INITIATIVE 420
(STATUTE)

OBJECT STATEMENT: TO PERMIT COMMUNITIES TO AUTHORIZE GAMES OF CHANCE AND TO PROVIDE FOR REGULATION BY A GAMING COMMISSION.

A BILL

FOR AN ACT related to gaming; to permit communities to authorize games of chance as prescribed; and to provide for regulation of games of chance by a gaming commission.

Be it enacted by the people of the State of Nebraska,

Section 1. Notwithstanding any other provision of law, and to the full extent permitted by the Constitution of Nebraska, including amendments to the Constitution of Nebraska adopted contemporaneously with the enactment of this initiative measure, a community may authorize the operation of games of chance under this act only at permitted locations, only subject to authorizing parameters, and only by authorized operators.

Section 2. For purposes of this act:
   (1) Authorized operator means a person or entity authorized by a community pursuant to this act to operate games of chance;
   (2) Casino means a hotel in this state which has no less than five hundred hotel rooms and which has at the same location a gaming area of at least fifty thousand square feet where any games of chance may be operated;
   (3) Community means a county, city, or village in this state;
   (4) Games of chance means any games which have the elements of chance, prize, and wager, including any wager to a slot machine, table game, counter game, or card game. Games of chance shall not include any game the operation of which at a casino is prohibited by the laws of the United States;
   (5) Gaming device means an electronic, mechanical, or other device, which plays a game of chance when activated by a player using currency, tokens, or other value; 
   (6) Limited gaming device means an electronic gaming device which (a) offers games of chance, (b) does not dispense currency or tokens, and (c) does not have a cash winnings hopper, mechanical or simulated spinning reels, or side handle; 
   (7) On-premises establishment means any premises at which it is lawful to sell alcoholic liquor for consumption on such premises; 
  (8) Racetrack means a premises at which licensed live thoroughbred horseracing is conducted; and
   (9) Strategic premises means a premises at which at least two hundred fifty gaming devices are authorized for operation pursuant to an agreement among all communities authorizing such operation of such gaming devices on such premises. 

Section 3. For purposes of this act, permitted locations are as follows:
   (1) Regarding a casino, any location which is within a city of the metropolitan class and which is within two miles of the border of this state;
   (2) Regarding a strategic premises, any location which is not a racetrack and which is within a community which consents thereto, which location is within two miles of any highway which crosses this state from border to opposite border and which has at least fifty percent of its route through this state normally open to at least four paved traffic lanes, and which location is no closer than fifty miles from any other strategic premises and is no closer than fifty miles from any permitted location referred to in subdivision (1) of this section; 
   (3) Regarding an on-premises establishment, any on-premises establishment within a community which authorizes the operation of limited gaming devices at such on-premises establishment; and
   (4) Regarding a racetrack, any racetrack which is within a community which consents to the operation of gaming devices at such racetrack and which is within a county where, during each of the four calendar years immediately preceding such consent, licensed live thoroughbred horseracing has been conducted at such racetrack or conducted for a like period at another location within the county at which such horseracing no longer is conducted.

Section 4. For purposes of this act, authorizing parameters are as follows:
   (1) The operation of games of chance at a casino may be authorized only by a city of the metropolitan class, which city may authorize the operation of all, and not less than all, games of chance at not more than two casinos per three hundred thousand population; 
   (2) Except for gaming devices operated at a casino, the number of gaming devices which may be authorized by a city or village is limited to one per two hundred population or fraction thereof for the first three thousand of its population, one per five hundred population for its population greater than three thousand and less than or equal to fifty thousand, and one per one thousand population for its population greater than fifty thousand; and the number of gaming devices that may be authorized by a county is limited to one per three hundred population in the unincorporated area of such county;
   (3) Limited gaming devices may be operated at all permitted locations. All other gaming devices may be operated only at casinos, racetracks, and strategic premises. All other games of chance may be operated only at casinos; 
   (4) The number of gaming devices in excess of six, the operation of which are authorized by a city or village with less than three thousand population, or by a county, may only be operated at a racetrack or at a strategic premises; 
   (5) The maximum number of gaming devices that may be operated (a) at a strategic premises is five hundred, (b) at a racetrack located within a city of the metropolitan class is one hundred fifty, (c) at all racetracks, in the aggregate, is seven hundred, and (d) at any other permitted location which is not a casino is three, except at one such other permitted location within a city is thirty;
   (6) Nothing in this act shall prohibit the authorization by a community of the operation of any games of chance otherwise permitted under the Constitution of Nebraska; and 
   (7) Except for gaming devices (a) operated at strategic premises, (b) authorized by a county for operation at any racetrack, or (c) authorized by a city for operation at a racetrack located within the county in which such city is located, all games of chance authorized by a community may be operated only within such community's borders. 

Section 5. Authorized operators and the operation of games of chance shall be subject to licensing and regulation as may be adopted by the Nebraska Gaming Commission. A community shall have the authority: 
   (1) To approve or deny applications for authority to operate games of chance; and
   (2) To designate the authorized operator and the permitted location thereof.

Section 6. A city or village shall act under this act by or through a duly adopted ordinance. A county shall act under this act by or through a duly adopted resolution.

Section 7. (1) For the purpose of providing the necessary licensing and regulation of the operation of games of chance authorized pursuant to this act, the Nebraska Gaming Commission is created. The commission shall consist of five members appointed by the Governor, subject to confirmation by a majority of all members of the Legislature. The members of the commission shall have terms of five years, except that the terms of office of the initial commission members shall commence upon appointment and shall be as follows: One for a term of one year; one for a term of two years; one for a term of three years; one for a term of four years; and one for a term of five years, as designated by the Governor. The Governor shall appoint initial members of the commission within sixty days of the enactment of this initiative measure.
   (2) The commission shall have the power and duty to license and regulate the operation of all games of chance authorized pursuant to this act, including the power and duty to establish rules and regulations governing the operation of games of chance consistent with this act; to promote integrity, security, and honest administration in, and accurate accounting of, the operation of all games of chance; to make recommendations to a community authorizing games of chance regarding the suitability of an applicant for authority to operate games of chance and the designation of a permitted location; to set licensing criteria that facilitates the ability of a community authorizing games of chance to designate an authorized operator and the permitted location thereof in a manner consistent with the public interest as determined by the community authorizing games of chance; to grant, deny, revoke, and suspend licenses for the operation of games of chance based upon reasonable criteria and procedures established by the commission to facilitate the integrity, productivity, and lawful conduct of the games authorized; to conduct background investigations into applicants for licenses; to establish a minimum age for participation consistent with prevailing criteria for adulthood and maturity regarding matters of gaming; to adopt rules and regulations for  the standards of manufacture of gaming equipment; to test gaming equipment; to license manufacturers and distributors of gaming equipment; to inspect the operation of any licensed gaming facility for the purpose of certifying the revenue thereof and receiving complaints from the public; to call upon other administrative departments of the state, county and municipal governments, county sheriffs, city police departments, village marshals, peace officers, and prosecuting officers for such information and assistance as the commission deems necessary for the performance of its duties; to issue subpoenas for the attendance of witnesses or the production of any records, books, memoranda, documents, or other papers, or things, at or prior to any hearing as is necessary to enable the commission to effectively discharge its duties; to administer oaths or affirmations as necessary in connection therewith; to investigate and report to the Attorney General, or the relevant county attorney, allegations of illegal gambling activity; to ask the Attorney General, or the relevant county attorney, to seek an injunction to restrain a violation of this act or enforce any provision hereof; to impose, subject to judicial review, administrative fines not to exceed the sum of twenty-five thousand dollars for each violation of this act or any rules and regulations adopted and promulgated pursuant to this act plus the financial benefit derived by the violator as a result of such violation; to promote treatment of gaming-related behavioral disorders; to establish procedures for the governance of the commission; to acquire necessary offices, facilities, counsel, and staff; to establish procedures for applicants for staff positions to disclose conflicts of interest as part of the application for employment; and to do all things necessary and proper for carrying into execution such powers and duties. The Legislature may delegate to the commission authority to regulate other games of chance.
   (3) The compensation of the members of the Nebraska Gaming Commission shall initially be the same as that of the members of the Public Service Commission or as otherwise fixed by the Legislature.
   (4) The Nebraska Gaming Commission may adopt and promulgate rules and regulations to carry out this act.

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