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 [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; requiring the licensure of a manufacturer, seller or distributor of associated equipment; providing a fee for such licensure; providing a penalty; and providing other matters properly relating thereto.

 

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:

1-2 463.0172 "Manufacturer" means a person who:

1-3 1. Manufactures, assembles, programs or makes modifications to a

1-4 gaming device or cashless wagering system; [or]

1-5 2. Manufactures, assembles or produces associated equipment for use

1-6 by a licensee; or

1-7 3. Designs, controls the design or assembly or maintains a copyright

1-8 over the design of a mechanism, electronic circuit or computer program

1-9 which cannot be reasonably demonstrated to have any application other

1-10 than in a gaming device or in a cashless wagering system, for use or play in

1-11 this state or for distribution outside of this state.

1-12 Sec. 2. NRS 463.650 is hereby amended to read as follows:

1-13 463.650 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 form

1-16 of manufacture, selling or distribution of any gaming device , associated

1-17 equipment or cashless wagering system for use or play in Nevada or for

1-18 distribution outside of Nevada without first procuring and maintaining all

2-1 required federal, state, county and municipal licenses [.] , including,

2-2 without limitation, a manufacturer’s, seller’s or distributor’s license

2-3 issued by the commission.

2-4 2. A lessor who specifically acquires equipment for a capital lease is

2-5 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 a

2-7 corporation, partnership, limited partnership, limited-liability company or

2-8 other business organization holding a license may, within 2 years after

2-9 cessation of business or upon specific approval by the board, dispose of by

2-10 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 cashless

2-12 wagering systems, without a distributor’s license. In cases of bankruptcy of

2-13 a state gaming licensee or foreclosure of a lien by a bank or other person

2-14 holding a security interest for which gaming devices are security in whole

2-15 or in part for the lien, the board may authorize the disposition of the gaming

2-16 devices without requiring a distributor’s license.

2-17 4. The commission may, by regulation, authorize a person who owns

2-18 gaming devices for home use in accordance with NRS 463.160 to sell such

2-19 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; or

2-23 (c) A gaming device repair school licensed by the commission on

2-24 postsecondary education,

2-25 may be disposed of by sale, in a manner approved by the board, without a

2-26 distributor’s license. An application for approval must be submitted to the

2-27 board in the manner prescribed by the chairman.

2-28 6. Any person whom the commission determines is a suitable person to

2-29 receive a license under the provisions of this section and NRS 463.660 may

2-30 be issued a manufacturer’s , seller’s or distributor’s license. The burden of

2-31 proving his qualification to receive or hold a license under this section and

2-32 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 subject

2-34 to the provisions of NRS 463.482 to 463.645, inclusive, unless exempted

2-35 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 consistent

2-39 with the purposes of this chapter.

2-40 9. As used in this section, "holding company" has the meaning ascribed

2-41 to it in NRS 463.485.

3-1 Sec. 3. NRS 463.651 is hereby amended to read as follows:

3-2 463.651 1. A natural person who applies for the issuance or renewal

3-3 of a manufacturer’s, seller’s or distributor’s license [as a manufacturer,

3-4 distributor or seller of gaming devices] shall submit to the commission the

3-5 statement prescribed by the welfare division of the department of human

3-6 resources pursuant to NRS 425.520. The statement must be completed and

3-7 signed by the applicant.

3-8 2. The commission shall include the statement required pursuant to

3-9 subsection 1 in:

3-10 (a) The application or any other forms that must be submitted for the

3-11 issuance or renewal of the license; or

3-12 (b) A separate form prescribed by the commission.

3-13 3. A manufacturer’s, seller’s or distributor’s license [as a

3-14 manufacturer, distributor or seller of gaming devices] may not be issued or

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; or

3-17 (b) Indicates on the statement submitted pursuant to subsection 1 that he

3-18 is subject to a court order for the support of a child and is not in compliance

3-19 with the order or a plan approved by the district attorney or other public

3-20 agency enforcing the order for the repayment of the amount owed pursuant

3-21 to the order.

3-22 4. If an applicant indicates on the statement submitted pursuant to

3-23 subsection 1 that he is subject to a court order for the support of a child and

3-24 is not in compliance with the order or a plan approved by the district

3-25 attorney or other public agency enforcing the order for the repayment of the

3-26 amount owed pursuant to the order, the commission shall advise the

3-27 applicant to contact the district attorney or other public agency enforcing

3-28 the order to determine the actions that the applicant may take to satisfy the

3-29 arrearage.

3-30 Sec. 4. NRS 463.652 is hereby amended to read as follows:

3-31 463.652 1. If the commission receives a copy of a court order issued

3-32 pursuant to NRS 425.540 that provides for the suspension of all

3-33 professional, occupational and recreational licenses, certificates and permits

3-34 issued to a person who is the holder of a manufacturer’s, seller’s or

3-35 distributor’s license , [as a manufacturer, distributor or seller of gaming

3-36 devices,] the commission shall deem the license issued to that person to be

3-37 suspended at the end of the 30th day after the date on which the court order

3-38 was issued unless the commission receives a letter issued to the holder of

3-39 the license by the district attorney or other public agency pursuant to NRS

3-40 425.550 stating that the holder of the license has complied with the

3-41 subpoena or warrant or has satisfied the arrearage pursuant to NRS

3-42 425.560.

4-1 2. The commission shall reinstate a manufacturer’s, seller’s or

4-2 distributor’s license [as a manufacturer, distributor or seller of gaming

4-3 devices] that has been suspended by a district court pursuant to NRS

4-4 425.540 if the commission receives a letter issued by the district attorney or

4-5 other public agency pursuant to NRS 425.550 to the person whose license

4-6 was suspended stating that the person whose license was suspended has

4-7 complied with the subpoena or warrant or has satisfied the arrearage

4-8 pursuant to NRS 425.560.

4-9 Sec. 5. NRS 463.653 is hereby amended to read as follows:

4-10 463.653 The application of a natural person who applies for the

4-11 issuance of a manufacturer’s, seller’s or distributor’s license [as a

4-12 manufacturer, distributor or seller of gaming devices] must include the

4-13 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 offenses

4-16 that are committed before October 1, 1999.

4-17 Sec. 8. The amendatory provisions of sections 3, 4 and 5 of this act

4-18 expire by limitation on the date on which the provisions of 42 U.S.C. § 666

4-19 requiring each state to establish procedures under which the state has

4-20 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 a

4-23 proceeding to determine the paternity of a child or to establish or enforce

4-24 an obligation for the support of a child; or

4-25 2. Are in arrears in the payment for the support of one or more
4-26 children,

4-27 are repealed by the Congress of the United States.

 

4-28 TEXT OF REPEALED SECTION

 

4-29 463.665 Finding of suitability for manufacturer or distributor of

4-30 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 may

4-33 be required by the commission, upon recommendation of the board, to file

4-34 an application for a finding of suitability to be a manufacturer or distributor

4-35 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 equipment

4-38 who is not otherwise required to be licensed as a manufacturer or

4-39 distributor

5-1 may be required by the commission, upon recommendation of the board, to

5-2 file an application for a finding of suitability to be a manufacturer or

5-3 distributor of associated equipment.

5-4 3. If an application for a finding of suitability is not submitted to the

5-5 board within 30 days after demand by the commission, it may pursue any

5-6 remedy or combination of remedies provided in this chapter.

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