requires two-thirds majority vote (§ 3)                 

                                                                                                  

 

Senate Bill No. 283–Committee on Judiciary

 

March 7, 2001

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Revises various provisions governing gaming. (BDR 41‑761)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to gaming; providing for the licensing of an international gaming salon in a resort hotel that holds a nonrestricted license; revising provisions governing limited-liability companies that hold state gaming licenses; providing a penalty; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

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

1-2  the provisions set forth as sections 2 to 5, inclusive, of this act.

1-3    Sec. 2.  “International gaming salon” means an enclosed gaming

1-4  facility which is located anywhere on the property of a resort hotel that

1-5  holds a nonrestricted license, admission to which facility is based upon

1-6  the financial criteria of a patron as established by the licensee and

1-7  approved by the board.

1-8    Sec. 3.  1.  A licensee may apply to the board, on forms prescribed

1-9  by the board, for a license to operate an international gaming salon.

1-10    2.  A nonrefundable application fee in the amount of $5,000 must

1-11  accompany the application for a license to operate an international

1-12  gaming salon.

1-13    3.  An applicant must pay the costs incurred by the board for

1-14  investigation of an application.

1-15    Sec. 4.  1.  The admission of a patron to an international gaming

1-16  salon:

1-17    (a) May be restricted on the basis of the financial criteria of the

1-18  patron as established by the licensee and approved by the board; and

1-19    (b) Must not be restricted on the basis of the race, color, religion,

1-20  national origin, ancestry, physical disability or sex of the patron.

1-21    2.  Any unresolved dispute with a patron concerning restriction of

1-22  admission to an international gaming salon shall be deemed a dispute as

2-1  to the manner in which a game is conducted pursuant to NRS 463.362

2-2  and must be resolved pursuant to NRS 463.362 to 463.366, inclusive.

2-3    Sec. 5.  The commission shall, with the advice and assistance of the

2-4  board, adopt regulations setting forth:

2-5    1.  The policies and procedures for approval of a license to operate an

2-6  international gaming salon.

2-7    2.  The standards of operation for an international gaming salon,

2-8  including, without limitation, policies and procedures governing:

2-9    (a) Surveillance and security systems.

2-10    (b) The games offered. The regulations must provide that the games

2-11  offered must include table games and may include slot machines.

2-12    (c) Minimum wagers for any game offered. The regulations must

2-13  provide that minimum wagers for slot machines must not be less than

2-14  $500.

2-15    Sec. 6.  NRS 463.013 is hereby amended to read as follows:

2-16    463.013  As used in this chapter, unless the context otherwise requires,

2-17  the words and terms defined in NRS 463.0133 to 463.0197, inclusive, and

2-18  section 2 of this act have the meanings ascribed to them in those sections.

2-19    Sec. 7.  NRS 463.160 is hereby amended to read as follows:

2-20    463.160  1.  Except as otherwise provided in subsection 4 and NRS

2-21  463.172, it is unlawful for any person, either as owner, lessee or employee,

2-22  whether for hire or not, either solely or in conjunction with others:

2-23    (a) To deal, operate, carry on, conduct, maintain or expose for play in

2-24  the State of Nevada any gambling game, gaming device, inter-casino

2-25  linked system, slot machine, race book or sports pool;

2-26    (b) To provide or maintain any information service; [or]

2-27    (c) To operate an international gaming salon; or

2-28    (d) To receive, directly or indirectly, any compensation or reward or

2-29  any percentage or share of the money or property played, for keeping,

2-30  running or carrying on any gambling game, slot machine, gaming device,

2-31  race book or sports pool,

2-32  without having first procured, and thereafter maintaining in effect, all

2-33  federal, state, county and municipal gaming licenses as required by statute,

2-34  regulation or ordinance or by the governing board of any unincorporated

2-35  town.

2-36    2.  The licensure of an operator of an inter-casino linked system is not

2-37  required if:

2-38    (a) A gaming licensee is operating an inter-casino linked system on the

2-39  premises of an affiliated licensee; or

2-40    (b) An operator of a slot machine route is operating an inter-casino

2-41  linked system consisting of slot machines only.

2-42    3.  Except as otherwise provided in subsection 4, it is unlawful for any

2-43  person knowingly to permit any gambling game, slot machine, gaming

2-44  device, inter-casino linked system, race book or sports pool to be

2-45  conducted, operated, dealt or carried on in any house or building or other

2-46  premises owned by him, in whole or in part, by a person who is not

2-47  licensed pursuant to this chapter, or his employee.

3-1    4.  The commission may, by regulation, authorize a person to own or

3-2  lease gaming devices for the limited purpose of display or use in the

3-3  person’s private residence without procuring a state gaming license.

3-4    5.  As used in this section, “affiliated licensee” has the meaning

3-5  ascribed to it in NRS 463.430.

3-6    Sec. 8.  NRS 463.5734 is hereby amended to read as follows:

3-7    463.5734  A limited-liability company which applies for a license shall

3-8  register as a limited-liability company with the board, and shall provide the

3-9  following information to the board:

3-10    1.  The organization, financial structure and nature of the business to be

3-11  operated, including the names, personal history and fingerprints of each

3-12  director, manager, member and key employee.

3-13    2.  The rights, privileges and relative priorities of the members as to the

3-14  return of contributions to capital and the right to receive distribution of

3-15  profits.

3-16    3.  The terms on which interests in the limited-liability company are to

3-17  be offered.

3-18    4.  The terms and conditions of all outstanding loans, mortgages, trust

3-19  deeds, pledges and any other indebtedness or security device.

3-20    5.  The extent of the holding in the limited-liability company of all

3-21  underwriters, and their remuneration as compensation for services, in the

3-22  form of salary, wages, fees or otherwise.

3-23    6.  Remuneration to persons other than directors and managers

3-24  exceeding $30,000 per annum.

3-25    7.  Bonus and profit-sharing arrangements.

3-26    8.  Management and service contracts.

3-27    9.  Options existing, or to be created.

3-28    10.  Balance sheets for at least the 3 preceding fiscal years, or, if the

3-29  limited-liability company has not been in existence for 3 years, balance

3-30  sheets from the time of its formation. All balance sheets must be certified

3-31  by independent public accountants certified or registered in this state.

3-32    11.  Profit and loss statements for at least the 3 preceding fiscal years,

3-33  or, if the limited-liability company has not been in existence for 3 years,

3-34  profit and loss statements from the time of its formation. All profit and loss

3-35  statements must be certified by independent public accountants certified or

3-36  registered in this state.

3-37    12.  Any further financial data which the board may deem necessary or

3-38  appropriate for the protection of the State of Nevada or licensed gambling,

3-39  or both.

3-40    Sec. 9.  NRS 463.5735 is hereby amended to read as follows:

3-41    463.5735  1.  Every member, transferee of a member’s interest in a

3-42  limited-liability company , director and manager of a limited-liability

3-43  company which holds or applies for a state gaming license must be

3-44  licensed individually, according to the provisions of this chapter.

3-45    2.  If, in the judgment of the commission, the public interest will be

3-46  served by requiring any of the limited-liability company’s lenders, holders

3-47  of evidence of indebtedness, underwriters, key executives, agents or

3-48  employees to be licensed:

4-1    (a) The limited-liability company shall require those persons to apply

4-2  for a license in accordance with the laws and requirements in effect at the

4-3  time the commission requires the licensing; and

4-4    (b) Those persons shall apply for a license within 30 days after being

4-5  requested to do so by the commission.

4-6    3.  A publicly traded corporation which is a member of a limited-

4-7  liability company is not required to be licensed, but shall comply with NRS

4-8  463.635 to 463.645, inclusive.

4-9    4.  No person may become a member[,] or a transferee of a member’s

4-10  interest in a limited-liability company [or a manager of a limited-liability

4-11  company] which holds a license until he secures the required approval of

4-12  the commission.

4-13    5.  A director or manager of a limited-liability company shall apply

4-14  for a license within 30 days after assuming office.

4-15    Sec. 10.  NRS 463.5737 is hereby amended to read as follows:

4-16    463.5737  1.  If an employee , a director or a manager of a limited-

4-17  liability company which holds a license is required to be licensed

4-18  individually, and he:

4-19    (a) Does not apply for a license within 30 days after the commission

4-20  requests him to do so, and the commission makes a finding of unsuitability

4-21  for that reason;

4-22    (b) Is denied a license; or

4-23    (c) Has his license revoked by the commission,

4-24  the limited-liability company for whom he is a manager or director or by

4-25  whom he is employed shall, upon receiving notice by registered or certified

4-26  mail from the commission, remove him as a director or manager or modify

4-27  his employment so that he no longer serves in a capacity for which he is

4-28  required to be licensed, and shall not allow him to exercise a significant

4-29  influence over the limited-liability company’s operation of a gaming

4-30  establishment.

4-31    2.  If the limited-liability company designates another employee ,

4-32  director or manager to replace the employee , director or manager whose

4-33  employment was modified or who was removed as a director or manager,

4-34  it shall promptly notify the commission and require the newly designated

4-35  employee , director or manager to apply for a license.

4-36    Sec. 11.  The amendatory provisions of this act do not apply to

4-37  offenses committed before the effective date of this act.

4-38    Sec. 12.  This act becomes effective upon passage and approval.

 

4-39  H