USA Statutes : nevada
Title : Title 41 - GAMING; HORSE RACING; SPORTING EVENTS
Chapter : CHAPTER 463B - SUPERVISION OF CERTAIN GAMING ESTABLISHMENTS
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 463B.020
and 463B.040 have the meanings ascribed to them in those
sections.
(Added to NRS by 1979, 804)
“Commission” means the Nevada
Gaming Commission.
(Added to NRS by 1979, 804)
“Supervisor” means the person
appointed by a district court as a fiduciary to manage and control a
gaming establishment pursuant to this chapter.
(Added to NRS by 1979, 804)
The Legislature hereby finds, and declares it to be the policy of this
state, that:
1. The stability and continuity of gaming establishments in this
state are essential to the State’s economy and to the general welfare of
its residents.
2. Any closure of a gaming establishment because of a surrender,
lapse, revocation or suspension of its license may cause unnecessary
financial hardship to its employees, creditors and investors and may have
an adverse economic effect on the residents of the community in which it
is located and on the State generally.
3. Public confidence and trust in the ability of the State to
control gaming operations must not be sacrificed by any relaxation of
strict controls in particular circumstances merely to permit gaming
operations to continue.
4. Placing the management and control of a gaming establishment
whose license is surrendered, lapsed, suspended or revoked under a
competent supervisory official may ensure the proper regulation of the
establishment while maintaining its value for its creditors and
investors, protecting the interests of other persons, avoiding any
disruption of the economy of the community in which it is located, and
promoting the general welfare of the State.
(Added to NRS by 1979, 804; A 1981, 1066; 1991, 1012)
This chapter applies only
to gaming establishments:
1. Having 16 or more slot machines; or
2. Having any number of slot machines together with any other game
or gaming device.
(Added to NRS by 1979, 804)
1. The Commission shall adopt regulations pertaining to the
administration of gaming establishments by a supervisor and any other
matters relating to supervisors which are not inconsistent with this
chapter.
2. The regulations must be adopted, amended and repealed in
conformance with the requirements of chapter 463 of NRS.
(Added to NRS by 1979, 804)
The Commission shall hold a hearing
within 15 days after the suspension of a license pursuant to NRS 463.311
regarding the appointment of a
supervisor. The Commission shall notify the licensee of the meeting and
afford the licensee the opportunity to be heard concerning the
appointment.
(Added to NRS by 1985, 1726)
1. Except as otherwise provided in subsection 5, if the license of
any person whose license is essential to the operation of a gaming
establishment:
(a) Is revoked by the Commission;
(b) Is suspended by the Commission;
(c) Lapses; or
(d) Is surrendered because the gaming establishment or the
ownership thereof has been conveyed or transferred to a secured party who
does not possess the licenses necessary to operate the establishment,
Ê only the Commission may ex parte petition the district court for the
county in which the gaming establishment is located for appointment by
the court of a supervisor to manage the establishment. The petition is
discretionary with the Commission and this chapter does not create any
property right or interest in continued gaming at the establishment.
2. The petition must contain the names of two or more persons who
the Commission believes are suitable and qualified to manage a gaming
establishment and are available for appointment as a supervisor unless,
in the opinion of the Commission, only one person is available who is
qualified to serve, in which case the Commission may name only that
person.
3. Upon receipt of such a petition, the court shall appoint as
supervisor of the gaming establishment a person who is listed in the
petition. The court shall immediately notify the Commission of the
appointment. Upon receipt of notice from the court, the Commission shall
immediately notify all interested licensees.
4. The petition may be presented pursuant to this section even if
time has not expired for a petition for judicial review of the final
determination of the Commission to revoke or suspend the gaming license.
5. The Commission shall not petition any court for the appointment
of a supervisor pursuant to this section if:
(a) The gaming establishment has never been in operation and opened
to the public.
(b) A rehearing has been granted by the Commission to the licensee
on the revocation or suspension of his license and the rehearing has not
been concluded.
(c) The gaming establishment is, or reasonably appears to be,
insolvent.
6. If the Commission does not petition for the appointment of a
supervisor, no district court of this state may issue an order which
allows gaming to continue at the establishment.
(Added to NRS by 1979, 805; A 1981, 1066; 1987, 189; 1991, 1013)
No district court of this state may issue any order:
1. To stay the appointment of a supervisor appointed pursuant to
this chapter, whether or not a petition has been filed for judicial
review of the Commission’s determination to revoke or suspend the license
required for operation of the gaming establishment.
2. To enjoin a supervisor from exercising his duties and powers
pursuant to this chapter.
(Added to NRS by 1979, 805)
The
court which appoints the supervisor shall allow reasonable compensation,
out of the revenue of the gaming establishment, for the services, costs
and expenses of the supervisor and for any other persons whom the
supervisor may engage to aid him in his duties.
(Added to NRS by 1979, 806)
1. A supervisor is subject to the provisions of chapter 463 of NRS and any regulations adopted pursuant thereto
as if he were personally licensed to operate the gaming establishment.
2. The court which appointed the supervisor has jurisdiction over
all powers and duties of the supervisor in any proceeding relating to the
exercise of those powers and duties, and may issue any order or decree in
the proceeding which it deems necessary.
3. After the court appoints a supervisor the gaming license of the
establishment shall be deemed transferred and the previously licensed
operation shall be deemed a continuing operation.
(Added to NRS by 1979, 805; A 1991, 1014)
A supervisor shall be deemed to be a licensee of
the gaming establishment under any license issued to operate the gaming
establishment by a county, city or town, and may perform all acts that he
is required or permitted to perform without approval or other action of
the county, city or town.
(Added to NRS by 1979, 805)
1. Upon the appointment of a supervisor, the right, title and
interest of all persons in the gaming establishment is extinguished and
automatically vests in the supervisor, subject to any liens, claims and
encumbrances thereon.
2. The supervisor shall protect the money and property so acquired
by managing it on a prudent businesslike basis.
(Added to NRS by 1979, 806)
Except as provided in NRS 463B.220 , 463B.230 and 463B.240 , any sale, assignment, transfer, pledge or
other disposition of any securities issued by a former or suspended
licensee while a supervisor is appointed does not divest or otherwise
affect the powers of the supervisor.
(Added to NRS by 1979, 806)
The supervisor shall:
1. Take immediately into his possession all property of the gaming
establishment, including its money, accounts, books, records and
evidences of debts owed to the establishment.
2. Continue the business of the gaming establishment.
(Added to NRS by 1979, 806)
The supervisor may:
1. Hire, discipline and dismiss employees of the gaming
establishment, and fix the compensation of its employees.
2. Engage independent legal counsel and accountants.
3. Settle or compromise with any debtor or creditor of the gaming
establishment.
4. Prosecute actions on behalf of or defend actions against the
gaming establishment.
5. Enter into any contract or borrow money on behalf of the gaming
establishment and pledge, mortgage or otherwise encumber its property as
security for the repayment of any loan, except that the power to borrow
money or encumber property is limited by any provision of an existing
document of credit.
6. Grant or renew leases of the property of the gaming
establishment.
7. Perform any other lawful acts on behalf of the gaming
establishment which an owner is entitled to perform. This subsection does
not authorize sale of the establishment by the supervisor.
(Added to NRS by 1979, 806)
Unless otherwise authorized by the court, if a gaming
establishment is under the control of a supervisor:
1. All the books and records relating to the operation of the
establishment and all evidences of debts owed to the establishment must
be kept and retained in the State of Nevada.
2. All the money of the establishment which is to be deposited
with financial institutions must be kept in accounts in financial
institutions located in this state.
(Added to NRS by 1979, 809)
If any property of a gaming establishment is sold, leased or otherwise
conveyed or hypothecated in violation of NRS 463B.280 , or if any property of the establishment is
withheld from a supervisor after his appointment, the supervisor may
petition the district court in the district where the gaming
establishment is located for an order compelling delivery of the property
to the supervisor.
(Added to NRS by 1979, 809)
This chapter does not affect the right of a creditor
to commence or continue foreclosure or other proceedings to collect a
secured or unsecured debt, and, consistent with the public policy of this
chapter, the appointment of a supervisor must not be treated as an event
precipitating a default or acceleration under any note, lease, deed of
trust or other extension of credit. Except as provided in this chapter,
the supervisor is not entitled to assert any right, claim or defense
other than one available to the gaming establishment or any licensee or
former licensee connected therewith.
(Added to NRS by 1979, 806)
1. Except as otherwise provided in subsection 2 and subject to
prior approval by the court which appointed him, a supervisor may,
consistently with regulations to be adopted by the Commission, make
periodic distribution of earnings to the former legal owner of the gaming
establishment.
2. Upon petition to the court by the Commission, earnings that
would otherwise be distributed pursuant to subsection 1 must, except as
otherwise provided in this subsection, be paid into the court pending
judicial review of the final determination of the Commission. An amount
of the earnings which represents the reasonable rental value of the
premises must be retained by the supervisor for distribution to the
former legal owner. If the Commission has ordered suspension or
revocation of a license and:
(a) The Commission’s order of suspension or revocation is upheld
after final judicial review; and
(b) The gaming establishment is sold pursuant to this chapter,
Ê all earnings, except the amount representing the reasonable rental
value of the premises as determined by the court, which were paid into
the court pursuant to this subsection are forfeited and must be deposited
in the State General Fund. If that order is reversed or otherwise
modified and the former legal owner regains his license, the earnings
must be distributed to him.
(Added to NRS by 1979, 807; A 1985, 804; 1991, 1014)
1. A supervisor shall file with the court which appointed him and
the Commission reports on the administration of the gaming establishment
in such form and at such intervals as the court may prescribe.
2. The reports may be made available for inspection by any
creditor of the establishment or person having a substantial interest in
it, and the court may direct that copies of the reports be mailed to
those creditors or persons.
(Added to NRS by 1979, 807)
If:
1. Any person who owned an interest in a gaming establishment at
the date of appointment of a supervisor thereof secures a willing and
able buyer for the establishment before the time when the supervisor must
offer the property for sale pursuant to NRS 463B.230 ;
2. The persons who owned a majority of the interest in the
establishment on the date of the supervisor’s appointment approve the
terms and conditions of the proposed sale; and
3. The buyer obtains a license to operate the establishment within
6 months after the time when the supervisor must offer the property for
sale pursuant to NRS 463B.230 ,
Ê the supervisor shall petition the court which appointed him for
approval of the sale, providing notice to parties as the court may
direct, and, if the court grants approval, shall carry out the sale on
the terms and conditions agreed to between the parties.
(Added to NRS by 1979, 807)
1. Except as provided in subsection 2, the supervisor of a gaming
establishment shall offer the gaming establishment for sale:
(a) At any time before the time described in paragraph (b), (c) or
(d), when requested in writing by the owners of a majority of the equity
interest in the establishment to initiate sale proceedings;
(b) Six months after refusal by the Commission to renew the license
for the establishment for failure of a licensee to fulfill a condition of
his license;
(c) If no petition for judicial review is taken from the
determination of the Commission to revoke or suspend the license, 6
months after the last date on which a petition for judicial review could
have been filed; or
(d) If a petition for judicial review is taken, 6 months after
exhaustion of any right of appeal in the courts of this state resulting
in a final determination which upholds the revocation or suspension of
the license,
Ê whichever date is later.
2. The supervisor shall not offer the gaming establishment for
sale if a timely sale of the establishment has been consummated pursuant
to NRS 463B.220 .
3. The supervisor shall exert his best efforts to secure a buyer
for the gaming establishment, including advertising, to assure a fair
price. He may employ brokers and other persons to assist him in securing
a suitable buyer.
4. A supervisor shall not accept any offer to purchase the gaming
establishment made by a person who does not possess a license issued
pursuant to chapter 463 of NRS which would
permit him to operate the establishment, except that the supervisor may
accept an offer which is contingent upon the buyer’s procuring such a
license.
5. The supervisor shall petition the district court which
appointed him for approval of the terms and conditions of the sale. If
the court approves the sale, the supervisor shall, if the buyer obtains a
license to operate the establishment, consummate the sale.
(Added to NRS by 1979, 807)
The following
provisions apply to any sale of a gaming establishment pursuant to this
chapter:
1. All known creditors and other persons designated by the court
who are known to have had a legal ownership interest in the gaming
establishment immediately prior to the appointment of the supervisor must
be notified of the proposed sale at least 30 days before the hearing on
the petition for approval of the sale. The notice must be delivered
personally or sent by registered or certified mail to the last known
address of each such person. The court shall also order that notice be
published in a newspaper of general circulation in the county in which
the establishment is located. If the address of a creditor or owner is
not known, or personal service is not possible for some other reason,
service by publication shall be deemed adequate. Any person so notified
may file with the court a statement of objections to the proposed sale,
including all grounds for the objections no later than 10 days before the
hearing.
2. Upon completion of a sale pursuant to this chapter, the
appointment of the supervisor terminates, except that he shall convey all
his right, title and interest in the property of the gaming establishment
to the buyer and shall pay the net proceeds of the sale to those persons
who owned the property at the time he acquired it, or their successors or
assignees, according to their respective interests.
(Added to NRS by 1979, 808)
1. Any person who suffers or is likely to suffer direct financial
injury as the result of an act or omission of a supervisor may file an
objection with the Commission to the suitability of the supervisor.
2. Any person described in subsection 1 may petition the district
court which made the appointment for an accounting or for a review of the
supervisor’s qualifications or performance.
3. If at any time the district court finds that a supervisor is
not qualified or available to serve as supervisor, it shall request from
the Commission the names of two or more persons who the Commission
believes are suitable and qualified to manage a gaming establishment and
are available to serve as a supervisor unless, in the opinion of the
Commission, only one person is available who is qualified to serve, in
which case the Commission may name only that person.
4. The Commission may, at any time after the appointment of a
supervisor, petition the court for the removal of the supervisor and the
appointment of a new supervisor or for the termination of the supervision.
(Added to NRS by 1979, 807; A 1991, 1014)
The appointment of a supervisor terminates if
any court of this state or of the United States overrules the
Commission’s decision to revoke or suspend the license for operation of
the gaming establishment, or if the Commission’s petition for termination
is granted, except that the supervisor shall transfer to the appropriate
persons their respective interests in the establishment.
(Added to NRS by 1979, 809)
A
supervisor is not personally liable for:
1. Any secured or unsecured debt of the gaming establishment
incurred before, during or after his appointment.
2. Any penalty which may be assessed against a former licensee for
his failure to pay or the late payment of any license fee or tax levied
pursuant to chapter 463 of NRS.
3. Any act or omission made by him in the exercise of prudent
business judgment or pursuant to an order of any court.
(Added to NRS by 1979, 806)
1. It is unlawful for a person during the pendency of any
proceeding before the Commission which may result in the appointment of a
supervisor or during the period of supervision:
(a) To sell, lease or otherwise convey for less than full market
value or to hypothecate any property of a gaming establishment.
(b) To remove from this state or secrete from the Commission or the
supervisor of a gaming establishment any property, money, books or
records of the establishment, including evidences of debts owed to it.
2. A person who violates any provision of subsection 1 is guilty
of a category D felony and shall be punished as provided in NRS 193.130
.
(Added to NRS by 1979, 809; A 1995, 1295)
