Assembly Bill No. 466–Assemblymen Leslie, Parks, Parnell, Gibbons, Anderson, Brower, Chowning, Freeman, Giunchigliani, Humke, Smith and Tiffany

 

Joint Sponsor: Senator Mathews

 

CHAPTER..........

 

AN ACT relating to gaming; authorizing the Nevada gaming commission to adopt regulations governing the licensing and operation of interactive gaming if the commission first makes certain determinations; providing that a license to operate interactive gaming may be issued only to resort hotels or certain other establishments holding nonrestricted licenses; providing for certain license fees relating to interactive gaming; providing that gross revenue received from interactive gaming is subject to taxation in the same manner as gross revenue received from other games; exempting the operation of interactive gaming from certain other fees and taxes; revising the computation of interest payable by the commission on the overpayment of certain fees and taxes; prohibiting a person from operating interactive gaming until the commission adopts regulations and unless the person procures and maintains all licenses required pursuant to the regulations; providing for the enforceability of gaming debts incurred pursuant to an interactive gaming system; providing for the licensure and regulation of manufacturers of interactive gaming systems and manufacturers of equipment associated with interactive gaming; revising provisions relating to persons who acquire a certain beneficial ownership in a publicly traded corporation registered with the commission; revising the definitions of “gaming employee” and “manufacturer” for the purposes of the Nevada Gaming Control Act; revising provisions governing applications for restricted licenses; providing for the issuance of statewide work permits for gaming employees; establishing a maximum fee for the issuance of such work permits; revising various provisions governing the listing, investigation and disqualification of personnel of a labor organization for gaming employees; prohibiting certain fraudulent acts concerning gaming; providing penalties; 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.  Chapter 463 of NRS is hereby amended by adding thereto

1-2   the provisions set forth as sections 2 to 9, inclusive, of this act.

1-3    Sec. 2.  1.  “Interactive gaming” means the conduct of gambling

1-4   games through the use of communications technology that allows a

1-5   person, utilizing money, checks, electronic checks, electronic transfers

1-6   of money, credit cards, debit cards or any other instrumentality, to

1-7   transmit to a computer information to assist in the placing of a bet or

1-8   wager and corresponding information related to the display of the game,

1-9   game outcomes or other similar information. The term does not include

1-10   the operation of a race book or sports pool that uses communications

1-11   technology approved by the board pursuant to regulations adopted by the

1-12   commission to accept wagers originating within this state for races or

1-13   sporting events.

1-14    2.  As used in this section, “communications technology” means any

1-15   method used and the components employed by an establishment to

1-16   facilitate the transmission of information, including, without limitation,

1-17   transmission and reception by systems based on wire, cable, radio,

1-18   microwave, light, optics or computer data networks, including, without

1-19   limitation, the Internet and intranets.


2-1    Sec. 3.  1.  Except as otherwise provided in subsections 2 and 3, the

2-2  commission may, with the advice and assistance of the board, adopt

2-3   regulations governing the licensing and operation of interactive gaming.

2-4    2.  The commission may not adopt regulations governing the

2-5   licensing and operation of interactive gaming until the commission first

2-6   determines that:

2-7    (a) Interactive gaming can be operated in compliance with all

2-8   applicable laws;

2-9    (b) Interactive gaming systems are secure and reliable, and provide

2-10   reasonable assurance that players will be of lawful age and

2-11   communicating only from jurisdictions where it is lawful to make such

2-12   communications; and

2-13    (c) Such regulations are consistent with the public policy of the state

2-14   to foster the stability and success of gaming.

2-15    3.  The regulations adopted by the commission pursuant to this

2-16   section must:

2-17    (a) Establish the investigation fees for:

2-18      (1) A license to operate interactive gaming;

2-19      (2) A license for a manufacturer of interactive gaming systems; and

2-20      (3) A license for a manufacturer of equipment associated with

2-21   interactive gaming.

2-22    (b) Provide that:

2-23      (1) A person must hold a license for a manufacturer of interactive

2-24   gaming systems to supply or provide any interactive gaming system,

2-25   including, without limitation, any piece of proprietary software or

2-26   hardware; and

2-27      (2) A person may be required by the commission to hold a license

2-28   for a manufacturer of equipment associated with interactive gaming.

2-29    (c) Set forth standards for the suitability of a person to be licensed as

2-30   a manufacturer of interactive gaming systems or manufacturer of

2-31   equipment associated with interactive gaming that are as stringent as the

2-32   standards for a nonrestricted license.

2-33    (d) Provide that gross revenue received by an establishment from the

2-34   operation of interactive gaming is subject to the same license fee

2-35   provisions of NRS 463.370 as the games and gaming devices of the

2-36   establishment.

2-37    (e) Set forth standards for the location and security of the computer

2-38   system and for approval of hardware and software used in connection

2-39   with interactive gaming.

2-40    (f) Define “equipment associated with interactive gaming,”

2-41   “interactive gaming system,” “manufacturer of equipment associated

2-42   with interactive gaming,” “manufacturer of interactive gaming

2-43   systems,” “operate interactive gaming” and “proprietary hardware and

2-44   software” as the terms are used in this chapter.

2-45    4.  Except as otherwise provided in subsection 5, the commission

2-46   shall not approve a license for an establishment to operate interactive

2-47   gaming unless:

2-48    (a) In a county whose population is 400,000 or more, the

2-49   establishment is a resort hotel that holds a nonrestricted license to

2-50   operate games and gaming devices.


3-1    (b) In a county whose population is more than 40,000 but less than

3-2  400,000, the establishment is a resort hotel that holds a nonrestricted

3-3   license to operate games and gaming devices or the establishment:

3-4       (1) Holds a nonrestricted license for the operation of games and

3-5   gaming devices;

3-6       (2) Has more than 120 rooms available for sleeping

3-7   accommodations in the same county;

3-8       (3) Has at least one bar with permanent seating capacity for more

3-9   than 30 patrons that serves alcoholic beverages sold by the drink for

3-10   consumption on the premises;

3-11      (4) Has at least one restaurant with permanent seating capacity for

3-12   more than 60 patrons that is open to the public 24 hours each day and 7

3-13   days each week; and

3-14      (5) Has a gaming area that is at least 18,000 square feet in area

3-15   with at least 1,600 slot machines, 40 table games, and a sports book and

3-16   race pool.

3-17    (c) In all other counties, the establishment is a resort hotel that holds

3-18   a nonrestricted license to operate games and gaming devices or the

3-19   establishment:

3-20      (1) Has held a nonrestricted license for the operation of games and

3-21   gaming devices for at least 5 years before the date of its application for a

3-22   license to operate interactive gaming;

3-23      (2) Meets the definition of group 1 licensee as set forth in the

3-24   regulations of the commission on the date of its application for a license

3-25   to operate interactive gaming; and

3-26      (3) Operates either:

3-27        (I) More than 50 rooms for sleeping accommodations in

3-28   connection therewith; or

3-29        (II) More than 50 gaming devices in connection therewith.

3-30    5.  The commission may:

3-31    (a) Issue a license to operate interactive gaming to an affiliate of an

3-32   establishment if:

3-33      (1) The establishment satisfies the applicable requirements set forth

3-34   in subsection 4; and

3-35      (2) The affiliate is located in the same county as the establishment;

3-36   and

3-37    (b) Require an affiliate that receives a license pursuant to this

3-38   subsection to comply with any applicable provision of this chapter.

3-39    6.  It is unlawful for any person, either as owner, lessee or employee,

3-40   whether for hire or not, either solely or in conjunction with others, to

3-41   operate interactive gaming:

3-42    (a) Until the commission adopts regulations pursuant to this section;

3-43   and

3-44    (b) Unless the person first procures, and thereafter maintains in

3-45   effect, all appropriate licenses as required by the regulations adopted by

3-46   the commission pursuant to this section.

3-47    7.  A person who violates subsection 6 is guilty of a category B felony

3-48   and shall be punished by imprisonment in the state prison for a

3-49   minimum term of not less than 1 year and a maximum term of not more

3-50   than 10 years or by a fine of not more than $50,000, or both.


4-1    Sec. 4.  A debt incurred by a patron for play at an interactive gaming

4-2  system of an establishment licensed to operate interactive gaming is valid

4-3   and may be enforced by legal process.

4-4    Sec. 5.  1.  Upon the recommendation of the board, the commission

4-5   may require:

4-6    (a) A manufacturer of equipment associated with interactive gaming

4-7   who sells, transfers or offers equipment associated with interactive

4-8   gaming for use or play in this state to file an application for a license to

4-9   be a manufacturer of equipment associated with interactive gaming.

4-10    (b) A person who directly or indirectly involves himself in the sale,

4-11   transfer or offering for use or play in this state of equipment associated

4-12   with interactive gaming who is not otherwise required to be licensed as a

4-13   manufacturer or distributor pursuant to this chapter to file an

4-14   application for a license to be a manufacturer of equipment associated

4-15   with interactive gaming.

4-16    2.  If a person fails to submit an application for a license to be a

4-17   manufacturer of equipment associated with interactive gaming within 30

4-18   days after a demand by the commission pursuant to this section, the

4-19   commission may pursue any remedy or combination of remedies

4-20   provided in this chapter.

4-21    Sec. 6.  1.  Before issuing an initial license for an establishment to

4-22   operate interactive gaming, the commission shall charge and collect

4-23   from the establishment a license fee of $500,000.

4-24    2.  Each initial license for an establishment to operate interactive

4-25   gaming must be issued for a 2-year period beginning on January 1 of

4-26   the first year and ending on December 31 of the second year.

4-27    3.  Notwithstanding the provisions of subsections 1 and 2 to the

4-28   contrary, a license for an establishment to operate interactive gaming

4-29   may be issued after January 1 of a calendar year for a period beginning

4-30   on the date of issuance of the license and ending on the second

4-31   December 31 following the date of issuance of the license. Before

4-32   issuing an initial license pursuant to this subsection, the commission

4-33   shall charge and collect from the establishment a license fee of $500,000

4-34   prorated by 1/24 for each full month between January 1 of the calendar

4-35   year and the date of issuance of the license.

4-36    4.  Before renewing a license issued pursuant to this section, but in

4-37   no case later than the second December 31 after the license was issued

4-38   or previously renewed, the commission shall charge and collect a

4-39   renewal fee of $250,000 for the renewal of the license for the

4-40   immediately following 1-year period.

4-41    Sec. 7.  The operation of interactive gaming is exempt from the fees

4-42   and taxes imposed pursuant to NRS 463.375, 463.380, 463.383 and

4-43   463.385.

4-44    Sec. 8.  1.  Before issuing a license for a manufacturer of

4-45   interactive gaming systems or manufacturer of equipment associated

4-46   with interactive gaming, the commission shall charge and collect a

4-47   license fee of:

4-48    (a) One hundred and twenty-five thousand dollars for a license for a

4-49   manufacturer of interactive gaming systems; or


5-1    (b) Fifty thousand dollars for a license for a manufacturer of

5-2  equipment associated with interactive gaming.

5-3    2.  Each license issued pursuant to this section must be issued for a 1

5-4  -year period that begins on the date the license is issued.

5-5    3.  Before renewing a license issued pursuant to this section, but in

5-6   no case later than 1 year after the license was issued or previously

5-7   renewed, the commission shall charge and collect a renewal fee for the

5-8   renewal of the license for the immediately following 1-year period. The

5-9   renewal fee for a license for a manufacturer of interactive gaming

5-10   systems or manufacturer of equipment associated with interactive

5-11   gaming is $25,000.

5-12    Sec. 9.  1.  All gross revenue from operating interactive gaming

5-13   received by an establishment licensed to operate interactive gaming,

5-14   regardless of whether any portion of the revenue is shared with another

5-15   person, must be attributed to the licensee and counted as part of the

5-16   gross revenue of the licensee for the purpose of computing the license

5-17   fee required by NRS 463.370.

5-18    2.  A manufacturer of interactive gaming systems who is authorized

5-19   by an agreement to receive a share of the revenue from an interactive

5-20   gaming system from an establishment licensed to operate interactive

5-21   gaming is liable to the establishment for a portion of the license fee paid

5-22   pursuant to subsection 1. The portion for which the manufacturer of

5-23   interactive gaming systems is liable is 6.25 percent of the amount of

5-24   revenue to which the manufacturer of interactive gaming systems is

5-25   entitled pursuant to the agreement.

5-26    3.  For the purposes of subsection 2, the amount of revenue to which

5-27   the manufacturer of interactive gaming systems is entitled pursuant to

5-28   an agreement to share the revenue from an interactive gaming system:

5-29    (a) Includes all revenue of the manufacturer of interactive gaming

5-30   systems that is his share of the revenue from the interactive gaming

5-31   system pursuant to the agreement; and

5-32    (b) Does not include revenue that is the fixed purchase price for the

5-33   sale of a component of the interactive gaming system.

5-34    Sec. 10.  NRS 463.013 is hereby amended to read as follows:

5-35    463.013  As used in this chapter, unless the context otherwise requires,

5-36   the words and terms defined in NRS 463.0133 to 463.0197, inclusive, and

5-37   section 2 of this act, have the meanings ascribed to them in those sections.

5-38    Sec. 11.  NRS 463.0157 is hereby amended to read as follows:

5-39    463.0157  1.  “Gaming employee” means any person connected

5-40   directly with an operator of a slot route, the operator of a pari-mutuel

5-41   system, the operator of an inter-casino linked system or a manufacturer,

5-42   distributor or disseminator, or with the operation of a gaming

5-43   establishment licensed to conduct any game, 16 or more slot machines, a

5-44   race book, sports pool or pari-mutuel wagering, including:

5-45    (a) Accounting or internal auditing personnel who are directly involved

5-46   in any recordkeeping or the examination of records associated with

5-47   revenue from gaming;

5-48    (b) Boxmen;

5-49    (c) Cashiers;

5-50    (d) Change personnel;


6-1    (e) Counting room personnel;

6-2    (f) Dealers;

6-3    (g) Employees of a person required by NRS 464.010 to be licensed to

6-4   operate an off-track pari-mutuel system;

6-5    (h) Employees of a person required by NRS 463.430 to be licensed to

6-6   disseminate information concerning racing;

6-7    (i) Employees of manufacturers or distributors of gaming equipment

6-8   within this state whose duties are directly involved with the manufacture,

6-9   repair or distribution of gaming devices , [or] cashless wagering systems

6-10  [;] , interactive gaming systems or equipment associated with interactive

6-11   gaming;

6-12    (j) Employees of operators of slot routes who have keys for slot

6-13   machines or who accept and transport revenue from the slot drop;

6-14    (k) Employees of operators of inter-casino linked systems or interactive

6-15   gaming systems whose duties include the operational or supervisory

6-16   control of the systems or the games that are part of the systems;

6-17    (l) Floormen;

6-18    (m) Hosts or other persons empowered to extend credit or

6-19   complimentary services;

6-20    (n) Keno runners;

6-21    (o) Keno writers;

6-22    (p) Machine mechanics;

6-23    (q) Odds makers and line setters;

6-24    (r) Security personnel;

6-25    (s) Shift or pit bosses;

6-26    (t) Shills;

6-27    (u) Supervisors or managers;

6-28    (v) Ticket writers; and

6-29    (w) Employees of a person required by NRS 463.160 to be licensed to

6-30   operate an information service.

6-31    2.  “Gaming employee” does not include bartenders, cocktail waitresses

6-32   or other persons engaged exclusively in preparing or serving food or

6-33   beverages.

6-34    Sec. 12.  NRS 463.0172 is hereby amended to read as follows:

6-35    463.0172  “Manufacturer” means a person who:

6-36    1.  Manufactures, assembles, programs or makes modifications to a

6-37   gaming device , [or] cashless wagering system[;] or interactive gaming

6-38   system; or

6-39    2.  Designs, assumes responsibility for the design of, controls the

6-40   design or assembly of, or maintains a copyright over the design of , a

6-41   mechanism, electronic circuit or computer program which cannot be

6-42   reasonably demonstrated to have any application other than in a gaming

6-43   device , [or in a] cashless wagering system[,] or interactive gaming

6-44   system for use or play in this state or for distribution outside of this state.

6-45    Sec. 13.  NRS 463.0197 is hereby amended to read as follows:

6-46    463.0197  “Work permit” means any card, certificate or permit issued

6-47   by the board or by a county or city licensing authority, whether

6-48   denominated as a work permit, registration card or otherwise, authorizing

6-49   the holder to be employed as a gaming employee in this state or to serve

6-50   as an independent agent. A document issued by any governmental

6-51   authority


7-1  for any employment other than gaming is not a valid work permit for the

7-2  purposes of this chapter.

7-3    Sec. 14.  NRS 463.200 is hereby amended to read as follows:

7-4    463.200  1.  Application for a state gaming license or other

7-5   commission action [shall] must be made to the board on forms furnished

7-6   by the board and in accordance with the regulations of the commission.

7-7    2.  The application for a license [shall] must include:

7-8    (a) The name of the proposed licensee.

7-9    (b) The location of his place or places of business.

7-10    (c) The gambling games, gaming device or slot machines to be

7-11   operated.

7-12    (d) The names of all persons directly or indirectly interested in the

7-13   business and the nature of such interest.

7-14    (e) Such other information and details as the board may require in order

7-15   to discharge its duty properly.

7-16    3.  If the application is for a restricted license on premises not owned

7-17   by the applicant, the application must include a sworn and notarized

7-18   statement from the owner or lessor of the premises indicating whether

7-19   the consideration paid by the applicant for the use of the premises has

7-20   been or will be increased because of the operation of gaming on the

7-21   premises.

7-22    4.  The board shall furnish to the applicant supplemental forms, which

7-23   the applicant shall complete and file with the application. Such

7-24   supplemental forms [shall] must require, but [shall] must not be limited to,

7-25   complete information and details with respect to the applicant’s

7-26   antecedents, habits, character, criminal record, business activities,

7-27   financial affairs and business associates, covering at least a 10-year period

7-28   immediately preceding the date of filing of the application.

7-29    Sec. 15.  NRS 463.245 is hereby amended to read as follows:

7-30    463.245  1.  Except as otherwise provided in [subsections 2, 3 and 4]

7-31   this section:

7-32    (a) All licenses issued to the same person, including a wholly owned

7-33   subsidiary of that person, for the operation of any game, including a sports

7-34   pool or race book, which authorize gaming at the same establishment must

7-35   be merged into a single gaming license.

7-36    (b) A gaming license may not be issued to any person if the issuance

7-37   would result in more than one licensed operation at a single establishment,

7-38   whether or not the profits or revenue from gaming are shared between the

7-39   licensed operations.

7-40    2.  A person who has been issued a nonrestricted gaming license may

7-41   establish a sports pool or race book on the premises of the establishment at

7-42   which he conducts a nonrestricted gaming operation only after obtaining

7-43   permission from the commission.

7-44    3.  A person who has been issued a license to operate a sports pool or

7-45   race book at an establishment may be issued a license to operate a sports

7-46   pool or race book at another establishment if the second establishment is

7-47   operated by a person who has been issued a nonrestricted license.

7-48    4.  Nothing in this section limits or prohibits an operator of an inter

7-49  -casino linked system from placing and operating such a system on the

7-50   premises of two or more gaming licensees and receiving, either directly or


8-1  indirectly, any compensation or any percentage or share of the money or

8-2  property played from the linked games in accordance with the provisions

8-3   of this chapter and the regulations adopted by the commission. An inter

8-4  -casino linked system must not be used to link games other than slot

8-5   machines, unless such games are located at an establishment that is

8-6   licensed for games other than slot machines.

8-7    5.  The provisions of this section do not apply to a license to operate

8-8   interactive gaming.

8-9    Sec. 16. NRS 463.335 is hereby amended to read as follows:

8-10    463.335  1.  The legislature finds that, to protect and promote the

8-11   health, safety, morals, good order and general welfare of the inhabitants of

8-12   the State of Nevada and to carry out the policy declared in NRS 463.0129,

8-13   it is necessary that the board:

8-14    (a) Ascertain and keep itself informed of the identity, prior activities

8-15   and present location of all gaming employees and independent agents in

8-16   the State of Nevada; and

8-17    (b) Maintain confidential records of such information.

8-18    2.  Except as otherwise provided in [subsections 3 and 4,] subsection 3,

8-19   a person may not be employed as a gaming employee or serve as an

8-20   independent agent unless he is the holder of[:

8-21    (a) A valid work permit issued in accordance with the applicable

8-22   ordinances or regulations of the county or city in which his duties are

8-23   performed and the provisions of this chapter; or

8-24    (b) A valid work permit issued by the board, if a work permit is not

8-25   required by either the county or the city.] a valid work permit to work as a

8-26   gaming employee issued pursuant to this section. A work permit to work

8-27   as a gaming employee may be issued by the board or by a county or city

8-28   licensing authority. An applicant for a work permit shall file his

8-29   application for a work permit with the licensing authority of the city in

8-30   which he resides if that city requires a work permit. If the city in which

8-31   he resides does not require such a permit, the applicant shall file his

8-32   application with the licensing authority of the county in which he resides

8-33   if that county requires a work permit. If the county in which he resides

8-34   does not require such a permit, the applicant shall file his application

8-35   with the board. The board shall, by regulation, prescribe the form for an

8-36   application for a work permit to work as a gaming employee. The fee for

8-37   such a permit may be charged only to cover the actual investigative and

8-38   administrative costs related to processing an application for such a

8-39   permit and must not exceed $75.

8-40    3.  An independent agent is not required to hold a work permit if he is

8-41   not a resident of this state and has registered with the board in accordance

8-42   with the provisions of the regulations adopted by the commission.

8-43    4.  [A person may be employed as a gaming employee for an operator

8-44   of a slot machine route and perform duties for his employer in more than

8-45   one county or city without obtaining a valid work permit for each county

8-46   or city in which he performs those duties if the person holds:

8-47    (a) A valid work permit issued in accordance with the applicable

8-48   ordinances or regulations of the county or city in which his duties are

8-49   primarily performed and the provisions of this chapter; or


9-1    (b) A valid work permit issued by the board, if a work permit is not

9-2  required by either the county or the city in which his duties are primarily

9-3   performed.

9-4    5.  A gaming employee described in subsection 4 shall notify the

9-5   licensing authority of each city and county in which he performs duties for

9-6   his employer, other than the licensing authority that issued his valid work

9-7   permit, that he has obtained a valid work permit pursuant to subsection 4.

9-8    6.] Upon receipt of an application for a work permit to work as a

9-9   gaming employee, the board or licensing authority shall conduct an

9-10   investigation of the applicant to determine whether he is eligible for the

9-11   permit. In conducting the investigation, the board or licensing authority

9-12   shall forward a complete set of the applicant’s fingerprints to the central

9-13   repository for Nevada records of criminal history for submission to the

9-14   Federal Bureau of Investigation for a report concerning the criminal

9-15   history of the applicant. The investigation need not be limited solely to

9-16   consideration of the results of the report concerning the criminal history

9-17   of the applicant.

9-18    5.  A work permit issued to a gaming employee or an independent

9-19   agent must have clearly imprinted thereon a statement that it is valid for

9-20   gaming purposes only.

9-21    6.  Unless denied or objected to by the board at the time that the

9-22   permittee filed a notice of a change in his place of employment pursuant

9-23   to subsection 8 and unless suspended or revoked, such a permit expires

9-24   on the fifth anniversary of the permittee’s birthday, measured from the

9-25   birthday nearest the date of issuance or renewal. If the date of birth of a

9-26   permittee is on February 29 in a leap year, for the purposes of this

9-27   section, his date of birth shall be deemed to be on February 28.

9-28    7.  Whenever any person applies to a county or city licensing authority

9-29   for the issuance or renewal of a work permit, the county or city officer or

9-30   employee to whom the application is made shall within 24 hours mail or

9-31   deliver a copy thereof to the board, and may at the discretion of the county

9-32   or city licensing authority issue a temporary work permit [.] that is valid

9-33   for 120 days. If within [90] 120 days after receipt by the board of the copy

9-34   of the application, the board has not notified the county or city licensing

9-35   authority of any objection, the authority may issue, renew or deny a

9-36   permanent work permit to the applicant.

9-37    8.  A gaming employee who is issued a work permit [must obtain

9-38   renewal of the permit from the issuing agency within 10 days following

9-39   any change of his place of employment. An independent agent who is

9-40   issued a work permit must obtain renewal of the permit from the issuing

9-41   agency within 10 days after executing an agreement to serve as an

9-42   independent agent within the jurisdiction of the issuing agency.

9-43    8.] is eligible for employment in any licensed gaming establishment in

9-44   this state until the work permit is denied or objected to by the board,

9-45   expires or is revoked. However, each such employee shall notify the

9-46   board within 10 days following any change of his place of employment

9-47   at a gaming establishment. Such a notification shall be deemed an

9-48   application for a work permit that the board may deny or object to after

9-49   conducting any investigations the board deems appropriate. The


10-1  provisions of subsections 9 to 16, inclusive, apply to any such objection

10-2  of the board. The commission shall adopt regulations to:

10-3    (a) Facilitate uniform procedures for the issuance of work permits by

10-4   counties and cities;

10-5    (b) Establish uniform criteria for denial by a county or city licensing

10-6   authority of an application for a work permit; and

10-7    (c) Provide for the creation and maintenance of a system of records

10-8   that contain information regarding the current place of employment of

10-9   each person who possesses a valid work permit.

10-10  9.  If the board, within the [90-day] 120-day period, notifies:

10-11  (a) The county or city licensing authority; and

10-12  (b) The applicant,

10-13  that the board objects to the granting of a work permit to the applicant, the

10-14   authority shall deny the work permit and shall immediately revoke and

10-15   repossess any temporary work permit which it may have issued. The

10-16   notice of objection by the board which is sent to the applicant must include

10-17   a statement of the facts upon which the board relied in making its

10-18   objection.

10-19  [9.  Application for a work permit may be made to the board, and may

10-20   be granted or denied for any cause deemed reasonable by the board.]

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

10-22   and the board denies such an application, it shall include in its notice of

10-23   the denial a statement of the facts upon which it relied in denying the

10-24   application. [Except for a permit issued to a person pursuant to subsection

10-25   4, a permit issued by the board is valid only in a county or city that does

10-26   not require a work permit.

10-27  10.] 11.  Any person whose application for a work permit has been

10-28   denied because of an objection by the board or whose application has been

10-29   denied by the board may, not later than 60 days after receiving notice of

10-30   the denial or objection, apply to the board for a hearing. A failure of a

10-31   person whose application has been denied to apply for a hearing within 60

10-32   days or his failure to appear at a hearing of the board conducted pursuant

10-33   to this section shall be deemed to be an admission that the denial or

10-34   objection is well founded, and the failure precludes administrative or

10-35   judicial review. At the hearing, the board shall take any testimony deemed

10-36   necessary. After the hearing the board shall review the testimony taken

10-37   and any other evidence, and shall within 45 days after the date of the

10-38   hearing mail to the applicant its decision sustaining or reversing the denial

10-39   of the work permit or the objection to the issuance of a work permit.

10-40  [11.] 12.  The board may object to the issuance of a work permit or

10-41   may refuse to issue a work permit for any cause deemed reasonable by the

10-42   board. The board may object or refuse if the applicant has:

10-43  (a) Failed to disclose or misstated information or otherwise attempted to

10-44   mislead the board with respect to any material fact contained in the

10-45   application for the issuance or renewal of a work permit;

10-46  (b) Knowingly failed to comply with the provisions of this chapter or

10-47   chapter 463B, 464 or 465 of NRS or the regulations of the commission at a

10-48   place of previous employment;

10-49  (c) Committed, attempted or conspired to commit any crime of moral

10-50   turpitude, embezzlement or larceny or any violation of any law pertaining


11-1  to gaming, or any crime which is inimical to the declared policy of this

11-2  state concerning gaming;

11-3    (d) Committed, attempted or conspired to commit a crime which is a

11-4   felony or gross misdemeanor in this state or an offense in another state or

11-5   jurisdiction which would be a felony or gross misdemeanor if committed

11-6   in this state;

11-7    (e) Been identified in the published reports of any federal or state

11-8   legislative or executive body as being a member or associate of organized

11-9   crime, or as being of notorious and unsavory reputation;

11-10  (f) Been placed and remains in the constructive custody of any federal,

11-11   state or municipal law enforcement authority; or

11-12  (g) Had a work permit revoked or committed any act which is a

11-13  ground for the revocation of a work permit or would have been a

11-14  ground for revoking his work permit if he had then held a work

11-15  permit.

11-16  If the board issues or does not object to the issuance of a work permit to an

11-17   applicant , [who has been convicted of a crime which is a felony, gross

11-18   misdemeanor or misdemeanor,] it may specially limit the period for which

11-19   the permit is valid, limit the job classifications for which the holder of the

11-20   permit may be employed and establish such individual conditions for the

11-21   issuance, renewal and effectiveness of the permit as the board deems

11-22   appropriate, including required submission to unscheduled tests for the

11-23   presence of alcohol or controlled substances.

11-24  [12.] 13.  Any applicant aggrieved by the decision of the board may,

11-25   within 15 days after the announcement of the decision, apply in writing to

11-26   the commission for review of the decision. Review is limited to the record

11-27   of the proceedings before the board. The commission may sustain, modify

11-28   or reverse the board’s decision. The decision of the commission is subject

11-29   to judicial review pursuant to NRS 463.315 to 463.318, inclusive.

11-30  [13.] 14.  Except as otherwise provided in this subsection, all records

11-31   acquired or compiled by the board or commission relating to any

11-32   application made pursuant to this section and all lists of persons to whom

11-33   work permits have been issued or denied and all records of the names or

11-34   identity of persons engaged in the gaming industry in this state are

11-35   confidential and must not be disclosed except in the proper administration

11-36   of this chapter or to an authorized law enforcement agency. Upon receipt

11-37   of a request from the welfare division of the department of human

11-38   resources pursuant to NRS 425.400 for information relating to a specific

11-39   person who has applied for or holds a work permit, the board shall

11-40   disclose to the division his social security number, residential address and

11-41   current employer as that information is listed in the files and records of the

11-42   board. Any record of the board or commission which shows that the

11-43   applicant has been convicted of a crime in another state must show

11-44   whether the crime was a misdemeanor, gross misdemeanor, felony or

11-45   other class of crime as classified by the state in which the crime was

11-46   committed. In a disclosure of the conviction, reference to the classification

11-47   of the crime must be based on the classification in the state where it was

11-48   committed.

11-49  [14.  A work permit expires unless renewed in accordance with

11-50   subsection 7, or if the holder thereof is not employed as a gaming


12-1  employee or does not serve as an independent agent within the jurisdiction

12-2  of the issuing authority for more than 90 days.]

12-3    15.  The chairman of the board may designate a member of the board or

12-4   the board may appoint a hearing examiner and authorize that person to

12-5   perform on behalf of the board any of the following functions required of

12-6   the board by this section concerning work permits:

12-7    (a) Conducting a hearing and taking testimony;

12-8    (b) Reviewing the testimony and evidence presented at the hearing;

12-9    (c) Making a recommendation to the board based upon the testimony

12-10   and evidence or rendering a decision on behalf of the board to sustain or

12-11   reverse the denial of a work permit or the objection to the issuance or

12-12   renewal of a work permit; and

12-13  (d) Notifying the applicant of the decision.

12-14  16.  Notice by the board as provided pursuant to this section is

12-15   sufficient if it is mailed to the applicant’s last known address as indicated

12-16   on the application for a work permit, or the record of the hearing, as the

12-17   case may be. The date of mailing may be proven by a certificate signed by

12-18   an officer or employee of the board which specifies the time the notice

12-19   was mailed. The notice shall be deemed to have been received by the

12-20   applicant 5 days after it is deposited with the United States Postal Service

12-21   with the postage thereon prepaid.

12-22  Sec. 17.  NRS 463.3557 is hereby amended to read as follows:

12-23  463.3557  [An]

12-24  1.  Except as otherwise provided in subsection 2, an electronic transfer

12-25   of money from a financial institution directly to a game or gaming device

12-26   may not be made with a credit card.

12-27  2.  The provisions of subsection 1 do not apply to an interactive

12-28   gaming system.

12-29  Sec. 18.  NRS 463.361 is hereby amended to read as follows:

12-30  463.361  1.  Except as otherwise provided in section 4 of this act and

12-31   NRS 463.361 to 463.366, inclusive, gaming debts that are not evidenced

12-32   by a credit instrument are void and unenforceable and do not give rise to

12-33   any administrative or civil cause of action.

12-34  2.  A claim by a patron of a licensee for payment of a gaming debt that

12-35   is not evidenced by a credit instrument may be resolved in accordance

12-36   with NRS 463.362 to 463.366, inclusive:

12-37  (a) By the board; or

12-38  (b) If the claim is for less than $500, by a hearing examiner designated

12-39   by the board.

12-40  Sec. 19.  NRS 463.370 is hereby amended to read as follows:

12-41  463.370  1.  Except as otherwise provided in NRS 463.373, the

12-42   commission shall charge and collect from each licensee a license fee based

12-43   upon all the gross revenue of the licensee as follows:

12-44  (a) Three percent of all the gross revenue of the licensee which does not

12-45   exceed $50,000 per calendar month;

12-46  (b) Four percent of all the gross revenue of the licensee which exceeds

12-47   $50,000 per calendar month and does not exceed $134,000 per calendar

12-48   month; and

12-49  (c) Six and one-quarter percent of all the gross revenue of the licensee

12-50   which exceeds $134,000 per calendar month.


13-1    2.  Unless the licensee has been operating for less than a full calendar

13-2  month, the commission shall charge and collect the fee prescribed in

13-3   subsection 1, based upon the gross revenue for the preceding calendar

13-4   month, on or before the 24th day of the following month. Except for the

13-5   fee based on the first full month of operation, the fee is an estimated

13-6   payment of the license fee for the third month following the month whose

13-7   gross revenue is used as its basis.

13-8    3.  When a licensee has been operating for less than a full calendar

13-9   month, the commission shall charge and collect the fee prescribed in

13-10   subsection 1, based on the gross revenue received during that month, on or

13-11   before the 24th day of the following calendar month of operation. After

13-12   the first full calendar month of operation, the commission shall charge and

13-13   collect the fee based on the gross revenue received during that month, on

13-14   or before the 24th day of the following calendar month. The payment of

13-15   the fee due for the first full calendar month of operation must be

13-16   accompanied by the payment of a fee equal to three times the fee for the

13-17   first full calendar month. This additional amount is an estimated payment

13-18   of the license fees for the next 3 calendar months. Thereafter, each license

13-19   fee must be paid in the manner described in subsection 2. Any deposit held

13-20   by the commission on July 1, 1969, must be treated as an advance

13-21   estimated payment.

13-22  4.  All revenue received from any game or gaming device which is

13-23   operated on the premises of a licensee, regardless of whether any portion

13-24   of the revenue is shared with any other person, must be attributed to the

13-25   licensee for the purposes of this section and counted as part of the gross

13-26   revenue of the licensee. Any other person, including, without limitation,

13-27   an operator of an inter-casino linked system, who is authorized to receive a

13-28   share of the revenue from any game, gaming device or inter-casino linked

13-29   system that is operated on the premises of a licensee is liable to the

13-30   licensee for that person’s proportionate share of the license fees paid by

13-31   the licensee pursuant to this section and shall remit or credit the full

13-32   proportionate share to the licensee on or before the 24th day of each

13-33   calendar month. The proportionate share of an operator of an inter-casino

13-34   linked system must be based on all compensation and other consideration

13-35   received by the operator of the inter-casino linked system, including,

13-36   without limitation, amounts that accrue to the meter of the primary

13-37   progressive jackpot of the inter-casino linked system and amounts that

13-38   fund the reserves of such a jackpot, subject to all appropriate adjustments

13-39   for deductions, credits, offsets and exclusions that the licensee is entitled

13-40   to take or receive pursuant to the provisions of this chapter. A licensee is

13-41   not liable to any other person authorized to receive a share of the

13-42   licensee’s revenue from any game, gaming device or inter-casino linked

13-43   system that is operated on the premises of the licensee for that person’s

13-44   proportionate share of the license fees to be remitted or credited to the

13-45   licensee by that person pursuant to this section.

13-46  5.  An operator of an inter-casino linked system shall not enter into any

13-47   agreement or arrangement with a licensee that provides for the operator of

13-48   the inter-casino linked system to be liable to the licensee for less than its

13-49   full proportionate share of the license fees paid by the licensee pursuant to


14-1  this section, whether accomplished through a rebate, refund, charge-back

14-2  or otherwise.

14-3    6.  Any person required to pay a fee pursuant to this section shall file

14-4   with the commission, on or before the 24th day of each calendar month, a

14-5   report showing the amount of all gross revenue received during the

14-6   preceding calendar month. Each report must be accompanied by:

14-7    (a) The fee due based on the revenue of the month covered by the

14-8   report; and

14-9    (b) An adjustment for the difference between the estimated fee

14-10   previously paid for the month covered by the report, if any, and the fee

14-11   due for the actual gross revenue earned in that month. If the adjustment is

14-12   less than zero, a credit must be applied to the estimated fee due with that

14-13   report.

14-14  7.  If the amount of license fees required to be reported and paid

14-15   pursuant to this section is later determined to be greater or less than the

14-16   amount actually reported and paid, the commission shall:

14-17  (a) Charge and collect the additional license fees determined to be due,

14-18   with interest thereon until paid; or

14-19  (b) Refund any overpayment to the person entitled thereto pursuant to

14-20   this chapter, with interest thereon.

14-21  Interest pursuant to paragraph (a) must be computed at the rate prescribed

14-22   in NRS 17.130 from the first day of the first month following [either] the

14-23   due date of the additional license fees [or the date of overpayment] until

14-24   paid. Interest pursuant to paragraph (b) must be computed at one-half

14-25   the rate prescribed in NRS 17.130 from the first day of the first month

14-26   following the date of overpayment until paid.

14-27  8.  Failure to pay the fees provided for in this section shall be deemed a

14-28   surrender of the license at the expiration of the period for which the

14-29   estimated payment of fees has been made, as established in subsection 2.

14-30  9.  Except as otherwise provided in NRS 463.386, the amount of the

14-31   fee prescribed in subsection 1 must not be prorated.

14-32  10.  Except as otherwise provided in NRS 463.386, if a licensee ceases

14-33   operation, the commission shall:

14-34  (a) Charge and collect the additional license fees determined to be due

14-35   with interest[;] computed pursuant to paragraph (a) of subsection 7; or

14-36  (b) Refund any overpayment[, with interest thereon,] to the licensee

14-37  [,] with interest computed pursuant to paragraph (b) of

14-38  subsection 7,

14-39  based upon the gross revenue of the licensee during the last 3 months

14-40   immediately preceding the cessation of operation, or portions of those last

14-41   3 months.

14-42  11.  If in any month, the amount of gross revenue is less than zero, the

14-43   licensee may offset the loss against gross revenue in succeeding months

14-44   until the loss has been fully offset.

14-45  12.  If in any month, the amount of the license fee due is less than zero,

14-46   the licensee is entitled to receive a credit against any license fees due in

14-47   succeeding months until the credit has been fully offset.

14-48  Sec. 20.  NRS 463.387 is hereby amended to read as follows:

14-49  463.387  1.  State gaming license fees or taxes paid in excess of the

14-50   amount required to be reported and paid may be refunded, upon the

14-51   approval of the commission, as other claims against the state are paid.


15-1    2.  Within 90 days after the mailing of the notice of the commission’s

15-2  action upon a claim for refund filed pursuant to this chapter, the claimant

15-3   may bring an action against the commission on the grounds set forth in the

15-4   claim in any court of competent jurisdiction for the recovery of the whole

15-5   or any part of the amount with respect to which the claim has been

15-6   disallowed.

15-7    3.  Failure to bring an action within the time specified in subsection 2

15-8   constitutes a waiver of any demand against the state on account of alleged

15-9   overpayments.

15-10  4.  Within 20 days after the mailing of the notice of the commission’s

15-11   action upon a claim for refund filed pursuant to this chapter, the claimant

15-12   may file a motion for rehearing with the commission. The commission

15-13   must take action on the motion for rehearing within 50 days after it has

15-14   been filed with the commission. If the motion for rehearing is granted, the

15-15   commission’s earlier action upon the claim for refund is rescinded and the

15-16   90-day period specified in subsection 2 does not begin until the

15-17   commission mails notice of its action upon the claim following the

15-18   rehearing.

15-19  5.  If the commission fails to mail its notice of action on a claim within

15-20   6 months after the claim is filed or reheard, the claimant may consider the

15-21   claim disallowed and bring an action against the commission on the

15-22   grounds set forth in the claim for the recovery of the whole or any part of

15-23   the amount claimed as an overpayment.

15-24  6.  In any case where a refund is granted, interest must be allowed at

15-25   one-half the rate prescribed in NRS 17.130 upon the amount found to

15-26   have been erroneously paid from the first day of the first month following

15-27   the date of overpayment until paid. The commission may in its discretion

15-28   deny or limit the payment of interest if it finds that the claimant has failed

15-29   to file a claim for a refund within 90 days after receiving written

15-30   notification of overpayment from the board or has impeded the board’s

15-31   ability to process the claim in a timely manner.

15-32  7.  Notwithstanding the provisions of NRS 353.115, any claim for

15-33   refund of state gaming license fees or taxes paid in excess of the amount

15-34   required to be reported and paid[,] must be filed with the commission

15-35   within 5 years after the date of overpayment and not thereafter.

15-36  8.  The provisions of this chapter must not be construed to permit the

15-37   proration of state gaming taxes or license fees for purposes of a refund.

15-38  Sec. 21.  NRS 463.400 is hereby amended to read as follows:

15-39  463.400  Any person who willfully fails to report, pay or truthfully

15-40   account for and pay over the license fees imposed by NRS 463.370,

15-41   463.373 to 463.3855, inclusive, and sections 6 to 9, inclusive, of this act,

15-42   463.390 and 463.450, or willfully attempts in any manner to evade or

15-43   defeat any such tax or payment thereof, or any licensee who puts

15-44   additional games into play without authority of the commission to do so or

15-45   any licensee who fails to remit any license fee provided for by this chapter

15-46   when due is in addition to the amount due liable for a penalty of the

15-47   amount of the license fee evaded or not paid, collected or paid over. The

15-48   penalty must be assessed and collected in the same manner as are other

15-49   charges, license fees and penalties under this chapter.


16-1    Sec. 22.  NRS 463.403 is hereby amended to read as follows:

16-2    463.403  1.  Every person required to pay the tax imposed by NRS

16-3   463.401 shall file with the commission, on or before the 24th day of each

16-4   month, a report showing the amount of all taxable receipts for the

16-5   preceding month.

16-6    2.  Each report must be accompanied by the amount of tax which is due

16-7   for the month covered by the report.

16-8    3.  If the amount of tax required to be reported and paid pursuant to

16-9   NRS 463.401 is later determined to be greater or less than the amount

16-10   actually reported and paid, the commission shall:

16-11  (a) Charge and collect the additional tax determined to be due, with

16-12   interest thereon until paid; or

16-13  (b) Refund any overpayment to the person entitled thereto pursuant to

16-14   this chapter, with interest thereon.

16-15  Interest [is] pursuant to paragraph (a) must be computed at the rate

16-16   prescribed in NRS 17.130 from the first day of the first month following

16-17   [either] the due date of the additional tax [or the date of overpayment]

16-18   until paid. Interest pursuant to paragraph (b) must be computed at one

16-19  -half the rate prescribed in NRS 17.130 from the first day of the first

16-20   month following the date of overpayment until paid.

16-21  Sec. 23.  NRS 463.450 is hereby amended to read as follows:

16-22  463.450  1.  Any disseminator of such information obtaining a license

16-23   under NRS 463.430 to 463.480, inclusive, shall pay to the commission a

16-24   fee of 4.25 percent of the total fees collected from users each calendar

16-25   month for the dissemination of live broadcasts.

16-26  2.  The commission shall collect the fee on or before the last day of

16-27   each calendar month for the preceding calendar month.

16-28  3.  If the amount of the fee required by this section to be reported and

16-29   paid is determined to be different than the amount reported or paid by the

16-30   licensee, the commission shall:

16-31  (a) Charge and collect any additional fee determined to be due, with

16-32   interest thereon until paid; or

16-33  (b) Refund any overpaid fees to the person entitled thereto pursuant to

16-34   this chapter, with interest thereon.

16-35  Interest [is] pursuant to paragraph (a) must be computed at the rate

16-36   prescribed in NRS 17.130 from the first day of the first calendar month

16-37   following [either] the due date of the additional license fees [or the date of

16-38   overpayment] until paid. Interest pursuant to paragraph (b) must be

16-39   computed at one-half the rate prescribed in NRS 17.130 from the first

16-40   day of the first month following the date of overpayment until paid.

16-41  4.  The commission shall remit all fees collected, less any fees refunded

16-42   pursuant to subsection 3, to the state treasurer for deposit to the credit of

16-43   the state general fund.

16-44  Sec. 24.  NRS 463.482 is hereby amended to read as follows:

16-45  463.482  As used in NRS 463.160 to 463.170, inclusive, and section 3

16-46   of this act, 463.368, 463.386 and 463.482 to 463.645, inclusive, unless the

16-47   context otherwise requires, the words and terms defined in NRS 463.4825

16-48   to 463.488, inclusive, have the meanings ascribed to them in those

16-49   sections.


17-1    Sec. 25.  NRS 463.643 is hereby amended to read as follows:

17-2    463.643  1.  Each person who acquires, directly or indirectly,

17-3   beneficial ownership of any voting security in a publicly traded

17-4   corporation which is registered with the commission may be required to be

17-5   found suitable if the commission has reason to believe that his acquisition

17-6   of [such] that ownership would otherwise be inconsistent with the

17-7   declared policy of this state.

17-8    2.  Each person who acquires, directly or indirectly, beneficial

17-9   ownership of any debt security in a publicly traded corporation which is

17-10   registered with the commission may be required to be found suitable if the

17-11   commission has reason to believe that his acquisition of [such] the debt

17-12   security would otherwise be inconsistent with the declared policy of this

17-13   state.

17-14  3.  Each person who, individually or in association with others,

17-15   acquires, directly or indirectly, beneficial ownership of more than 5

17-16   percent of any class of voting securities of a publicly traded corporation

17-17   registered with the Nevada gaming commission, and who is required to

17-18   report, or voluntarily reports, [such] the acquisition to the Securities and

17-19   Exchange Commission pursuant to section 13(d)(1), 13(g) or 16(a) of the

17-20   Securities Exchange Act of 1934, as amended , [(]15 U.S.C. §§

17-21   78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall file a copy of that

17-22   report, and any amendments thereto, with the Nevada gaming commission

17-23   within 10 days after filing that report with the Securities and Exchange

17-24   Commission.

17-25  4.  Each person who, individually or in association with others,

17-26   acquires, directly or indirectly, the beneficial ownership of more than 10

17-27   percent of any class of voting securities of a publicly traded corporation

17-28   registered with the commission, [and] or who is required to report, or

17-29   voluntarily reports, [the] such acquisition pursuant to section 13(d)(1),

17-30   13(g) or 16(a) of the Securities Exchange Act of 1934, as amended , [(]15

17-31   U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall apply to

17-32   the commission for a finding of suitability within 30 days after the

17-33   chairman of the board mails the written notice.

17-34  5.  A person who acquires beneficial ownership of any voting security

17-35   or debt security in a publicly traded corporation created under the laws of

17-36   a foreign country which is registered with the commission shall file such

17-37   reports and is subject to such a finding of suitability as the commission

17-38   may prescribe.

17-39  6.  Any person required by the commission or by this section to be

17-40   found suitable shall:

17-41  (a) Except as otherwise required in subsection 4, apply for a finding of

17-42   suitability within 30 days after the commission requests that he do so; and

17-43  (b) Together with the application, deposit with the board a sum of

17-44   money which, in the opinion of the board, will be adequate to pay the

17-45   anticipated costs and charges incurred in the investigation and processing

17-46   of the application, and deposit such additional sums as are required by the

17-47   board to pay final costs and charges.

17-48  7.  Any person required by the commission or this section to be found

17-49   suitable who is found unsuitable by the commission shall not hold directly

17-50   or indirectly the beneficial ownership of any voting security or debt


18-1  security of a publicly traded corporation which is registered with the

18-2  commission beyond the time prescribed by the commission.

18-3    8.  The violation of subsection 6 or 7 is a gross misdemeanor.

18-4    9.  As used in this section, “debt security” means any instrument

18-5   generally recognized as a corporate security representing money owed and

18-6   reflected as debt on the financial statement of a publicly traded

18-7   corporation, including, but not limited to, bonds, notes and debentures.

18-8    Sec. 26.  NRS 463.650 is hereby amended to read as follows:

18-9    463.650  1.  Except as otherwise provided in subsections 2 to 5,

18-10   inclusive, it is unlawful for any person, either as owner, lessee or

18-11   employee, whether for hire or not, to operate, carry on, conduct or

18-12   maintain any form of manufacture, selling or distribution of any gaming

18-13   device , [or] cashless wagering system or interactive gaming system for

18-14   use or play in Nevada or for distribution outside of Nevada without first

18-15   procuring and maintaining all required federal, state, county and municipal

18-16   licenses.

18-17  2.  A lessor who specifically acquires equipment for a capital lease is

18-18   not required to be licensed under this section or NRS 463.660.

18-19  3.  The holder of a state gaming license or the holding company of a

18-20   corporation, partnership, limited partnership, limited-liability company or

18-21   other business organization holding a license may, within 2 years after

18-22   cessation of business or upon specific approval by the board, dispose of by

18-23   sale in a manner approved by the board, any or all of its gaming devices,

18-24   including slot machines, and cashless wagering systems, without a

18-25   distributor’s license. In cases of bankruptcy of a state gaming licensee or

18-26   foreclosure of a lien by a bank or other person holding a security interest

18-27   for which gaming devices are security in whole or in part for the lien, the

18-28   board may authorize the disposition of the gaming devices without

18-29   requiring a distributor’s license.

18-30  4.  The commission may, by regulation, authorize a person who owns

18-31   gaming devices for home use in accordance with NRS 463.160 to sell such

18-32   devices without procuring a license therefor.

18-33  5.  Upon approval by the board, a gaming device owned by:

18-34  (a) A law enforcement agency;

18-35  (b) A court of law; or

18-36  (c) A gaming device repair school licensed by the commission on

18-37   postsecondary education,

18-38  may be disposed of by sale, in a manner approved by the board, without a

18-39   distributor’s license. An application for approval must be submitted to the

18-40   board in the manner prescribed by the chairman.

18-41  6.  Any person whom the commission determines is a suitable person to

18-42   receive a license under the provisions of this section and NRS 463.660

18-43   may be issued a manufacturer’s or distributor’s license. The burden of

18-44   proving his qualification to receive or hold a license under this section and

18-45   NRS 463.660 is at all times on the applicant or licensee.

18-46  7.  Every person who must be licensed pursuant to this section is

18-47   subject to the provisions of NRS 463.482 to 463.645, inclusive, unless

18-48   exempted from those provisions by the commission.


19-1    8.  The commission may exempt, for any purpose, a manufacturer,

19-2  seller or distributor from the provisions of NRS 463.482 to 463.645,

19-3   inclusive, if the commission determines that the exemption is consistent

19-4   with the purposes of this chapter.

19-5    9.  As used in this section, “holding company” has the meaning

19-6   ascribed to it in NRS 463.485.

19-7    Sec. 27.  NRS 463.670 is hereby amended to read as follows:

19-8    463.670  1.  The legislature finds and declares as facts:

19-9    (a) That the inspection of gaming devices, associated equipment , [and]

19-10   cashless wagering systems and interactive gaming systems is essential to

19-11   carry out the provisions of this chapter; and

19-12  (b) That inspection of gaming devices, associated equipment , [and]

19-13   cashless wagering systems and interactive gaming systems is greatly

19-14   facilitated by the opportunity to inspect components before assembly and

19-15   to examine the methods of manufacture.

19-16  2.  The board may inspect every gaming device which is manufactured,

19-17   sold or distributed:

19-18  (a) For use in this state, before the gaming device is put into play.

19-19  (b) In this state for use outside this state, before the gaming device is

19-20   shipped out of this state.

19-21  3.  The board may inspect every gaming device which is offered for

19-22   play within this state by a licensee.

19-23  4.  The board may inspect all associated equipment , [and] every

19-24   cashless wagering system and every interactive gaming system which is

19-25   manufactured, sold or distributed for use in this state before the equipment

19-26   or system is installed or used by a licensee and at any time while the

19-27   licensee is using the equipment or system.

19-28  5.  In addition to all other fees and charges imposed by this chapter, the

19-29   board may determine, charge and collect an inspection fee from each

19-30   manufacturer, seller or distributor which must not exceed the actual cost of

19-31   inspection and investigation.

19-32  Sec. 28. NRS 463A.010 is hereby amended to read as follows:

19-33  463A.010  The legislature finds and declares that:

19-34  1.  The relationship which exists between a labor organization and the

19-35   employees whom it represents or seeks to represent in collective

19-36   bargaining is such that it may significantly affect the conduct of a gaming

19-37   operation by an employer.

19-38  2.  In the past, attempts have been made by persons whose background

19-39   is not suitable for association with licensed gaming to gain positions of

19-40   control in labor organizations representing or seeking to represent gaming

19-41   casino employees in this state.

19-42  3.  In order to carry out the declared policy of this state that licensed

19-43   gaming be conducted freely and honestly, and in order to protect the

19-44   welfare of the employees of the gaming industry which is fundamental to

19-45   the economy of this state, it is necessary to determine the suitability of any

19-46   person who performs or seeks to perform certain significant functions in

19-47   the representation of gaming casino employees in this state.

 

 

 


20-1    Sec. 29. NRS 463A.020 is hereby amended to read as follows:

20-2    463A.020  As used in this chapter:

20-3    1.  “Board” means the state gaming control board.

20-4    2.  “Commission” means the Nevada gaming commission.

20-5    3.  “Gaming casino employee” means any person employed directly or

20-6   indirectly in the operation of a gaming establishment under a nonrestricted

20-7   license, including:

20-8    (a) All personnel involved in the operation of a casino gaming pit, such

20-9   as dealers, shills, clerks, hosts, junket representatives and the supervisors

20-10   of such persons;

20-11  (b) All personnel involved in handling money, such as cashiers, change

20-12   persons, count teams, coin wrappers and the supervisors of such persons;

20-13  (c) All personnel involved in the operation of games, such as bingo and

20-14   keno;

20-15  (d) All personnel involved in operating and maintaining slot machines,

20-16   such as mechanics, floormen, change and payoff persons and the

20-17   supervisors of such persons;

20-18  (e) All personnel involved in security, such as guards, games observers

20-19   and the supervisors of such persons;

20-20  (f) All personnel involved in the operation of a race or sports book, such

20-21   as writers, boardmen, cashiers and the supervisors of such persons;

20-22  (g) All personnel involved in the operation of a pari-mutuel operation

20-23   licensed under chapter 464 of NRS and any sporting event on which such

20-24   pari-mutuel wagering is conducted; and

20-25  (h) Such other persons whose duties are similar to the classifications set

20-26   forth in paragraphs (a) to (g), inclusive, as the commission may from time

20-27   to time designate by regulation,

20-28  but does not include personnel whose duties are related solely to such

20-29   nongaming activities as entertainment, hotel operation, maintenance and

20-30   the preparation and serving of food and beverages.

20-31  4.  “Labor organization” means an organization of any kind, or any

20-32   agency or employee representation committee or plan, which exists for the

20-33   purpose, in whole or in part, of dealing or seeking to deal with employers

20-34   of gaming casino employees concerning grievances, labor disputes, wages,

20-35   rates of pay, hours of employment or conditions of work of gaming casino

20-36   employees.

20-37  Sec. 30. NRS 463A.030 is hereby amended to read as follows:

20-38  463A.030  1.  [Every] Not later than the date on which a labor

20-39   organization which represents or seeks to represent gaming casino

20-40   employees in this state begins an organizational activity directed at a

20-41   gaming casino employee, the labor organization shall file with the board

20-42   a list of its personnel who:

20-43  (a) Adjust or seek to adjust grievances for, negotiate or administer the

20-44   wages, hours, working conditions or conditions of employment of any

20-45   gaming casino employee;

20-46  (b) Solicit, collect or receive or seek to solicit, collect or receive any

20-47   dues, assessments, levies, fines, contributions or other charges within this

20-48   state for or on behalf of the organization from gaming casino employees;

20-49   or

20-50  (c) Act as officers, members of the governing body, business agents or

20-51   in any other policymaking or supervisory position in the organization.


21-1    2.  Each person listed shall file with the board his fingerprints and

21-2  complete information in writing concerning his labor organization

21-3   activities, prior performance of the same or similar functions, previous

21-4   employment or occupational history, and criminal record if any, covering

21-5   at least a 10-year period unless the board determines that a shorter period

21-6   is appropriate.

21-7    3.  The commission shall by regulation prescribe the frequency or

21-8   circumstances or both with or under which the list [shall] must be revised.

21-9    4.  The commission may by regulation prescribe:

21-10  (a) Any further information to be required concerning each person listed

21-11   or each person performing a particular function.

21-12  (b) The addition of other personnel to the list whose duties significantly

21-13   affect the conduct of a gaming operation.

21-14  5.  In adopting regulations pursuant to this section, the commission

21-15   shall proceed in the manner prescribed in chapter 463 of NRS.

21-16  6.  For the purposes of this section, “organizational activity” means:

21-17  (a) Soliciting membership by direct personal contact;

21-18  (b) Distributing cards regarding interests or representation; or

21-19  (c) Distributing or posting a flyer, poster or advertisement.

21-20  Sec. 31. NRS 463A.050 is hereby amended to read as follows:

21-21  463A.050  1.  To determine suitability under and compliance with the

21-22   provisions of this chapter, the board may investigate any person whose

21-23   name is listed by a labor organization or who it believes is performing or

21-24   seeking to perform a function which requires listing. For this purpose , the

21-25   board is vested with all of the powers which it possesses for the

21-26   investigation of an applicant for or holder of a state gaming license, and

21-27   may further make such examination as it reasonably deems necessary of

21-28   the financial records of any labor organization for whom such a person is

21-29   performing or seeking to perform such a function.

21-30  2.  The cost of any investigation required by this section [shall] must be

21-31   paid by the board from [moneys] money appropriated or authorized to be

21-32   used for this purpose.

21-33  3.  Whenever the board undertakes an investigation pursuant to this

21-34   section, [it] the board shall employ or consult with some person who has a

21-35   professional background in the field of labor relations. The same services

21-36   may be retained to assist the commission upon any subsequent hearing of

21-37   the matter.

21-38  4.  The board shall, if appropriate, recommend to the commission that a

21-39   person investigated be disqualified.

21-40  Sec. 32. NRS 463A.060 is hereby amended to read as follows:

21-41  463A.060  1.  If the board recommends that a person be disqualified,

21-42   the commission shall serve upon the person and the labor organization for

21-43   which the person is performing his function [anotice,a] or seeking to

21-44   perform that function:

21-45  (a) A notice;

21-46  (b) A statement of the reasons for the recommendation ; and [three]

21-47  (c) Three copies of a form entitled “Notice of Defense.”

21-48  2.  The notice of defense must read substantially as follows:

 

 


22-1  NOTICE OF DEFENSE

 

22-2  Instructions to Respondents: Two copies of this form should be

22-3   filed with the Nevada gaming commission, Carson City, Nevada,

22-4   within 15 days after service upon you of the enclosed complaint.

22-5   The form must be signed by you or on your behalf. You will note

22-6   that blanks are provided for any information you wish to supply.

 

22-7                   Yes                      No

 

22-8  1.  Do you request a hearing?                        ¨                        ¨

22-9  2.  Do you admit the facts stated in the complaint?       ¨                        ¨

22-10  If you admit some of the facts stated in

22-11   the complaint, but deny others, please

22-12   specify:

 

22-13  (space for answer)

 

22-14  3.  Are there any defenses or explanations which

22-15  you believe the commission should Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

22-16  consider?¨              ¨

22-17  If so, please specify:

 

22-18  (space for answer)

 

22-19  4.  Do you wish to state any legal objections to the

22-20  complaint?              ¨              ¨

22-21  If so, please specify:

 

22-22  (space for answer)

 

22-23  Note: If you fail to file two copies of this form as specified,

22-24   the commission may proceed upon the complaint without a

22-25   hearing.

 

22-26  Sec. 33.  NRS 465.070 is hereby amended to read as follows:

22-27  465.070  It is unlawful for any person:

22-28  1.  To alter or misrepresent the outcome of a game or other event on

22-29   which wagers have been made after the outcome is made sure but before it

22-30   is revealed to the players.

22-31  2.  To place, increase or decrease a bet or to determine the course of

22-32   play after acquiring knowledge, not available to all players, of the outcome

22-33   of the game or any event that affects the outcome of the game or which is

22-34   the subject of the bet or to aid anyone in acquiring such knowledge for the

22-35   purpose of placing, increasing or decreasing a bet or determining the

22-36   course of play contingent upon that event or outcome.

22-37  3.  To claim, collect or take, or attempt to claim, collect or take, money

22-38   or anything of value in or from a gambling game, with intent to defraud,

22-39   without having made a wager contingent thereon, or to claim, collect or

22-40   take an amount greater than the amount won.


23-1    4.  Knowingly to entice or induce another to go to any place where a

23-2  gambling game is being conducted or operated in violation of the

23-3   provisions of this chapter, with the intent that the other person play or

23-4   participate in that gambling game.

23-5    5.  To place or increase a bet after acquiring knowledge of the outcome

23-6   of the game or other event which is the subject of the bet, including past

23-7  -posting and pressing bets.

23-8    6.  To reduce the amount wagered or cancel the bet after acquiring

23-9   knowledge of the outcome of the game or other event which is the subject

23-10   of the bet, including pinching bets.

23-11  7.  To manipulate, with the intent to cheat, any component of a gaming

23-12   device in a manner contrary to the designed and normal operational

23-13   purpose for the component, including, but not limited to, varying the pull

23-14   of the handle of a slot machine, with knowledge that the manipulation

23-15   affects the outcome of the game or with knowledge of any event that

23-16   affects the outcome of the game.

23-17  8.  To offer, promise or give anything of value to anyone for the

23-18   purpose of influencing the outcome of a race, sporting event, contest or

23-19   game upon which a wager may be made, or to place, increase or

23-20   decrease a wager after acquiring knowledge, not available to the general

23-21   public, that anyone has been offered, promised or given anything of

23-22   value for the purpose of influencing the outcome of the race, sporting

23-23   event, contest or game upon which the wager is placed, increased or

23-24   decreased.

23-25  9.  To change or alter the normal outcome of any game played on an

23-26   interactive gaming system or the way in which the outcome is reported to

23-27   any participant in the game.

23-28  Sec. 34. 1.  The Nevada gaming commission shall, on or before

23-29   January 1, 2003, adopt regulations to carry out the amendatory provisions

23-30   of section 16 of this act and transmit a copy of those regulations to each

23-31   county and city licensing authority that issues work permits to work as a

23-32   gaming employee.

23-33  2.  The amendatory provisions of sections 13 and 16 of this act apply to

23-34   any work permit to work as a gaming employee that is issued by the state

23-35   gaming control board or a county or city licensing authority on or after

23-36   January 1, 2003.

23-37  3.  On or after January 1, 2003, a county or city licensing authority is

23-38   prohibited from issuing a work permit to work as a gaming employee that

23-39   does not comply with the provisions of this act and the regulations adopted

23-40   by the Nevada gaming commission.

23-41  4.  A work permit to work as a gaming employee that was issued before

23-42   January 1, 2003, is valid until it expires or is revoked in accordance with

23-43   the provisions of NRS 463.335 that remain in effect until January 1, 2003.

23-44  Sec. 35.  The amendatory provisions of this act do not apply to

23-45   offenses committed before July 1, 2001.

23-46  Sec. 36.  1.  This section and sections 28 to 32, inclusive, of this act

23-47   become effective upon passage and approval.

23-48  2.  Sections 16 and 34 of this act become effective upon passage and

23-49   approval for purposes related to the adoption and dissemination of

23-50   regulations by the Nevada gaming commission and on January 1, 2003, for

23-51   all other purposes.


24-1    3.  Sections 1 to 12, inclusive, 14, 15, 17 to 27, inclusive, 33 and 35 of

24-2  this act become effective on July 1, 2001.

24-3    4.  Section 13 of this act becomes effective on January 1, 2003.

 

24-4  20~~~~~01