability for manufacturer or distributor of
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associated equipment.4-31
1. A manufacturer or distributor of associated equipment who sells,4-32
transfers or offers the associated equipment for use or play in Nevada may4-33
be required by the commission, upon recommendation of the board, to file4-34
an application for a finding of suitability to be a manufacturer or distributor4-35
of associated equipment.4-36
2. Any person who directly or indirectly involves himself in the sale,4-37
transfer or offering for use or play in Nevada of such associated equipment4-38
who is not otherwise required to be licensed as a manufacturer or4-39
distributor5-1
may be required by the commission, upon recommendation of the board, to5-2
file an application for a finding of suitability to be a manufacturer or5-3
distributor of associated equipment.5-4
3. If an application for a finding of suitability is not submitted to the5-5
board within 30 days after demand by the commission, it may pursue any5-6
remedy or combination of remedies provided in this chapter.~