Every two years, for 120 days or so, 63 state senators and assembly members gather in Carson City to address the needs of one of the nation’s fastest growing states. The legislators seated for the 74th session of the Nevada state legislature handled a number of important issues and, while gaming and tourism issues did not monopolize the legislature’s time, there were many bills of significance to the industry nonetheless. The legislature addressed a number of topics involving worker’s compensation, construction defect, education, health care, gaming regulation and employment. Below is an overview of a few key pieces of legislation monitored by the gaming and tourism industry.

Transportation
Late in the session, Governor Jim Gibbons introduced his proposal to fund nearly $5 billion in road construction projects without raising taxes. Among a number of other revenue diversions, the governor’s plan called for diverting nearly one third of the Las Vegas Convention and Visitors Authority’s budget.

The mission of the LVCVA is to promote Las Vegas as a tourism destination, nationally and internationally, and its efforts are viewed as one of the key factors in attracting tourists to Las Vegas. Although the LVCVA and the majority of the tourism industry opposed the governor’s diversion of such a significant amount of the LVCVA’s budget, the LVCVA and the industry were supportive of efforts to improve transportation recognizing that a viable transportation system is integral to the state’s ability to continue to appeal to tourists.

Ultimately, the legislature designed a $1 billion plan that allowed a few mega-projects in the northern and southern regions of the state to be funded. The final plan, among other things, diverted funds from the LVCVA budget but in an amount far less than initially suggested by the governor. There is little debate among lobbyists, legislators and pundits that the legislature will need to address roads and transportation construction funding again in the 2009 legislative session.

Tip-Sharing
The policy instituted at Wynn Resorts requiring dealers to pool their tips and share them with managers created a tsunami of opposition among dealers throughout the state and resulted in the introduction of Assembly Bill 357 by Republican Assemblyman Bob Beers. The bill would have prohibited an employer from exercising any control over the collection, counting or distribution of any tips or gratuities including requiring an employee’s participation in a tip pool.

It would have, however, allowed a group of employees to enter into a written agreement establishing and governing a tip pool. The bill was intended to protect non-union employees from tip-sharing practices. Most of the gaming companies did not take a position on the legislation, and the bill died despite a number of attempts to craft compromise language.

State-Run Lottery
The creation of a state-run lottery to fund education has been proposed in previous legislative sessions but has always failed to pass both houses. In general, the gaming and tourism industry continues to oppose a state-run lottery because it would allow the government to compete with private enterprise (the casino industry) for gaming dollars. This year the bill passed the Assembly, but failed to generate enough support to be voted out of the Senate Committee on the Judiciary.

Problem Gambling
Funding was due to expire this year for the state-based problem gaming treatment-and-prevention programs. Through the efforts of the Nevada Resort Association and key member companies, the $2 license fee for each slot machine in Nevada will continue indefinitely to fund problem-gambling programs.

Next Session
With the onset of legislative term-limits and critical funding issues, the 75th session of the state legislature promises to be an active, interesting and spirited one. The legislature will undoubtedly need to consider new funding sources for transportation, education and health-care services. These challenges will make 2009 a critical year in our state’s history. The gaming and tourism industry will continue to advocate for issues that create an environment in which the industry can thrive and maintain its commitment to the state’s economy and economic well-being.

By Patrick Roberts

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