REQUIRES TWO-THIRDS MAJORITY VOTE (§§ 3,6,8,9,16)
(REPRINTED WITH ADOPTED AMENDMENTS)
THIRD REPRINT A.B. 466
Assembly Bill No. 466–Assemblymen Leslie, Parks, Parnell, Gibbons, Anderson, Brower, Chowning, Freeman, Giunchigliani, Humke, Smith and Tiffany
March 19, 2001
____________
Joint Sponsor: Senator Mathews
____________
Referred to Committee on Judiciary
SUMMARY—Enacts provisions governing licensing and operation of interactive gaming and revises various provisions relating to gaming. (BDR 41‑244)
FISCAL NOTE: Effect on Local Government: Yes.
~
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).
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 of
1-6 money, credit cards, debit cards or any other instrumentality, to transmit
1-7 to a computer information to assist in the placing of a bet or wager and
1-8 corresponding information related to the display of the game, game
1-9 outcomes or other similar information. The term does not include the
1-10 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.
1-20 Sec. 3. 1. Except as otherwise provided in subsections 2 and 3, the
1-21 commission may, with the advice and assistance of the board, adopt
1-22 regulations governing the licensing and operation of interactive gaming.
1-23 2. The commission may not adopt regulations governing the
1-24 licensing and operation of interactive gaming until the commission first
1-25 determines that:
1-26 (a) Interactive gaming can be operated in compliance with all
1-27 applicable laws;
1-28 (b) Interactive gaming systems are secure and reliable, and provide
1-29 reasonable assurance that players will be of lawful age and
1-30 communicating only from jurisdictions where it is lawful to make such
1-31 communications; and
1-32 (c) Such regulations are consistent with the public policy of the state
1-33 to foster the stability and success of gaming.
1-34 3. The regulations adopted by the commission pursuant to this
1-35 section must:
1-36 (a) Establish the investigation fees for:
1-37 (1) A license to operate interactive gaming;
1-38 (2) A license for a manufacturer of interactive gaming systems; and
1-39 (3) A license for a manufacturer of equipment associated with
1-40 interactive gaming.
1-41 (b) Provide that:
1-42 (1) A person must hold a license for a manufacturer of interactive
1-43 gaming systems to supply or provide any interactive gaming system,
1-44 including, without limitation, any piece of proprietary software or
1-45 hardware; and
2-1 (2) A person may be required by the commission to hold a license
2-2 for a manufacturer of equipment associated with interactive gaming.
2-3 (c) Set forth standards for the suitability of a person to be licensed as
2-4 a manufacturer of interactive gaming systems or manufacturer of
2-5 equipment associated with interactive gaming that are as stringent as the
2-6 standards for a nonrestricted license.
2-7 (d) Provide that gross revenue received by an establishment from the
2-8 operation of interactive gaming is subject to the same license fee
2-9 provisions of NRS 463.370 as the games and gaming devices of the
2-10 establishment.
2-11 (e) Set forth standards for the location and security of the computer
2-12 system and for approval of hardware and software used in connection
2-13 with interactive gaming.
2-14 (f) Define “equipment associated with interactive gaming,”
2-15 “interactive gaming system,” “manufacturer of equipment associated
2-16 with interactive gaming,” “manufacturer of interactive gaming systems,”
2-17 “operate interactive gaming” and “proprietary hardware and software”
2-18 as the terms are used in this chapter.
2-19 4. Except as otherwise provided in subsection 5, the commission
2-20 shall not approve a license for an establishment to operate interactive
2-21 gaming unless:
2-22 (a) In a county whose population is 400,000 or more, the
2-23 establishment is a resort hotel that holds a nonrestricted license to
2-24 operate games and gaming devices.
2-25 (b) In a county whose population is more than 40,000 but less than
2-26 400,000, the establishment is a resort hotel that holds a nonrestricted
2-27 license to operate games and gaming devices or the establishment:
2-28 (1) Holds a nonrestricted license for the operation of games and
2-29 gaming devices;
2-30 (2) Has more than 120 rooms available for sleeping
2-31 accommodations in the same county;
2-32 (3) Has at least one bar with permanent seating capacity for more
2-33 than 30 patrons that serves alcoholic beverages sold by the drink for
2-34 consumption on the premises;
2-35 (4) Has at least one restaurant with permanent seating capacity for
2-36 more than 60 patrons that is open to the public 24 hours each day and 7
2-37 days each week; and
2-38 (5) Has a gaming area that is at least 18,000 square feet in area
2-39 with at least 1,600 slot machines, 40 table games, and a sports book and
2-40 race pool.
2-41 (c) In all other counties, the establishment is a resort hotel that holds
2-42 a nonrestricted license to operate games and gaming devices or the
2-43 establishment:
2-44 (1) Has held a nonrestricted license for the operation of games and
2-45 gaming devices for at least 5 years before the date of its application for a
2-46 license to operate interactive gaming;
2-47 (2) Meets the definition of group 1 licensee as set forth in the
2-48 regulations of the commission on the date of its application for a license
2-49 to operate interactive gaming; and
3-1 (3) Operates either:
3-2 (I) More than 50 rooms for sleeping accommodations in
3-3 connection therewith; or
3-4 (II) More than 50 gaming devices in connection therewith.
3-5 5. The commission may:
3-6 (a) Issue a license to operate interactive gaming to an affiliate of an
3-7 establishment if:
3-8 (1) The establishment satisfies the applicable requirements set forth
3-9 in subsection 4; and
3-10 (2) The affiliate is located in the same county as the establishment;
3-11 and
3-12 (b) Require an affiliate that receives a license pursuant to this
3-13 subsection to comply with any applicable provision of this chapter.
3-14 6. It is unlawful for any person, either as owner, lessee or employee,
3-15 whether for hire or not, either solely or in conjunction with others, to
3-16 operate interactive gaming:
3-17 (a) Until the commission adopts regulations pursuant to this section;
3-18 and
3-19 (b) Unless the person first procures, and thereafter maintains in
3-20 effect, all appropriate licenses as required by the regulations adopted by
3-21 the commission pursuant to this section.
3-22 7. A person who violates subsection 6 is guilty of a category B felony
3-23 and shall be punished by imprisonment in the state prison for a
3-24 minimum term of not less than 1 year and a maximum term of not more
3-25 than 10 years or by a fine of not more than $50,000, or both.
3-26 Sec. 4. A debt incurred by a patron for play at an interactive gaming
3-27 system of an establishment licensed to operate interactive gaming is valid
3-28 and may be enforced by legal process.
3-29 Sec. 5. 1. Upon the recommendation of the board, the commission
3-30 may require:
3-31 (a) A manufacturer of equipment associated with interactive gaming
3-32 who sells, transfers or offers equipment associated with interactive
3-33 gaming for use or play in this state to file an application for a license to
3-34 be a manufacturer of equipment associated with interactive gaming.
3-35 (b) A person who directly or indirectly involves himself in the sale,
3-36 transfer or offering for use or play in this state of equipment associated
3-37 with interactive gaming who is not otherwise required to be licensed as a
3-38 manufacturer or distributor pursuant to this chapter to file an
3-39 application for a license to be a manufacturer of equipment associated
3-40 with interactive gaming.
3-41 2. If a person fails to submit an application for a license to be a
3-42 manufacturer of equipment associated with interactive gaming within 30
3-43 days after a demand by the commission pursuant to this section, the
3-44 commission may pursue any remedy or combination of remedies
3-45 provided in this chapter.
3-46 Sec. 6. 1. Before issuing an initial license for an establishment to
3-47 operate interactive gaming, the commission shall charge and collect from
3-48 the establishment a license fee of $500,000.
4-1 2. Each initial license for an establishment to operate interactive
4-2 gaming must be issued for a 2-year period beginning on January 1 of the
4-3 first year and ending on December 31 of the second year.
4-4 3. Notwithstanding the provisions of subsections 1 and 2 to the
4-5 contrary, a license for an establishment to operate interactive gaming
4-6 may be issued after January 1 of a calendar year for a period beginning
4-7 on the date of issuance of the license and ending on the second
4-8 December 31 following the date of issuance of the license. Before issuing
4-9 an initial license pursuant to this subsection, the commission shall
4-10 charge and collect from the establishment a license fee of $500,000
4-11 prorated by 1/24 for each full month between January 1 of the calendar
4-12 year and the date of issuance of the license.
4-13 4. Before renewing a license issued pursuant to this section, but in
4-14 no case later than the second December 31 after the license was issued or
4-15 previously renewed, the commission shall charge and collect a renewal
4-16 fee of $250,000 for the renewal of the license for the immediately
4-17 following 1-year period.
4-18 Sec. 7. The operation of interactive gaming is exempt from the fees
4-19 and taxes imposed pursuant to NRS 463.375, 463.380, 463.383 and
4-20 463.385.
4-21 Sec. 8. 1. Before issuing a license for a manufacturer of
4-22 interactive gaming systems or manufacturer of equipment associated
4-23 with interactive gaming, the commission shall charge and collect a
4-24 license fee of:
4-25 (a) One hundred and twenty-five thousand dollars for a license for a
4-26 manufacturer of interactive gaming systems; or
4-27 (b) Fifty thousand dollars for a license for a manufacturer of
4-28 equipment associated with interactive gaming.
4-29 2. Each license issued pursuant to this section must be issued for a 1-
4-30 year period that begins on the date the license is issued.
4-31 3. Before renewing a license issued pursuant to this section, but in
4-32 no case later than 1 year after the license was issued or previously
4-33 renewed, the commission shall charge and collect a renewal fee for the
4-34 renewal of the license for the immediately following 1-year period. The
4-35 renewal fee for a license for a manufacturer of interactive gaming
4-36 systems or manufacturer of equipment associated with interactive
4-37 gaming is $25,000.
4-38 Sec. 9. 1. All gross revenue from operating interactive gaming
4-39 received by an establishment licensed to operate interactive gaming,
4-40 regardless of whether any portion of the revenue is shared with another
4-41 person, must be attributed to the licensee and counted as part of the gross
4-42 revenue of the licensee for the purpose of computing the license fee
4-43 required by NRS 463.370.
4-44 2. A manufacturer of interactive gaming systems who is authorized
4-45 by an agreement to receive a share of the revenue from an interactive
4-46 gaming system from an establishment licensed to operate interactive
4-47 gaming is liable to the establishment for a portion of the license fee paid
4-48 pursuant to subsection 1. The portion for which the manufacturer of
4-49 interactive gaming systems is liable is 6.25 percent of the amount of
5-1 revenue to which the manufacturer of interactive gaming systems is
5-2 entitled pursuant to the agreement.
5-3 3. For the purposes of subsection 2, the amount of revenue to which
5-4 the manufacturer of interactive gaming systems is entitled pursuant to an
5-5 agreement to share the revenue from an interactive gaming system:
5-6 (a) Includes all revenue of the manufacturer of interactive gaming
5-7 systems that is his share of the revenue from the interactive gaming
5-8 system pursuant to the agreement; and
5-9 (b) Does not include revenue that is the fixed purchase price for the
5-10 sale of a component of the interactive gaming system.
5-11 Sec. 10. NRS 463.013 is hereby amended to read as follows:
5-12 463.013 As used in this chapter, unless the context otherwise requires,
5-13 the words and terms defined in NRS 463.0133 to 463.0197, inclusive, and
5-14 section 2 of this act, have the meanings ascribed to them in those sections.
5-15 Sec. 11. NRS 463.0157 is hereby amended to read as follows:
5-16 463.0157 1. “Gaming employee” means any person connected
5-17 directly with an operator of a slot route, the operator of a pari-mutuel
5-18 system, the operator of an inter-casino linked system or a manufacturer,
5-19 distributor or disseminator, or with the operation of a gaming establishment
5-20 licensed to conduct any game, 16 or more slot machines, a race book,
5-21 sports pool or pari-mutuel wagering, including:
5-22 (a) Accounting or internal auditing personnel who are directly involved
5-23 in any recordkeeping or the examination of records associated with revenue
5-24 from gaming;
5-25 (b) Boxmen;
5-26 (c) Cashiers;
5-27 (d) Change personnel;
5-28 (e) Counting room personnel;
5-29 (f) Dealers;
5-30 (g) Employees of a person required by NRS 464.010 to be licensed to
5-31 operate an off-track pari-mutuel system;
5-32 (h) Employees of a person required by NRS 463.430 to be licensed to
5-33 disseminate information concerning racing;
5-34 (i) Employees of manufacturers or distributors of gaming equipment
5-35 within this state whose duties are directly involved with the manufacture,
5-36 repair or distribution of gaming devices , [or] cashless wagering systems
5-37 [;] , interactive gaming systems or equipment associated with interactive
5-38 gaming;
5-39 (j) Employees of operators of slot routes who have keys for slot
5-40 machines or who accept and transport revenue from the slot drop;
5-41 (k) Employees of operators of inter-casino linked systems or interactive
5-42 gaming systems whose duties include the operational or supervisory
5-43 control of the systems or the games that are part of the systems;
5-44 (l) Floormen;
5-45 (m) Hosts or other persons empowered to extend credit or
5-46 complimentary services;
5-47 (n) Keno runners;
5-48 (o) Keno writers;
5-49 (p) Machine mechanics;
6-1 (q) Odds makers and line setters;
6-2 (r) Security personnel;
6-3 (s) Shift or pit bosses;
6-4 (t) Shills;
6-5 (u) Supervisors or managers;
6-6 (v) Ticket writers; and
6-7 (w) Employees of a person required by NRS 463.160 to be licensed to
6-8 operate an information service.
6-9 2. “Gaming employee” does not include bartenders, cocktail waitresses
6-10 or other persons engaged exclusively in preparing or serving food or
6-11 beverages.
6-12 Sec. 12. NRS 463.0172 is hereby amended to read as follows:
6-13 463.0172 “Manufacturer” means a person who:
6-14 1. Manufactures, assembles, programs or makes modifications to a
6-15 gaming device , [or] cashless wagering system[;] or interactive gaming
6-16 system; or
6-17 2. Designs, assumes responsibility for the design of, controls the
6-18 design or assembly of, or maintains a copyright over the design of , a
6-19 mechanism, electronic circuit or computer program which cannot be
6-20 reasonably demonstrated to have any application other than in a gaming
6-21 device , [or in a] cashless wagering system[,] or interactive gaming
6-22 system for use or play in this state or for distribution outside of this state.
6-23 Sec. 13. NRS 463.0197 is hereby amended to read as follows:
6-24 463.0197 “Work permit” means any card, certificate or permit issued
6-25 by the board or by a county or city licensing authority, whether
6-26 denominated as a work permit, registration card or otherwise, authorizing
6-27 the holder to be employed as a gaming employee in this state or to serve as
6-28 an independent agent. A document issued by any governmental authority
6-29 for any employment other than gaming is not a valid work permit for the
6-30 purposes of this chapter.
6-31 Sec. 14. NRS 463.200 is hereby amended to read as follows:
6-32 463.200 1. Application for a state gaming license or other
6-33 commission action [shall] must be made to the board on forms furnished
6-34 by the board and in accordance with the regulations of the commission.
6-35 2. The application for a license [shall] must include:
6-36 (a) The name of the proposed licensee.
6-37 (b) The location of his place or places of business.
6-38 (c) The gambling games, gaming device or slot machines to be
6-39 operated.
6-40 (d) The names of all persons directly or indirectly interested in the
6-41 business and the nature of such interest.
6-42 (e) Such other information and details as the board may require in order
6-43 to discharge its duty properly.
6-44 3. If the application is for a restricted license on premises not owned
6-45 by the applicant, the application must include a sworn and notarized
6-46 statement from the owner or lessor of the premises indicating whether
6-47 the consideration paid by the applicant for the use of the premises has
6-48 been or will be increased because of the operation of gaming on the
6-49 premises.
7-1 4. The board shall furnish to the applicant supplemental forms, which
7-2 the applicant shall complete and file with the application. Such
7-3 supplemental forms [shall] must require, but [shall] must not be limited to,
7-4 complete information and details with respect to the applicant’s
7-5 antecedents, habits, character, criminal record, business activities, financial
7-6 affairs and business associates, covering at least a 10-year period
7-7 immediately preceding the date of filing of the application.
7-8 Sec. 15. NRS 463.245 is hereby amended to read as follows:
7-9 463.245 1. Except as otherwise provided in [subsections 2, 3 and 4]
7-10 this section:
7-11 (a) All licenses issued to the same person, including a wholly owned
7-12 subsidiary of that person, for the operation of any game, including a sports
7-13 pool or race book, which authorize gaming at the same establishment must
7-14 be merged into a single gaming license.
7-15 (b) A gaming license may not be issued to any person if the issuance
7-16 would result in more than one licensed operation at a single establishment,
7-17 whether or not the profits or revenue from gaming are shared between the
7-18 licensed operations.
7-19 2. A person who has been issued a nonrestricted gaming license may
7-20 establish a sports pool or race book on the premises of the establishment at
7-21 which he conducts a nonrestricted gaming operation only after obtaining
7-22 permission from the commission.
7-23 3. A person who has been issued a license to operate a sports pool or
7-24 race book at an establishment may be issued a license to operate a sports
7-25 pool or race book at another establishment if the second establishment is
7-26 operated by a person who has been issued a nonrestricted license.
7-27 4. Nothing in this section limits or prohibits an operator of an inter-
7-28 casino linked system from placing and operating such a system on the
7-29 premises of two or more gaming licensees and receiving, either directly or
7-30 indirectly, any compensation or any percentage or share of the money or
7-31 property played from the linked games in accordance with the provisions
7-32 of this chapter and the regulations adopted by the commission. An inter-
7-33 casino linked system must not be used to link games other than slot
7-34 machines, unless such games are located at an establishment that is
7-35 licensed for games other than slot machines.
7-36 5. The provisions of this section do not apply to a license to operate
7-37 interactive gaming.
7-38 Sec. 16. NRS 463.335 is hereby amended to read as follows:
7-39 463.335 1. The legislature finds that, to protect and promote the
7-40 health, safety, morals, good order and general welfare of the inhabitants of
7-41 the State of Nevada and to carry out the policy declared in NRS 463.0129,
7-42 it is necessary that the board:
7-43 (a) Ascertain and keep itself informed of the identity, prior activities
7-44 and present location of all gaming employees and independent agents in
7-45 the State of Nevada; and
7-46 (b) Maintain confidential records of such information.
7-47 2. Except as otherwise provided in [subsections 3 and 4,] subsection 3,
7-48 a person may not be employed as a gaming employee or serve as an
7-49 independent agent unless he is the holder of[:
8-1 (a) A valid work permit issued in accordance with the applicable
8-2 ordinances or regulations of the county or city in which his duties are
8-3 performed and the provisions of this chapter; or
8-4 (b) A valid work permit issued by the board, if a work permit is not
8-5 required by either the county or the city.] a valid work permit to work as a
8-6 gaming employee issued pursuant to this section. A work permit to work
8-7 as a gaming employee may be issued by the board or by a county or city
8-8 licensing authority. An applicant for a work permit shall file his
8-9 application for a work permit with the licensing authority of the city in
8-10 which he resides if that city requires a work permit. If the city in which
8-11 he resides does not require such a permit, the applicant shall file his
8-12 application with the licensing authority of the county in which he resides
8-13 if that county requires a work permit. If the county in which he resides
8-14 does not require such a permit, the applicant shall file his application
8-15 with the board. The board shall, by regulation, prescribe the form for an
8-16 application for a work permit to work as a gaming employee. The fee for
8-17 such a permit may be charged only to cover the actual investigative and
8-18 administrative costs related to processing an application for such a
8-19 permit and must not exceed $75.
8-20 3. An independent agent is not required to hold a work permit if he is
8-21 not a resident of this state and has registered with the board in accordance
8-22 with the provisions of the regulations adopted by the commission.
8-23 4. [A person may be employed as a gaming employee for an operator
8-24 of a slot machine route and perform duties for his employer in more than
8-25 one county or city without obtaining a valid work permit for each county or
8-26 city in which he performs those duties if the person holds:
8-27 (a) A valid work permit issued in accordance with the applicable
8-28 ordinances or regulations of the county or city in which his duties are
8-29 primarily performed and the provisions of this chapter; or
8-30 (b) A valid work permit issued by the board, if a work permit is not
8-31 required by either the county or the city in which his duties are primarily
8-32 performed.
8-33 5. A gaming employee described in subsection 4 shall notify the
8-34 licensing authority of each city and county in which he performs duties for
8-35 his employer, other than the licensing authority that issued his valid work
8-36 permit, that he has obtained a valid work permit pursuant to subsection 4.
8-37 6.] Upon receipt of an application for a work permit to work as a
8-38 gaming employee, the board or licensing authority shall conduct an
8-39 investigation of the applicant to determine whether he is eligible for the
8-40 permit. In conducting the investigation, the board or licensing authority
8-41 shall forward a complete set of the applicant’s fingerprints to the central
8-42 repository for Nevada records of criminal history for submission to the
8-43 Federal Bureau of Investigation for a report concerning the criminal
8-44 history of the applicant. The investigation need not be limited solely to
8-45 consideration of the results of the report concerning the criminal history
8-46 of the applicant.
8-47 5. A work permit issued to a gaming employee or an independent
8-48 agent must have clearly imprinted thereon a statement that it is valid for
8-49 gaming purposes only.
9-1 6. Unless denied or objected to by the board at the time that the
9-2 permittee filed a notice of a change in his place of employment pursuant
9-3 to subsection 8 and unless suspended or revoked, such a permit expires
9-4 on the fifth anniversary of the permittee’s birthday, measured from the
9-5 birthday nearest the date of issuance or renewal. If the date of birth of a
9-6 permittee is on February 29 in a leap year, for the purposes of this
9-7 section, his date of birth shall be deemed to be on February 28.
9-8 7. Whenever any person applies to a county or city licensing authority
9-9 for the issuance or renewal of a work permit, the county or city officer or
9-10 employee to whom the application is made shall within 24 hours mail or
9-11 deliver a copy thereof to the board, and may at the discretion of the county
9-12 or city licensing authority issue a temporary work permit [.] that is valid
9-13 for 120 days. If within [90] 120 days after receipt by the board of the copy
9-14 of the application, the board has not notified the county or city licensing
9-15 authority of any objection, the authority may issue, renew or deny a
9-16 permanent work permit to the applicant.
9-17 8. A gaming employee who is issued a work permit [must obtain
9-18 renewal of the permit from the issuing agency within 10 days following
9-19 any change of his place of employment. An independent agent who is
9-20 issued a work permit must obtain renewal of the permit from the issuing
9-21 agency within 10 days after executing an agreement to serve as an
9-22 independent agent within the jurisdiction of the issuing agency.
9-23 8.] is eligible for employment in any licensed gaming establishment in
9-24 this state until the work permit is denied or objected to by the board,
9-25 expires or is revoked. However, each such employee shall notify the
9-26 board within 10 days following any change of his place of employment at
9-27 a gaming establishment. Such a notification shall be deemed an
9-28 application for a work permit that the board may deny or object to after
9-29 conducting any investigations the board deems appropriate. The
9-30 provisions of subsections 9 to 16, inclusive, apply to any such objection
9-31 of the board. The commission shall adopt regulations to:
9-32 (a) Facilitate uniform procedures for the issuance of work permits by
9-33 counties and cities;
9-34 (b) Establish uniform criteria for denial by a county or city licensing
9-35 authority of an application for a work permit; and
9-36 (c) Provide for the creation and maintenance of a system of records
9-37 that contain information regarding the current place of employment of
9-38 each person who possesses a valid work permit.
9-39 9. If the board, within the [90-day] 120-day period, notifies:
9-40 (a) The county or city licensing authority; and
9-41 (b) The applicant,
9-42 that the board objects to the granting of a work permit to the applicant, the
9-43 authority shall deny the work permit and shall immediately revoke and
9-44 repossess any temporary work permit which it may have issued. The notice
9-45 of objection by the board which is sent to the applicant must include a
9-46 statement of the facts upon which the board relied in making its objection.
9-47 [9. Application for a work permit may be made to the board, and may
9-48 be granted or denied for any cause deemed reasonable by the board.]
10-1 10. Whenever an application for a work permit is made to the board
10-2 and the board denies such an application, it shall include in its notice of the
10-3 denial a statement of the facts upon which it relied in denying the
10-4 application. [Except for a permit issued to a person pursuant to subsection
10-5 4, a permit issued by the board is valid only in a county or city that does
10-6 not require a work permit.
10-7 10.] 11. Any person whose application for a work permit has been
10-8 denied because of an objection by the board or whose application has been
10-9 denied by the board may, not later than 60 days after receiving notice of
10-10 the denial or objection, apply to the board for a hearing. A failure of a
10-11 person whose application has been denied to apply for a hearing within 60
10-12 days or his failure to appear at a hearing of the board conducted pursuant to
10-13 this section shall be deemed to be an admission that the denial or objection
10-14 is well founded, and the failure precludes administrative or judicial review.
10-15 At the hearing, the board shall take any testimony deemed necessary. After
10-16 the hearing the board shall review the testimony taken and any other
10-17 evidence, and shall within 45 days after the date of the hearing mail to the
10-18 applicant its decision sustaining or reversing the denial of the work permit
10-19 or the objection to the issuance of a work permit.
10-20 [11.] 12. The board may object to the issuance of a work permit or
10-21 may refuse to issue a work permit for any cause deemed reasonable by the
10-22 board. The board may object or refuse if the applicant has:
10-23 (a) Failed to disclose or misstated information or otherwise attempted to
10-24 mislead the board with respect to any material fact contained in the
10-25 application for the issuance or renewal of a work permit;
10-26 (b) Knowingly failed to comply with the provisions of this chapter or
10-27 chapter 463B, 464 or 465 of NRS or the regulations of the commission at a
10-28 place of previous employment;
10-29 (c) Committed, attempted or conspired to commit any crime of moral
10-30 turpitude, embezzlement or larceny or any violation of any law pertaining
10-31 to gaming, or any crime which is inimical to the declared policy of this
10-32 state concerning gaming;
10-33 (d) Committed, attempted or conspired to commit a crime which is a
10-34 felony or gross misdemeanor in this state or an offense in another state or
10-35 jurisdiction which would be a felony or gross misdemeanor if committed in
10-36 this state;
10-37 (e) Been identified in the published reports of any federal or state
10-38 legislative or executive body as being a member or associate of organized
10-39 crime, or as being of notorious and unsavory reputation;
10-40 (f) Been placed and remains in the constructive custody of any federal,
10-41 state or municipal law enforcement authority; or
10-42 (g) Had a work permit revoked or committed any act which is a
10-43 ground for the revocation of a work permit or would have been a
10-44 ground for revoking his work permit if he had then held a work
10-45 permit.
10-46 If the board issues or does not object to the issuance of a work permit to an
10-47 applicant , [who has been convicted of a crime which is a felony, gross
10-48 misdemeanor or misdemeanor,] it may specially limit the period for which
10-49 the permit is valid, limit the job classifications for which the holder of the
11-1 permit may be employed and establish such individual conditions for the
11-2 issuance, renewal and effectiveness of the permit as the board deems
11-3 appropriate, including required submission to unscheduled tests for the
11-4 presence of alcohol or controlled substances.
11-5 [12.] 13. Any applicant aggrieved by the decision of the board may,
11-6 within 15 days after the announcement of the decision, apply in writing to
11-7 the commission for review of the decision. Review is limited to the record
11-8 of the proceedings before the board. The commission may sustain, modify
11-9 or reverse the board’s decision. The decision of the commission is subject
11-10 to judicial review pursuant to NRS 463.315 to 463.318, inclusive.
11-11 [13.] 14. Except as otherwise provided in this subsection, all records
11-12 acquired or compiled by the board or commission relating to any
11-13 application made pursuant to this section and all lists of persons to whom
11-14 work permits have been issued or denied and all records of the names or
11-15 identity of persons engaged in the gaming industry in this state are
11-16 confidential and must not be disclosed except in the proper administration
11-17 of this chapter or to an authorized law enforcement agency. Upon receipt
11-18 of a request from the welfare division of the department of human
11-19 resources pursuant to NRS 425.400 for information relating to a specific
11-20 person who has applied for or holds a work permit, the board shall disclose
11-21 to the division his social security number, residential address and current
11-22 employer as that information is listed in the files and records of the board.
11-23 Any record of the board or commission which shows that the applicant has
11-24 been convicted of a crime in another state must show whether the crime
11-25 was a misdemeanor, gross misdemeanor, felony or other class of crime as
11-26 classified by the state in which the crime was committed. In a disclosure of
11-27 the conviction, reference to the classification of the crime must be based on
11-28 the classification in the state where it was committed.
11-29 [14. A work permit expires unless renewed in accordance with
11-30 subsection 7, or if the holder thereof is not employed as a gaming
11-31 employee or does not serve as an independent agent within the jurisdiction
11-32 of the issuing authority for more than 90 days.]
11-33 15. The chairman of the board may designate a member of the board or
11-34 the board may appoint a hearing examiner and authorize that person to
11-35 perform on behalf of the board any of the following functions required of
11-36 the board by this section concerning work permits:
11-37 (a) Conducting a hearing and taking testimony;
11-38 (b) Reviewing the testimony and evidence presented at the hearing;
11-39 (c) Making a recommendation to the board based upon the testimony
11-40 and evidence or rendering a decision on behalf of the board to sustain or
11-41 reverse the denial of a work permit or the objection to the issuance or
11-42 renewal of a work permit; and
11-43 (d) Notifying the applicant of the decision.
11-44 16. Notice by the board as provided pursuant to this section is
11-45 sufficient if it is mailed to the applicant’s last known address as indicated
11-46 on the application for a work permit, or the record of the hearing, as the
11-47 case may be. The date of mailing may be proven by a certificate signed by
11-48 an officer or employee of the board which specifies the time the notice was
11-49 mailed. The notice shall be deemed to have been received by the applicant
12-1 5 days after it is deposited with the United States Postal Service with the
12-2 postage thereon prepaid.
12-3 Sec. 17. NRS 463.3557 is hereby amended to read as follows:
12-4 463.3557 [An]
12-5 1. Except as otherwise provided in subsection 2, an electronic transfer
12-6 of money from a financial institution directly to a game or gaming device
12-7 may not be made with a credit card.
12-8 2. The provisions of subsection 1 do not apply to an interactive
12-9 gaming system.
12-10 Sec. 18. NRS 463.361 is hereby amended to read as follows:
12-11 463.361 1. Except as otherwise provided in section 4 of this act and
12-12 NRS 463.361 to 463.366, inclusive, gaming debts that are not evidenced by
12-13 a credit instrument are void and unenforceable and do not give rise to any
12-14 administrative or civil cause of action.
12-15 2. A claim by a patron of a licensee for payment of a gaming debt that
12-16 is not evidenced by a credit instrument may be resolved in accordance with
12-17 NRS 463.362 to 463.366, inclusive:
12-18 (a) By the board; or
12-19 (b) If the claim is for less than $500, by a hearing examiner designated
12-20 by the board.
12-21 Sec. 19. NRS 463.370 is hereby amended to read as follows:
12-22 463.370 1. Except as otherwise provided in NRS 463.373, the
12-23 commission shall charge and collect from each licensee a license fee based
12-24 upon all the gross revenue of the licensee as follows:
12-25 (a) Three percent of all the gross revenue of the licensee which does not
12-26 exceed $50,000 per calendar month;
12-27 (b) Four percent of all the gross revenue of the licensee which exceeds
12-28 $50,000 per calendar month and does not exceed $134,000 per calendar
12-29 month; and
12-30 (c) Six and one-quarter percent of all the gross revenue of the licensee
12-31 which exceeds $134,000 per calendar month.
12-32 2. Unless the licensee has been operating for less than a full calendar
12-33 month, the commission shall charge and collect the fee prescribed in
12-34 subsection 1, based upon the gross revenue for the preceding calendar
12-35 month, on or before the 24th day of the following month. Except for the fee
12-36 based on the first full month of operation, the fee is an estimated payment
12-37 of the license fee for the third month following the month whose gross
12-38 revenue is used as its basis.
12-39 3. When a licensee has been operating for less than a full calendar
12-40 month, the commission shall charge and collect the fee prescribed in
12-41 subsection 1, based on the gross revenue received during that month, on or
12-42 before the 24th day of the following calendar month of operation. After the
12-43 first full calendar month of operation, the commission shall charge and
12-44 collect the fee based on the gross revenue received during that month, on or
12-45 before the 24th day of the following calendar month. The payment of the
12-46 fee due for the first full calendar month of operation must be accompanied
12-47 by the payment of a fee equal to three times the fee for the first full
12-48 calendar month. This additional amount is an estimated payment of the
12-49 license fees for the next 3 calendar months. Thereafter, each license fee
13-1 must be paid in the manner described in subsection 2. Any deposit held by
13-2 the commission on July 1, 1969, must be treated as an advance estimated
13-3 payment.
13-4 4. All revenue received from any game or gaming device which is
13-5 operated on the premises of a licensee, regardless of whether any portion of
13-6 the revenue is shared with any other person, must be attributed to the
13-7 licensee for the purposes of this section and counted as part of the gross
13-8 revenue of the licensee. Any other person, including, without limitation, an
13-9 operator of an inter-casino linked system, who is authorized to receive a
13-10 share of the revenue from any game, gaming device or inter-casino linked
13-11 system that is operated on the premises of a licensee is liable to the licensee
13-12 for that person’s proportionate share of the license fees paid by the licensee
13-13 pursuant to this section and shall remit or credit the full proportionate share
13-14 to the licensee on or before the 24th day of each calendar month. The
13-15 proportionate share of an operator of an inter-casino linked system must be
13-16 based on all compensation and other consideration received by the operator
13-17 of the inter-casino linked system, including, without limitation, amounts
13-18 that accrue to the meter of the primary progressive jackpot of the inter-
13-19 casino linked system and amounts that fund the reserves of such a jackpot,
13-20 subject to all appropriate adjustments for deductions, credits, offsets and
13-21 exclusions that the licensee is entitled to take or receive pursuant to the
13-22 provisions of this chapter. A licensee is not liable to any other person
13-23 authorized to receive a share of the licensee’s revenue from any game,
13-24 gaming device or inter-casino linked system that is operated on the
13-25 premises of the licensee for that person’s proportionate share of the license
13-26 fees to be remitted or credited to the licensee by that person pursuant to this
13-27 section.
13-28 5. An operator of an inter-casino linked system shall not enter into any
13-29 agreement or arrangement with a licensee that provides for the operator of
13-30 the inter-casino linked system to be liable to the licensee for less than its
13-31 full proportionate share of the license fees paid by the licensee pursuant to
13-32 this section, whether accomplished through a rebate, refund, charge-back
13-33 or otherwise.
13-34 6. Any person required to pay a fee pursuant to this section shall file
13-35 with the commission, on or before the 24th day of each calendar month, a
13-36 report showing the amount of all gross revenue received during the
13-37 preceding calendar month. Each report must be accompanied by:
13-38 (a) The fee due based on the revenue of the month covered by the
13-39 report; and
13-40 (b) An adjustment for the difference between the estimated fee
13-41 previously paid for the month covered by the report, if any, and the fee due
13-42 for the actual gross revenue earned in that month. If the adjustment is less
13-43 than zero, a credit must be applied to the estimated fee due with that report.
13-44 7. If the amount of license fees required to be reported and paid
13-45 pursuant to this section is later determined to be greater or less than the
13-46 amount actually reported and paid, the commission shall:
13-47 (a) Charge and collect the additional license fees determined to be due,
13-48 with interest thereon until paid; or
14-1 (b) Refund any overpayment to the person entitled thereto pursuant to
14-2 this chapter, with interest thereon.
14-3 Interest pursuant to paragraph (a) must be computed at the rate prescribed
14-4 in NRS 17.130 from the first day of the first month following [either] the
14-5 due date of the additional license fees [or the date of overpayment] until
14-6 paid. Interest pursuant to paragraph (b) must be computed at one-half
14-7 the rate prescribed in NRS 17.130 from the first day of the first month
14-8 following the date of overpayment until paid.
14-9 8. Failure to pay the fees provided for in this section shall be deemed a
14-10 surrender of the license at the expiration of the period for which the
14-11 estimated payment of fees has been made, as established in subsection 2.
14-12 9. Except as otherwise provided in NRS 463.386, the amount of the
14-13 fee prescribed in subsection 1 must not be prorated.
14-14 10. Except as otherwise provided in NRS 463.386, if a licensee ceases
14-15 operation, the commission shall:
14-16 (a) Charge and collect the additional license fees determined to be due
14-17 with interest[;] computed pursuant to paragraph (a) of subsection 7; or
14-18 (b) Refund any overpayment[, with interest thereon,] to the licensee
14-19 [,] with interest computed pursuant to paragraph (b) of
14-20 subsection 7,
14-21 based upon the gross revenue of the licensee during the last 3 months
14-22 immediately preceding the cessation of operation, or portions of those last
14-23 3 months.
14-24 11. If in any month, the amount of gross revenue is less than zero, the
14-25 licensee may offset the loss against gross revenue in succeeding months
14-26 until the loss has been fully offset.
14-27 12. If in any month, the amount of the license fee due is less than zero,
14-28 the licensee is entitled to receive a credit against any license fees due in
14-29 succeeding months until the credit has been fully offset.
14-30 Sec. 20. NRS 463.387 is hereby amended to read as follows:
14-31 463.387 1. State gaming license fees or taxes paid in excess of the
14-32 amount required to be reported and paid may be refunded, upon the
14-33 approval of the commission, as other claims against the state are paid.
14-34 2. Within 90 days after the mailing of the notice of the commission’s
14-35 action upon a claim for refund filed pursuant to this chapter, the claimant
14-36 may bring an action against the commission on the grounds set forth in the
14-37 claim in any court of competent jurisdiction for the recovery of the whole
14-38 or any part of the amount with respect to which the claim has been
14-39 disallowed.
14-40 3. Failure to bring an action within the time specified in subsection 2
14-41 constitutes a waiver of any demand against the state on account of alleged
14-42 overpayments.
14-43 4. Within 20 days after the mailing of the notice of the commission’s
14-44 action upon a claim for refund filed pursuant to this chapter, the claimant
14-45 may file a motion for rehearing with the commission. The commission
14-46 must take action on the motion for rehearing within 50 days after it has
14-47 been filed with the commission. If the motion for rehearing is granted, the
14-48 commission’s earlier action upon the claim for refund is rescinded and the
14-49 90-day period specified in subsection 2 does not begin until the
15-1 commission mails notice of its action upon the claim following the
15-2 rehearing.
15-3 5. If the commission fails to mail its notice of action on a claim within
15-4 6 months after the claim is filed or reheard, the claimant may consider the
15-5 claim disallowed and bring an action against the commission on the
15-6 grounds set forth in the claim for the recovery of the whole or any part of
15-7 the amount claimed as an overpayment.
15-8 6. In any case where a refund is granted, interest must be allowed at
15-9 one-half the rate prescribed in NRS 17.130 upon the amount found to have
15-10 been erroneously paid from the first day of the first month following the
15-11 date of overpayment until paid. The commission may in its discretion deny
15-12 or limit the payment of interest if it finds that the claimant has failed to file
15-13 a claim for a refund within 90 days after receiving written notification of
15-14 overpayment from the board or has impeded the board’s ability to process
15-15 the claim in a timely manner.
15-16 7. Notwithstanding the provisions of NRS 353.115, any claim for
15-17 refund of state gaming license fees or taxes paid in excess of the amount
15-18 required to be reported and paid[,] must be filed with the commission
15-19 within 5 years after the date of overpayment and not thereafter.
15-20 8. The provisions of this chapter must not be construed to permit the
15-21 proration of state gaming taxes or license fees for purposes of a refund.
15-22 Sec. 21. NRS 463.400 is hereby amended to read as follows:
15-23 463.400 Any person who willfully fails to report, pay or truthfully
15-24 account for and pay over the license fees imposed by NRS 463.370,
15-25 463.373 to 463.3855, inclusive, and sections 6 to 9, inclusive, of this act,
15-26 463.390 and 463.450, or willfully attempts in any manner to evade or
15-27 defeat any such tax or payment thereof, or any licensee who puts additional
15-28 games into play without authority of the commission to do so or any
15-29 licensee who fails to remit any license fee provided for by this chapter
15-30 when due is in addition to the amount due liable for a penalty of the
15-31 amount of the license fee evaded or not paid, collected or paid over. The
15-32 penalty must be assessed and collected in the same manner as are other
15-33 charges, license fees and penalties under this chapter.
15-34 Sec. 22. NRS 463.403 is hereby amended to read as follows:
15-35 463.403 1. Every person required to pay the tax imposed by NRS
15-36 463.401 shall file with the commission, on or before the 24th day of each
15-37 month, a report showing the amount of all taxable receipts for the
15-38 preceding month.
15-39 2. Each report must be accompanied by the amount of tax which is due
15-40 for the month covered by the report.
15-41 3. If the amount of tax required to be reported and paid pursuant to
15-42 NRS 463.401 is later determined to be greater or less than the amount
15-43 actually reported and paid, the commission shall:
15-44 (a) Charge and collect the additional tax determined to be due, with
15-45 interest thereon until paid; or
15-46 (b) Refund any overpayment to the person entitled thereto pursuant to
15-47 this chapter, with interest thereon.
15-48 Interest [is] pursuant to paragraph (a) must be computed at the rate
15-49 prescribed in NRS 17.130 from the first day of the first month following
16-1 [either] the due date of the additional tax [or the date of overpayment] until
16-2 paid. Interest pursuant to paragraph (b) must be computed at one-half
16-3 the rate prescribed in NRS 17.130 from the first day of the first month
16-4 following the date of overpayment until paid.
16-5 Sec. 23. NRS 463.450 is hereby amended to read as follows:
16-6 463.450 1. Any disseminator of such information obtaining a license
16-7 under NRS 463.430 to 463.480, inclusive, shall pay to the commission a
16-8 fee of 4.25 percent of the total fees collected from users each calendar
16-9 month for the dissemination of live broadcasts.
16-10 2. The commission shall collect the fee on or before the last day of
16-11 each calendar month for the preceding calendar month.
16-12 3. If the amount of the fee required by this section to be reported and
16-13 paid is determined to be different than the amount reported or paid by the
16-14 licensee, the commission shall:
16-15 (a) Charge and collect any additional fee determined to be due, with
16-16 interest thereon until paid; or
16-17 (b) Refund any overpaid fees to the person entitled thereto pursuant to
16-18 this chapter, with interest thereon.
16-19 Interest [is] pursuant to paragraph (a) must be computed at the rate
16-20 prescribed in NRS 17.130 from the first day of the first calendar month
16-21 following [either] the due date of the additional license fees [or the date of
16-22 overpayment] until paid. Interest pursuant to paragraph (b) must be
16-23 computed at one-half the rate prescribed in NRS 17.130 from the first
16-24 day of the first month following the date of overpayment until paid.
16-25 4. The commission shall remit all fees collected, less any fees refunded
16-26 pursuant to subsection 3, to the state treasurer for deposit to the credit of
16-27 the state general fund.
16-28 Sec. 24. NRS 463.482 is hereby amended to read as follows:
16-29 463.482 As used in NRS 463.160 to 463.170, inclusive, and section 3
16-30 of this act, 463.368, 463.386 and 463.482 to 463.645, inclusive, unless the
16-31 context otherwise requires, the words and terms defined in NRS 463.4825
16-32 to 463.488, inclusive, have the meanings ascribed to them in those
16-33 sections.
16-34 Sec. 25. NRS 463.643 is hereby amended to read as follows:
16-35 463.643 1. Each person who acquires, directly or indirectly,
16-36 beneficial ownership of any voting security in a publicly traded corporation
16-37 which is registered with the commission may be required to be found
16-38 suitable if the commission has reason to believe that his acquisition of
16-39 [such] that ownership would otherwise be inconsistent with the declared
16-40 policy of this state.
16-41 2. Each person who acquires, directly or indirectly, beneficial
16-42 ownership of any debt security in a publicly traded corporation which is
16-43 registered with the commission may be required to be found suitable if the
16-44 commission has reason to believe that his acquisition of [such] the debt
16-45 security would otherwise be inconsistent with the declared policy of this
16-46 state.
16-47 3. Each person who, individually or in association with others,
16-48 acquires, directly or indirectly, beneficial ownership of more than 5 percent
16-49 of any class of voting securities of a publicly traded corporation registered
17-1 with the Nevada gaming commission, and who is required to report, or
17-2 voluntarily reports, [such] the acquisition to the Securities and Exchange
17-3 Commission pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities
17-4 Exchange Act of 1934, as amended , [(]15 U.S.C. §§ 78m(d)(1), 78m(g)
17-5 and 78p(a), respectively , [),] shall file a copy of that report, and any
17-6 amendments thereto, with the Nevada gaming commission within 10 days
17-7 after filing that report with the Securities and Exchange Commission.
17-8 4. Each person who, individually or in association with others,
17-9 acquires, directly or indirectly, the beneficial ownership of more than 10
17-10 percent of any class of voting securities of a publicly traded corporation
17-11 registered with the commission, [and] or who is required to report, or
17-12 voluntarily reports, [the] such acquisition pursuant to section 13(d)(1),
17-13 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended , [(]15
17-14 U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall apply to
17-15 the commission for a finding of suitability within 30 days after the
17-16 chairman of the board mails the written notice.
17-17 5. A person who acquires beneficial ownership of any voting security
17-18 or debt security in a publicly traded corporation created under the laws of a
17-19 foreign country which is registered with the commission shall file such
17-20 reports and is subject to such a finding of suitability as the commission
17-21 may prescribe.
17-22 6. Any person required by the commission or by this section to be
17-23 found suitable shall:
17-24 (a) Except as otherwise required in subsection 4, apply for a finding of
17-25 suitability within 30 days after the commission requests that he do so; and
17-26 (b) Together with the application, deposit with the board a sum of
17-27 money which, in the opinion of the board, will be adequate to pay the
17-28 anticipated costs and charges incurred in the investigation and processing
17-29 of the application, and deposit such additional sums as are required by the
17-30 board to pay final costs and charges.
17-31 7. Any person required by the commission or this section to be found
17-32 suitable who is found unsuitable by the commission shall not hold directly
17-33 or indirectly the beneficial ownership of any voting security or debt
17-34 security of a publicly traded corporation which is registered with the
17-35 commission beyond the time prescribed by the commission.
17-36 8. The violation of subsection 6 or 7 is a gross misdemeanor.
17-37 9. As used in this section, “debt security” means any instrument
17-38 generally recognized as a corporate security representing money owed and
17-39 reflected as debt on the financial statement of a publicly traded corporation,
17-40 including, but not limited to, bonds, notes and debentures.
17-41 Sec. 26. NRS 463.650 is hereby amended to read as follows:
17-42 463.650 1. Except as otherwise provided in subsections 2 to 5,
17-43 inclusive, it is unlawful for any person, either as owner, lessee or
17-44 employee, whether for hire or not, to operate, carry on, conduct or maintain
17-45 any form of manufacture, selling or distribution of any gaming device , [or]
17-46 cashless wagering system or interactive gaming system for use or play in
17-47 Nevada or for distribution outside of Nevada without first procuring and
17-48 maintaining all required federal, state, county and municipal licenses.
18-1 2. A lessor who specifically acquires equipment for a capital lease is
18-2 not required to be licensed under this section or NRS 463.660.
18-3 3. The holder of a state gaming license or the holding company of a
18-4 corporation, partnership, limited partnership, limited-liability company or
18-5 other business organization holding a license may, within 2 years after
18-6 cessation of business or upon specific approval by the board, dispose of by
18-7 sale in a manner approved by the board, any or all of its gaming devices,
18-8 including slot machines, and cashless wagering systems, without a
18-9 distributor’s license. In cases of bankruptcy of a state gaming licensee or
18-10 foreclosure of a lien by a bank or other person holding a security interest
18-11 for which gaming devices are security in whole or in part for the lien, the
18-12 board may authorize the disposition of the gaming devices without
18-13 requiring a distributor’s license.
18-14 4. The commission may, by regulation, authorize a person who owns
18-15 gaming devices for home use in accordance with NRS 463.160 to sell such
18-16 devices without procuring a license therefor.
18-17 5. Upon approval by the board, a gaming device owned by:
18-18 (a) A law enforcement agency;
18-19 (b) A court of law; or
18-20 (c) A gaming device repair school licensed by the commission on
18-21 postsecondary education,
18-22 may be disposed of by sale, in a manner approved by the board, without a
18-23 distributor’s license. An application for approval must be submitted to the
18-24 board in the manner prescribed by the chairman.
18-25 6. Any person whom the commission determines is a suitable person to
18-26 receive a license under the provisions of this section and NRS 463.660 may
18-27 be issued a manufacturer’s or distributor’s license. The burden of proving
18-28 his qualification to receive or hold a license under this section and NRS
18-29 463.660 is at all times on the applicant or licensee.
18-30 7. Every person who must be licensed pursuant to this section is
18-31 subject to the provisions of NRS 463.482 to 463.645, inclusive, unless
18-32 exempted from those provisions by the commission.
18-33 8. The commission may exempt, for any purpose, a manufacturer,
18-34 seller or distributor from the provisions of NRS 463.482 to 463.645,
18-35 inclusive, if the commission determines that the exemption is consistent
18-36 with the purposes of this chapter.
18-37 9. As used in this section, “holding company” has the meaning
18-38 ascribed to it in NRS 463.485.
18-39 Sec. 27. NRS 463.670 is hereby amended to read as follows:
18-40 463.670 1. The legislature finds and declares as facts:
18-41 (a) That the inspection of gaming devices, associated equipment , [and]
18-42 cashless wagering systems and interactive gaming systems is essential to
18-43 carry out the provisions of this chapter; and
18-44 (b) That inspection of gaming devices, associated equipment , [and]
18-45 cashless wagering systems and interactive gaming systems is greatly
18-46 facilitated by the opportunity to inspect components before assembly and
18-47 to examine the methods of manufacture.
18-48 2. The board may inspect every gaming device which is manufactured,
18-49 sold or distributed:
19-1 (a) For use in this state, before the gaming device is put into play.
19-2 (b) In this state for use outside this state, before the gaming device is
19-3 shipped out of this state.
19-4 3. The board may inspect every gaming device which is offered for
19-5 play within this state by a licensee.
19-6 4. The board may inspect all associated equipment , [and] every
19-7 cashless wagering system and every interactive gaming system which is
19-8 manufactured, sold or distributed for use in this state before the equipment
19-9 or system is installed or used by a licensee and at any time while the
19-10 licensee is using the equipment or system.
19-11 5. In addition to all other fees and charges imposed by this chapter, the
19-12 board may determine, charge and collect an inspection fee from each
19-13 manufacturer, seller or distributor which must not exceed the actual cost of
19-14 inspection and investigation.
19-15 Sec. 28. NRS 463A.010 is hereby amended to read as follows:
19-16 463A.010 The legislature finds and declares that:
19-17 1. The relationship which exists between a labor organization and the
19-18 employees whom it represents or seeks to represent in collective
19-19 bargaining is such that it may significantly affect the conduct of a gaming
19-20 operation by an employer.
19-21 2. In the past, attempts have been made by persons whose background
19-22 is not suitable for association with licensed gaming to gain positions of
19-23 control in labor organizations representing or seeking to represent gaming
19-24 casino employees in this state.
19-25 3. In order to carry out the declared policy of this state that licensed
19-26 gaming be conducted freely and honestly, and in order to protect the
19-27 welfare of the employees of the gaming industry which is fundamental to
19-28 the economy of this state, it is necessary to determine the suitability of any
19-29 person who performs or seeks to perform certain significant functions in
19-30 the representation of gaming casino employees in this state.
19-31 Sec. 29. NRS 463A.020 is hereby amended to read as follows:
19-32 463A.020 As used in this chapter:
19-33 1. “Board” means the state gaming control board.
19-34 2. “Commission” means the Nevada gaming commission.
19-35 3. “Gaming casino employee” means any person employed directly or
19-36 indirectly in the operation of a gaming establishment under a nonrestricted
19-37 license, including:
19-38 (a) All personnel involved in the operation of a casino gaming pit, such
19-39 as dealers, shills, clerks, hosts, junket representatives and the supervisors of
19-40 such persons;
19-41 (b) All personnel involved in handling money, such as cashiers, change
19-42 persons, count teams, coin wrappers and the supervisors of such persons;
19-43 (c) All personnel involved in the operation of games, such as bingo and
19-44 keno;
19-45 (d) All personnel involved in operating and maintaining slot machines,
19-46 such as mechanics, floormen, change and payoff persons and the
19-47 supervisors of such persons;
19-48 (e) All personnel involved in security, such as guards, games observers
19-49 and the supervisors of such persons;
20-1 (f) All personnel involved in the operation of a race or sports book, such
20-2 as writers, boardmen, cashiers and the supervisors of such persons;
20-3 (g) All personnel involved in the operation of a pari-mutuel operation
20-4 licensed under chapter 464 of NRS and any sporting event on which such
20-5 pari-mutuel wagering is conducted; and
20-6 (h) Such other persons whose duties are similar to the classifications set
20-7 forth in paragraphs (a) to (g), inclusive, as the commission may from time
20-8 to time designate by regulation,
20-9 but does not include personnel whose duties are related solely to such
20-10 nongaming activities as entertainment, hotel operation, maintenance and
20-11 the preparation and serving of food and beverages.
20-12 4. “Labor organization” means an organization of any kind, or any
20-13 agency or employee representation committee or plan, which exists for the
20-14 purpose, in whole or in part, of dealing or seeking to deal with employers
20-15 of gaming casino employees concerning grievances, labor disputes, wages,
20-16 rates of pay, hours of employment or conditions of work of gaming casino
20-17 employees.
20-18 Sec. 30. NRS 463A.030 is hereby amended to read as follows:
20-19 463A.030 1. [Every] Not later than the date on which a labor
20-20 organization which represents or seeks to represent gaming casino
20-21 employees in this state begins an organizational activity directed at a
20-22 gaming casino employee, the labor organization shall file with the board a
20-23 list of its personnel who:
20-24 (a) Adjust or seek to adjust grievances for, negotiate or administer the
20-25 wages, hours, working conditions or conditions of employment of any
20-26 gaming casino employee;
20-27 (b) Solicit, collect or receive or seek to solicit, collect or receive any
20-28 dues, assessments, levies, fines, contributions or other charges within this
20-29 state for or on behalf of the organization from gaming casino employees; or
20-30 (c) Act as officers, members of the governing body, business agents or
20-31 in any other policymaking or supervisory position in the organization.
20-32 2. Each person listed shall file with the board his fingerprints and
20-33 complete information in writing concerning his labor organization
20-34 activities, prior performance of the same or similar functions, previous
20-35 employment or occupational history, and criminal record if any, covering
20-36 at least a 10-year period unless the board determines that a shorter period is
20-37 appropriate.
20-38 3. The commission shall by regulation prescribe the frequency or
20-39 circumstances or both with or under which the list [shall] must be revised.
20-40 4. The commission may by regulation prescribe:
20-41 (a) Any further information to be required concerning each person listed
20-42 or each person performing a particular function.
20-43 (b) The addition of other personnel to the list whose duties significantly
20-44 affect the conduct of a gaming operation.
20-45 5. In adopting regulations pursuant to this section, the commission
20-46 shall proceed in the manner prescribed in chapter 463 of NRS.
20-47 6. For the purposes of this section, “organizational activity” means:
20-48 (a) Soliciting membership by direct personal contact;
20-49 (b) Distributing cards regarding interests or representation; or
21-1 (c) Distributing or posting a flyer, poster or advertisement.
21-2 Sec. 31. NRS 463A.050 is hereby amended to read as follows:
21-3 463A.050 1. To determine suitability under and compliance with the
21-4 provisions of this chapter, the board may investigate any person whose
21-5 name is listed by a labor organization or who it believes is performing or
21-6 seeking to perform a function which requires listing. For this purpose , the
21-7 board is vested with all of the powers which it possesses for the
21-8 investigation of an applicant for or holder of a state gaming license, and
21-9 may further make such examination as it reasonably deems necessary of
21-10 the financial records of any labor organization for whom such a person is
21-11 performing or seeking to perform such a function.
21-12 2. The cost of any investigation required by this section [shall] must be
21-13 paid by the board from [moneys] money appropriated or authorized to be
21-14 used for this purpose.
21-15 3. Whenever the board undertakes an investigation pursuant to this
21-16 section, [it] the board shall employ or consult with some person who has a
21-17 professional background in the field of labor relations. The same services
21-18 may be retained to assist the commission upon any subsequent hearing of
21-19 the matter.
21-20 4. The board shall, if appropriate, recommend to the commission that a
21-21 person investigated be disqualified.
21-22 Sec. 32. NRS 463A.060 is hereby amended to read as follows:
21-23 463A.060 1. If the board recommends that a person be disqualified,
21-24 the commission shall serve upon the person and the labor organization for
21-25 which the person is performing his function [anotice,a] or seeking to
21-26 perform that function:
21-27 (a) A notice;
21-28 (b) A statement of the reasons for the recommendation ; and [three]
21-29 (c) Three copies of a form entitled “Notice of Defense.”
21-30 2. The notice of defense must read substantially as follows:
21-31 NOTICE OF DEFENSE
21-32 Instructions to Respondents: Two copies of this form should be
21-33 filed with the Nevada gaming commission, Carson City, Nevada,
21-34 within 15 days after service upon you of the enclosed complaint.
21-35 The form must be signed by you or on your behalf. You will note
21-36 that blanks are provided for any information you wish to supply.
21-37 Yes No
21-38 1. Do you request a hearing? ¨ ¨
21-39 2. Do you admit the facts stated in the complaint? ¨ ¨
21-40 If you admit some of the facts stated in
21-41 the complaint, but deny others, please
21-42 specify:
21-43 (space for answer)
22-1 3. Are there any defenses or explanations which
22-2 you believe the commission should
22-3 consider? ¨ ¨
22-4 If so, please specify:
22-5 (space for answer)
22-6 4. Do you wish to state any legal objections to the
22-7 complaint? ¨ ¨
22-8 If so, please specify:
22-9 (space for answer)
22-10 Note: If you fail to file two copies of this form as specified,
22-11 the commission may proceed upon the complaint without a
22-12 hearing.
22-13 Sec. 33. NRS 465.070 is hereby amended to read as follows:
22-14 465.070 It is unlawful for any person:
22-15 1. To alter or misrepresent the outcome of a game or other event on
22-16 which wagers have been made after the outcome is made sure but before it
22-17 is revealed to the players.
22-18 2. To place, increase or decrease a bet or to determine the course of
22-19 play after acquiring knowledge, not available to all players, of the outcome
22-20 of the game or any event that affects the outcome of the game or which is
22-21 the subject of the bet or to aid anyone in acquiring such knowledge for the
22-22 purpose of placing, increasing or decreasing a bet or determining the
22-23 course of play contingent upon that event or outcome.
22-24 3. To claim, collect or take, or attempt to claim, collect or take, money
22-25 or anything of value in or from a gambling game, with intent to defraud,
22-26 without having made a wager contingent thereon, or to claim, collect or
22-27 take an amount greater than the amount won.
22-28 4. Knowingly to entice or induce another to go to any place where a
22-29 gambling game is being conducted or operated in violation of the
22-30 provisions of this chapter, with the intent that the other person play or
22-31 participate in that gambling game.
22-32 5. To place or increase a bet after acquiring knowledge of the outcome
22-33 of the game or other event which is the subject of the bet, including past-
22-34 posting and pressing bets.
22-35 6. To reduce the amount wagered or cancel the bet after acquiring
22-36 knowledge of the outcome of the game or other event which is the subject
22-37 of the bet, including pinching bets.
22-38 7. To manipulate, with the intent to cheat, any component of a gaming
22-39 device in a manner contrary to the designed and normal operational
22-40 purpose for the component, including, but not limited to, varying the pull
22-41 of the handle of a slot machine, with knowledge that the manipulation
22-42 affects the outcome of the game or with knowledge of any event that
22-43 affects the outcome of the game.
23-1 8. To offer, promise or give anything of value to anyone for the
23-2 purpose of influencing the outcome of a race, sporting event, contest or
23-3 game upon which a wager may be made, or to place, increase or decrease
23-4 a wager after acquiring knowledge, not available to the general public,
23-5 that anyone has been offered, promised or given anything of value for
23-6 the purpose of influencing the outcome of the race, sporting event,
23-7 contest or game upon which the wager is placed, increased or decreased.
23-8 9. To change or alter the normal outcome of any game played on an
23-9 interactive gaming system or the way in which the outcome is reported to
23-10 any participant in the game.
23-11 Sec. 34. 1. The Nevada gaming commission shall, on or before
23-12 January 1, 2003, adopt regulations to carry out the amendatory provisions
23-13 of section 16 of this act and transmit a copy of those regulations to each
23-14 county and city licensing authority that issues work permits to work as a
23-15 gaming employee.
23-16 2. The amendatory provisions of sections 13 and 16 of this act apply to
23-17 any work permit to work as a gaming employee that is issued by the state
23-18 gaming control board or a county or city licensing authority on or after
23-19 January 1, 2003.
23-20 3. On or after January 1, 2003, a county or city licensing authority is
23-21 prohibited from issuing a work permit to work as a gaming employee that
23-22 does not comply with the provisions of this act and the regulations adopted
23-23 by the Nevada gaming commission.
23-24 4. A work permit to work as a gaming employee that was issued before
23-25 January 1, 2003, is valid until it expires or is revoked in accordance with
23-26 the provisions of NRS 463.335 that remain in effect until January 1, 2003.
23-27 Sec. 35. The amendatory provisions of this act do not apply to
23-28 offenses committed before July 1, 2001.
23-29 Sec. 36. 1. This section and sections 28 to 32, inclusive, of this act
23-30 become effective upon passage and approval.
23-31 2. Sections 16 and 34 of this act become effective upon passage and
23-32 approval for purposes related to the adoption and dissemination of
23-33 regulations by the Nevada gaming commission and on January 1, 2003, for
23-34 all other purposes.
23-35 3. Sections 1 to 12, inclusive, 14, 15, 17 to 27, inclusive, 33 and 35 of
23-36 this act become effective on July 1, 2001.
23-37 4. Section 13 of this act becomes effective on January 1, 2003.
23-38 H