[Rev. 3/18/2013 2:50:57 PM]

Link to Page 3482

 

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κ1997 Statutes of Nevada, Page 3483κ

 

CHAPTER 687, SB 271

Senate Bill No. 271–Committee on Finance

CHAPTER 687

 

AN ACT relating to qualified state tuition programs; establishing a trust fund for the prepayment of tuition at an institution of higher education; providing for the administration of the trust fund; providing that prepaid tuition contracts may be purchased until July 1, 2001; providing for the expiration of the trust fund when all obligations under the prepaid tuition contracts have been performed; and providing other matters properly relating thereto.

 

[Approved July 17, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Title 31 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 22, inclusive, of this act.

      Sec. 2.  As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 to 8, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 3.  “Board” means the board of trustees created pursuant to section 11 of this act.

      Sec. 4.  “Prepaid tuition contract” means the contract created pursuant to section 13 of this act.

      Sec. 5.  “Purchaser” means a person who makes or is obligated to make payments for tuition in accordance with a prepaid tuition contract.

      Sec. 6.  “Qualified beneficiary” means a person for whom tuition is paid pursuant to a prepaid tuition contract.

      Sec. 7.  “System” means the University and Community College System of Nevada.

      Sec. 8.  “Trust fund” means the Nevada higher education tuition trust fund created pursuant to section 9 of this act.

      Sec. 9.  1.  The Nevada higher education tuition trust fund is hereby created within the state treasury to allow the cost of tuition to be paid in advance of enrollment at an institution of higher education.

      2.  The trust fund consists of payments received pursuant to:

      (a) A prepaid tuition contract;

      (b) A bequest, endowment or grant from the Federal Government; or

      (c) Any other public or private source of money.

      3.  Money in the trust fund that is not expended during any biennium does not revert to the state general fund at any time.

      Sec. 10.  1.  The state treasurer shall administer the trust fund.

      2.  As administrator of the trust fund, the state treasurer:

      (a) Shall maintain the financial records of the trust fund;

      (b) Shall invest the property in the trust fund pursuant to the policies for investment established by the board pursuant to section 16 of this act;

      (c) Shall manage any account associated with the trust fund;

      (d) Shall maintain any instruments that evidence investments made with property from the trust fund;


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κ1997 Statutes of Nevada, Page 3484 (Chapter 687, SB 271)κ

 

      (e) May contract with vendors for any good or service that is necessary to carry out the provisions of this chapter;

      (f) May hire such employees as are necessary to carry out the provisions of this chapter, who must be paid out of the assets of the trust fund; and

      (g) May perform any other duties necessary to administer the trust fund.

      Sec. 11.  1.  There is hereby created a board of trustees.

      2.  The board consists of five members composed of:

      (a) The state treasurer, who may name a designee to serve on the board on his behalf.

      (b) The director of the department of administration, who may name a designee to serve on the board on his behalf.

      (c) The chancellor of the system, who may name a designee to serve on the board on his behalf.

      (d) Two members appointed by the governor. A member who is appointed by the governor must possess knowledge, skill and experience in the field of:

             (1) Accounting;

             (2) Finance;

             (3) Investment management; or

             (4) Marketing.

      3.  A member of the board who is appointed by the governor:

      (a) Serves for a term of 4 years;

      (b) Except as otherwise provided in paragraph (c), may be reappointed by the governor; and

      (c) Except as otherwise provided in this paragraph, may serve for only two terms. A member who is appointed to fill a vacancy in an unexpired term that is not longer than 3 years may serve two terms in addition to the unexpired term.

      4.  The governor shall designate a member of the board to serve as the initial chairman of the board. Thereafter, the board shall annually elect a chairman from its members.

      5.  Each member of the board serves without compensation, except that each member is entitled to receive:

      (a) The per diem allowance and travel expenses provided for state officers and employees generally; and

      (b) Reimbursement for any other actual and reasonable expense incurred while performing his duties.

      Sec. 12.  1.  The board shall develop a program for the prepayment of tuition at a guaranteed rate which is established based on the annual actuarial study required pursuant to section 19 of this act for undergraduate studies at a university or community college that is a member of the system.

      2.  The board shall establish rules for the implementation of the program, including, without limitation, rules setting forth requirements for residency, a limit on the number of qualified beneficiaries, the termination, withdrawal and transfer of money paid into the trust fund, the time within which the money paid into the trust fund must be used, and payment schedules.

      Sec. 13.  1.  The board may enter into a prepaid tuition contract with a purchaser.


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κ1997 Statutes of Nevada, Page 3485 (Chapter 687, SB 271)κ

 

      2.  The board shall create a prepaid tuition contract in accordance with the provisions of this section.

      3.  The prepaid tuition contract must include, without limitation:

      (a) The terms and conditions under which the purchaser shall remit payment, including, without limitation:

             (1) The amount and number of payments that are required from the purchaser on behalf of the qualified beneficiary;

             (2) The date upon which each payment is due; and

             (3) A provision for a reasonable penalty for a delinquent payment or default.

      (b) The name and date of birth of the qualified beneficiary on whose behalf the prepaid tuition contract is drawn.

      (c) The terms and conditions under which another person may be substituted as the qualified beneficiary.

      (d) The terms and conditions under which the purchaser, or another person designated by the purchaser, may terminate the prepaid tuition contract, receive a refund of money that he has paid into the trust fund or withdraw money that he has paid into the trust fund, including, without limitation, a provision allowing the board to impose a fee that amounts to more than a de minimis penalty.

      (e) A provision that the board shall, after making a reasonable effort to contact the purchaser, report any money that has been deposited under a prepaid tuition contract that has not been terminated and has not been used within a specified period to the state treasurer for proper disposition.

      (f) The number of semesters for which the purchaser is contracting.

      (g) A provision that money paid into the trust fund under a prepaid tuition contract may be applied toward tuition at:

             (1) A university or community college that is a member of the system;

             (2) An accredited college or university in this state that is not a member of the system; or

             (3) An accredited community college, college or university in another state.

Payments authorized pursuant to subparagraph (2) or (3) must not exceed the projected highest payment for tuition for the current academic year at a university that is a member of the system.

      (h) Any other term or condition that the board considers necessary or proper.

      Sec. 14.  1.  The board shall actively promote and market use of the trust fund.

      2.  The board shall, before it enters into a prepaid tuition contract with a purchaser, solicit the opinion of:

      (a) The Securities and Exchange Commission regarding the application of federal law regarding securities to the trust fund; or

      (b) An independent legal counsel to ensure that the method of structuring and offering the trust fund is in compliance with federal law regarding securities.

      3.  The board may:

      (a) Require a reasonable length of residence in the state to become a qualified beneficiary.


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κ1997 Statutes of Nevada, Page 3486 (Chapter 687, SB 271)κ

 

      (b) Restrict the number of qualified beneficiaries.

      Sec. 15.  The board:

      1.  May modify the rules for the implementation of the program established pursuant to subsection 2 of  section 12 of this act.

      2.  May establish agreements to fulfill its obligations under the prepaid tuition contracts.

      3.  May contract for any necessary good or service, including, without limitation, the power to engage financial consultants, actuaries or legal counsel.

      4.  May procure insurance against any loss in connection with the property, assets or activities of the trust fund, the state treasurer or the board.

      5.  May solicit and accept a gift, including, without limitation, a bequeathment or other testamentary gift, grant, loan or aid from any source.

      6.  Shall solicit answers to requests for rulings from the Internal Revenue Service regarding the tax status of fees paid to or on behalf of a purchaser or a qualified beneficiary pursuant to a prepaid tuition contract.

      Sec. 16.  1.  The board shall create a comprehensive plan that specifies the policies for investment which the state treasurer shall follow in his administration of the trust fund.

      2.  The board may authorize the state treasurer to invest the property of the trust fund in:

      (a) A bond, note, certificate or other general obligation of the State of Nevada, or of a county, city, general improvement district or school district of the State of Nevada.

      (b) A corporate bond of a corporation created by or existing under the laws of the United States or of a state, district or territory of the United States with a rating not lower than “BAA/BBB” by a nationally recognized rating service. The total amount invested in such bonds must not exceed 5 percent of the book value of the total fixed income investments of the trust fund.

      (c) Commercial paper of a corporation created by or existing under the laws of the United States or of a state, district or territory of the United States or of a wholly owned subsidiary of such a corporation with a rating not lower than A-3 or P-3 by a nationally recognized rating service.

      (d) A bond, note, debenture or other valid obligation that is issued by the Treasury of the United States.

      (e) A bond, note, debenture or other security that is fully guaranteed by the United States in:

             (1) The Federal Farm Credit Bank;

             (2) The Federal National Mortgage Association;

             (3) The Federal Home Loan Bank; or

             (4) The Federal Home Loan Mortgage Corporation.

      (f) A bond, note, debenture or other security in the Student Loan Marketing Association, regardless of whether it is guaranteed by the United States.

      (g) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;


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κ1997 Statutes of Nevada, Page 3487 (Chapter 687, SB 271)κ

 

             (2) Are rated by a nationally recognized rating service as “A” or its equivalent, or better; and

             (3) Invest only in securities issued by the Federal Government or agencies of the Federal Government or in repurchase agreements fully collateralized by such securities.

The total dollar amount invested in such mutual funds must not exceed 20 percent of the total dollar amount of the trust fund that is invested.

      (h) Common or preferred stock of a corporation created by or existing under the laws of the United States or of a state, district or territory of the United States, if:

             (1) The stock of the corporation is:

                    (I) Listed on a national stock exchange; or

                   (II) Traded in the over-the-counter market, if the price quotations for the over-the-counter stock are quoted by the National Association of Securities Dealers Automated Quotations System (NASDAQ);

             (2) The outstanding shares of the corporation have a total market value of not less than $50,000,000;

             (3) The maximum investment in stock is not greater than 60 percent of the book value of the total investments of the trust fund;

             (4) The amount of an investment in a single corporation is not greater than 3 percent of the book value of the assets of the trust fund; and

             (5) The total amount of shares owned by the trust fund is not greater than 5 percent of the outstanding stock of a single corporation.

      (i) A covered call or put option on securities that are traded on one or more of the regulated exchanges in the United States.

      (j) A pooled or commingled real estate fund or a real estate security that is managed by a corporate trustee or by an investment advisory firm that is registered with the Securities and Exchange Commission, either of which may be retained by the board as an investment manager. The shares and the pooled or commingled fund must be held in trust. The total book value of an investment made under this paragraph must not at any time be greater than 5 percent of the total book value of all investments of the trust fund.

      3.  The state treasurer shall exercise the standard of care in investing the property of the fund that a person of prudence, discretion and intelligence would exercise in the management of his own affairs, given the prevailing circumstances, not in regard to speculation but rather to the permanent disposition of the property, considering the potential income from and the probable safety of his capital.

      4.  Subject to the terms, conditions, limitations and restrictions set forth in this section, the state treasurer may sell, assign, transfer or dispose of the property and investments of the trust fund upon the approval of a majority of the board.

      5.  The assets of the trust fund:

      (a) Must be maintained, invested and expended solely for the purposes of this chapter; and

      (b) Must not be loaned, transferred or otherwise used for a purpose other than the purposes of this chapter.


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κ1997 Statutes of Nevada, Page 3488 (Chapter 687, SB 271)κ

 

      6.  The state treasurer shall credit any income derived from an investment or a gain from a sale or exchange of an investment to the trust fund.

      7.  The state treasurer shall acquire each investment for the trust fund at a price not to exceed the prevailing market value for such an investment.

      8.  Each investment in the trust fund must be clearly marked to indicate ownership by the trust fund.

      9.  The state treasurer, an employee of the state treasurer, or a member or employee of the board shall not:

      (a) Have a direct or indirect interest in the income, gain or profit of an investment that the state treasurer makes;

      (b) Receive pay or emolument for his services in connection with an investment that the state treasurer makes; or

      (c) Become an endorser, surety or obligor for money that is borrowed from the trust fund.

      10.  If the annual actuarial study performed pursuant to section 19 of this act reveals that there is insufficient money to ensure the actuarial soundness of the trust fund, the board shall modify the terms of subsequent prepaid tuition contracts.

      11.  The terms, conditions, limitations and restrictions regarding investments of the trust fund listed in this section apply only at the time an investment is originally acquired and must not be construed to require the liquidation of an investment at any time.

      Sec. 17.  The board shall:

      1.  Prepare an annual report setting forth in appropriate detail an accounting of the trust fund and a description of the financial condition of the trust fund at the close of each fiscal year, including, without limitation, a statement of projected receipts, disbursements and operating costs of the trust fund.

      2.  Submit the report prepared pursuant to subsection 1 on or before March 31 of each year:

      (a) In odd-numbered years, to the governor, the senate standing committee on finance and the assembly standing committee on ways and means.

      (b) In even-numbered years, to the governor and the interim finance committee.

      Sec. 18.  The board shall contract with a certified public accounting firm to perform an annual audit of the accounts and records of the state treasurer and the board showing the receipts to and disbursements from the trust fund. The cost of the audit must be borne by the trust fund. The state treasurer shall make available for inspection all records necessary to perform the audit.

      Sec. 19.  The board shall contract with a certified actuary to perform an annual actuarial study, the cost of which must be borne by the trust fund. The state treasurer shall make available for inspection all records necessary to perform the actuarial study.


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κ1997 Statutes of Nevada, Page 3489 (Chapter 687, SB 271)κ

 

      Sec. 20.  The State of Nevada, an agency, county, municipality or other political subdivision of the state, or any other public or private employer may enter into an agreement to remit payments toward a prepaid tuition contract on behalf of an employee through payroll deductions.

      Sec. 21.  The provisions of this chapter must not be construed as a promise or guarantee that a qualified beneficiary:

      1.  Will be admitted to, allowed to continue enrollment at or graduated from a community college or university; or

      2.  Will have the full cost of his tuition paid at a community college, college or university that is not a member of the system.

      Sec. 22.  An act or undertaking of the board does not constitute a debt of the State of Nevada, or any political subdivision thereof, or a pledge of the full faith and credit of the State of Nevada, or of any political subdivision thereof, and is payable solely from the trust fund.

      Sec. 23.  Notwithstanding the provisions of paragraph (a) of subsection 3 of section 11 of this act, as soon as practicable after October 1, 1997, the governor shall, pursuant to paragraph (d) of subsection 2 of  section 11 of this act, appoint to the board:

      1.  One member whose initial term expires on June 30, 1999; and

      2.  One member whose initial term expires on June 30, 2001.

      Sec. 24.  1.  The board shall notify the governor when it has performed all duties and obligations pursuant to any prepaid tuition contract entered into before July 1, 2001.

      2.  Notwithstanding the provisions of subsection 3 of section 9 of this act, when the board notifies the governor pursuant to subsection 1 that it has performed all duties and obligations pursuant to any prepaid tuition contract entered into before July 1, 2001, all assets of the trust fund revert to the state general fund.

      Sec. 25.  1.  This act becomes effective on October 1, 1997, and, except as otherwise provided in subsection 2, expires by limitation when the board notifies the governor pursuant to subsection 1 of section 24 of this act that it has performed all duties and obligations pursuant to any prepaid tuition contract entered into before July 1, 2001.

      2.  Sections 12, 13 and 14 of this act expire by limitation on July 1, 2001.

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κ1997 Statutes of Nevada, Page 3490κ

 

CHAPTER 688, AB 375

Assembly Bill No. 375–Assemblymen Giunchigliani, Arberry, Buckley, Amodei, Freeman, Bache, Tiffany, Anderson, Lee, Koivisto, Parks, Lambert, Williams, Berman, de Braga, Collins, Chowning, Nolan, Manendo, Price, Segerblom, Carpenter, Hickey, Perkins, Marvel, Herrera, Goldwater and Close

CHAPTER 688

AN ACT relating to mental health care; making various changes concerning mentally ill persons; specifying additional rights of clients of certain facilities; revising provisions governing emergency admissions of persons to certain facilities; and providing other matters properly relating thereto.

 

[Approved July 17, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 433 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 9, inclusive, of this act.

      Sec. 2.  “Rights” includes, without limitation, all rights provided to a client pursuant to NRS 433.456 to 433.534, inclusive, and sections 3 to 9, inclusive, of this act, and any regulations adopted pursuant thereto.

      Sec. 3.  Each client admitted for evaluation, treatment or training to a facility has the following rights concerning admission to the facility, a list of which must be prominently posted in all facilities providing those services and must be otherwise brought to the attention of the client by such additional means as prescribed by regulation:

      1.  The right not to be admitted to the facility under false pretenses or as a result of any improper, unethical or unlawful conduct by a staff member of the facility to collect money from the insurance company of the client or for any other financial purpose.

      2.  The right to receive a copy, on request, of the criteria upon which the facility makes its decision to admit or discharge a client from the facility. Such criteria must not, for emergency admissions or involuntary court-ordered admissions, be based on the availability of insurance coverage or any other financial considerations.

      Sec. 4.  1.  Each client admitted for evaluation, treatment or training to a facility has the following rights concerning involuntary commitment to the facility, a list of which must be prominently posted in all facilities providing those services and must be otherwise brought to the attention of the client by such additional means as prescribed by regulation:

      (a) To request and receive a second evaluation by a psychiatrist or psychologist who does not have a contractual or business relationship with the facility. The evaluation must:

             (1) Include, without limitation, a recommendation of whether the client should be involuntarily committed to the facility; and

             (2) Be paid for by the client if the insurance carrier of the client refuses to pay for the evaluation.


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κ1997 Statutes of Nevada, Page 3491 (Chapter 688, AB 375)κ

 

      (b) To receive a copy of the procedure of the facility regarding involuntary commitment and treatment.

      (c) To receive a list of his rights concerning involuntary commitment or treatment.

      2.  If the results of an evaluation conducted by a psychiatrist or psychologist pursuant to subsection 1 conflicts in any manner with the results of an evaluation conducted by the facility, the facility may request and receive a third evaluation of the client to resolve the conflicting portions of the previous evaluations.

      Sec. 5.  Each client admitted for evaluation, treatment or training to a facility has the following rights concerning the suspension or violation of his rights, a list of which must be prominently posted in all facilities providing those services and must be otherwise brought to the attention of the client by such additional means as prescribed by regulation:

      1.  To receive a list of his rights.

      2.  To receive a copy of the policy of the facility that sets forth the clinical or medical circumstances under which his rights may be suspended or violated.

      3.  To receive a list of the clinically appropriate options available to the client or his family to remedy an actual or a suspected suspension or violation of his rights.

      4.  To have all policies of the facility regarding the rights of clients prominently posted in the facility.

      Sec. 6.  Each facility shall, within a reasonable time after a client is admitted to the facility for evaluation, treatment or training, ask the client to sign a document that reflects that he has received a list of his rights and has had those rights explained to him.

      Sec. 7.  (Deleted by amendment.)

      Sec. 8.  1.  Each facility shall make all of its decisions, policies, procedures and practices regarding emergency admissions or involuntary court-ordered admissions based upon clinical efficiency rather than cost containment.

      2.  This section does not preclude a public facility from making decisions, policies, procedures and practices within the limits of the money made available to the facility.

      Sec. 9.  An officer, director or employee of a facility shall not retaliate against any person for having:

      1.  Reported any violation of law; or

      2.  Provided information regarding a violation of law,

by the facility or a staff member of the facility.

      Sec. 10.  NRS 433.044 is hereby amended to read as follows:

      433.044  “Client” means any person who seeks, on his own or [others’] another’s initiative, and can benefit from care, treatment and training [in any division facility.] provided by the division.

      Sec. 11.  NRS 433.456 is hereby amended to read as follows:

      433.456  As used in NRS 433.458 to 433.534, inclusive, and sections 3 to 9, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 433.458, 433.459 and 433.461 and section 2 of this act, have the meanings ascribed to them in those sections.


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κ1997 Statutes of Nevada, Page 3492 (Chapter 688, AB 375)κ

 

      Sec. 12.  NRS 433.482 is hereby amended to read as follows:

      433.482  Each client admitted for evaluation, treatment or training to a facility has the following personal rights, a list of which must be prominently posted in all facilities providing those services and must be otherwise brought to the attention of the client by such additional means as prescribed by regulation:

      1.  To wear his own clothing, to keep and use his own personal possessions, including his toilet articles, unless those articles may be used to endanger his or others’ lives, and to keep and be allowed to spend a reasonable sum of his own money for expenses and small purchases.

      2.  To have access to individual space for storage for his private use.

      3.  To see visitors each day.

      4.  To have reasonable access to telephones, both to make and receive confidential calls.

      5.  To have ready access to materials for writing letters, including stamps, and to mail and receive unopened correspondence, but:

      (a) For the purposes of this subsection, packages are not considered as correspondence; and

      (b) Correspondence identified as containing a check payable to a client may be subject to control and safekeeping by the administrative officer of that facility or his designee, so long as the client’s record of treatment documents the action.

      6.  To have reasonable access to an interpreter if the client does not speak English or is hearing impaired.

      7.  To designate a person who must be kept informed by the facility of the client’s medical and mental condition, if the client signs a release allowing the facility to provide such information to the person.

      8.  To have access to his medical records denied to any person other than:

      (a) A member of the staff of the facility or related medical personnel, as appropriate;

      (b) A person who obtains a waiver by the client of his right to keep the medical records confidential; or

      (c) A person who obtains a court order authorizing the access.

      9.  Other personal rights as specified by regulation of the commission.

      Sec. 13.  Chapter 433A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  If a mentally ill person is admitted to a public or private mental health facility or hospital as a voluntary client, the facility or hospital shall not change the status of the person to an emergency admission unless the hospital or facility receives, before the change in status is made, an application for an emergency admission pursuant to NRS 433A.160 and the certificate of a psychiatrist, psychologist or physician pursuant to NRS 433A.170.

      2.  A person whose status is changed pursuant to subsection 1 must not be detained in excess of 48 hours after the change in status is made, unless within that period a written petition is filed with the clerk of the district court pursuant to NRS 433A.200.


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κ1997 Statutes of Nevada, Page 3493 (Chapter 688, AB 375)κ

 

      3.  If the period specified in subsection 2 expires on a day on which the office of the clerk of the district court is not open, the written petition must be filed on or before the close of the business day next following the expiration of that period.

      Sec. 14.  NRS 433A.014 is hereby amended to read as follows:

      433A.014  “Client” means any person who seeks, on his own or another’s initiative, and can benefit from care, treatment or training [in a division facility.] provided by the division.

      Sec. 15.  NRS 433A.115 is hereby amended to read as follows:

      433A.115  1.  As used in NRS 433A.120 to 433A.330, inclusive, and section 13 of this act, unless the context otherwise requires, “mentally ill person” means any person whose capacity to exercise self-control, judgment and discretion in the conduct of his affairs and social relations or to care for his personal needs is diminished , as a result of a mental illness, to the extent that he presents a clear and present danger of harm to himself or others, but does not include any person in whom that capacity is diminished by epilepsy, mental retardation, Alzheimer’s disease, brief periods of intoxication caused by alcohol or drugs, or dependence upon or addiction to alcohol or drugs, unless a mental illness that can be diagnosed is also present which contributes to the diminished capacity of the person.

      2.  A person presents a clear and present danger of harm to himself if, within the next preceding 30 days, he has [:] , as a result of a mental illness:

      (a) Acted in a manner from which it may reasonably be inferred that, without the care, supervision or continued assistance of others, he will be unable to satisfy his need for nourishment, personal or medical care, shelter, self-protection or safety, and if there exists a reasonable probability that his death, serious bodily injury or physical debilitation will occur within the next following 30 days unless he is admitted to a mental health facility pursuant to the provisions of NRS 433A.120 to 433A.330, inclusive, and section 13 of this act, and adequate treatment is provided to him;

      (b) Attempted or threatened to commit suicide or committed acts in furtherance of a threat to commit suicide, and if there exists a reasonable probability that he will commit suicide unless he is admitted to a mental health facility pursuant to the provisions of NRS 433A.120 to 433A.330, inclusive, and section 13 of this act, and adequate treatment is provided to him; or

      (c) Mutilated himself, attempted or threatened to mutilate himself or committed acts in furtherance of a threat to mutilate himself, and if there exists a reasonable probability that he will mutilate himself unless he is admitted to a mental health facility pursuant to the provisions of NRS 433A.120 to 433A.330, inclusive, and section 13 of this act, and adequate treatment is provided to him.

      3.  A person presents a clear and present danger of harm to others if, within the next preceding 30 days, he has , as a result of a mental illness, inflicted or attempted to inflict serious bodily harm on any other person, or made threats to inflict harm and committed acts in furtherance of those threats, and if there exists a reasonable probability that he will do so again unless he is admitted to a mental health facility pursuant to the provisions of NRS 433A.120 to 433A.330, inclusive, and section 13 of this act, and adequate treatment is provided to him.


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κ1997 Statutes of Nevada, Page 3494 (Chapter 688, AB 375)κ

 

NRS 433A.120 to 433A.330, inclusive, and section 13 of this act, and adequate treatment is provided to him.

      Sec. 16.  NRS 433A.140 is hereby amended to read as follows:

      433A.140  1.  Any person may apply to [any] :

      (a) A public or private mental health facility in the State of Nevada for admission to [such] the facility ; or

      (b) A division facility to receive care, treatment or training provided by the division,

as a voluntary client for the purposes of observation, diagnosis, care and treatment. In the case of a person who has not attained the age of majority, application for voluntary admission or care, treatment or training may be made on his behalf by his spouse, parent or legal guardian.

      2.  If the application is for admission to a division facility, or for care, treatment or training provided by the division, the applicant must be admitted or provided such services as a voluntary client if an examination by [admitting] personnel of the facility qualified to make such a determination reveals that the person needs and may benefit from services offered by the mental health facility.

      3.  Any person admitted to a public or private mental health facility as a voluntary client must be released immediately after the filing of a written request for release with the responsible physician or his designee within the normal working day [.] , unless, within 24 hours after the request, the facility changes the status of the person to an emergency admission pursuant to section 13 of this act. When a person is released pursuant to this subsection, the facility and its agents and employees are not liable for any debts or contractual obligations, medical or otherwise, incurred or damages caused by the actions of the person.

      4.  Any person admitted to a public or private mental health facility as a voluntary client who has not requested release may nonetheless be released by the medical director of the facility when examining personnel at the facility determine that the client has recovered or has improved to such an extent that he is not considered a danger to himself or others and that the services of that facility are no longer beneficial to him or advisable.

      5.  A person who requests care, treatment or training from the division pursuant to this section must be evaluated by the personnel of the division to determine whether he is eligible for the services offered by the division. The evaluation must be conducted:

      (a) Within 72 hours if the person has requested inpatient services; or

      (b) Within 72 regular operating hours, excluding weekends and holidays, if the person has requested community-based or outpatient services.

      6.  This section does not preclude a public facility from making decisions, policies, procedures and practices within the limits of the money made available to the facility.

      Sec. 17.  (Deleted by amendment.)

      Sec. 18.  NRS 433A.160 is hereby amended to read as follows:

      433A.160  1.  Application for an emergency admission of an allegedly mentally ill person for evaluation and observation may only be made by an accredited agent of the department, an officer authorized to make arrests in the State of Nevada or a physician, psychologist, marriage and family therapist, social worker or registered nurse.


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κ1997 Statutes of Nevada, Page 3495 (Chapter 688, AB 375)κ

 

therapist, social worker or registered nurse. The agent, officer, physician, psychologist, marriage and family therapist, social worker or registered nurse may take an allegedly mentally ill person into custody without a warrant to apply for emergency admission for evaluation, observation and treatment under NRS 433A.150 and may transport the person or arrange the transportation for him with a local law enforcement agency to a public or private mental health facility for that purpose.

      2.  The application must reveal the circumstances under which the person was taken into custody and the reasons therefor.

      3.  For the purposes of subsection 1, “an accredited agent of the department” means any person appointed or designated by the director of the department to take into custody and transport to a mental health facility pursuant to subsections 1 and 2 those persons in need of emergency admission.

      4.  Any person who has reason to believe that another person is mentally ill may apply to the district attorney of the county where the allegedly mentally ill person is found, and the district attorney may, if satisfied that as a result of mental illness the person is likely to harm himself or others:

      (a) Issue an order to any peace officer for the immediate apprehension of the person and his transportation to a public or private mental health facility; and

      (b) Make application for the admission of the person under the emergency admission provisions of NRS 433A.150.

      5.  [Each] Except as otherwise provided in this subsection, each person admitted to a public or private mental health facility or hospital under an emergency admission must be evaluated at the time of admission by a psychiatrist or [physician who is not a psychiatrist.] a psychologist. If a psychiatrist or a psychologist is not available to conduct an evaluation at the time of admission, a physician may conduct the evaluation. Each such emergency admission must be approved by a psychiatrist.

      Sec. 19.  NRS 433A.170 is hereby amended to read as follows:

      433A.170  [The] Except as otherwise provided in this section, the administrative officer of a facility operated by the division or of any other public or private mental health facility or hospital shall not accept an application for an emergency admission under NRS 433A.150 and 433A.160 unless that application is accompanied by a certificate of a psychiatrist [,] or a licensed psychologist [or physician] stating that he has examined the person alleged to be mentally ill and that he has concluded that as a result of mental illness the person is likely to harm himself or others. [This] If a psychiatrist or licensed psychologist is not available to conduct an examination, a physician may conduct the examination. The certificate required by this section may be obtained from a psychiatrist, licensed psychologist [,] or physician who is employed by the public or private mental health facility to which the application is made.

      Sec. 20.  NRS 433A.220 is hereby amended to read as follows:

      433A.220  1.  Immediately after he receives any petition filed pursuant to NRS 433A.200 or 433A.210, the clerk of the district court shall transmit the petition to the appropriate district judge, who shall set a time , date and place for its hearing . [, which] The date must be:


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κ1997 Statutes of Nevada, Page 3496 (Chapter 688, AB 375)κ

 

      (a) Within 14 calendar days after the date on which the petition is received by the clerk; [or]

      (b) If at the time the petition is received by the clerk the subject of the petition was admitted to a hospital or public or private mental health facility pursuant to NRS 433A.160, within 5 judicial days after the date on which the petition is received by the clerk [.] ; or

      (c) If the district attorney filed a petition for the emergency admission of the subject of the petition, within 5 judicial days after the date on which the petition is received by the clerk.

      2.  The court shall give notice of the petition and of the time , date and place of any proceedings thereon to the subject of the petition, his attorney, if known, the petitioner, the district attorney of the county in which the court has its principal office, the local office of an agency or organization that receives money from the Federal Government pursuant to 42 U.S.C. §§ 10801 et seq., to protect and advocate the rights of persons with mental illnesses and the administrative office of any public or private mental health facility in which the subject of the petition is detained.

      Sec. 21.  NRS 433A.390 is hereby amended to read as follows:

      433A.390  1.  When a client, involuntarily admitted to a mental health facility by court order, is released at the end of the time specified pursuant to NRS 433A.310, written notice must be given to the admitting court at least 10 days before the release of the client. The client may then be released without requiring further orders of the court.

      2.  An involuntarily [court admitted] court-admitted client may be conditionally released before the period specified in NRS 433A.310 when:

      (a) An evaluation team established under NRS 433A.250 or two persons professionally qualified in the field of psychiatric mental health, at least one of them being a physician, determines that the client has recovered from his mental illness or has improved to such an extent that he is no longer considered to present a clear and present danger of harm to himself or others; and

      (b) Under advisement from the evaluation team or two persons professionally qualified in the field of psychiatric mental health, at least one of them being a physician, the medical director of the mental health facility authorizes the release and gives written notice to the admitting court . [10 days before the release of the client.]

      3.  The release of an involuntarily court-admitted client pursuant to subsection 2 becomes unconditional 10 days after the release unless the admitting court, within that period, issues an order providing otherwise.

________

 


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κ1997 Statutes of Nevada, Page 3497κ

 

CHAPTER 689, AB 419

Assembly Bill No. 419–Committee on Judiciary

CHAPTER 689

AN ACT relating to gaming; making various changes to the provisions governing the regulation of gaming; and providing other matters properly relating thereto.

 

[Approved July 17, 1997]

 

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, 3 and 4 of this act.

      Sec. 2.  “Banking game” means any gambling game in which players compete against the licensed gaming establishment rather than against one another.

      Sec. 3.  “Representative of value” means any instrumentality used by a patron in a game whether or not the instrumentality may be redeemed for cash.

      Sec. 4.  “Wager” means a sum of money or representative of value that is risked on an occurrence for which the outcome is uncertain.

      Sec. 5.  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, inclusive, and section 2 of [this act] Senate Bill No. 345 of this session, and sections 2, 3 and 4 of this act, have the meanings ascribed to them in those sections.

      Sec. 6.  NRS 463.0136 is hereby amended to read as follows:

      463.0136  “Associated equipment” means [any] :

      1.  Any equipment or mechanical, electromechanical or electronic contrivance, component or machine used remotely or directly in connection with gaming, any game, race book or sports pool that would not otherwise be classified as a gaming device, including dice, playing cards, links which connect to progressive slot machines, equipment which affects the proper reporting of gross revenue, computerized systems of betting at a race book or sports pool, computerized systems for monitoring slot machines and devices for weighing or counting money [.] ; or

      2.  A computerized system for recordation of sales for use in an area subject to the casino entertainment tax pursuant to NRS 463.401.

      Sec. 7.  NRS 463.014 is hereby amended to read as follows:

      463.014  “Cashless wagering system” means a method of wagering and accounting [in] :

      1.  In which the validity and value of a wagering instrument or wagering credits are determined, monitored and retained by a computer operated and maintained by a licensee which maintains a record of each transaction involving the wagering instrument or wagering credits, exclusive of the game or gaming device on which wagers are being made. The term includes computerized systems which facilitate electronic transfers of money directly to or from a game or gaming device [.] ; or


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κ1997 Statutes of Nevada, Page 3498 (Chapter 689, AB 419)κ

 

      2.  Used in a race book or sports pool in which the validity and value of a wagering instrument are determined, monitored and retained on a computer that maintains a record of each transaction involving the wagering instrument and is operated and maintained by a licensee.

      Sec. 8.  NRS 463.0157 is hereby amended to read as follows:

      463.0157  1.  “Gaming employee” means any person connected directly with an operator of a slot route, the operator of a pari-mutuel system, the operator of an inter-casino linked system or a manufacturer, distributor or disseminator, or with the operation of a gaming establishment licensed to conduct any game, 16 or more slot machines, a race book, sports pool or pari-mutuel wagering, including:

      (a) Accounting or internal auditing personnel who are directly involved in any recordkeeping or the examination of records associated with revenue from gaming;

      (b) Boxmen;

      (c) Cashiers;

      (d) Change personnel;

      (e) Counting room personnel;

      (f) Dealers;

      (g) Employees of a person required by NRS 464.010 to be licensed to operate an off-track pari-mutuel system;

      (h) Employees of a person required by NRS 463.430 to be licensed to disseminate information concerning racing;

      (i) Employees of manufacturers or distributors of gaming equipment within this state whose duties are directly involved with the manufacture, repair or distribution of gaming [equipment;] devices or cashless wagering systems;

      (j) Employees of operators of slot routes who have keys for slot machines or who accept and transport revenue from the slot drop;

      (k) Employees of operators of inter-casino linked systems [;] whose duties include the operational or supervisory control of the systems or the games that are part of the systems;

      (l) Floormen;

      (m) Hosts or other persons empowered to extend credit or complimentary services;

      (n) Keno runners;

      (o) Keno writers;

      (p) Machine mechanics;

      (q) Odds makers and line setters;

      (r) Security personnel;

      (s) Shift or pit bosses;

      (t) Shills;

      (u) Supervisors or managers;

      (v) Ticket writers; and

      (w) Employees of a person required by NRS 463.160 to be licensed to operate an information service.

      2.  “Gaming employee” does not include bartenders, cocktail waitresses or other persons engaged exclusively in preparing or serving food or beverages.


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κ1997 Statutes of Nevada, Page 3499 (Chapter 689, AB 419)κ

 

      Sec. 9.  NRS 463.0161 is hereby amended to read as follows:

      463.0161  1.  “Gross revenue” means the total of all:

      (a) Cash received as winnings;

      (b) Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and

      (c) Compensation received for conducting any game in which the licensee is not party to a wager,

less the total of all cash paid out as losses to patrons, those amounts paid to fund periodic payments and any other items made deductible as losses by NRS 463.3715. For the purposes of this section, cash or the value of noncash prizes awarded to patrons in a contest or tournament are not losses, except that losses in a contest or tournament conducted in conjunction with an inter-casino linked system may be deducted to the extent of the compensation received for the right to participate in that contest or tournament.

      2.  The term does not include:

      (a) Counterfeit facsimiles of money, chips, tokens, wagering instruments or wagering credits;

      (b) Coins of other countries which are received in gaming devices;

      (c) Any portion of the face value of any chip, token or other representative of value won by a licensee from a patron for which the licensee can demonstrate that it or its affiliate has not received cash;

      (d) Cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed;

      (e) Cash received as entry fees for contests or tournaments in which patrons compete for prizes, except for a contest or tournament conducted in conjunction with an inter-casino linked system; [or]

      (f) Uncollected baccarat commissions [.] ; or

      (g) Cash provided by the licensee to a patron and subsequently won by the licensee, for which the licensee can demonstrate that it or its affiliate has not been reimbursed.

      3.  As used in this section, “baccarat commission” means:

      (a) A fee assessed by a licensee on cash paid out as a loss to a patron at baccarat to modify the odds of the game; or

      (b) A rate or fee charged by a licensee for the right to participate in a baccarat game.

      Sec. 10.  NRS 463.0177 is hereby amended to read as follows:

      463.0177  “Nonrestricted license” or “nonrestricted operation” means [a] :

      1.  A state gaming license for, or an operation consisting of, 16 or more slot machines [or a] ;

      2.  A license for , or operation of , any number of slot machines together with any other game, gaming device, race book or sports pool at one establishment [.] ;

      3.  A license for, or the operation of, a slot machine route; or

      4.  A license for, or the operation of, an inter-casino linked system.


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κ1997 Statutes of Nevada, Page 3500 (Chapter 689, AB 419)κ

 

      Sec. 11.  NRS 463.0193 is hereby amended to read as follows:

      463.0193  “Sports pool” means the business of accepting wagers on sporting events by any system or method of wagering . [other than the system known as the pari-mutuel method of wagering.]

      Sec. 12.  NRS 463.159 is hereby amended to read as follows:

      463.159  1.  The commission shall by regulation require audits of the financial statements of all nonrestricted licensees whose annual gross revenue is $5,000,000 or more.

      2.  The commission may require audits, compiled statements or reviews of the financial statements of nonrestricted licensees whose annual gross revenue is less than $5,000,000.

      3.  The amounts of annual gross revenue provided for in subsections 1 and 2 must be increased or decreased annually in an amount corresponding to the percentage of increase or decrease in the Consumer Price Index (All Items) published by the United States Department of Labor for the preceding year. On or before December 15 of each year, the commission shall determine the amount of the increase or decrease required by this subsection and establish [by regulation] the adjusted amounts of annual gross revenue in effect for the succeeding calendar year. The audits, compilations and reviews provided for in subsections 1 and 2 must be made by independent accountants holding permits to practice public accounting in the State of Nevada.

      4.  Except as otherwise provided in subsection 5, for every audit required pursuant to this section:

      (a) The independent accountants shall submit an audit report which must express an unqualified or qualified opinion or, if appropriate, disclaim an opinion on the statements taken as a whole in accordance with standards for the accounting profession established by rules and regulations of the Nevada state board of accountancy, but the preparation of statements without audit does not constitute compliance.

      (b) The examination and audit must disclose whether the accounts, records and control procedures maintained by the licensee are as required by the regulations published by the commission pursuant to NRS 463.156 to 463.1592, inclusive.

      5.  If the license of a nonrestricted licensee is terminated within 3 months after the end of a period covered by an audit, the licensee may submit compiled statements in lieu of an additional audited statement for the licensee’s final period of business.

      Sec. 13.  NRS 463.160 is hereby amended to read as follows:

      463.160  1.  Except as otherwise provided in subsection 4 and NRS 463.172, it is unlawful for any person, either as owner, lessee or employee, whether for hire or not, either solely or in conjunction with others:

      (a) To deal, operate, carry on, conduct, maintain or expose for play in the State of Nevada any gambling game, gaming device, inter-casino linked system, slot machine, race book or sports pool;

      (b) To provide or maintain any information service; or

      (c) To receive, directly or indirectly, any compensation or reward or any percentage or share of the money or property played, for keeping, running or carrying on any gambling game, slot machine, gaming device, race book or sports pool,

 


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κ1997 Statutes of Nevada, Page 3501 (Chapter 689, AB 419)κ

 

running or carrying on any gambling game, slot machine, gaming device, race book or sports pool,

without having first procured, and thereafter maintaining in effect, all federal, state, county and municipal gaming licenses as required by statute, regulation or ordinance or by the governing board of any unincorporated town.

      2.  The licensure of an operator of an inter-casino linked system is not required if:

      (a) A gaming licensee is operating an inter-casino linked system on the premises of an affiliated licensee; or

      (b) An operator of a slot machine route is operating an inter-casino linked system consisting of slot machines only.

      3.  Except as otherwise provided in subsection 4, it is unlawful for any person knowingly to permit any gambling game, slot machine, gaming device, inter-casino linked system, race book or sports pool to be conducted, operated, dealt or carried on in any house or building or other premises owned by him, in whole or in part, by a person who is not licensed pursuant to this chapter, or his employee.

      4.  The commission may, by regulation, authorize a person to own or lease [slot machines] gaming devices for the limited purpose of display or use in the person’s private residence without procuring a state gaming license.

      5.  As used in this section, “affiliated licensee” has the meaning ascribed to it in NRS 463.430.

      Sec. 14.  NRS 463.170 is hereby amended to read as follows:

      463.170  1.  Any person who the commission determines is qualified to receive a license [or] , to be found suitable or to receive any approval required under the provisions of this chapter, or to be found suitable regarding the operation of a charitable lottery under the provisions of chapter 462 of NRS, having due consideration for the proper protection of the health, safety, morals, good order and general welfare of the inhabitants of the State of Nevada and the declared policy of this state, may be issued a state gaming license [or] , be found suitable [,] or receive any approval required by this chapter, as appropriate. The burden of proving his qualification to receive any license , [or] be found suitable or receive any approval required by this chapter is on the applicant.

      2.  An application to receive a license or be found suitable must not be granted unless the commission is satisfied that the applicant is:

      (a) A person of good character, honesty and integrity;

      (b) A person whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state or to the effective regulation and control of gaming or charitable lotteries, or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or charitable lotteries or in the carrying on of the business and financial arrangements incidental thereto; and

      (c) In all other respects qualified to be licensed or found suitable consistently with the declared policy of the state.


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κ1997 Statutes of Nevada, Page 3502 (Chapter 689, AB 419)κ

 

      3.  A license to operate a gaming establishment must not be granted unless the applicant has satisfied the commission that:

      (a) He has adequate business probity, competence and experience, in gaming or generally; and

      (b) The proposed financing of the entire operation is:

             (1) Adequate for the nature of the proposed operation; and

             (2) From a suitable source.

Any lender or other source of money or credit which the commission finds does not meet the standards set forth in subsection 2 may be deemed unsuitable.

      4.  An application to receive a license or be found suitable constitutes a request for a determination of the applicant’s general character, integrity, and ability to participate or engage in, or be associated with gaming or the operation of a charitable lottery, as appropriate. Any written or oral statement made in the course of an official proceeding of the board or commission by any member thereof or any witness testifying under oath which is relevant to the purpose of the proceeding is absolutely privileged and does not impose liability for defamation or constitute a ground for recovery in any civil action.

      5.  The commission may in its discretion grant a license to:

      (a) A publicly traded corporation which has complied with the provisions of NRS 463.625 to 463.643, inclusive;

      (b) Any other corporation which has complied with the provisions of NRS 463.490 to 463.530, inclusive;

      (c) A limited partnership which has complied with the provisions of NRS 463.564 to 463.571, inclusive; and

      (d) A limited-liability company which has complied with the provisions of NRS 463.5731 to 463.5737, inclusive.

      6.  No limited partnership, except one whose sole limited partner is a publicly traded corporation which has registered with the commission, or a limited-liability company, or business trust or organization or other association of a quasi-corporate character is eligible to receive or hold any license under this chapter unless all persons having any direct or indirect interest therein of any nature whatever, whether financial, administrative, policymaking or supervisory, are individually qualified to be licensed under the provisions of this chapter.

      7.  The commission may, by regulation:

      (a) Limit the number of persons who may be financially interested and the nature of their interest in any corporation, other than a publicly traded corporation, limited partnership, limited-liability company or other organization or association licensed under this chapter; and

      (b) Establish such other qualifications for licenses as it may, in its discretion, deem to be in the public interest and consistent with the declared policy of the state.

      Sec. 15.  NRS 463.3857 is hereby amended to read as follows:

      463.3857  1.  Except as otherwise provided in NRS 463.386, the commission shall charge and collect from each licensee who concludes a gaming operation [, a] :


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κ1997 Statutes of Nevada, Page 3503 (Chapter 689, AB 419)κ

 

      (a) A fee, to be included on the final tax return at the close of operations and derived from application of the rates and monetary limits set forth in NRS 463.370, based on the total outstanding value of collectible credit instruments received as a result of that gaming operation which are held by the licensee and remain unpaid on the last tax day; or

      (b) A monthly fee on all cash or other compensation received by the licensee or any affiliate of the licensee in payment of any credit instrument received as a result of that gaming operation which is held by the licensee or any affiliate of the licensee and remains unpaid on the last tax day.

      2.  The monthly fee must be:

      (a) Calculated by applying to the amount of cash or other compensation received in payment of a credit instrument during the month a rate derived from the application of the rates and monetary limits set forth in NRS 463.370 to the licensee’s experience in receiving payment of credit instruments before concluding gaming operations; and

      (b) Collected and refunded pursuant to the regulations adopted by the commission.

      3.  To secure payment of the monthly fee, the licensee must make a cash deposit or post and maintain a surety bond or other acceptable form of security with the commission in an amount determined by applying the rate derived pursuant to paragraph (a) of subsection 2 to the value of all collectible credit instruments.

      4.  As used in this section:

      (a) “Last tax day” means the last day for which a licensee is legally obligated to pay the fees imposed pursuant to NRS 463.370.

      (b) “Value of all collectible credit instruments” means the amount of cash or other compensation the licensee may reasonably expect to receive in payment of unpaid credit instruments after conclusion of his gaming operation, taking into account all relevant factors.

      Sec. 16.  NRS 463.388 is hereby amended to read as follows:

      463.388  1.  If any person fails to make a report of the state license fees or taxes as required by this chapter, or if the board is not satisfied with the report of the state license fees or taxes required to be paid to the state pursuant to this chapter by any person, the board may compute and determine the amount required to be paid upon the basis of:

      (a) The facts contained in the report, if any;

      (b) An audit conducted by the board;

      (c) An estimate of the amount of taxes or fees due pursuant to the provisions of this chapter;

      (d) Any information within its possession or that may come into its possession; or

      (e) Any combination of the methods described in paragraphs (a) to (d), inclusive.

      2.  Any interest on the tax unpaid by reason of a credit instrument that is the subject of a determination by the board pursuant to NRS 463.371 accrues from the first day of the second month following the month in which the action or omission on which the determination is based occurred.


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κ1997 Statutes of Nevada, Page 3504 (Chapter 689, AB 419)κ

 

      3.  In making such a determination, the board may offset overpayments and interest due thereon against underpayments and interest or penalties due thereon for the period of the audit.

      [3.] 4.  If overpayments and interest thereon exceed underpayments, penalties and interest thereon, the excess must be refunded to the licensee except where otherwise expressly provided.

      Sec. 17.  NRS 463.567 is hereby amended to read as follows:

      463.567  1.  The purported sale, assignment, transfer, pledge , granting 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. 18.  NRS 463.569 is hereby amended to read as follows:

      463.569  Every general partner and limited partner of a limited partnership which holds [or applies for] a state gaming license must be licensed individually, according to the provisions of this chapter, and if, in the judgment of the commission, the public interest will be served by requiring any or all of the limited partnership’s lenders, holders of evidence of indebtedness, underwriters, key executives, agents or employees to be licensed, the limited partnership shall require those persons to apply for a license in accordance with the laws and requirements in effect at the time the commission requires the licensing. Publicly traded corporations which are limited partners of limited partnerships are not required to be licensed, but shall comply with NRS 463.635 to 463.645, inclusive. A person who is required to be licensed by this section as a general or limited partner shall not receive that position until he secures the required approval of the commission. A person who is required to be licensed pursuant to a decision of the commission shall apply for a license within 30 days after the commission requests him to do so.

      Sec. 19.  NRS 463.5733 is hereby amended to read as follows:

      463.5733  1.  The purported sale, assignment, transfer, pledge , granting of an option to purchase or other disposition of any interest in a limited-liability company which holds a license is ineffective unless approved in advance by the commission.


…………………………………………………………………………………………………………………

κ1997 Statutes of Nevada, Page 3505 (Chapter 689, AB 419)κ

 

limited-liability company which holds a 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 license must contain a statement of the restrictions imposed by this section.

      Sec. 20.  NRS 463.5735 is hereby amended to read as follows:

      463.5735  1.  Every member, transferee of a member’s interest in a limited-liability company and manager of a limited-liability company which holds [or applies for] a license must be licensed individually, according to the provisions of this chapter.

      2.  If, in the judgment of the commission, the public interest will be served by requiring any of the limited-liability company’s lenders, holders of evidence of indebtedness, underwriters, key executives, agents or employees to be licensed:

      (a) The limited-liability company shall require those persons to apply for a license in accordance with the laws and requirements in effect at the time the commission requires the licensing; and

      (b) Those persons shall apply for a license within 30 days after being requested to do so by the commission.

      3.  A publicly traded corporation which is a member of a limited-liability company is not required to be licensed, but shall comply with NRS 463.635 to 463.645, inclusive.

      4.  No person may become a member, a transferee of a member’s interest in a limited-liability company or a manager of a limited-liability company which holds [or has applied for] a license until he secures the required approval of the commission.

      Sec. 21.  NRS 463.635 is hereby amended to read as follows:

      463.635  1.  If a corporation, partnership, limited partnership, limited-liability company or other business organization applying for or holding a state gaming license is or becomes owned in whole or in part or controlled by a publicly traded corporation, or if a publicly traded corporation applies for or holds a state gaming license, the publicly traded corporation shall:


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κ1997 Statutes of Nevada, Page 3506 (Chapter 689, AB 419)κ

 

      (a) Maintain a ledger in the principal office of its subsidiary which is licensed to conduct gaming in this state, which must:

             (1) Reflect the ownership of record of each outstanding share of any class of equity security issued by the publicly traded corporation. The ledger may initially consist of a copy of its latest list of equity security holders and thereafter be maintained by adding a copy of such material as it regularly receives from the transfer agent for its equity securities of any class which are outstanding.

             (2) Be available for inspection by the board and the commission and their authorized agents at all reasonable times without notice.

      (b) Register with the commission and provide the following information to the board:

             (1) The organization, financial structure and nature of the business of the publicly traded corporation, including the names of all officers, directors and any employees actively and directly engaged in the administration or supervision of the activities of the gaming licensee, and the names, addresses and number of shares held of record by holders of its equity securities.

             (2) The rights and privileges accorded the holders of different classes of its authorized equity securities.

             (3) The terms on which its equity securities are to be, and during the preceding 3 years have been, offered by the corporation to the public or otherwise initially issued by it.

             (4) The terms and conditions of all its outstanding loans, mortgages, trust deeds, pledges or any other indebtedness or security device, directly relating to the gaming activities of the gaming licensee.

             (5) The extent of the equity security holdings of record in the publicly traded corporation of all officers, directors, underwriters and persons owning of record equity securities of any class of the publicly traded corporation, and any payment received by any such person from the publicly traded corporation for each of its 3 preceding fiscal years for any reason whatsoever.

             (6) Remuneration exceeding $40,000 per annum to persons other than directors and officers who are actively and directly engaged in the administration or supervision of the gaming activities of the gaming licensee.

             (7) Bonus and profit-sharing arrangements of the publicly traded corporation directly or indirectly relating to the gaming activities of the gaming licensee.

             (8) Management and service contracts of the publicly traded corporation directly or indirectly relating to the gaming activities of the gaming licensee.

             (9) Options existing or from time to time created in respect of its equity securities.

             (10) Balance sheets, certified by independent public accountants, for at least the 3 preceding fiscal years, or if the publicly traded corporation has not been incorporated for a period of 3 years, balance sheets from the time of its incorporation. These balance sheets may be those filed by it with or furnished by it to the Securities and Exchange Commission.


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κ1997 Statutes of Nevada, Page 3507 (Chapter 689, AB 419)κ

 

             (11) Profit and loss statements, certified by independent certified public accountants, for at least the 3 preceding fiscal years, or, if the publicly traded corporation has not been incorporated for a period of 3 years, profit and loss statements from the time of its incorporation. These profit and loss statements may be those filed by it with or furnished by it to the Securities and Exchange Commission.

             (12) Any further information within the knowledge or control of the publicly traded corporation which either the board or the commission may deem necessary or appropriate for the protection of this state, or licensed gambling, or both. The board or the commission may [in its discretion] make such investigation of the publicly traded corporation or any of its officers, directors, security holders or other persons associated therewith as it deems necessary.

      (c) Apply for an order of registration from the commission which must set forth a description of the publicly traded corporation’s affiliated companies and intermediary companies, and the various gaming licenses and approvals obtained by those entities. The commission may issue an order of registration upon receipt of a proper application. If the information set forth in an order of registration changes, the publicly traded corporation shall apply for and the commission may issue amendments to and revisions of the order of registration to reflect the changes.

      (d) If the publicly traded corporation is a foreign corporation, qualify to do business in this state.

      2.  If the board determines that a publicly traded corporation registered with the commission or any of its affiliates or intermediary companies, have ceased engaging in gaming activities in Nevada, the board may, upon its own motion, recommend that the commission deregister the publicly traded corporation. Before making such a recommendation for deregistration, the board shall provide at least 30 days’ notice to the publicly traded corporation that it intends to move for deregistration. If the board is unable to confirm that notice has been received by the publicly traded corporation, the board shall provide notice to the last known address of the registered agent of the publicly traded corporation. If the commission issues an order deregistering the publicly traded corporation, a copy of the order must be provided to the publicly traded corporation together with a notice that the publicly traded corporation must apply, within 5 years after the date of the order of deregistration, to the commission for a refund of any money of the publicly traded corporation held by the board. If the commission is unable to confirm that the publicly traded corporation has received the order, the commission shall provide the order to the last known address of the registered agent of the publicly traded corporation. The publicly traded corporation must apply to the board for a refund of any investigative or other money of the publicly traded corporation held by the board within 5 years after the date of deregistration. The money of the publicly traded corporation for which a refund is not requested within 5 years after the date of deregistration is presumed abandoned and is subject to the provisions of chapter 120A of NRS.

      3.  The commission may adopt regulations that generally or selectively impose on any publicly traded corporation any requirement not inconsistent with law which it may deem necessary in the public interest.


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κ1997 Statutes of Nevada, Page 3508 (Chapter 689, AB 419)κ

 

with law which it may deem necessary in the public interest. Without limiting the generality of the preceding sentence, any such requirement may deal with the same subject matter as, but be more stringent than, the requirements imposed by NRS 463.482 to 463.645, inclusive.

      Sec. 22.  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 or cashless wagering 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 [slot machines] gaming devices for home use in accordance with NRS 463.160 to sell such devices without procuring a license therefor.

      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.


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κ1997 Statutes of Nevada, Page 3509 (Chapter 689, AB 419)κ

 

      9.  As used in this section, “holding company” has the meaning ascribed to it in NRS 463.485.

      Sec. 23.  NRS 464.005 is hereby amended to read as follows:

      464.005  As used in this chapter, unless the context otherwise requires:

      1.  “Gross revenue” means the amount of the commission received by a licensee that is deducted from off-track pari-mutuel wagering, plus breakage and the face amount of unpaid winning tickets that remain unpaid for a period specified by the Nevada gaming commission.

      2.  “Off-track pari-mutuel system” means a computerized system, or component of such a system, that is used with regard to a pari-mutuel pool to transmit information such as amounts wagered, odds and payoffs on races.

      [2.] 3.  “Off-track pari-mutuel wagering” means any pari-mutuel system of wagering approved by the Nevada gaming commission for the acceptance of wagers on:

      (a) Races which take place outside of this state; or

      (b) Sporting events.

      [3.] 4.  “Operator of a system” means a person engaged in providing an off-track pari-mutuel system.

      [4.] 5.  “Pari-mutuel system of wagering” means any system whereby wagers with respect to the outcome of a race or sporting event are placed in a wagering pool conducted by a person licensed or otherwise permitted to do so under state law, and in which the participants are wagering with each other and not against that person. The term includes off-track pari-mutuel wagering.

      Sec. 24.  NRS 464.045 is hereby amended to read as follows:

      464.045  1.  The provisions of subsections 3 and 5 of NRS 464.040 do not apply to persons licensed to conduct off-track pari-mutuel wagering.

      2.  A licensed gaming establishment [which has been approved to conduct off-track pari-mutuel wagering shall include within gross revenue, for the purpose of determining the amount of] is subject to the monthly state license [fee imposed by] fees and provisions of  NRS 463.370 [, the amount of the commission deducted from] on all gross revenue attributable to the operation of an off-track pari-mutuel [wagering received by it, plus breakage and the face amount of unpaid winning tickets that remain unclaimed for a period specified by the commission.] system of wagering.

      3.  In calculating the monthly state license fee imposed by NRS 463.370, a licensee shall not deduct from gross revenue any promotional allowances, including, without limitation, prizes, payments, premiums, drawings, discounts, rebates, bonus payouts, benefits or tickets that are redeemable for money or merchandise.

      Sec. 25.  Sections 5, 8 and 13 of this act become effective at 12:01 a.m. on October 1, 1997.

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κ1997 Statutes of Nevada, Page 3510κ

 

CHAPTER 690, AB 484

Assembly Bill No. 484–Committee on Judiciary

CHAPTER 690

AN ACT relating to property; revising the provisions governing certain procedures for summary eviction; and providing other matters properly relating thereto.

 

[Approved July 17, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 40 of NRS is hereby amended by adding thereto a new section to read as follows:

      Upon an appeal from an order entered pursuant to NRS 40.253:

      1.  Except as otherwise provided in this subsection, a stay of execution may be obtained by filing with the trial court a bond in the amount of $250 to cover the expected costs on appeal. In an action concerning a lease of commercial property or any other property for which the monthly rent exceeds $1,000, the court may, upon its own motion or that of a party, and upon a showing of good cause, order an additional bond to be posted to cover the expected costs on appeal. A surety upon the bond submits to the jurisdiction of the appellate court and irrevocably appoints the clerk of that court as his agent upon whom papers affecting his liability upon the bond may be served. Liability of a surety may be enforced, or the bond may be released, on motion in the appellate court without independent action.

      2.  A tenant who retains possession of the premises that are the subject of the appeal during the pendency of the appeal shall pay to the landlord rent in the amount provided in the underlying contract between the tenant and the landlord as it becomes due. If the tenant fails to pay such rent, the landlord may initiate new proceedings for a summary eviction by serving the tenant with a new notice pursuant to NRS 40.253.

      Sec. 2.  NRS 40.215 is hereby amended to read as follows:

      40.215  As used in NRS 40.220 to 40.425, inclusive, and section 1 of this act, unless the context requires otherwise:

      1.  “Mobile home” means every vehicle, including equipment, which is constructed, reconstructed or added to in such a way as to have an enclosed room or addition occupied by one or more persons as a dwelling or sleeping place and which has no foundation other than wheels, jacks, skirting or other temporary support.

      2.  “Mobile home lot” means a portion of land within a mobile home park which is rented or held out for rent to accommodate a mobile home.

      3.  “Mobile home park” or “park” means an area or tract of land where two or more mobile homes or mobile home lots are rented or held out for rent. “Mobile home park” or “park” does not include those areas or tracts of land, whether within or outside of a park, where the lots are held out for rent on a nightly basis.

      4.  “Premises” includes a mobile home.

      5.  “Recreational vehicle” means a vehicular structure primarily designed as temporary living quarters for travel, recreational or camping use, which may be self-propelled or mounted upon or drawn by a motor vehicle.


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κ1997 Statutes of Nevada, Page 3511 (Chapter 690, AB 484)κ

 

use, which may be self-propelled or mounted upon or drawn by a motor vehicle.

      6.  “Recreational vehicle lot” means a portion of land within a recreational vehicle park, or a portion of land so designated within a mobile home park, which is rented or held out for rent to accommodate a recreational vehicle overnight or for less than 3 months.

      7.  “Recreational vehicle park” means an area or tract of land where lots are rented or held out for rent to accommodate a recreational vehicle overnight or for less than 3 months.

      Sec. 3.  NRS 40.253 is hereby amended to read as follows:

      40.253  1.  Except as otherwise provided in subsection 9, in addition to the remedy provided in NRS 40.2512 and in NRS 40.290 to 40.420, inclusive, when the tenant of any dwelling, apartment, mobile home, recreational vehicle or commercial premises with periodic rent reserved by the month or any shorter period [,] is in default in payment of the rent, the landlord or his agent, unless otherwise agreed in writing, may serve or have served a notice in writing, requiring in the alternative the payment of the rent or the surrender of the premises:

      (a) At or before noon of the fifth full day following the day of service; or

      (b) If the landlord chooses not to proceed in the manner set forth in paragraph (a) and the rent is reserved by a period of 1 week or less and the tenancy has not continued for more than 45 days, at or before noon of the fourth full day following the day of service.

As used in this [paragraph,] subsection, “day of service” means the day the landlord or his agent personally delivers the notice to the tenant. If personal service was not so delivered, the “day of service” means the day the notice is delivered, after posting and mailing pursuant to subsection 2, to the sheriff or constable for service if the request for service is made before noon. If the request for service by the sheriff or constable is made after noon, the “day of service” shall be deemed to be the day next following the day that the request is made for service by the sheriff or constable.

      2.  A landlord or his agent who serves a notice to a tenant pursuant to paragraph (b) of subsection 1 shall attempt to deliver the notice in person in the manner set forth in paragraph (a) of subsection 1 of NRS 40.280. If the notice cannot be delivered in person, the landlord or his agent:

      (a) Shall post a copy of the notice in a conspicuous place on the premises and mail the notice by overnight mail; and

      (b) After the notice has been posted and mailed, may deliver the notice to the sheriff or constable for service in the manner set forth in subsection 1 of NRS 40.280. The sheriff or constable shall not accept the notice for service unless it is accompanied by written evidence, signed by the tenant when he took possession of the premises, that the landlord or his agent informed the tenant of the provisions of this section which set forth the lawful procedures for eviction from a short-term tenancy. Upon acceptance, the sheriff or constable shall serve the notice within 48 hours after the request for service was made by the landlord or his agent.

      3.  A notice served pursuant to subsection 1 or 2 must:

      (a) Identify the court that has jurisdiction over the matter; and


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κ1997 Statutes of Nevada, Page 3512 (Chapter 690, AB 484)κ

 

      (b) Advise the tenant of his right to contest the matter by filing, within the time specified in subsection 1 for the payment of the rent or surrender of the premises, an affidavit with the court that has jurisdiction over the matter stating that he has tendered payment or is not in default in the payment of the rent.

      4.  If the tenant files such an affidavit at or before the time stated in the notice, the landlord or his agent, after receipt of a file-stamped copy of the affidavit which was filed, shall not provide for the nonadmittance of the tenant to the premises by locking or otherwise.

      5.  Upon noncompliance with the notice:

      (a) The landlord or his agent may apply by affidavit of complaint for eviction to the justice’s court of the township in which the dwelling, apartment, mobile home or commercial premises are located or to the district court of the county in which the dwelling, apartment, mobile home or commercial premises are located, whichever has jurisdiction over the matter. The court may thereupon issue an order directing the sheriff or constable of the county to remove the tenant within 24 hours after receipt of the order. The affidavit [provided for in this paragraph] must state or contain:

             (1) The date the tenancy commenced.

             (2) The amount of periodic rent reserved.

             (3) The amounts of any cleaning, security or rent deposits paid in advance, in excess of the first month’s rent, by the tenant.

             (4) The date the rental payments became delinquent.

             (5) The length of time the tenant has remained in possession without paying rent.

             (6) The amount of rent claimed due and delinquent.

             (7) A statement that the written notice was served on the tenant in accordance with NRS 40.280.

             (8) A copy of the written notice served on the tenant.

             (9) A copy of the signed written rental agreement, if any.

      (b) Except [where] when the tenant has timely filed the affidavit described in subsection 3 and a file-stamped copy of it has been received by the landlord or his agent, and except when the landlord is prohibited pursuant to NRS 118A.480, the landlord or his agent may, in a peaceable manner, provide for the nonadmittance of the tenant to the premises by locking or otherwise.

      6.  Upon the filing by the tenant of the affidavit permitted in subsection 3 , regardless of the information contained in the affidavit, and the filing by the landlord of the affidavit permitted by subsection 5, the justice’s court or the district court shall hold a hearing, after service of notice of the hearing upon the parties, to determine the truthfulness and sufficiency of any affidavit or notice provided for in this section. If the court determines that there is no legal defense as to the alleged unlawful detainer and the tenant is guilty of an unlawful detainer, the court may issue a summary order for removal of the tenant or an order providing for the nonadmittance of the tenant . [pursuant to subsection 5.] If the court determines that there is a legal defense as to the alleged unlawful detainer, the court shall refuse to grant either party any relief, and, except as otherwise provided in this subsection, shall require that any further proceedings be conducted pursuant to NRS 40.290 to 40.420, inclusive.


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κ1997 Statutes of Nevada, Page 3513 (Chapter 690, AB 484)κ

 

subsection, shall require that any further proceedings be conducted pursuant to NRS 40.290 to 40.420, inclusive. The issuance of a summary order for removal of the tenant does not preclude an action by the tenant for any damages or other relief to which he may be entitled. If the alleged unlawful detainer was based upon subsection 5 of NRS 40.2514, the refusal by the court to grant relief does not preclude the landlord thereafter from pursuing an action for unlawful detainer in accordance with NRS 40.251.

      7.  The tenant may, upon payment of the appropriate fees relating to the filing and service of a motion, file a motion with the court, on a form provided by the clerk of the court, to dispute the amount of the costs, if any, claimed by the landlord pursuant to NRS 118A.460 for the inventory, moving and storage of personal property left on the premises. The motion must be filed within 20 days after the summary order for removal of the tenant or the abandonment of the premises by the tenant, or within 20 days after:

      (a) The tenant has vacated or been removed from the premises; and

      (b) A copy of those charges has been requested by or provided to the tenant,

whichever is later.

      8.  Upon the filing of a motion pursuant to subsection 7, the court shall schedule a hearing on the motion. The hearing must be held within 10 days after the filing of the motion. The court shall affix the date of the hearing to the motion and order a copy served upon the landlord by the sheriff, constable or other process server. At the hearing, the court may:

      (a) Determine the costs, if any, claimed by the landlord pursuant to NRS 118A.460, and any accumulating daily costs; and

      (b) Order the release of the tenant’s property upon the payment of the charges determined to be due or if no charges are determined to be due.

      9.  This section does not apply to the tenant of a mobile home lot in a mobile home park or to the tenant of a recreational vehicle lot in an area of a mobile home park in this state other than an area designated as a recreational vehicle lot pursuant to the provisions of subsection 6 of NRS 40.215.

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κ1997 Statutes of Nevada, Page 3514κ

 

CHAPTER 691, SB 267

Senate Bill No. 267–Senator Augustine

CHAPTER 691

AN ACT relating to financial institutions; revising the provisions governing the closure of certain financial institutions on Saturdays, Sundays and holidays; temporarily authorizing the commissioner of financial institutions to waive or modify Nevada law under certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 22, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 662.015 is hereby amended to read as follows:

      662.015  1.  In addition to the powers conferred by law upon private corporations and limited-liability companies, a bank may:

      (a) Exercise by its board of directors, managers or authorized officers and agents, subject to law, all powers necessary to carry on the business of banking by:

             (1) Discounting and negotiating promissory notes, drafts, bills of exchange and other evidences of indebtedness;

             (2) Receiving deposits;

             (3) Buying and selling exchange, coin and bullion; and

             (4) Loaning money on personal security or real and personal property.

At the time of making loans, banks may take and receive interest or discounts in advance.

      (b) Adopt regulations for its own government not inconsistent with the constitution and laws of this state.

      (c) Issue, advise and confirm letters of credit authorizing the beneficiaries to draw upon the bank or its correspondents.

      (d) Receive money for transmission.

      (e) Establish and become a member of a clearinghouse association and pledge assets required for its qualification.

      (f) Exercise any authority and perform all acts that a national bank may exercise or perform, with the consent and written approval of the commissioner. The commissioner may, by regulation, waive or modify a requirement of [this Title] Nevada law if the corresponding requirement for national banks is eliminated or modified.

      (g) Provide for the performance of the services of a bank service corporation, such as data processing and bookkeeping, subject to any regulations adopted by the commissioner.

      (h) Unless otherwise specifically prohibited by federal law, sell annuities if licensed by the commissioner of insurance.

      2.  A bank may purchase, hold and convey real property:

      (a) As is necessary for the convenient transaction of its business, including furniture and fixtures, with its banking offices and for future site expansion. This investment must not exceed, except as otherwise provided in this section, 60 percent of its stockholders’ or members’ equity, plus subordinated capital notes and debentures.


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κ1997 Statutes of Nevada, Page 3515 (Chapter 691, SB 267)κ

 

subordinated capital notes and debentures. The commissioner may authorize any bank located in a city whose population is more than 10,000 to invest more than 60 percent of its stockholders’ or members’ equity, plus subordinated capital notes and debentures, in its banking offices, furniture and fixtures.

      (b) As is mortgaged to it in good faith by way of security for loans made or money due to the bank.

      (c) As is permitted by NRS 662.103.

      3.  This section does not prohibit any bank from holding, developing or disposing of any real property it may acquire through the collection of debts due it. Any real property acquired through the collection of debts due it may not be held for longer than 10 years. It must be sold at private or public sale within 30 days thereafter. During the time that the bank holds the real property, the bank shall charge off the real property on a schedule of not less than 10 percent per year, or at a greater percentage per year as the commissioner may require.

      Sec. 2.  NRS 662.255 is hereby amended to read as follows:

      662.255  [Subject to the provisions of NRS 104.4303, all banks organized pursuant to the provisions of this Title or doing business in this state must be closed, and no business may be transacted with the public,]

      1.  A bank may elect to close on Saturdays, Sundays or legal holidays . [, except for the maintenance and operation of mechanical tellers and for limited services as approved by the commissioner.] Except as otherwise provided in NRS 104.4303, if a bank elects not to close on a Saturday, Sunday or legal holiday, all business transacted on a Saturday, Sunday or legal holiday shall be deemed to have been transacted on the next banking day that is not a Saturday, Sunday or legal holiday.

      2.  As used in this section, the term “legal holiday” includes all days which are declared by NRS 236.015 to be legal holidays.

      Sec. 3.  NRS 236.015 is hereby amended to read as follows:

      236.015  1.  The following days are declared to be legal holidays for state, county and city governmental offices:

 

      January 1 (New Year’s Day)

      Third Monday in January (Martin Luther King, Jr.’s Birthday)

      Third Monday in February (Washington’s Birthday)

      Last Monday in May (Memorial Day)

      July 4 (Independence Day)

      First Monday in September (Labor Day)

      October 31 (Nevada Day)

      November 11 (Veterans’ Day)

      Fourth Thursday in November (Thanksgiving Day)

      Friday following the fourth Thursday in November (Family Day)

      December 25 (Christmas Day)

      Any day that may be appointed by the President of the United States for public fast, thanksgiving or as a legal holiday except for any Presidential appointment of the fourth Monday in October as Veterans’ Day.

 


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κ1997 Statutes of Nevada, Page 3516 (Chapter 691, SB 267)κ

 

      2.  Except as otherwise provided by NRS 293.560, all state, county and city offices, courts, [banks, savings and loan associations,] public schools and the University and Community College System of Nevada must close on the legal holidays enumerated in subsection 1 unless in the case of appointed holidays all or a part thereof are specifically exempted.

      3.  If January 1, July 4, October 31, November 11 or December 25 falls upon a:

      (a) Sunday, the Monday following must be observed as a legal holiday.

      (b) Saturday, the Friday preceding must be observed as a legal holiday.

      [4.  To celebrate the 500th anniversary of the arrival of Cristoforo Columbo in the New World, October 12, 1992, is hereby declared to be a legal holiday for state, county and city governmental offices. All state, county and city offices, courts, banks, savings and loan associations, public schools and the University and Community College System of Nevada must close on this day.]

      Sec. 4.  This act becomes effective upon passage and approval.

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