Senate Bill No. 3–Committee of the Whole

 

CHAPTER..........

 

AN ACT relating to gaming; revising the provisions pertaining to the acquisition or disposition of an interest in a business entity that holds a state gaming license or the option to purchase such an interest; authorizing the Nevada Gaming Commission to adopt regulations prescribing the manner for submission of payments by licensees; requiring a person employed as a gaming employee to be registered as a gaming employee by the State Gaming Control Board; requiring the Board to investigate each person applying for registration or renewal of registration as a gaming employee; providing for a fee for processing an application for registration as a gaming employee; authorizing the Commission to adopt regulations allowing a person who owns antique gaming devices to sell such devices without procuring a license; authorizing a gaming licensee or his officers, employees or agents who have reasonable cause to believe that a person has committed a felony to take into custody and detain such a person; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

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

 thereto the provisions set forth as sections 2 to 6, inclusive, of this

 act.

    Sec. 2.  “Registered as a gaming employee” means authorized

 to be employed as a gaming employee in this state or to serve as

 an independent agent.

    Sec. 3.  “Temporarily registered as a gaming employee”

 means authorized to be employed as a gaming employee in this

 state or serve as an independent agent from the date of submitting

 a complete application for registration or renewal of registration

 for a period not to exceed 120 days following receipt of the

 complete application by the Board, including classifiable

 fingerprints, unless otherwise suspended.

    Sec. 4.  1.  The purported granting of an option to purchase

 any security issued by a corporation, other than a publicly traded

 corporation, which holds a state gaming license, or the purported

 sale, assignment, transfer, pledge or other disposition of an

 existing option to acquire such a security is void unless

 administratively approved in advance by the Chairman of the

 Board.

    2.  A request for administrative approval pursuant to

 subsection 1 must:


    (a) Be made on forms approved by the Chairman of the Board;

and

    (b) To the extent consistent with this section, be considered in

 all respects as an application.

    3.  The Chairman of the Board may refer a request for

 administrative approval to the Board and Commission for

 consideration or deny the request for administrative approval

for any reasonable cause. A denial may be submitted for review by

 the Board and Commission in the manner set forth by the

 regulations of the Commission pertaining to the review of

 administrative approval decisions.

    4.  The Commission, upon recommendation by the Board,

 may require a person to apply for a finding of suitability to hold

 an option to purchase such a security.

    Sec. 5.  1.  The purported granting of an option to purchase

 any interest in a limited partnership which holds a state gaming

 license or the purported sale, assignment, transfer, pledge or

 other disposition of an existing option to acquire such an interest

 is ineffective unless administratively approved in advance by the

 Chairman of the Board.

    2.  A request for administrative approval pursuant to

 subsection 1 must:

    (a) Be made on forms approved by the Chairman of the Board;

 and

    (b) To the extent consistent with this section, be considered in

 all respects as an application.

    3.  The Chairman of the Board may refer a request for

 administrative approval to the Board and Commission for

 consideration or deny the request for administrative approval

for any reasonable cause. A denial may be submitted for review by

 the Board and Commission in the manner set forth by the

 regulations of the Commission pertaining to the review of

 administrative approval decisions.

    4.  The Commission, upon recommendation by the Board,

 may require a person to apply for a finding of suitability to hold

 an option to purchase such an interest.

    Sec. 6.  1.  The purported granting of an option to purchase

 any interest in a limited-liability company which holds a state

 gaming license or the purported sale, assignment, transfer, pledge

 or other disposition of an existing option to acquire such an

 interest is ineffective unless administratively approved in advance

 by the Chairman of the Board.

    2.  A request for administrative approval pursuant to

 subsection 1 must:

    (a) Be made on forms approved by the Chairman of the Board;

 and


    (b) To the extent consistent with this section, be considered in

all respects as an application.

    3.  The Chairman of the Board may refer a request for

 administrative approval to the Board and Commission for

 consideration or deny the request for administrative approval

for any reasonable cause. A denial may be submitted for review by

 the Board and Commission in the manner set forth by the

 regulations of the Commission pertaining to the review of

 administrative approval decisions.

    4.  The Commission, upon recommendation by the Board,

 may require a person to apply for a finding of suitability to hold

 an option to purchase such an interest.

    Sec. 7.  NRS 463.013 is hereby amended to read as follows:

    463.013  As used in this chapter, unless the context otherwise

 requires, the words and terms defined in NRS 463.0133 to

 [463.0197,] 463.01967, inclusive, and sections 2 and 3 of this act,

 have the meanings ascribed to them in those sections.

    Sec. 8.  NRS 463.1595 is hereby amended to read as follows:

    463.1595  1.  The Commission shall adopt regulations,

 consistent with NRS 463.370, 463.371[, which] and 463.3715, that

 prescribe the manner in which winnings, compensation from games

 and gaming devices, and gross revenue must be computed and

 reported by the licensee.

    2.  The Commission may adopt regulations that prescribe the

 manner in which a licensee must submit to the Commission any

 fees, interest, penalties or tax required to be paid based upon the

 information reported in subsection 1.

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

    463.335  1.  The Legislature finds that, to protect and promote

 the health, safety, morals, good order and general welfare of the

 inhabitants of the State of Nevada and to carry out the policy

 declared in NRS 463.0129, it is necessary that the Board:

    (a) Ascertain and keep itself informed of the identity, prior

 activities and present location of all gaming employees and

 independent agents in the State of Nevada; and

    (b) Maintain confidential records of such information.

    2.  Except as otherwise provided in subsection [3,] 4, a person

 may not be employed as a gaming employee or serve as an

 independent agent unless he is [the holder of a valid work permit to

 work] temporarily registered or registered as a gaming employee

 [issued] pursuant to this section. [A work permit to work as a

 gaming employee may be issued by the Board or by a county or

 city licensing authority.] An applicant for [a work permit shall file

 his] registration or renewal of registration as a gaming employee

 must file an application for [a work permit with the licensing

 authority of the city in which he resides if that city requires a work

 permit. If the


city in which he resides does not require such a permit, the applicant

shall file his application with the licensing authority of the county in

 which he resides if that county requires a work permit. If the county

 in which he resides does not require such a permit, the applicant

 shall file his application with the Board.] registration or renewal of

 registration with the Board. Whenever a registered gaming

 employee, whose registration has not expired, has not been

 objected to by the Board, or has not been suspended or revoked

 becomes employed as a gaming employee at another or additional

 gaming establishment, he must file a change of employment

 notice within 10 days with the Board. The application for

 registration and change of employment notice must be filed

 through the licensee for whom the applicant will commence or

 continue working as a gaming employee, unless otherwise filed

 with the Board as prescribed by regulation of the Commission.

    3.  The Board shall [, by regulation,] prescribe the [form for an]

 forms for the application for [a work permit to work] registration

 as a gaming employee[. The fee for such a permit may be charged

 only to cover the actual investigative and administrative costs

 related to processing an application for such a permit and must not

 exceed $75.

    3.] and the change of employment notice.

    4. An independent agent is not required to [hold a work permit]

 be registered as a gaming employee if he is not a resident of this

 state and has registered with the Board in accordance with the

 provisions of the regulations adopted by the Commission.

    [4.  Upon receipt of an application for a work permit to work as

 a gaming employee, the Board or licensing authority]

    5.  A complete application for registration or renewal of

 registration as a gaming employee or a change of employment

 notice received by a licensee must be mailed or delivered to the

 Board within 5 business days of receipt unless the date is

 administratively extended by the Chairman of the Board for good

 cause. A licensee is not responsible for the accuracy or

 completeness of any application for registration or renewal of

 registration as a gaming employee or any change of employment

 notice.

    6.  The Board shall immediately conduct an investigation of

 [the applicant] each person who files an application for

 registration or renewal of registration as a gaming employee to

 determine whether he is eligible for [the permit.] registration as a

 gaming employee. In conducting the investigation, [the Board or

 licensing authority shall forward a complete set] two complete sets

 of the applicant’s fingerprints must be submitted to the Central

 Repository for Nevada Records of Criminal History for

 [submission] :


    (a) A report concerning the criminal history of the applicant;

and

    (b) Submission to the Federal Bureau of Investigation for a

 report concerning the criminal history of the applicant.

The investigation need not be limited solely to consideration of the

 results of the report concerning the criminal history of the

 applicant.

    [5.  A work permit issued to a gaming employee or an

 independent agent must have clearly imprinted thereon a statement

 that it is valid for gaming purposes only.

    6.  Unless denied or] The fee for processing an application for

 registration or renewal of registration as a gaming employee may

 be charged only to cover the actual investigative and

 administrative costs related to processing the application and the

 fees charged by the Central Repository for Nevada Records of

 Criminal History and the Federal Bureau of Investigation to

 process the fingerprints of an applicant pursuant to this

 subsection.

    7.  Upon receipt of a change of employment notice, the Board

 may conduct any investigations of the gaming employee that the

 Board deems appropriate to determine whether the gaming

 employee may remain registered as a gaming employee. The filing

 of a change of employment notice constitutes an application for

 registration as a gaming employee and if the Board, after

 conducting its investigation, suspends or objects to the continued

 registration of the gaming employee, the provisions of subsections

 11 to 17, inclusive, apply to such suspension by or objection of the

 Board. No fee may be charged by the Board to cover the actual

 investigative and administrative costs related to processing a

 change of employment notice.

    8.  Except as otherwise prescribed by regulation of the

 Commission, an applicant for registration or renewal of

 registration as a gaming employee is deemed temporarily

 registered as a gaming employee as of the date a complete

 application for registration or renewal of registration is submitted

 to the licensee for which he will commence or continue working

 as a gaming employee. Unless objected to by the Board [at the time

 that the permittee filed a notice of a change in his place of

 employment pursuant to subsection 8 and unless suspended or

 revoked, such a permit expires on the fifth anniversary of the

 permittee’s birthday, measured from the birthday nearest the date of

 issuance or renewal. If the date of birth of a permittee is on

February 29 in a leap year, for the purposes of this section, his date

 of birth shall be deemed to be on February 28.

    7.  Whenever any person applies to a county or city licensing

 authority for the issuance or renewal of a work permit, the county

 or city officer or employee to whom the application is made shall


within 24 hours mail or deliver a copy thereof to the Board, and may

at the discretion of the county or city licensing authority issue a

 temporary work permit that is valid for 120 days.] or suspended or

 revoked, the initial registration of an applicant as a gaming

 employee expires 5 years after the date employment commences

 with the applicable licensee or, in the case of an independent

 agent, 5 years after the date he contracts with an applicable

 licensee. Any subsequent renewal of registration as a gaming

 employee, unless objected to by the Board or suspended or

 revoked, expires 5 years after the expiration date of the most

 recent registration or renewal of registration of the gaming

 employee.

    9.  If , within 120 days after receipt by the Board of [the copy of

 the application,] a complete application for registration or renewal

 of registration as a gaming employee, including classifiable

 fingerprints, or a change of employment notice, the Board has not

 notified the [county or city licensing authority] applicable licensee

 of any suspension or objection, the [authority may issue, renew or

 deny a permanent work permit to the applicant.

    8.  A gaming employee who is issued a work permit] applicant

 shall be deemed to be registered as a gaming employee. A

 complete application for registration or renewal of registration as

 a gaming employee is comprised of:

    (a) The fully completed form for application for registration as

 a gaming employee prescribed in subsection 3;

    (b) Two complete sets of the fingerprints of the applicant,

 unless directly forwarded electronically or by another means to

 the Central Repository for Nevada Records of Criminal History;

    (c) The fee for processing the application for registration or

 renewal of registration as a gaming employee prescribed by the

 Board pursuant to subsection 6, unless otherwise prescribed by

 regulation of the Commission; and

    (d) A completed statement as prescribed in subsections 1 and 2

 of NRS 463.3351.

If the Board determines after receiving an application for

 registration or renewal of registration as a gaming employee that

 the application is incomplete, the Board may suspend the

 temporary registration as a gaming employee of the applicant who

 filed the incomplete application. An applicant whose temporary

 registration is suspended shall not be eligible to work as a gaming

 employee until such time as he files a complete application.

    10.  A person who is temporarily registered or registered as a

 gaming employee is eligible for employment in any licensed

 gaming establishment in this state until [the work permit is denied

 or] such registration is objected to by the Board, expires or is

 suspended or revoked. [However, each such employee shall notify

 the Board


within 10 days following any change of his place of employment at

a gaming establishment. Such a notification shall be deemed an

 application for a work permit that the Board may deny or object to

 after conducting any investigations the Board deems appropriate.

 The provisions of subsections 9 to 16, inclusive, apply to any such

 objection of the Board.] The Commission shall adopt regulations

 to:

    (a) [Facilitate] Establish uniform procedures for the [issuance of

 work permits by counties and cities;] registration of gaming

 employees;

    (b) Establish uniform criteria for [denial by a county or city

 licensing authority] objection by the Board of an application for [a

 work permit;] registration; and

    (c) Provide for the creation and maintenance of a system of

 records that contain information regarding the current place of

 employment of each person who [possesses a valid work permit.

    9.] is registered as a gaming employee and each person whose

 registration as a gaming employee has expired, was objected to by

 the Board, or was suspended or revoked. The system of records

 must be accessible by licensees for the limited purpose of

 complying with subsection 2.

    11. If the Board, within the 120-day period[,] prescribed in

 subsection 9, notifies:

    (a) The [county or city licensing authority;] applicable licensee;

 and

    (b) The applicant,

that the Board suspends or objects to the [granting of a work permit

 to the applicant, the authority shall deny the work permit and shall

 immediately revoke and repossess any temporary work permit

 which it may have issued.] temporary registration of an applicant

 as a gaming employee, the licensee shall immediately terminate

 the applicant from employment or reassign him to a position that

 does not require registration as a gaming employee. The notice of

 suspension or objection by the Board which is sent to the applicant

 must include a statement of the facts upon which the Board relied in

 making its suspension or objection.

    [10.  Whenever an application for a work permit is made to the

 Board and the Board denies such an application, it shall include in

 its notice of the denial a statement of the facts upon which it relied

 in denying the application.

    11.] 12. Any person whose application for [a work permit has

 been denied because of an objection by the Board or whose

 application has been denied] registration or renewal of registration

 as a gaming employee has been suspended or objected to by the

 Board may, not later than 60 days after receiving notice of the

 [denial] suspension or objection, apply to the Board for a hearing.

 A failure of a person whose application has been [denied] objected

 to


or suspended to apply for a hearing within 60 days or his failure to

appear at a hearing of the Board conducted pursuant to this section

 shall be deemed to be an admission that the [denial] suspension or

 objection is well-founded, and the failure precludes administrative

 or judicial review. At the hearing, the Board shall take any

 testimony deemed necessary. After the hearing, the Board shall

 review the testimony taken and any other evidence, and shall ,

 within 45 days after the date of the hearing , mail to the applicant

 its decision sustaining or reversing the [denial of the work permit]

 suspension or the objection to the [issuance of a work permit.

    12.] registration of the applicant as a gaming employee.

    13. The Board may suspend or object to the [issuance of a

 work permit or may refuse to issue a work permit] registration of

 an applicant as a gaming employee for any cause deemed

 reasonable by the Board. The Board may object [or refuse] to or

 suspend the registration if the applicant has:

    (a) Failed to disclose or misstated information or otherwise

 attempted to mislead the Board with respect to any material fact

 contained in the application for [the issuance or renewal of a work

 permit;] registration as a gaming employee;

    (b) Knowingly failed to comply with the provisions of this

 chapter or chapter 463B, 464 or 465 of NRS or the regulations of

 the Commission at a place of previous employment;

    (c) Committed, attempted or conspired to commit any crime of

 moral turpitude, embezzlement or larceny or any violation of any

 law pertaining to gaming, or any crime which is inimical to the

 declared policy of this state concerning gaming;

    (d) Committed, attempted or conspired to commit a crime which

 is a felony or gross misdemeanor in this state or an offense in

 another state or jurisdiction which would be a felony or gross

 misdemeanor if committed in this state;

    (e) Been identified in the published reports of any federal or

 state legislative or executive body as being a member or associate

 of organized crime, or as being of notorious and unsavory

 reputation;

    (f) Been placed and remains in the constructive custody of any

 federal, state or municipal law enforcement authority; or

    (g) Had [a work permit] registration as a gaming employee

 revoked or committed any act which is a ground for the revocation

 of [a work permit] registration as a gaming employee or would

 have been a ground for revoking [his work permit if he]

 registration as a gaming employee if the applicant had then [held a

 work permit.] been registered as a gaming employee.

If the Board [issues] registers or does not suspend or object to the

 [issuance of a work permit to] registration of an applicant[,] as a

 gaming employee, it may specially limit the period for which the

 [permit] registration is valid, limit the job classifications for which


the [holder of the permit] registered gaming employee may be

employed and establish such individual conditions for the

 [issuance,] renewal and effectiveness of the [permit] registration as

 the Board deems appropriate, including required submission to

 unscheduled tests for the presence of alcohol or controlled

 substances.

    [13.] 14. Any applicant aggrieved by the decision of the Board

 may, within 15 days after the announcement of the decision, apply

 in writing to the Commission for review of the decision. Review is

 limited to the record of the proceedings before the Board. The

 Commission may sustain, modify or reverse the Board’s decision.

 The decision of the Commission is subject to judicial review

 pursuant to NRS 463.315 to 463.318, inclusive.

    [14.  Except as otherwise provided in this subsection, all

 records acquired or compiled by the Board or Commission relating

 to any application made pursuant to this section and all lists of

 persons to whom work permits have been issued or denied and all

 records of the names or identity of persons engaged in the gaming

 industry in this state are confidential and must not be disclosed

 except in the proper administration of this chapter or to an

 authorized law enforcement agency. Upon receipt of a request from

 the Welfare Division of the Department of Human Resources

 pursuant to NRS 425.400 for information relating to a specific

 person who has applied for or holds a work permit, the Board shall

 disclose to the Division his social security number, residential

 address and current employer as that information is listed in the

 files and records of the Board. Any record of the Board or

 Commission which shows that the applicant has been convicted of a

 crime in another state must show whether the crime was a

 misdemeanor, gross misdemeanor, felony or other class of crime as

 classified by the state in which the crime was committed. In a

 disclosure of the conviction, reference to the classification of the

 crime must be based on the classification in the state where it was

 committed.]

    15.  The Chairman of the Board may designate a member of the

 Board or the Board may appoint a hearing examiner and authorize

 that person to perform on behalf of the Board any of the following

 functions required of the Board by this section concerning [work

 permits:] the registration or renewal of registration of gaming

 employees:

    (a) Conducting a hearing and taking testimony;

    (b) Reviewing the testimony and evidence presented at the

 hearing;

    (c) Making a recommendation to the Board based upon the

 testimony and evidence or rendering a decision on behalf of the

 Board to sustain or reverse the [denial of a work permit]

 suspension


of or the objection to the [issuance or renewal of a work permit;]

registration of an applicant as a gaming employee; and

    (d) Notifying the applicant of the decision.

    16.  Notice by the Board as provided pursuant to this section is

 sufficient if it is mailed to the applicant’s last known address as

 indicated on the application for [a work permit,] registration as a

 gaming employee or the record of the hearing, as the case may be.

 The date of mailing may be proven by a certificate signed by an

 officer or employee of the Board which specifies the time the notice

 was mailed. The notice shall be deemed to have been received by

 the applicant 5 days after it is deposited with the United States

 Postal Service with the postage thereon prepaid.

    17.  Except as otherwise provided in this subsection, all

 records acquired or compiled by the Board or Commission

 relating to any application made pursuant to this section, all lists

 of persons registered as gaming employees, all lists of persons

 suspended or objected to by the Board and all records of the

 names or identity of persons engaged in the gaming industry in

 this state are confidential and must not be disclosed except in the

 proper administration of this chapter or to an authorized law

 enforcement agency. Upon receipt of a request from the Welfare

 Division of the Department of Human Resources pursuant to

 NRS 425.400 for information relating to a specific person who

 has applied for registration as a gaming employee or is registered

 as a gaming employee, the Board shall disclose to the Division his

 social security number, residential address and current employer

 as that information is listed in the files and records of the Board.

 Any record of the Board or Commission which shows that the

 applicant has been convicted of a crime in another state must

 show whether the crime was a misdemeanor, gross misdemeanor,

 felony or other class of crime as classified by the state in which

 the crime was committed. In a disclosure of the conviction,

 reference to the classification of the crime must be based on the

 classification in the state where it was committed.

    Sec. 10.  NRS 463.3351 is hereby amended to read as follows:

    463.3351  1.  An applicant for [the issuance] registration or

 renewal of [a work permit] registration as a gaming employee [or

 independent agent] shall submit to the [agency issuing work

 permits pursuant to NRS 463.335] Board the statement prescribed

 by the Welfare Division of the Department of Human Resources

 pursuant to NRS 425.520. The statement must be completed and

 signed by the applicant.

    2.  The [issuing agency] Board shall include the statement

 required pursuant to subsection 1 in:


    (a) The application or any other forms that must be submitted

for [the issuance] registration or renewal of [the work permit;]

 registration as a gaming employee; or

    (b) A separate form prescribed by the [issuing agency.

    3.  A work permit] Board.

    3.  An applicant may not be [issued or renewed by the issuing

 agency] registered as a gaming employee if the applicant:

    (a) Fails to submit the statement required pursuant to subsection

 1; or

    (b) Indicates on the statement submitted pursuant to subsection

 1 that he is subject to a court order for the support of a child and is

 not in compliance with the order or a plan approved by the district

 attorney or other public agency enforcing the order for the

 repayment of the amount owed pursuant to the order.

    4.  If an applicant indicates on the statement submitted pursuant

 to subsection 1 that he is subject to a court order for the support of a

 child and is not in compliance with the order or a plan approved by

 the district attorney or other public agency enforcing the order for

 the repayment of the amount owed pursuant to the order, the

 [issuing agency] Board shall advise the applicant to contact the

 district attorney or other public agency enforcing the order to

 determine the actions that the applicant may take to satisfy the

 arrearage.

    Sec. 11.  NRS 463.3352 is hereby amended to read as follows:

    463.3352  1.  If [an agency that issues work permits pursuant

 to NRS 463.335] the Board receives a copy of a court order issued

 pursuant to NRS 425.540 that provides for the suspension of all

 professional, occupational and recreational licenses, certificates and

 permitsissued to a person who is [the holder of a work permit]

 registered as a gaming employee [or independent agent issued by

 the agency, the agency] , the Board shall deem the [work permit

 issued to] registration of that person to be suspended at the end of

 the 30th day after the date on which the court order was issued

 unless the [agency] Board receives a letter issued to the [holder of

 the work permit] registered gaming employee by the district

 attorney or other public agency pursuant to NRS 425.550 stating

 that the [holder of the work permit] registered gaming employee

 has complied with the subpoena or warrant or has satisfied the

 arrearage pursuant to NRS 425.560.

    2.  [An agency that issues work permits pursuant to NRS

 463.335] The Board shall reinstate [a work permit] the registration

 as a gaming employee of a person that has been suspended by a

 district court pursuant to NRS 425.540 if the [agency] Board

 receives a letter issued by the district attorney or other public

 agency pursuant to NRS 425.550 to the person whose [work

 permit] registration was suspended stating that the person whose

 [work


permit] registration was suspended has complied with the subpoena

or warrant or has satisfied the arrearage pursuant to NRS 425.560.

    Sec. 12.  NRS 463.3354 is hereby amended to read as follows:

    463.3354  An application for [the issuance of a work permit]

 registration or renewal of registration as a gaming employee [or

 independent agent] must include the social security number of the

 applicant.

    Sec. 13.  NRS 463.336 is hereby amended to read as follows:

    463.336  1.  The Commission may issue an order summarily

 suspending a person’s [work permit] registration as a gaming

 employee upon a finding that the suspension is necessary for the

 immediate preservation of the public peace, health, safety, morals,

 good order or general welfare. The order becomes effective when

 served upon the [holder of the permit.] person registered.

    2.  The order of summary suspension must state the facts upon

 which the finding of necessity for the suspension is based. For

 purposes of this section, the order of summary suspension shall be

 deemed a complaint.

    3.  An order of summary suspension must be signed by at least

 three members of the Commission.

    4.  The person whose [work permit] registration as a gaming

 employee is summarily suspended:

    (a) Has a right to a hearing on the order. The Commission shall

 schedule a hearing within 5 days after receipt of the person’s notice

 of defense.

    (b) Must file a notice of defense within 30 days after the

 effective date of the order of summary suspension. Failure to file

 this notice in a timely manner waives his right to a hearing before

 the Commission and to judicial review of the final decision.

    5.  All affirmative defenses must be specifically stated in the

 notice of defense and unless an objection is stated to the form or

 manner of the order, all objections to the form of the complaint

 shall be deemed waived.

    6.  Except as otherwise provided in this section, the procedures

 for a disciplinary action in NRS 463.312 to 463.3145, inclusive,

 must be followed.

    Sec. 14.  NRS 463.337 is hereby amended to read as follows:

    463.337  1.  If any gaming employee or independent agent ,

 who is registered as a gaming employee with the Board, is

 convicted of any violation of this chapter or chapter 463B, 464 or

 465 of NRS, or if in investigating an alleged violation of this

 chapter by any licensee the Commission finds that a registered

 gaming employee employed by or [an] a registered independent

 agent contracting with the licensee has been guilty of cheating, the

 Commission shall , after a hearing as provided in NRS 463.310 and

 463.312 to 463.3145, inclusive[:


    (a) If the gaming employee or independent agent holds a work

permit issued by the Board, revoke it.

    (b) If the gaming employee or independent agent holds a work

 permit issued by a county or city licensing authority, notify the

 authority to revoke it, and the county or city licensing authority

 shall revoke it.] , revoke the registration.

    2.  The Commission may revoke [a work permit issued by the

 Board or, if issued by a county or city licensing authority, notify the

 authority to revoke it,] the registration of a gaming employee or

 independent agent if the Commission finds , after a hearing as

 provided in NRS 463.310 and 463.312 to 463.3145, inclusive, that

 the gaming employee or independent agent has failed to disclose,

 misstated or otherwise misled the Board in respect to any fact

 contained within any application for [a work permit] registration as

 a gaming employee or, subsequent to being [issued a work permit:]

 registered as a gaming employee:

    (a) Committed, attempted or conspired to do any of the acts

 prohibited by this chapter or chapter 463B, 464 or 465 of NRS;

    (b) Knowingly possessed or permitted to remain in or upon any

 licensed premises any cards, dice, mechanical device or any other

 cheating device whatever, the use of which is prohibited by statute

 or ordinance;

    (c) Concealed or refused to disclose any material fact in any

 investigation by the Board;

    (d) Committed, attempted or conspired to commit larceny or

 embezzlement against a gaming licensee or upon the premises of a

 licensed gaming establishment;

    (e) Been convicted in any jurisdiction other than Nevada of any

 offense involving or relating to gambling;

    (f) Accepted employment without prior Commission approval in

 a position for which he could be required to be licensed under this

 chapter after having been denied a license for a reason involving

 personal unsuitability or after failing to apply for licensing when

 requested to do so by the Commission;

    (g) Been refused the issuance of any license, permit or approval

 to engage in or be involved with gaming or pari-mutuel wagering in

 any jurisdiction other than Nevada, or had any such license, permit

 or approval revoked or suspended;

    (h) Been prohibited under color of governmental authority from

 being present upon the premises of any gaming establishment or

 any establishment where pari-mutuel wagering is conducted for any

 reason relating to improper gambling activities or any illegal act;

    (i) Contumaciously defied any legislative investigative

 committee or other officially constituted bodies acting on behalf of

 the United States or any state, county or municipality which seeks

 to


investigate crimes relating to gaming, corruption of public officials,

or any organized criminal activities; or

    (j) Been convicted of any felony or gross misdemeanor, other

 than one constituting a violation of this chapter or chapter 463B,

 464 or 465 of NRS.

    3.  [A work permit must not be issued by any authority in this

 state to a person whose work permit has previously been revoked

 pursuant to this section, or to whom the issuance or renewal of a

 work permit has been denied, except with the unanimous approval

 of the Commission members.

    4.] A gaming employee or independent agent whose [work

 permit] registration as a gaming employee has been revoked

 pursuant to this section is entitled to judicial review of the

 Commission’s action in the manner prescribed by NRS 463.315 to

 463.318, inclusive.

    [5.] 4. Nothing in this section limits or prohibits the

 enforcement of NRS 463.165, 463.560, 463.595, 463.637 or

 463.645.

    Sec. 15.  NRS 463.339 is hereby amended to read as follows:

    463.339  An applicant for licensing, registration, finding of

 suitability[, work permit] or any approval or consent required by

 this chapter or chapter 462 of NRS shall make full and true

 disclosure of all information to the Board, Commission or other

 relevant governmental authority as necessary or appropriate in the

 public interest or as required in order to carry out the policies of

 this state relating to licensing and control of the gaming industry

 and the operation of charitable lotteries.

    Sec. 16.  NRS 463.3403 is hereby amended to read as follows:

    463.3403  Any information obtained by the Board from any

 licensee, his employer or agent relating to the termination of the

 employment of a gaming employee or the services of an

 independent agent is confidential and must not be disclosed except:

    1.  Such information obtained from the former employer of an

 applicant for [a work permit] registration as a gaming employee

 must be disclosed to the applicant to the extent necessary to permit

 him to respond to any suspension or objection made by the Board

 to his application for [the permit;] such registration;

    2.  In the necessary administration of this chapter; or

    3.  Upon the lawful order of a court of competent jurisdiction.

    Sec. 17.  NRS 463.482 is hereby amended to read as follows:

    463.482  As used in NRS 463.160 to 463.170, inclusive,

 463.368, 463.386, 463.482 to 463.645, inclusive, and sections 4, 5

 and 6 of this act, and 463.750, unless the context otherwise

 requires, the words and terms defined in NRS 463.4825 to 463.488,

 inclusive, have the meanings ascribed to them in those sections.

 


    Sec. 18.  NRS 463.510 is hereby amended to read as follows:

    463.510  1.  The purported sale, assignment, transfer, pledge ,

 exercise of an option to purchase or other disposition of any

 security issued by a corporation, other than a publicly traded

 corporation, which holds a state gaming license [or granting of an

 option to purchase such a security] is void unless approved in

 advance by the Commission.

    2.  If at any time the Commission finds that an individual owner

 of any such security is unsuitable to continue as a gaming licensee

 in this state, the owner shall immediately offer the security to the

 issuing corporation for purchase. The corporation shall purchase the

 security so offered, for cash at fair market value, within 10 days

 after the date of the offer.

    3.  Beginning upon the date when the Commission serves notice

 of a determination of unsuitability pursuant to subsection 2 upon

 the corporation, it is unlawful for the unsuitable owner:

    (a) To receive any dividend or interest upon any such security;

    (b) To exercise, directly or through any trustee or nominee, any

 voting right conferred by such security; or

    (c) To receive any remuneration in any form from the

 corporation, for services rendered or otherwise.

    4.  Every security issued by a corporation, other than a publicly

 traded corporation, which holds a state gaming license must bear a

 statement, on both sides of the certificate evidencing the security, of

 the restrictions imposed by this section.

    Sec. 19.  NRS 463.567 is hereby amended to read as follows:

    463.567  1.  The purported sale, assignment, transfer, pledge,

 [granting] exercise of an option to purchase, or other disposition of

 any interest in a limited partnership which holds a state gaming

 license is ineffective unless approved in advance by the

 Commission.

    2.  If at any time the Commission finds that an individual owner

 of any such interest is unsuitable to hold that interest, the

 Commission shall immediately notify the limited partnership of that

 fact. The limited partnership shall, within 10 days from the date that

 it receives the notice from the Commission, return to the unsuitable

 owner, in cash, the amount of his capital account as reflected on the

 books of the partnership.

    3.  Beginning on the date when the Commission serves notice

 of a determination of unsuitability pursuant to subsection 2 upon

 the limited partnership, it is unlawful for the unsuitable owner:

    (a) To receive any share of the profits or interest upon any

 limited partnership interest;

    (b) To exercise, directly or through any trustee or nominee, any

 voting right conferred by such interest; or


    (c) To receive any remuneration in any form from the limited

partnership, for services rendered or otherwise.

    4.  The certificate of limited partnership of any limited

 partnership holding a state gaming license must contain a statement

 of the restrictions imposed by this section.

    Sec. 20.  NRS 463.5733 is hereby amended to read as follows:

    463.5733  1.  The purported sale, assignment, transfer, pledge,

 [granting] exercise of an option to purchase or other disposition of

 any interest in a limited-liability company which holds a state

 gaming license is ineffective unless approved in advance by the

 Commission.

    2.  If at any time the Commission finds that a member is

 unsuitable to hold an interest in a limited-liability company, the

 Commission shall immediately notify the limited-liability company

 of that fact. The limited-liability company shall, within 10 days

 after it receives the notice from the Commission, return to the

 member, in cash, the amount of his capital account as reflected on

 the books of the company.

    3.  Except as otherwise provided in subsection 2, beginning on

 the date when the Commission serves notice of a determination of

 unsuitability pursuant to subsection 2 upon the limited-liability

 company, it is unlawful for the unsuitable member:

    (a) To receive any share of the distribution of profits of the

 limited-liability company or any payments upon dissolution of the

 company;

    (b) To exercise any voting right conferred by the member’s

 interest in the limited-liability company;

    (c) To participate in the management of the limited-liability

 company; or

    (d) To receive any remuneration in any form from the limited

-liability company, for services rendered or otherwise.

    4.  The articles of organization of any limited-liability company

 holding a state gaming license must contain a statement of the

 restrictions imposed by this section.

    Sec. 21.  NRS 463.650 is hereby amended to read as follows:

    463.650  1.  Except as otherwise provided in subsections 2 to

 5, inclusive, it is unlawful for any person, either as owner, lessee or

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

 maintain any form of manufacture, selling or distribution of any

 gaming device, cashless wagering system or interactive gaming

 system for use or play in Nevada or for distribution outside of

 Nevada without first procuring and maintaining all required federal,

 state, county and municipal licenses.

    2.  A lessor who specifically acquires equipment for a capital

 lease is not required to be licensed under this section or

NRS 463.660.


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

of a corporation, partnership, limited partnership, limited-liability

 company or other business organization holding a license may,

 within 2 years after cessation of business or upon specific approval

 by the Board, dispose of by sale in a manner approved by the

 Board, any or all of its gaming devices, including slot machines,

 and cashless wagering systems, without a distributor’s license. In

 cases of bankruptcy of a state gaming licensee or foreclosure of a

 lien by a bank or other person holding a security interest for which

 gaming devices are security in whole or in part for the lien, the

 Board may authorize the disposition of the gaming devices without

 requiring a distributor’s license.

    4.  The Commission may, by regulation, authorize a person who

 owns [gaming] :

    (a) Gaming devices for home use in accordance with NRS

 463.160 ; or

    (b) Antique gaming devices,

to sell such devices without procuring a license therefor[.] to

 residents of jurisdictions wherein ownership of such devices is

 legal.

    5.  Upon approval by the Board, a gaming device owned by:

    (a) A law enforcement agency;

    (b) A court of law; or

    (c) A gaming device repair school licensed by the Commission

 on Postsecondary Education,

may be disposed of by sale, in a manner approved by the Board,

 without a distributor’s license. An application for approval must be

 submitted to the Board in the manner prescribed by the Chairman.

    6.  Any person whom the Commission determines is a suitable

 person to receive a license under the provisions of this section and

 NRS 463.660 may be issued a manufacturer’s or distributor’s

 license. The burden of proving his qualification to receive or hold a

 license under this section and NRS 463.660 is at all times on the

 applicant or licensee.

    7.  Every person who must be licensed pursuant to this section

 is subject to the provisions of NRS 463.482 to 463.645, inclusive,

 unless exempted from those provisions by the Commission.

    8.  The Commission may exempt, for any purpose, a

 manufacturer, seller or distributor from the provisions of NRS

 463.482 to 463.645, inclusive, if the Commission determines that

 the exemption is consistent with the purposes of this chapter.

    9.  As used in this section[, “holding] :

    (a) “Antique gaming device” means a gaming device that was

 manufactured before 1951.

    (b) “Holding company” has the meaning ascribed to it in

NRS 463.485.


    Sec. 22.  NRS 171.1235 is hereby amended to read as follows:

    171.1235  1.  As used in this section:

    (a) “Establishment” means any premises whereon any gaming is

 done or any premises owned or controlled by a licensee for the

 purpose of parking motor vehicles owned or operated by patrons of

 such licensee.

    (b) “Licensee” has the meaning ascribed to it in NRS 463.0171.

    2.  Any licensee or his officers, employees or agents may take

 into custody and detain any person when [:

    (a) Such person has committed a felony, whether or not in the

 presence of such licensee or his officers, employees or agents; or

    (b) A felony has been committed, and] such licensee [,] or his

 officers, employees or agents have reasonable cause to believe

 [such] the person detained has committed [it.] a felony, whether or

 not in the presence of such licensee or his officers, employees or

 agents.

    3.  Detention pursuant to this section shall be in the

 establishment, in a reasonable manner, for a reasonable length of

 time and solely for the purpose of notifying a peace officer. Such

 taking into custody and detention shall not render the licensee or his

 officers, employees or agents criminally or civilly liable for false

 arrest, false imprisonment, slander or unlawful detention unless

 such taking into custody and detention are unreasonable under all

 the circumstances.

    4.  No licensee [,] or his officers, employees or agents are

 entitled to the immunity from liability provided for in this section

 unless there is displayed in a conspicuous place in his establishment

 a notice in boldface type clearly legible and in substantially this

 form:

 

    Any gaming licensee [,] or his officers, employees or

 agents who have reasonable cause to believe that any person

 has committed a felony may detain such person in the

 establishment for the purpose of notifying a peace officer.

    Sec. 23.  NRS 179.301 is hereby amended to read as follows:

    179.301  1.  The State Gaming Control Board and Nevada

 Gaming Commission and their employees, agents and

 representatives may inquire into and inspect any records sealed

 pursuant to NRS 179.245 or 179.255, if the event or conviction was

 related to gaming, for purposes of determining the suitability or

 qualifications of any person to hold a state gaming license,

 manufacturer’s, seller’s or distributor’s license or [gaming work

 permit] registration as a gaming employee pursuant to chapter 463

 of NRS. Events and convictions, if any, which are the subject of an

 order sealing records may form the basis for recommendation,

 denial or revocation of those licenses or work permits.


    2.  The Central Repository and its employees may inquire into

and inspect any records sealed pursuant to NRS 179.245 or 179.255

 that constitute information relating to sexual offenses, and may

 notify employers of the information in accordance with NRS

 179A.180 to 179A.240, inclusive.

    3.  Records which have been sealed pursuant to NRS 179.245

 or 179.255 and which are retained in the statewide registry

 established pursuant to NRS 179B.200 may be inspected pursuant

 to chapter 179B of NRS by an officer or employee of the Central

 Repository or a law enforcement officer in the regular course of his

 duties.

    Sec. 24.  NRS 646.020 is hereby amended to read as follows:

    646.020  1.  Every pawnbroker doing business in any

 incorporated city or unincorporated town in this state shall maintain

 in his place of business a book or other permanent record in which

 must be legibly written in the English language, at the time of each

 loan or purchase a record thereof containing:

    (a) The date and time of the transaction.

    (b) The name or other identification of the person or employee

 conducting the transaction.

    (c) The name, age, street and house number, the serial number

 of one piece of positive identification [or a work permit issued

 pursuant to NRS 463.335] and a general description of the

 complexion, color of hair and facial appearance of the person with

 whom the transaction is had. In lieu of recording the serial number

 of a piece of positive identification , [or a work permit,]  the record

 may contain an indication that the pawnbroker knows the person

 with whom the transaction is had.

    (d) A description of the property received in pledge. In the case

 of watches, the description must contain the name of the maker and

 the number of the works or the case. In the case of jewelry, all

 letters and marks inscribed thereon must be included in the

 description.

    (e) The amount loaned.

    (f) The number of any pawn ticket issued therefor.

    2.  The person with whom a transaction is had shall, at the time

 of the transaction, certify in writing that he has the legal right to

 pledge or sell the property.

    3.  The record and all goods received must at all times during

 the ordinary hours of business be open to the inspection of the

 prosecuting attorney or of any peace officer.

    Sec. 25.  NRS 244.353, 463.0195, and 463.0197 are hereby

 repealed.

    Sec. 26.  Notwithstanding the amendatory provisions of this

 act, a person who holds a valid work permit on October 1, 2003,

 issued before October 1, 2003, shall be deemed to be registered as a


gaming employee on October 1, 2003, and the registration of such a

person shall be deemed to expire on the expiration date set forth on

 the work permit, unless objected to by the Board or suspended or

 revoked. If the work permit of such a person does not set forth an

 expiration date, the registration of such a person shall be deemed to

 expire on the person’s birthday in 2005, unless objected to by the

 Board or suspended or revoked.

    Sec. 27.  1.  This section and section 21 of this act become

 effective upon passage and approval.

    2.  Section 9 of this act becomes effective upon passage and

 approval for purposes related to the adoption and dissemination of

 regulations by the Nevada Gaming Commission and on January 1,

 2004, for all other purposes.

    3.  Sections 1, 4, 5, 6 and 17 to 20, inclusive, of this act become

 effective on July 1, 2003.

    4.  Sections 8 and 22 of this act become effective on October 1,

 2003.

    5.  Sections 2, 3, 7, 10 to 16, inclusive, and 23 to 26, inclusive,

 of this act become effective on January 1, 2004.

    6.  Sections 10, 11 and 12 of this act expire by limitation on the

 date on which the provisions of 42 U.S.C. § 666 requiring each

 state to establish procedure under which the state has authority to

 withhold or suspend, or to restrict the use of professional,

 occupational and recreational licenses of persons who:

    (a) Have failed to comply with a subpoena or warrant relating to

 a procedure to determine the paternity of a child or to establish or

 enforce an obligation for the support of a child; or

    (b) Are in arrears in the payment for the support of one or more

 children,

are repealed by the Congress of the United States.

 

20~~~~~03