Senate Bill No. 208-Senators James, Neal, Rawson, O'Connell, Jacobsen, Mathews, Schneider, Titus, Washington and Wiener

March 13, 1997
____________

Referred to Committee on Judiciary

SUMMARY--Revises provisions governing gaming licenses. (BDR 41-192)

FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.

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

AN ACT relating to gaming; prohibiting approval of restricted gaming licenses for certain establishments; prohibiting approval of certain gaming licenses for establishments located in certain areas under certain circumstances; 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 8, inclusive, of this act.
Sec. 2 As used in sections 2 to 8, inclusive, of this act, and NRS 463.192 and 463.194, unless the context otherwise requires, the words and terms defined in sections 3 to 7, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 3 "General election" has the meaning ascribed to it in NRS 293.060.
Sec. 4 "Precinct" has the meaning ascribed to it in NRS 293.077.
Sec. 5 "Primary election" has the meaning ascribed to it in NRS 293.080.
Sec. 6 "Private school" has the meaning ascribed to it in NRS 394.103.
Sec. 7 "Public school" has the meaning ascribed to it in NRS 385.007.
Sec. 8 1. Except as otherwise provided in subsection 7, in a county whose population is 100,000 or more, if the property line of an establishment of a person holding a nonrestricted license is less than 2,500 feet from:
(a) The property line of a public school or private school;
(b) The property line of a church or other structure that is primarily used for religious services or worship; or
(c) The boundary line of a zoning district in which single-family or multifamily dwellings are one of the permitted uses,
the county shall not approve a gaming license for the establishment unless, pursuant to the provisions of this section, the board of county commissioners submits a question at a primary or general election asking the registered voters eligible to vote on the question to approve or disapprove the location of the establishment, and the location is approved by a majority of the registered voters voting on the question.
2. Except as otherwise provided in this section, the provisions of chapter 293 of NRS apply to a question submitted pursuant to the provisions of this section.
3. The question must be placed on the ballot in accordance with the provisions of paragraph (a) or (b) of subsection 1 of NRS 293.481. The county clerk shall charge the person holding the nonrestricted license a reasonable fee sufficient to pay for the increased costs incurred by including the question, explanation and arguments on the ballot.
4. The question must be submitted to the registered voters of each election precinct whose boundary line is less than 2,500 feet from the property line of the establishment.
5. The subject matter of the question must be stated concisely on the ballot, and the question printed on the ballot for the information of the voter must be as follows: "Shall the location of the gaming establishment be approved?"
6. The approval of the location of an establishment pursuant to the provisions of this section does not create a right to operate the establishment at that location, and the person holding the nonrestricted license for the establishment may not operate the establishment at that location unless he otherwise complies with all other provisions of law imposed by this state and the county and city or town having jurisdiction over the establishment.
7. The provisions of this section do not apply to:
(a) An establishment whose property line is less than 2,500 feet from property lines of at least three other establishments which have been issued nonrestricted licenses and which are operating resort hotels; or
(b) An establishment whose property line is less than 2,500 feet from the boundary line of a zoning district in which single-family or multifamily dwellings are one of the permitted uses, if the property line of the establishment is at least 2,500 feet from:
(1) A single-family or multifamily dwelling in which a person qualified to vote pursuant to NRS 293.485 resides; and
(2) The property line of a public school or private school or a church or other structure that is primarily used for religious services or worship.
8. The determination of whether an establishment is subject to or exempt from the provisions of this section must be made based upon the facts as they exist on the date that the establishment is issued a nonrestricted license by the state.
Sec. 9 NRS 463.161 is hereby amended to read as follows:
463.161 1. A restricted license to operate 15 or fewer slot machines at an establishment in which the operation of slot machines is incidental to the primary business conducted at the establishment may only be granted to the operator of the primary business or to a licensed operator of a slot machine route.
2. If an establishment is located in a county whose population is 100,000 or more, the commission shall not approve a restricted license to operate 15 or fewer slot machines at the establishment unless the primary business conducted at the establishment is a:
(a) Bar, tavern, nightclub or pub;
(b) Billiard parlor or pool hall;
(c) Convenience store;
(d) Restaurant, other than a fast-food restaurant; or
(e) Grocery store, and the location of the slot machines in the grocery store complies with the regulations adopted by the commission pursuant to subsection 3.
3. The commission shall adopt regulations controlling the location of slot machines in a grocery store so that the slot machines are segregated from the retail area of the grocery store in such a manner as to allow customers to enter and exit the retail area of the grocery store without passing through the segregated area where the slot machines are located. The regulations must include, but are not limited to, the following requirements:
(a) The slot machines must be located in an area segregated from the retail area of the establishment by a barrier that is at least 4 feet in height;
(b) The segregated area must have only one entry by which customers may access the slot machines and the entry must be no more than 6 feet in width unless an applicable fire code requires a greater width; and
(c) The entry to the segregated area must not directly face an area of the grocery store that primarily serves as an entrance or exit for customers, unless the entrance or exit is for emergency use only.
4. The provisions of subsection 3 do not affect the duty of an establishment to comply with any other provision of law imposed by this state and the county and city or town having jurisdiction over the establishment.
Sec. 10 NRS 463.180 is hereby amended to read as follows:
463.180 1. A person is not qualified to hold [any county license unless he] a gaming license issued by a county unless:
(a) He is the holder of a valid [state license and unless he] gaming license issued by the state;
(b) The location of the establishment complies with the provisions of section 8 of this act, if the person holds a nonrestricted license and the establishment is located in a county whose population is 100,000 or more; and
(c) He meets such other qualifications as may be imposed by any valid county ordinance.
2. A county shall not deny a gaming license, finding of suitability or approval to a person solely because he is not a citizen of the United States.
Sec. 11 NRS 463.190 is hereby amended to read as follows:
463.190 1. A person is not permitted to engage in gaming operations in [any] a city or town in this state, unless he [has in force valid state and county licenses, as well as any licenses required by the city or town.] holds a valid gaming license issued by:
(a) The state;
(b) The county; and
(c) The city or town, if the city or town requires a gaming license.
2. If a person holds a nonrestricted license for an establishment that is located in a county whose population is 100,000 or more, a city or town may not issue a gaming license for the establishment until the state and the county have issued a gaming license for the establishment.
3. A city or town shall not deny a gaming license, finding of suitability or approval to a person solely because he is not a citizen of the United States.
Sec. 12 NRS 463.192 is hereby amended to read as follows:
463.192 The commission shall not approve a nonrestricted license for an establishment in a county whose population is [400,000] 100,000 or more [unless the] if:
1. The establishment is not located in a gaming enterprise district.
2. On the date that the application for the nonrestricted license is filed with the board, the property line of the establishment is less than 1,500 feet from:
(a) The property line of a public school or private school;
(b) The property line of a church or other structure that is primarily used for religious services or worship; or
(c) The boundary line of a zoning district in which single-family or multifamily dwellings are one of the permitted uses.
Sec. 13 NRS 463.194 is hereby amended to read as follows:
463.194 1. In a county whose population is [400,000] 100,000 or more, any person proposing to operate an establishment not located in a gaming enterprise district may petition the county, city or town having jurisdiction over the location of the proposed establishment to have the location designated a gaming enterprise district.
2. The petition must not be granted unless the petitioner demonstrates that:
(a) The roads, water, sanitation, utilities and related services to the location are adequate;
(b) The proposed establishment will not unduly impact public services, consumption of natural resources and the quality of life enjoyed by residents of the surrounding neighborhoods;
(c) The proposed establishment will enhance, expand and stabilize employment and the local economy;
(d) The proposed establishment will be located in an area planned or zoned for that purpose pursuant to NRS 278.010 to 278.630, inclusive; and
(e) The proposed establishment will not be detrimental to the health, safety or general welfare of the community or be incompatible with the surrounding area.
3. Any interested person is entitled to be heard at the hearing held to consider a petition submitted pursuant to this section.
4. A county, city or town that denies a petition submitted pursuant to this section shall not consider another petition concerning the same location or any portion thereof for 1 year after the date of the denial.
Sec. 14 NRS 463.230 is hereby amended to read as follows:
463.230 1. [Any] Except as otherwise provided in section 8 of this act, a person to whom a state license has been issued as provided in this chapter may, upon proper application to the sheriff if there is no county license department or to that department of the county wherein it is proposed that such gaming operation [shall] will be conducted, be issued a license for each particular device or game or slot machine, upon compliance with such conditions and regulations as may be imposed by the county, and on payment to the sheriff or county license department of license fees as required by law or ordinance.
2. Licenses:
(a) Must be prepared by the county auditor or by the county comptroller, if such officer is appointed pursuant to NRS 251.170, and contain such information as is required by county ordinance.
(b) Must be issued and accounted for as is provided by law with respect to other county licenses.
(c) Are not transferable by the licensee to any other person.
Sec. 15 NRS 463.390 is hereby amended to read as follows:
463.390 1. [Any] Except as otherwise provided in section 8 of this act, a natural person, firm, association, corporation, partnership, limited partnership or limited-liability company desiring to conduct, operate or carry on any gambling game, slot machine or any game of chance must, upon proper application to the sheriff if there is no county license department or to that department of the county wherein it is proposed that the slot machine, game or games be conducted or operated, be issued a license for each particular device or game or slot machine under the following conditions and regulations:
(a) The natural person, firm, association, corporation, partnership, limited partnership or limited-liability company so applying must furnish a complete description of the particular room and premises in which the applicant desires to carry on or conduct the slot machine, device or game, together with the location of the building, its street number, if any, and any other information by which it may be definitely and readily located and recognized.
(b) The applicant must state definitely the particular type of slot machine or the particular game or device which the applicant desires to carry on or conduct in the room and premises, and the slot machine, game or device must be specifically described in and entered upon the license.
(c) Card games, that is, stud and draw poker, bridge, whist, solo, and panguingui for money, must be licensed independently of other games mentioned in this section, regardless of locality or population, at the rate of $25 per table per month, payable at the time of the application prorated to the end of the calendar quarter during which the application is made, and thereafter payable 3 months in advance.
(d) A license fee of $50 per month, payable at the time of the application prorated to the end of the calendar quarter during which the application is made, and thereafter payable for 3 months in advance, must be paid to the sheriff or county license department for each license issued for a game or device except for slot machines and games as otherwise provided for in this section. For each money slot machine the license fee is $10 per month, payable at the time of the application prorated to the end of the calendar quarter during which the application is made, and thereafter payable for 3 months in advance. When a combination of units are operated by one handle, the license fee is $10 per month, payable at the time of the application prorated to the end of the calendar quarter during which the application is made, and thereafter payable for 3 months in advance, for each unit paying in identical denominations operated thereby.
(e) The license entitles the holder to carry on or operate the specific slot machine, game or device for which the license is issued in the particular room and premises described therein, but not any other slot machine, game or device than that specified therein, or the specified slot machine, game or device in any other place than the room and premises so described, for a period of 3 months next succeeding the date of issuance of the license.
2. The licensee is entitled to operate two or more slot machines, games or devices in the same room by paying the license fee provided for in this section for each slot machine, game or device and otherwise complying with the terms of this section.
3. Except as otherwise provided in subsection 4 or NRS 463.400, any person failing to pay any license fees due to a county at the times respectively provided in this chapter must pay in addition to the license fees a penalty of not less than $50 or 25 percent of the amount due, whichever is the greater, but not more than $1,000 if the fees are less than 10 days late and in no case more than $5,000. The penalty must be collected as are other charges, license fees and penalties under this chapter.
4. A county may waive all or part of any penalty due pursuant to subsection 3 if the board of county commissioners issues a written finding that the license fees were not paid in a timely manner as a result of circumstances beyond the licensee's control.
5. Where the operator of a slot machine route is contractually responsible for the payment of license fees for a particular establishment which holds a restricted license, the operator is also responsible for the payment of any penalties imposed for late payment of those license fees. In such a case, the owner of the establishment is not responsible for the payment of any penalties so imposed.
Sec. 16 NRS 244.345 is hereby amended to read as follows:
244.345 1. [Every] Each natural person [wishing] seeking to be employed as an entertainer for an entertainment by referral service and [every] each natural person, firm, association of persons or corporation [wishing] seeking to engage in the business of conducting a dancing hall, escort service [,] or entertainment by referral service [or gambling game or device] permitted by law, outside of an incorporated city, and each natural person, firm, association of persons or corporation seeking to engage in the business of conducting a gambling game or device permitted by law, inside or outside of an incorporated city, must:
(a) Make application to the license board of the county in which the employment or business is to be engaged in, for a county license of the kind desired. The application must be in a form prescribed by the regulations of the license board.
(b) File the application with the required license fee with the county license collector, as provided in chapter 364 of NRS, who shall present the application to the license board at its next regular meeting.
The board, in counties whose population is less than 400,000, may refer the petition to the sheriff, who shall report upon it at the following regular meeting of the board. In counties whose population is 400,000 or more, the board shall refer the petition to the metropolitan police department. The department shall conduct an investigation relating to the petition and report its findings to the board at the next regular meeting of the board. The board shall at that meeting grant or refuse the license prayed for or enter any other order consistent with its regulations. Except in the case of an application for a license to conduct a gambling game or device, the county license collector may grant a temporary permit to an applicant, valid only until the next regular meeting of the board. In unincorporated towns and cities governed pursuant to the provisions of chapter 269 of NRS, the license board has the exclusive power to license and regulate the employment and businesses mentioned in this subsection.
2. The board of county commissioners, and in a county whose population is less than 400,000, the sheriff of that county constitute the license board, and the county clerk or other person designated by the license board is the clerk thereof, in the respective counties of this state.
3. The license board may, without further compensation to the board or its clerk:
(a) Fix, impose and collect license fees upon the employment and businesses mentioned in this section.
(b) Grant or deny applications for licenses and impose conditions, limitations and restrictions upon the licensee.
(c) Adopt, amend and repeal regulations relating to licenses and licensees.
(d) Restrict, revoke or suspend licenses for cause after hearing. In an emergency the board may issue an order for immediate suspension or limitation of a license, but the order must state the reason for suspension or limitation and afford the licensee a hearing.
4. The license board shall hold a hearing before adopting proposed regulations, before adopting amendments to regulations, and before repealing regulations relating to the control or the licensing of the employment or businesses mentioned in this section. Notice of the hearing must be published in a newspaper published and having general circulation in the county at least once a week for 2 weeks before the hearing.
5. Upon adoption of new regulations the board shall designate their effective date, which may not be earlier than 15 days after their adoption. Immediately after adoption a copy of any new regulations must be available for public inspection during regular business hours at the office of the county clerk.
6. A majority vote of the members of the license board present governs in the transaction of all business. A majority of the members constitutes a quorum for the transaction of business.
7. Any natural person, firm, association of persons or corporation who engages in the employment of any of the businesses mentioned in this section without first having obtained the license and paid the license fee as provided in this section is guilty of a misdemeanor.
8. In a county whose population is 400,000 or more, the license board shall not grant any license to a petitioner for the purpose of operating a house of ill fame or repute or any other business employing any person for the purpose of prostitution.
9. As used in this section:
(a) "Entertainer for an entertainment by referral service" means a natural person who is sent or referred for a fee to a hotel or motel room, home or other accommodation by an entertainment by referral service for the purpose of entertaining the person located in the hotel or motel room, home or other accommodation.
(b) "Entertainment by referral service" means a person or group of persons who send or refer another person to a hotel or motel room, home or other accommodation for a fee in response to a telephone or other request for the purpose of entertaining the person located in the hotel or motel room, home or other accommodation.
Sec. 17 1. Except as otherwise provided in subsection 2, the amendatory provisions of subsection 2 of section 9 of this act apply to all restricted licenses applied for or issued before, on or after July 1, 1997.
2. If, on July 1, 1997, a person holds a restricted license for an establishment that does not comply with the amendatory provisions of subsection 2 of section 9 of this act, the person may continue to operate slot machines at the establishment until July 1, 2002, on which date the Nevada gaming commission shall revoke the restricted license.
3. Except as otherwise provided in subsection 4, the amendatory provisions of subsection 3 of section 9 of this act apply to all restricted licenses applied for or issued before, on or after July 1, 1997.
4. If, on July 1, 1997, a person holds a restricted license for an establishment that does not comply with the amendatory provisions of subsection 3 of section 9 of this act, the person may continue to operate slot machines at the establishment until July 1, 2002, on which date the Nevada gaming commission shall revoke the restricted license if the establishment is not in compliance with the amendatory provisions of subsection 3 of section 9 of this act.
5. The provisions of this section do not create a right to operate slot machines at an establishment and do not affect:
(a) The duty of a person holding a restricted license to comply with any other provision of law imposed by this state and the county and city or town having jurisdiction over the establishment; or
(b) The authority of the Nevada gaming commission and the county and city or town having jurisdiction over the establishment to deny, revoke, suspend, condition or limit a restricted license pursuant to any other provision of law.
Sec. 18 1. The amendatory provisions of sections 1 to 8, inclusive, and 10 to 16, inclusive, of this act do not apply to:
(a) An establishment that files an application for a nonrestricted license with the state gaming control board before July 1, 1997.
(b) Except as otherwise provided in subsection 2, an establishment that holds or held a nonrestricted license issued before July 1, 1997, unless the establishment ceases gaming operations for more than 2 years after July 1, 1997.
2. If an establishment that holds or held a nonrestricted license issued before July 1, 1997:
(a) Was not required to comply with the provisions of NRS 463.1605 when its nonrestricted license was first issued; and
(b) Is not operating or is not approved to operate a resort hotel before July 1, 1997,
the establishment may not operate a resort hotel on the property for which the nonrestricted license was issued unless the establishment is in compliance with the amendatory provisions of sections 1 to 8, inclusive, and 10 to 16, inclusive, of this act and the establishment is otherwise approved to operate a resort hotel by the Nevada gaming commission and the county and city or town having jurisdiction over the location of the establishment.
Sec. 19 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 20 This act becomes effective on July 1, 1997.

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