[Rev. 2/11/2019 1:07:27 PM]

Link to Page 1558

 

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

κ1999 Statutes of Nevada, Page 1559 (CHAPTER 355, SB 50)κ

 

    (c) Is, pursuant to statute, regulation or contract, entitled to payment for unused sick leave; and

    (d) Is employed by the board of trustees of a school district that has, pursuant to subsection 5 of NRS 391.180, provided for the payment of unused sick leave in the form of purchase of service,

may cause to be purchased on his behalf service credit, not to exceed the number of hours of unused sick leave or 1 year, whichever is less. The full actuarial cost of the service as determined by an actuary of the system must be paid for such a purchase. Any service credit purchased pursuant to this subsection must be included as a part of, and is not in addition to, service purchased pursuant to subsection 2.

      Sec. 3.  This act becomes effective on July 1, 1999.

________

CHAPTER 356, SB 51

Senate Bill No. 51–Committee on Human Resources and Facilities

 

CHAPTER 356

 

AN ACT relating to educational personnel; authorizing school districts, in determining the salaries of certain teachers, to give credit to those teachers for previous teaching service earned in another state; requiring the commission on professional standards in education to adopt regulations for approval of the standards for licensing teachers of other states; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 391.160 is hereby amended to read as follows:

      391.160  1.  The salaries of teachers and other employees must be determined by the character of the service required. A school district shall not discriminate between male and female employees in the matter of salary.

      2.  Each year when determining the salary of a teacher who holds certification issued by the National Board for Professional Teaching Standards, a school district shall add 5 percent to the salary that the teacher would otherwise receive in 1 year for his classification on the schedule of salaries for the school district if:

      (a) On or before September 15 of the school year, the teacher has submitted evidence satisfactory to the school district of his current certification; and

      (b) The teacher is assigned by the school district to provide classroom instruction during that school year.

No increase in salary may be given during a particular school year to a teacher who submits evidence of certification after September 15 of that school year. Once a teacher has submitted evidence of such certification to the school district, the school district shall retain the evidence in its records, as applicable, for future school years. An increase in salary given in accordance with this subsection is in addition to any other increase to which the teacher may otherwise be entitled.


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

κ1999 Statutes of Nevada, Page 1560 (CHAPTER 356, SB 51)κ

 

      3.  In determining the salary of a licensed teacher who is employed by a school district after [having] the teacher has been employed by another school district in this state, the present employer shall, except as otherwise provided in subsection [4:] 5:

    (a) Give the teacher the same credit for previous teaching service as he was receiving from his former employer at the end of his former employment; and

    (b) Give [him] the teacher credit for his final year of service with his former employer, if credit for that service is not included in credit given pursuant to paragraph (a).

      4.  A school district may give the credit required by subsection 3 for previous teaching service earned in another state if the commission has approved the standards for licensing teachers of that state. The commission shall adopt regulations that establish the criteria by which the commission will consider the standards for licensing teachers of other states for the purposes of this subsection. The criteria may include, without limitation, whether the commission has authorized reciprocal licensure of educational personnel from the state under consideration.

      5.  This section does not:

    (a) Require a school district to allow a teacher more credit for previous teaching service than the maximum credit for teaching experience provided for in the schedule of salaries established by it for its licensed personnel.

    (b) Permit a school district to deny a teacher credit for his previous teaching service on the ground that the service differs in kind from the teaching experience for which credit is otherwise given by the school district.

     [5.] 6.  As used in this section, “previous teaching service” means the total of:

    (a) Any period of teaching service for which a teacher received credit from his former employer at the beginning of his former employment; and

      (b) His period of teaching service in his former employment.

      Sec. 2.  The amendatory provisions of this act do not apply to the salaries of teachers who are hired by a school district in this state before July 1, 2000.

      Sec. 3.  The commission on professional standards in education shall adopt the regulations required by the amendatory provisions of section 1 of this act on or before January 1, 2000.

      Sec. 4.  1.  This section and sections 2 and 3 of this act become effective upon passage and approval.

      2.  Section 1 of this act becomes effective at 12:01 a.m. on July 1, 1999, for the purpose of adopting regulations and on July 1, 2000, for all other purposes.

________

 


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

κ1999 Statutes of Nevada, Page 1561κ

 

CHAPTER 357, SB 61

Senate Bill No. 61–Committee on Judiciary

 

CHAPTER 357

 

AN ACT relating to business; providing for the creation of business trusts; making various changes concerning other forms of business organization; revising various provisions governing the filing of organizational and related documents; revising certain provisions governing sales of real property; providing penalties; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Title 7 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 57, 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 12, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 3. “Beneficial owner” means the owner of a beneficial interest in a business trust.

      Sec. 4. “Business trust” means an unincorporated association which:

      1.  Is created by a trust instrument under which property is held, managed, controlled, invested, reinvested or operated, or any combination of these, or business or professional activities for profit are carried on, by a trustee for the benefit of the persons entitled to a beneficial interest in the trust property; and

      2.  Files a certificate of trust pursuant to section 15 of this act.

The term includes, without limitation, a trust of the type known at common law as a business trust or Massachusetts trust, a trust qualifying as a real estate investment trust pursuant to 26 U.S.C. §§ 856 et seq., as amended, or any successor provision, or a trust qualifying as a real estate mortgage investment conduit pursuant to 26 U.S.C. § 860D, as amended, or any successor provision. The term does not include a corporation as that term is defined in 11 U.S.C. § 101(9).

      Sec. 5. “Foreign business trust” means a business trust formed pursuant to the laws of a foreign nation or other foreign jurisdiction and denominated as such pursuant to those laws.

      Sec. 6. “Governing instrument” means the trust instrument that creates a business trust and provides for the governance of its affairs and the conduct of its business.

      Sec. 7. “Registered office” means the office of a business trust maintained at the street address of its resident agent.

      Sec. 8. “Resident agent” means the agent appointed by a business trust upon whom process or a notice or demand authorized by law to be served upon the business trust may be served.

      Sec. 9. “Sign” means to affix a signature to a document.


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

κ1999 Statutes of Nevada, Page 1562 (CHAPTER 357, SB 61)κ

 

      Sec. 10. “Signature” means a name, word or mark executed or adopted by a person with the present intention to authenticate a document. The term includes, without limitation, an electronic symbol as described in NRS 239.042.

      Sec. 11. “Street address” of a resident agent means the actual physical location in this state at which a resident agent is available for service of process.

      Sec. 12. “Trustee” means the person or persons appointed as trustee in accordance with the governing instrument of a business trust.

      Sec. 13. The provisions of this chapter apply to commerce with foreign nations and among the several states. It is the intention of the legislature by enactment of this chapter that the legal existence of business trusts formed pursuant to this chapter be recognized beyond the limits of this state and that, subject to any reasonable requirement of registration, any such business trust transacting business outside this state be granted protection of full faith and credit pursuant to section 1 of article IV of the Constitution of the United States.

      Sec. 14. A business trust may be formed to carry on any lawful business or activity.

      Sec. 15. 1.  One or more persons may form a business trust by executing and filing with the secretary of state a certificate of trust and a certificate of acceptance of appointment signed by the resident agent of the business trust. The certificate of trust must set forth:

      (a) The name of the business trust;

      (b) The name and the post office box or street address, either residence or business, of at least one trustee;

      (c) The name of the person designated as the resident agent for the business trust, the street address of the resident agent where process may be served upon the business trust and the mailing address of the resident agent if different from the street address;

      (d) The name and post office box or street address, either residence or business, of each person signing the certificate of trust; and

      (e) Any other information the trustees determine to include.

      2.  Upon the filing of the certificate of trust and the certificate of acceptance with the secretary of state and the payment to him of the required filing fee, the secretary of state shall issue to the business trust a certificate that the required documents with the required content have been filed. From the date of that filing, the business trust is legally formed pursuant to this chapter.

      Sec. 16. 1.  A certificate of trust may be amended by filing with the secretary of state a certificate of amendment signed by at least one trustee. The certificate of amendment must set forth:

      (a) The name of the business trust;

      (b) The date of filing of the original certificate of trust; and

      (c) The amendment to the certificate of trust.

      2.  A certificate of trust may be restated by integrating into a single instrument all the provisions of the original certificate, and all amendments to the certificate, which are then in effect or are to be made by the restatement.


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

κ1999 Statutes of Nevada, Page 1563 (CHAPTER 357, SB 61)κ

 

by the restatement. The restated certificate of trust must be so designated in its heading, must be signed by at least one trustee and must set forth:

      (a) The present name of the business trust and, if the name has been changed, the name under which the business trust was originally formed;

      (b) The date of filing of the original certificate of trust;

      (c) The provisions of the original certificate of trust, and all amendments to the certificate, which are then in effect; and

      (d) Any further amendments to the certificate of trust.

      3.  A certificate of trust may be amended or restated at any time for any purpose determined by the trustees.

      Sec. 17. 1.  The name of a business trust formed pursuant to the provisions of this chapter must contain the words “Business Trust” or the abbreviation “B.T.” or “BT.”

      2.  The name proposed for a business trust must be distinguishable on the records of the secretary of state from the names of all other artificial persons formed, organized, registered or qualified pursuant to the provisions of this Title that are on file in the office of the secretary of state and all names that are reserved in the office of the secretary of state pursuant to the provisions of this Title. If a proposed name is not so distinguishable, the secretary of state shall return the certificate of trust containing it to the signers of the certificate, unless the written, acknowledged consent of the holder of the name on file or reserved name to use the same name or the requested similar name accompanies the certificate.

      3.  For the purposes of this section and section 18 of this act, a proposed name is not distinguishable from a name on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or trade name, or any combination of these.

      4.  The name of a business trust whose certificate of trust has been revoked, which has merged and is not the surviving entity or whose existence has otherwise terminated is available for use by any other artificial person.

      5.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 18. 1.  The secretary of state, when requested to do so, shall reserve, for a period of 90 days, the right to use a name available pursuant to section 19 of this act for the use of a proposed business trust. During the period, the name so reserved is not available for use or reservation by any other artificial person forming, organizing, registering or qualifying in the office of the secretary of state pursuant to the provisions of this Title without the written, acknowledged consent of the person at whose request the reservation was made.

      2.  The use by any artificial person of a name in violation of subsection 1 or section 17 of this act may be enjoined, even if the document under which the artificial person is formed, organized, registered or qualified has been filed by the secretary of state.

      Sec. 19. Upon the filing of a certificate of amendment or restatement with the secretary of state, or upon the future effective date of such a certificate as provided for therein, the certificate of trust is amended or restated as set forth.


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

κ1999 Statutes of Nevada, Page 1564 (CHAPTER 357, SB 61)κ

 

restated as set forth. Upon the filing of a certificate of cancellation, or articles of merger in which the business trust is not a surviving entity, with the secretary of state, or upon the future effective date of the certificate or articles, the certificate of trust is canceled.

      Sec. 20. A signature on any certificate authorized to be filed with the secretary of state pursuant to a provision of this chapter may be a facsimile. The certificate may be filed by telecopy or similar electronic transmission, but the secretary of state need not accept the filing if the certificate is illegible or otherwise unsuitable for the procedures of his office.

      Sec. 21. 1.  Except as otherwise provided in the certificate of trust, the governing instrument or this chapter, a business trust has perpetual existence and may not be terminated or revoked by a beneficial owner or other person except in accordance with the certificate of trust or governing instrument.

      2.  Except as otherwise provided in the certificate of trust or the governing instrument, the death, incapacity, dissolution, termination or bankruptcy of a beneficial owner does not result in the termination or dissolution of a business trust.

      3.  An artificial person formed or organized pursuant to the laws of a foreign nation or other foreign jurisdiction or the laws of another state shall not be deemed to be doing business in this state solely because it is a beneficial owner or trustee of a business trust.

      4.  The provisions of NRS 662.245 do not apply to the appointment of a trustee of a business trust formed pursuant to this chapter.

      Sec. 22. A governing instrument may consist of one or more agreements, instruments or other writings and may include or incorporate bylaws containing provisions relating to the business of the business trust, the conduct of its affairs, and its rights or powers or the rights or powers of its trustees, beneficial owners, agents or employees. The governing instrument may provide that one or more of the beneficial owners may serve as trustee.

      Sec. 23. 1.  Except as otherwise provided in the governing instrument, a beneficial owner participates in the profits and losses of a business trust in the proportion of his beneficial interest to the entire beneficial interest. A governing instrument may provide that the business trust, or the trustees on its behalf, hold beneficial ownership of income earned on securities owned by the business trust.

      2.  A creditor of a beneficial owner has no right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, property of the business trust.

      3.  A beneficial interest in a business trust is personal property regardless of the nature of the property of the business trust. Except as otherwise provided in the certificate of trust or the governing instrument, a beneficial owner has no interest in specific property of the business trust.

      4.  A beneficial interest in a business trust may be evidenced by the issuance of certificates of ownership or by other means set forth in the certificate of trust or the governing instrument.


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

κ1999 Statutes of Nevada, Page 1565 (CHAPTER 357, SB 61)κ

 

      5.  Except as otherwise provided in the certificate of trust or the governing instrument, a beneficial interest in a business trust is freely transferable.

      6.  Except as otherwise provided in the certificate of trust or the governing instrument, if a beneficial owner becomes entitled to receive a distribution, he has the status of, and is entitled to all remedies available to, a creditor of the business trust with respect to the distribution. The governing instrument may provide for the establishment of record dates with respect to allocations and distributions by a business trust.

      7.  The fact of ownership of a beneficial interest in a business trust is determined, and the means of evidencing it are set forth, by the applicable provisions of the certificate of trust or the governing instrument.

      Sec. 24. 1.  Except during any period of vacancy described in section 27 of this act, a business trust shall have a resident agent who resides or is located in this state. A resident agent shall have a street address for the service of process and may have a mailing address such as a post office box, which may be different from the street address.

      2.  A business trust formed pursuant to this chapter that fails or refuses to comply with the requirements of this section is subject to a fine of not less than $100 nor more than $500, to be recovered with costs by the state, before any court of competent jurisdiction, by action at law prosecuted by the attorney general or by the district attorney of the county in which the action or proceeding to recover the fine is prosecuted.

      Sec. 25. 1.  Within 30 days after changing the location of his office from one address to another in this state, a resident agent shall execute a certificate setting forth:

      (a) The names of all the business trusts represented by him;

      (b) The address at which he has maintained the registered office for each of those business trusts; and

      (c) The new address to which his office is transferred and at which he will maintain the registered office for each of those business trusts.

      2.  Upon the filing of the certificate with the secretary of state, the registered office of each of the business trusts listed in the certificate is located at the new address set forth in the certificate.

      Sec. 26. 1.  If the resident agent is a bank or an artificial person formed or organized pursuant to this Title, it may:

      (a) Act as the fiscal or transfer agent of a state, municipality, body politic or business trust, and in that capacity may receive and disburse money.

      (b) Transfer, register and countersign certificates evidencing a beneficial owner’s interest in a business trust, bonds or other evidences of indebtedness and act as agent of any business trust, foreign or domestic, for any purpose required by statute or otherwise.

      2.  All legal process and any demand or notice authorized by law to be served upon a business trust may be served upon its resident agent in the manner provided in subsection 2 of NRS 14.020. If a demand, notice or legal process, other than a summons and complaint, cannot be served upon the resident agent, it may be served in the manner provided in NRS 14.030.


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

κ1999 Statutes of Nevada, Page 1566 (CHAPTER 357, SB 61)κ

 

legal process, other than a summons and complaint, cannot be served upon the resident agent, it may be served in the manner provided in NRS 14.030. These manners of service are in addition to any other service authorized by law.

      Sec. 27. 1.  A resident agent who desires to resign shall file with the secretary of state a signed statement for each business trust for which he is unwilling to continue to act. A resignation is not effective until the signed statement is so filed.

      2.  The statement of resignation may contain a statement of the affected business trust appointing a successor resident agent. A certificate of acceptance executed by the new resident agent, stating the full name, complete street address and, if different from the street address, mailing address of the new resident agent, must accompany the statement appointing a successor resident agent.

      3.  Upon the filing of the statement of resignation with the secretary of state, the capacity of the resigning person as resident agent terminates. If the statement of resignation contains no statement by the business trust appointing a successor resident agent, the resigning agent shall immediately give written notice, by mail, to the business trust of the filing of the statement of resignation and its effect. The notice must be addressed to a trustee of the business trust other than the resident agent.

      4.  If its resident agent dies, resigns or removes from the state, a business trust, within 30 days thereafter, shall file with the secretary of state a certificate of acceptance executed by a new resident agent. The certificate must set forth the full name and complete street address of the new resident agent, and may contain a mailing address, such as a post office box, different from the street address.

      5.  A business trust that fails to file a certificate of acceptance executed by its new resident agent within 30 days after the death, resignation or removal of its former resident agent shall be deemed in default and is subject to the provisions of sections 34 to 37, inclusive, of this act.

      Sec. 28. 1.  If a business trust formed pursuant to this chapter desires to change its resident agent, the change may be effected by filing with the secretary of state a certificate of change, signed by at least one trustee of the business trust, setting forth:

      (a) The name of the business trust;

      (b) The name and street address of the present resident agent; and

      (c) The name and street address of the new resident agent.

      2.  A certificate of acceptance executed by the new resident agent must be a part of or attached to the certificate of change.

      3.  The change authorized by this section becomes effective upon the filing of the certificate of change.

      Sec. 29. 1.  A business trust shall keep a copy of the following records at its registered office:

      (a) A copy certified by the secretary of state of its certificate of trust and all amendments thereto or restatements thereof;

      (b) A copy certified by one of its trustees of its governing instrument and all amendments thereto; and


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

κ1999 Statutes of Nevada, Page 1567 (CHAPTER 357, SB 61)κ

 

      (c) A ledger or duplicate ledger, revised annually, containing the names, alphabetically arranged, of all its beneficial owners, showing their places of residence if known. Instead of this ledger, the business trust may keep a statement containing the name of the custodian of the ledger and the present complete address, including street and number, if any, where the ledger is kept.

      2.  A business trust shall maintain the records required by subsection 1 in written form or in another form capable of conversion into written form within a reasonable time.

      Sec. 30. 1.  A person who has been a beneficial owner of record of a business trust for at least 6 months immediately preceding his demand, or a person holding, or authorized in writing by the holders of, at least 5 percent of its beneficial ownership, is entitled, upon at least 5 days’ written demand, to inspect in person or by agent or attorney, during usual business hours, the ledger or duplicate ledger, whether kept in the registered office of the business trust or elsewhere, and to make copies therefrom.

      2.  An inspection authorized by subsection 1 may be denied to a beneficial owner or other person upon his refusal to furnish to the business trust an affidavit that the inspection is not desired for a purpose which is in the interest of a business or object other than the business of the business trust and that he has not at any time sold or offered for sale any list of beneficial owners of a domestic or foreign business trust, stockholders of a domestic or foreign corporation or members of a domestic or foreign limited-liability company, or aided or abetted any person in procuring such a list for such a purpose.

      Sec. 31. 1.  A business trust formed pursuant to this chapter shall annually, on or before the last day of the month in which the anniversary date of the filing of its certificate of trust with the secretary of state occurs, file with the secretary of state on a form furnished by him a list signed by at least one trustee containing the name and mailing address of its resident agent and at least one trustee. Upon filing the list, the business trust shall pay to the secretary of state a fee of $85.

      2.  The secretary of state shall, 60 days before the last day for filing the annual list required by subsection 1, cause to be mailed to each business trust which is required to comply with the provisions of sections 31 to 37, inclusive, of this act and which has not become delinquent, the blank forms to be completed and filed with him. Failure of a business trust to receive the forms does not excuse it from the penalty imposed by law.

      3.  An annual list for a business trust not in default which is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year.

      Sec. 32. When the fee for filing the annual list has been paid, the canceled check received by the business trust constitutes a certificate authorizing it to transact its business within this state until the last day of the month in which the anniversary of the filing of its certificate of trust occurs in the next succeeding calendar year. If the business trust desires a formal certificate upon its payment of the annual fee, its payment must be accompanied by a self-addressed, stamped envelope.


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

κ1999 Statutes of Nevada, Page 1568 (CHAPTER 357, SB 61)κ

 

      Sec. 33. 1.  Each list required to be filed pursuant to the provisions of sections 31 to 37, inclusive, of this act must, after the name of each trustee listed thereon, set forth his post office box or street address, either residence or business.

      2.  If the addresses are not stated on a list offered for filing, the secretary of state may refuse to file the list, and the business trust for which the list has been offered for filing is subject to all the provisions of sections 31 to 37, inclusive, of this act relating to failure to file the list when or at the times therein specified, unless a list is subsequently submitted for filing which conforms to the provisions of those sections.

      Sec. 34. 1.  Each business trust required to file the annual list and pay the fee prescribed in sections 31 to 37, inclusive, of this act which refuses or neglects to do so within the time provided shall be deemed in default.

      2.  For default, there must be added to the amount of the fee a penalty of $15. The fee and penalty must be collected as provided in this chapter.

      Sec. 35. 1.  The secretary of state shall notify, by letter addressed to its resident agent, each business trust deemed in default pursuant to the provisions of this chapter. The notice must be accompanied by a statement indicating the amount of the filing fee, penalties and costs remaining unpaid.

      2.  On the first day of the ninth month following the month in which the filing was required, the certificate of trust of the business trust is revoked and its right to transact business is forfeited.

      3.  The secretary of state shall compile a complete list containing the names of all business trusts whose right to do business has been forfeited. He shall forthwith notify each such business trust, by letter addressed to its resident agent, of the revocation of its certificate of trust. The notice must be accompanied by a statement indicating the amount of the filing fee, penalties and costs remaining unpaid.

      4.  If the certificate of trust is revoked and the right to transact business is forfeited, all the property and assets of the defaulting business trust must be held in trust by its trustees as for insolvent business trusts, and the same proceedings may be had with respect thereto as are applicable to insolvent business trusts. Any person interested may institute proceedings at any time after a forfeiture has been declared, but if the secretary of state reinstates the certificate of trust, the proceedings must at once be dismissed.

      Sec. 36. 1.  Except as otherwise provided in subsection 3, the secretary of state shall reinstate a business trust which has forfeited its right to transact business pursuant to the provisions of this chapter and restore to the business trust its right to carry on business in this state, and to exercise its privileges and immunities, if it:

      (a) Files with the secretary of state the list and designation required by section 31 of this act; and

      (b) Pays to the secretary of state:

             (1) The annual filing fee and penalty set forth in sections 31 and 34 of this act for each year or portion thereof during which its certificate of trust was revoked; and

             (2) A fee of $50 for reinstatement.


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

κ1999 Statutes of Nevada, Page 1569 (CHAPTER 357, SB 61)κ

 

      2.  When the secretary of state reinstates the business trust, he shall:

      (a) Immediately issue and deliver to the business trust a certificate of reinstatement authorizing it to transact business as if the filing fee had been paid when due; and

      (b) Upon demand, issue to the business trust one or more certified copies of the certificate of reinstatement.

      3.  The secretary of state shall not order a reinstatement unless all delinquent fees and penalties have been paid, and the revocation of the certificate of trust occurred only by reason of the failure to file the list or pay the fees and penalties.

      Sec. 37.  1.  Except as otherwise provided in subsection 2, if a certificate of trust is revoked pursuant to the provisions of this chapter and the name of the business trust has been legally reserved or acquired by another artificial person formed, organized, registered or qualified pursuant to the provisions of this Title whose name is on file with the office of the secretary of state or reserved in the office of the secretary of state pursuant to the provisions of this Title, the business trust shall submit in writing to the secretary of state some other name under which it desires to be reinstated. If that name is distinguishable from all other names reserved or otherwise on file, the secretary of state shall issue to the business trust a certificate of reinstatement under that new name.

      2.  If the defaulting business trust submits the written, acknowledged consent of the artificial person using a name, or the person who has reserved a name, which is not distinguishable from the old name of the business trust or a new name it has submitted, it may be reinstated under that name.

      Sec. 38. A business trust formed and existing pursuant to this chapter has such powers as are necessary or convenient to effect any of the purposes for which the business trust is formed.

      Sec. 39. 1.  Except as otherwise provided in this section, the certificate of trust or the governing instrument, the business and affairs of a business trust must be managed by or under the direction of its trustees. To the extent provided in the certificate of trust or the governing instrument, any person, including a beneficial owner, may direct the trustees or other persons in the management of the business trust.

      2.  Except as otherwise provided in the certificate of trust or the governing instrument, neither the power to give direction to a trustee or other person nor the exercise thereof by any person, including a beneficial owner, makes him a trustee. To the extent provided in the certificate of trust or the governing instrument, neither the power to give direction to a trustee or other person nor the exercise thereof by a person, including a beneficial owner, causes him to have duties, fiduciary or other, or liabilities relating to the power or its exercise to the business trust or a beneficial owner thereof.

      Sec. 40. A governing instrument may contain any provision relating to the management or the business or affairs of the business trust and the rights, duties and obligations of the trustees, beneficial owners and other persons which is not contrary to a provision or requirement of this chapter and may:


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

κ1999 Statutes of Nevada, Page 1570 (CHAPTER 357, SB 61)κ

 

      1.  Provide for classes, groups or series of trustees or beneficial owners, or of beneficial interests, having such relative rights, powers and duties as the governing instrument provides, and may provide for the future creation in the manner provided in the governing instrument of additional such classes having such relative rights, powers and duties as may from time to time be established, including rights, powers and duties senior or subordinate to existing classes, groups or series.

      2.  Provide that a person becomes a beneficial owner and bound by the governing instrument if he, or his representative authorized orally, in writing or by action such as payment for a beneficial interest, complies with the conditions for becoming a beneficial owner set forth in the governing instrument or any other writing and acquires a beneficial interest.

      3.  Establish or provide for a designated series of trustees, beneficial owners or beneficial interests having separate rights, powers or duties with respect to specified property or obligations of the business trust or profits and losses associated with specified property or obligations, and, to the extent provided in the governing instrument, any such series may have a separate business purpose or investment objective.

      4.  Provide for the taking of any action, including the amendment of the governing instrument, the accomplishment of a merger, the appointment of one or more trustees, the sale, lease, transfer, pledge or other disposition of all or any part of the assets of the business trust or the assets of any series, or the dissolution of the business trust, and the creation of a class, group or series of beneficial interests that was not previously outstanding, without the vote or approval of any particular trustee or beneficial owner or class, group or series of trustees or beneficial owners.

      5.  Grant to or withhold from all or certain trustees or beneficial owners, or a specified class, group or series of trustees or beneficial owners, the right to vote, separately or with one or more of the trustees, beneficial owners or classes, groups or series thereof, on any matter. Voting power may be apportioned per capita, proportionate to financial interest, by class, group or series, or on any other basis.

      6.  If and to the extent that voting rights are granted under the certificate of trust or governing instrument, set forth provisions relating to notice of the time, place or purpose of a meeting at which a matter will be voted on, waiver of notice, action by consent without a meeting, the establishment of record dates, requirement of a quorum, voting in person, by proxy or otherwise, or any other matter with respect to the exercise of the right to vote.

      7.  Provide for the present or future creation of more than one business trust, including the creation of a future business trust to which all or any part of the assets, liabilities, profits or losses of any existing business trust are to be transferred, and for the conversion of beneficial interests in an existing business trust, or series thereof, into beneficial interests in the separate business trust or a series thereof.


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

κ1999 Statutes of Nevada, Page 1571 (CHAPTER 357, SB 61)κ

 

      8.  Provide for the appointment, election or engagement, either as agents or independent contractors of the business trust or as delegates of the trustees, of officers, employees, managers or other persons who may manage the business and affairs of the business trust and have such titles and relative rights, powers and duties as the governing instrument provides. Except as otherwise provided in the governing instrument, the trustees shall choose and supervise those officers, managers and other persons.

      Sec. 41. To the extent that, at law or in equity, a trustee has duties, fiduciary or otherwise, and liabilities relating thereto to a business trust or beneficial owner:

      1.  If he acts pursuant to a governing instrument, he is not liable to the business trust or to a beneficial owner for his reliance in good faith on the provisions of the governing instrument; and

      2.  His duties and liabilities may be expanded or restricted by provisions in the governing instrument.

      Sec. 42. To the extent that, at law or in equity, an officer, employee, manager or other person acting pursuant to the certificate of trust or a governing instrument has duties, fiduciary or otherwise, and liabilities relating thereto to a business trust, beneficial owner or trustee:

      1.  If he acts pursuant to a governing instrument, he is not liable to the business trust, a beneficial owner or a trustee for his reliance in good faith on the provisions of the governing instrument; and

      2.  His duties and liabilities may be expanded or restricted by provisions in the governing instrument.

      Sec. 43. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series of trustees, beneficial owners or beneficial interests are enforceable against the assets of only that series only if:

      1.  The governing instrument of the business trust creates one or more series of trustees, beneficial owners or beneficial interests;

      2.  Separate records are maintained for the series;

      3.  The assets associated with the series are held and accounted for separately from the other assets of the business trust or any other series of the business trust and the governing instrument requires separate holding and accounting; and

      4.  Notice of the limitation on liability of the series is set forth in the certificate of trust, or an amendment thereto, filed with the secretary of state before the series is established.

      Sec. 44. 1.  A contribution of a beneficial owner to a business trust may be any tangible or intangible property or benefit to the business trust, including cash, a promissory note, services performed, a contract for services to be performed, or a security of the business trust. A person may become a beneficial owner of a business trust and may receive a beneficial interest in a business trust without making, or being obligated to make, a contribution to the business trust.

      2.  Except as otherwise provided in the certificate of trust or the governing instrument, a beneficial owner is obligated to the business trust to perform a promise to make a contribution even if he is unable to perform because of death, disability or any other reason.


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

κ1999 Statutes of Nevada, Page 1572 (CHAPTER 357, SB 61)κ

 

perform because of death, disability or any other reason. If a beneficial owner does not make a promised contribution of property or services, he is obligated at the option of the business trust to contribute cash equal to that portion of the agreed value, as stated in the records of the business trust, of the contribution which has not been made. The foregoing option is in addition to any other rights, including specific performance, that the business trust may have against the beneficial owner under the governing instrument or applicable law.

      3.  A certificate of trust or governing instrument may provide that the interest of a beneficial owner who fails to make a contribution that he is obligated to make is subject to specific penalties for, or specified consequences of, such failure. The penalty or consequence may take the form of reducing or eliminating the defaulting beneficial owner’s proportionate interest in the business trust, subordinating that beneficial interest to those of nondefaulting owners, a forced sale of the beneficial interest, forfeiture of the beneficial interest, the lending by other beneficial owners of the amount necessary to meet the defaulter’s commitment, a fixing of the value of the beneficial interest by appraisal or formula and redemption or sale of the beneficial interest at that value, or any other form.

      Sec. 45. 1.  Unless otherwise provided in the certificate of trust, the governing instrument or an agreement signed by the person to be charged, a beneficial owner, trustee, officer, agent, manager or employee of a business trust formed pursuant to the laws of this state is not personally liable for the debts or liabilities of the business trust.

      2.  Except as otherwise provided in the certificate of trust or the governing instrument, a trustee acting in that capacity is not personally liable to any person other than the business trust or a beneficial owner for any act or omission of the business trust or a trustee thereof.

      3.  Except as otherwise provided in the certificate of trust or the governing instrument, an officer, employee, agent or manager of a business trust or another person who manages the business and affairs of a business trust, acting in that capacity, is not personally liable to any person other than the business trust or a beneficial owner for any act or omission of the business trust or a trustee thereof.

      4.  Except as otherwise provided in the certificate of trust or the governing instrument, a trustee, officer, employee, agent or manager of a business trust or another person who manages the business and affairs of a business trust is not personally liable to the business trust or a beneficial owner for damages for breach of fiduciary duty in such capacity except for acts or omissions that involve intentional misconduct, fraud or a knowing violation of law.

      Sec. 46. 1.  Subject to the standards and restrictions, if any, set forth in the certificate of trust or the governing instrument, a business trust may indemnify and hold harmless a trustee, beneficial owner or other person from and against all claims and demands.


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

κ1999 Statutes of Nevada, Page 1573 (CHAPTER 357, SB 61)κ

 

      2.  The absence of a provision for indemnity in the certificate of trust or governing instrument does not deprive a trustee or beneficial owner of any right to indemnity which is otherwise available to him pursuant to the laws of this state.

      Sec. 47. A certificate of trust must be canceled upon the completion or winding up of the business trust and its termination. A certificate of cancellation must be signed by a trustee, filed with the secretary of state, and set forth:

      1.  The name of the business trust;

      2.  The date of filing of its certificate of trust;

      3.  A future effective date of the certificate of cancellation, if it is not to be effective upon filing, which may not be more than 90 days after the certificate is filed; and

      4.  Any other information the trustee determines to include.

      Sec. 48. 1.  A beneficial owner may maintain an action in the right of a business trust to recover a judgment in its favor if trustees having authority to do so have refused to bring the action or if an effort to cause those trustees to bring the action is unlikely to succeed.

      2.  In a derivative action, the plaintiff must be a beneficial owner at the time of bringing the action and:

      (a) He must have been a beneficial owner at the time of the transaction of which he complains; or

      (b) His status as a beneficial owner must have devolved upon him by operation of law or pursuant to a provision of the certificate of trust or the governing instrument from a person who was a beneficial owner at the time of the transaction.

      3.  In a derivative action, the complaint must state with particularity the effort, if any, of the plaintiff to cause the trustees to bring the act, or the reasons for not making the effort.

      4.  If a derivative action is successful, in whole or in part, or if anything is received by the business trust through judgment or settlement of the action, the court may award the plaintiff reasonable expenses, including attorney’s fees. If the plaintiff receives any proceeds of judgment or settlement, the court shall make the award of his expenses payable from those proceeds and remit the remainder to the business trust. If the proceeds received by the plaintiff are less than the expenses awarded, the court may direct all or part of the remainder of the award to be paid by the business trust.

      5.  A beneficial owner’s right to bring a derivative action may be subject to additional standards and restrictions set forth in the governing instrument, including, without limitation, a requirement that beneficial owners of a specified beneficial interest join in the action.

      Sec. 49. 1.  Except as otherwise provided in the certificate of trust, the governing instrument or this chapter, the laws of this state pertaining to trusts apply to a business trust.

      2.  In applying the provisions of this chapter, the court shall give the greatest effect to the principle of freedom of contract and the enforceability of governing instruments.


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

κ1999 Statutes of Nevada, Page 1574 (CHAPTER 357, SB 61)κ

 

      Sec. 50. All provisions of this chapter may be altered from time to time or repealed, and all rights of business trusts, trustees, beneficial owners and other persons are subject to this reservation.

      Sec. 51. The secretary of state shall charge and collect the following fees for:

      1.  Filing an original certificate of trust, or for registering a foreign business trust, $125.

      2.  Filing an amendment or restatement, or a combination thereof, to a certificate of trust, $75.

      3.  Filing a certificate of cancellation, $125.

      4.  Certifying a copy of a certificate of trust or an amendment or restatement, or a combination thereof, $10 per certification.

      5.  Certifying an authorized printed copy of this chapter, $10.

      6.  Reserving a name for a business trust, $20.

      7.  Executing a certificate of existence of a business trust which does not list the previous documents relating to it, or a certificate of change in the name of a business trust, $15.

      8.  Executing a certificate of existence of a business trust which lists the previous documents relating to it, $20.

      9.  Filing a statement of change of address of the registered office for each business trust, $15.

      10.  Filing a statement of change of the registered agent, $15.

      11.  Executing, certifying or filing any certificate or document not otherwise provided for in this section, $20.

      12.  Examining and provisionally approving a document before the document is presented for filing, $100.

      13.  Copying a document on file with him, for each page, $1.

    Sec. 52.  Subject to the constitution of this state:

    1.  The laws of the state under which a foreign business trust is organized govern its organization and internal affairs and the liability of its beneficial owners, trustees, officers, employees or managers; and

    2.  A foreign business trust may not be denied registration by reason of any difference between those laws and the laws of this state.

      Sec. 53. Before transacting business in this state, a foreign business trust shall register with the secretary of state. In order to register, a foreign business trust shall submit to the secretary of state an application for registration as a foreign business trust, signed by a trustee, and a signed certificate of acceptance of a resident agent. The application for registration must set forth:

    1.  The name of the foreign business trust and, if different, the name under which it proposes to register and transact business in this state;

    2.  The state and date of its formation;

    3.  The name and address of the resident agent whom the foreign business trust elects to appoint;

    4.  The address of the office required to be maintained in the state of its organization by the laws of that state or, if not so required, of the principal office of the foreign business trust; and

    5.  The name and business address of one trustee.


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

κ1999 Statutes of Nevada, Page 1575 (CHAPTER 357, SB 61)κ

 

      Sec. 54. If the secretary of state finds that an application for registration conforms to law and all requisite fees have been paid, he shall issue a certificate of registration to transact business in this state and mail it to the person who filed the application or his representative.

      Sec. 55. A foreign business trust may register with the secretary of state under any name, whether or not it is the name under which it is registered in its state of organization, which includes the words “Business Trust” or the abbreviation “B.T.” or “BT” and which could be registered by a domestic business trust.

      Sec. 56. A foreign business trust may cancel its registration by filing with the secretary of state a certificate of cancellation signed by a trustee. The certificate must set forth:

    1.  The name of the foreign business trust;

    2.  The date upon which its certificate of registration was filed;

    3.  The effective date of the cancellation if other than the date of the filing of the certificate of cancellation; and

    4.  Any other information deemed necessary by the trustee.

A cancellation does not terminate the authority of the secretary of state to accept service of process on the foreign business trust with respect to causes of action arising out of the transaction of business in this state.

      Sec. 57. 1.  A foreign business trust transacting business in this state may not maintain any action, suit or proceeding in any court of this state until it has registered in this state.

    2.  The failure of a foreign business trust to register in this state does not impair the validity of any contract or act of the foreign business trust or prevent the foreign business trust from defending any action, suit or proceeding in any court of this state.

    3.  A foreign business trust, by transacting business in this state without registration, appoints the secretary of state as its agent for service of process with respect to causes of action arising out of the transaction of business in this state.

      Sec. 58. Chapter 78 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in subsection 2 or the articles of incorporation, directors and officers confronted with a change or potential change in control of the corporation have:

    (a) The duties imposed upon them by subsection 1 of NRS 78.138; and

    (b) The benefit of the presumptions established by subsection 3 of that section.

    2.  If directors and officers take action to resist a change or potential change in control of a corporation which impedes the exercise of the right of stockholders to vote for or remove directors:

    (a) The directors must have reasonable grounds to believe that a threat to corporate policy and effectiveness exists; and

    (b) The action taken which impedes the exercise of the stockholders’ rights must be reasonable in relation to that threat.

If those facts are found, the directors and officers have the benefit of the presumption established by subsection 3 of NRS 78.138.

    3.  The provisions of subsection 2 do not apply to:


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

κ1999 Statutes of Nevada, Page 1576 (CHAPTER 357, SB 61)κ

 

    (a) Actions that only affect the time of the exercise of stockholders’ voting rights; or

    (b) The adoption or execution of plans, arrangements or instruments that deny rights, privileges, power or authority to a holder of a specified number or fraction of shares or fraction of voting power.

    4.  The provisions of subsections 2 and 3 do not permit directors or officers to abrogate any right conferred by statute or the articles of incorporation.

    5.  Directors may resist a change or potential change in control of the corporation if the directors by a majority vote of a quorum determine that the change or potential change is opposed to or not in the best interest of the corporation:

    (a) Upon consideration of the interests of the corporation’s stockholders and any of the matters set forth in subsection 4 of NRS 78.138; or

    (b) Because the amount or nature of the indebtedness and other obligations to which the corporation or any successor to the property of either may become subject, in connection with the change or potential change in control, provides reasonable grounds to believe that, within a reasonable time:

      (1) The assets of the corporation or any successor would be or become less than its liabilities;

      (2) The corporation or any successor would be or become insolvent; or

      (3) Any voluntary or involuntary proceeding pursuant to the federal bankruptcy laws concerning the corporation or any successor would be commenced by any person.

      Sec. 59.  NRS 78.010 is hereby amended to read as follows:

      78.010  1.  As used in this chapter:

    (a) “Approval” and “vote” as describing action by the directors or stockholders mean the vote of directors in person or by written consent or of stockholders in person, by proxy or by written consent.

    (b) “Articles,” “articles of incorporation” and “certificate of incorporation” are synonymous terms and unless the context otherwise requires, include all certificates filed pursuant to NRS 78.030, [78.195,] 78.1955, 78.209, 78.380, 78.385 and 78.390 and any articles of merger or exchange filed pursuant to NRS 92A.200 to 92A.240, inclusive. Unless the context otherwise requires, these terms include restated articles and certificates of incorporation.

    (c) “Directors” and “trustees” are synonymous terms.

    (d) “Receiver” includes receivers and trustees appointed by a court as provided in this chapter or in chapter 32 of NRS.

    (e) “Registered office” means the office maintained at the street address of the resident agent.

    (f) “Resident agent” means the agent appointed by the corporation upon whom process or a notice or demand authorized by law to be served upon the corporation may be served.

      (g) “Sign” means to affix a signature to a document.


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

κ1999 Statutes of Nevada, Page 1577 (CHAPTER 357, SB 61)κ

 

    (h) “Signature” means a name, word or mark executed or adopted by a person with the present intention to authenticate a document. The term includes, without limitation, an electronic symbol as described in NRS 239.042.

    (i) “Stockholder of record” means a person whose name appears on the stock ledger of the corporation.

    (j) “Street address” of a resident agent means the actual physical location in this state at which a resident agent is available for service of process.

      2.  General terms and powers given in this chapter are not restricted by the use of special terms, or by any grant of special powers contained in this chapter.

      Sec. 60.  NRS 78.029 is hereby amended to read as follows:

    78.029  [An incorporator or] Before the issuance of stock an incorporator, and after the issuance of stock an officer , of a corporation may authorize the secretary of state in writing to replace any page of a document submitted for filing , on an expedited basis, before the actual filing, and to accept the page as if it were part of the originally signed filing. [The signed authorization of the incorporator or officer to the secretary of state permits, but does not require, the secretary of state to alter the original document as requested.]

      Sec. 61.  NRS 78.030 is hereby amended to read as follows:

    78.030  1.  One or more persons may establish a corporation for the transaction of any lawful business, or to promote or conduct any legitimate object or purpose, pursuant and subject to the requirements of this chapter, by:

    (a) Executing [, acknowledging] and filing in the office of the secretary of state articles of incorporation; and

    (b) Filing a certificate of acceptance of appointment, executed by the resident agent of the corporation, in the office of the secretary of state.

    2.  The articles of incorporation must be as provided in NRS 78.035, and the secretary of state shall require them to be in the form prescribed. If any articles are defective in this respect, the secretary of state shall return them for correction.

      Sec. 62.  NRS 78.035 is hereby amended to read as follows:

    78.035  The articles of incorporation must set forth:

    1.  The name of the corporation. A name appearing to be that of a natural person and containing a given name or initials must not be used as a corporate name except with an additional word or words such as “Incorporated,” “Limited,” “Inc.,” “Ltd.,” “Company,” “Co.,” “Corporation,” “Corp.,” or other word which identifies it as not being a natural person.

    2.  The name of the person designated as the corporation’s resident agent, the street address of the resident agent where process may be served upon the corporation, and the mailing address of the resident agent if different from the street address.

    3.  The number of shares the corporation is authorized to issue and, if more than one class or series of stock is authorized, the classes, the series and the number of shares of each class or series which the corporation is authorized to issue, unless the articles authorize the board of directors to fix and determine in a resolution the classes, series and numbers of each class or series as provided in NRS 78.195 and 78.196.


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

κ1999 Statutes of Nevada, Page 1578 (CHAPTER 357, SB 61)κ

 

authorized to issue, unless the articles authorize the board of directors to fix and determine in a resolution the classes, series and numbers of each class or series as provided in NRS 78.195 and 78.196.

    4.  [Whether the members of the governing board are styled as directors or trustees of the corporation, and the] The number, names and post office box or street addresses, either residence or business, of the first board of directors or trustees, together with any desired provisions relative to the right to change the number of directors as provided in NRS 78.115.

    5.  The name and post office box or street address, either residence or business of each of the incorporators executing the articles of incorporation.

      Sec. 63.  NRS 78.039 is hereby amended to read as follows:

    78.039  1.  The name proposed for a corporation must be distinguishable on the records of the secretary of state from the names of all other artificial persons formed, organized [or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names] , registered or qualified pursuant to the provisions of this Title that are on file in the office of the secretary of state [.] and all names that are reserved in the office of the secretary of state pursuant to the provisions of this Title. If a proposed name is not so distinguishable, the secretary of state shall return the articles of incorporation containing the proposed name to the incorporator, unless the written , acknowledged consent of the holder of the [registered] name on file or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

    2.  For the purposes of this section and NRS 78.040, a proposed name is not [distinguished] distinguishable from a [registered] name on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name , or any combination of these.

    3.  The name of a corporation whose charter has been revoked, [whose existence has terminated,] which has merged and is not the surviving [corporation, or which for any other reason is no longer in good standing in this state] entity or whose existence has otherwise terminated is available for use by any other artificial person.

    4.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 64.  NRS 78.040 is hereby amended to read as follows:

      78.040  1.  The secretary of state, when requested so to do, shall reserve, for a period of 90 days, the right to use any name available under NRS 78.039, for the use of any proposed corporation. During the period, a name so reserved is not available for use or reservation by any [corporation, limited partnership or limited-liability company without the] other artificial person forming, organizing, registering or qualifying in the office of the secretary of state pursuant to the provisions of this Title without the written, acknowledged consent of the person at whose request the reservation was made.

    2.  The use by any [corporation, limited partnership or limited-liability company] other artificial person of a name in violation of subsection 1 or NRS 78.039 [or subsection 1 of this section] may be enjoined, [notwithstanding the fact that the articles of incorporation or organization of the corporation or limited-liability company, or the certificate of limited partnership, may have] even if the document under which the artificial person is formed, organized, registered or qualified has been filed by the secretary of state.


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

κ1999 Statutes of Nevada, Page 1579 (CHAPTER 357, SB 61)κ

 

partnership, may have] even if the document under which the artificial person is formed, organized, registered or qualified has been filed by the secretary of state.

      Sec. 65.  NRS 78.097 is hereby amended to read as follows:

    78.097  1.  A resident agent who desires to resign shall file with the secretary of state a signed statement for each corporation that he is unwilling to continue to act as the agent of the corporation for the service of process. [The execution of the statement must be acknowledged.] A resignation is not effective until the signed statement is filed with the secretary of state.

    2.  The statement of resignation may contain [an acknowledged] a statement of the affected corporation appointing a successor resident agent for that corporation. A certificate of acceptance executed by the new resident agent, stating the full name, complete street address and, if different from the street address, mailing address of the new resident agent, must accompany the statement appointing a successor resident agent.

    3.  Upon the filing of the statement of resignation with the secretary of state the capacity of the resigning person as resident agent terminates. If the statement of resignation contains no statement by the corporation appointing a successor resident agent, the resigning resident agent shall immediately give written notice, by mail, to the corporation of the filing of the statement and its effect. The notice must be addressed to any officer of the corporation other than the resident agent.

    4.  If a resident agent dies, resigns or removes from the state, the corporation, within 30 days thereafter, shall file with the secretary of state a certificate of acceptance executed by the new resident agent. The certificate must set forth the full name and complete street address of the new resident agent for the service of process, and may have a separate mailing address, such as post office box, which may be different from the street address.

    5.  A corporation that fails to file a certificate of acceptance executed by the new resident agent within 30 days after the death, resignation or removal of its former resident agent shall be deemed in default and is subject to the provisions of NRS 78.170 and 78.175.

      Sec. 66.  NRS 78.110 is hereby amended to read as follows:

    78.110  1.  If a corporation created pursuant to this chapter desires to change [the location within this state of its registered office, or change] its resident agent, [or both,] the change may be effected by filing with the secretary of state a certificate of change signed by an officer of the corporation which sets forth:

      [1.](a) The name of the corporation;

    [2.  That the change authorized by this section is effective upon the filing of the certificate of change;

    3.  The street address of its present registered office;

    4.  If the present registered office is to be changed, the street address of the new registered office;

    5.](b) The name and street address of its present resident agent; and

    [6.  If the present resident agent is to be changed, the]

    (c) The name and street address of the new resident agent. [A]

    2.  The new resident agent’s certificate of acceptance must be a part of or attached to the certificate of change.


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

κ1999 Statutes of Nevada, Page 1580 (CHAPTER 357, SB 61)κ

 

    3.  A change authorized by this section becomes effective upon the filing of the certificate of change.

    Sec. 67. NRS 78.138 is hereby amended to read as follows:

    78.138  1.  Directors and officers shall exercise their powers in good faith and with a view to the interests of the corporation.

    2.  In performing their respective duties, directors and officers are entitled to rely on information, opinions, reports, books of account or statements, including financial statements and other financial data, that are prepared or presented by:

    (a) One or more directors, officers or employees of the corporation reasonably believed to be reliable and competent in the matters prepared or presented;

    (b) Counsel, public accountants, or other persons as to matters reasonably believed to be within the [preparer] preparer’s or presenter’s professional or expert competence; or

    (c) A committee on which the director or officer relying thereon does not serve, established in accordance with NRS 78.125, as to matters within the committee’s designated authority and matters on which the committee is reasonably believed to merit confidence,

but a director or officer is not entitled to rely on such information, opinions, reports, books of account or statements if he has knowledge concerning the matter in question that would cause reliance thereon to be unwarranted.

    3.  Directors and officers, in deciding upon matters of business, are presumed to act in good faith, on an informed basis and with a view to the interests of the corporation.

    4.  Directors and officers, in exercising their respective powers with a view to the interests of the corporation, may consider:

    (a) The interests of the corporation’s employees, suppliers, creditors and customers;

    (b) The economy of the state and nation;

    (c) The interests of the community and of society; and

    (d) The long-term as well as short-term interests of the corporation and its stockholders, including the possibility that these interests may be best served by the continued independence of the corporation.

[This subsection does]

    5.  Directors and officers are not required to consider the effect of a proposed corporate action upon any particular group having an interest in the corporation as a dominant factor.

    6.  The provisions of subsections 4 and 5 do not create or authorize any causes of action against the corporation or its directors or officers.

    [4.  Directors may resist a change or potential change in control of the corporation if the directors by a majority vote of a quorum determine that the change or potential change is opposed to or not in the best interest of the corporation:

    (a) Upon consideration of the interests of the corporation’s stockholders and any of the matters set forth in subsection 3; or

    (b) Because the amount or nature of the indebtedness and other obligations to which the corporation or any successor to the property of either may become subject in connection with the change or potential change in control provides reasonable grounds to believe that, within a reasonable time:


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

κ1999 Statutes of Nevada, Page 1581 (CHAPTER 357, SB 61)κ

 

may become subject in connection with the change or potential change in control provides reasonable grounds to believe that, within a reasonable time:

             (1) The assets of the corporation or any successor would be or become less than its liabilities;

             (2) The corporation or any successor would be or become insolvent; or

             (3) Any voluntary or involuntary proceeding under the federal bankruptcy laws concerning the corporation or any successor would be commenced by any person.]

      Sec. 68.  NRS 78.150 is hereby amended to read as follows:

      78.150  1.  A corporation organized under the laws of this state shall, on or before the first day of the second month after the filing of its articles of incorporation with the secretary of state, file with the secretary of state a list, on a form furnished by him, containing:

      (a) The name of the corporation;

      (b) The file number of the corporation, if known;

      (c) The names and titles [of all of its required officers and the names] of the president, secretary, treasurer and of all [of its directors;] the directors of the corporation;

      (d) The mailing or street address, either residence or business, of each officer and director listed, following the name of the officer or director; and

      (e) The signature of an officer of the corporation certifying that the list is true, complete and accurate.

      2.  The corporation shall annually thereafter, on or before the last day of the month in which the anniversary date of incorporation occurs in each year, file with the secretary of state, on a form furnished by him, an amended list containing all of the information required in subsection 1. [If the corporation has had no changes in its required officers and directors since its previous list was filed, no amended list need be filed if an officer of the corporation certifies to the secretary of state as a true and accurate statement that no changes in the required officers or directors has occurred.]

      3.  Upon filing a list of officers and directors, [or certifying that no changes have occurred,] the corporation shall pay to the secretary of state a fee of $85.

      4.  The secretary of state shall, 60 days before the last day for filing the annual list required by subsection 2, cause to be mailed to each corporation which is required to comply with the provisions of NRS 78.150 to 78.185, inclusive, and which has not become delinquent, a notice of the fee due pursuant to subsection 3 and a reminder to file a list of officers and directors . [or a certification of no change.] Failure of any corporation to receive a notice or form does not excuse it from the penalty imposed by law.

      5.  If the list to be filed pursuant to the provisions of subsection 1 or 2 is defective in any respect or the fee required by subsection 3 or 7 is not paid, the secretary of state may return the list for correction or payment.

      6.  An annual list for a corporation not in default which is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year [.] and does not satisfy the requirements of subsection 2 for the year to which the due date is applicable.


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

κ1999 Statutes of Nevada, Page 1582 (CHAPTER 357, SB 61)κ

 

      7.  If the corporation is an association as defined in NRS 116.110315, the secretary of state shall not accept the filing required by this section unless it is accompanied by the fee required to be paid pursuant to NRS 116.31155.

      Sec. 69.  NRS 78.155 is hereby amended to read as follows:

      78.155  [When the fee for filing] If a corporation has filed the initial or annual list of officers and directors and designation of resident agent [has been paid,] in compliance with NRS 78.150 and has paid the appropriate fee for the filing, the canceled check received by the corporation constitutes a certificate authorizing it to transact its business within this state until the last day of the month in which the anniversary of its incorporation occurs in the next succeeding calendar year. If the corporation desires a formal certificate upon its payment of the initial or annual fee, its payment must be accompanied by a self-addressed, stamped envelope.

      Sec. 70.  NRS 78.185 is hereby amended to read as follows:

      78.185  1.  Except as otherwise provided in subsection 2, if a corporation applies to reinstate or revive its charter but its name has been legally reserved or acquired by another [corporation or other] artificial person formed, organized [or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS] , registered or qualified pursuant to the provisions of this Title whose name is on file [and in good standing] with the office of the secretary of state [,] or reserved in the office of the secretary of state pursuant to the provisions of this Title, the corporation shall in its application for reinstatement submit in writing to the secretary of state some other name under which it desires its corporate existence to be reinstated or revived. If that name is distinguishable from all other names reserved or otherwise on file , [and in good standing,] the secretary of state shall issue to the applying corporation a certificate of reinstatement or revival under that new name.

      2.  If the applying corporation submits the written , acknowledged consent of the artificial person having a name, or the person who has reserved a name, which is not distinguishable from the old name of the applying corporation or a new name it has submitted, it may be reinstated or revived under that name.

      3.  For the purposes of this section, a proposed name is not [distinguished] distinguishable from a name [used] on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name , or any combination of [those.] these.

      4.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 71.  NRS 78.195 is hereby amended to read as follows:

      78.195  1.  If a corporation desires to have more than one class or series of stock, the articles of incorporation must prescribe, or vest authority in the board of directors to prescribe, the classes, series and the number of each class or series of stock and the voting powers, designations, preferences, limitations, restrictions and relative rights of each class or series of stock. If more than one class or series of stock is authorized, the articles of incorporation or the resolution of the board of directors passed pursuant to a provision of the articles must prescribe a distinguishing designation for each class and series. The voting powers, designations, preferences, limitations, restrictions, relative rights and distinguishing designation of each class or series of stock must be described in the articles of incorporation or the resolution of the board of directors before the issuance of shares of that class or series.


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

κ1999 Statutes of Nevada, Page 1583 (CHAPTER 357, SB 61)κ

 

restrictions, relative rights and distinguishing designation of each class or series of stock must be described in the articles of incorporation or the resolution of the board of directors before the issuance of shares of that class or series.

      2.  All shares of a series must have voting powers, designations, preferences, limitations, restrictions and relative rights identical with those of other shares of the same series and, except to the extent otherwise provided in the description of the series, with those of other series of the same class.

      3.  Unless otherwise provided in the articles of incorporation, no stock issued as fully paid up may ever be assessed and the articles of incorporation must not be amended in this particular.

      4.  Any rate, condition or time for payment of distributions on any class or series of stock may be made dependent upon any fact or event which may be ascertained outside the articles of incorporation or the resolution providing for the distributions adopted by the board of directors if the manner in which a fact or event may operate upon the rate, condition or time of payment for the distributions is stated in the articles of incorporation or the resolution.

      5.  [If the corporation is authorized to issue more than one class of stock or more than one series of any class, the voting powers, designations, preferences, limitations, restrictions and relative rights of the various classes of stock or series thereof and the qualifications, limitations or restrictions of such rights must be set forth in full or summarized on the face or back of each certificate which the corporation issues to represent the stock, or on the informational statement sent pursuant to NRS 78.235, except that, in lieu thereof, the certificate or informational statement may contain a statement setting forth the office or agency of the corporation from which a stockholder may obtain a copy of a statement setting forth in full or summarizing the voting powers, designations, preferences, limitations, restrictions and relative rights of the various classes of stock or series thereof. The corporation shall furnish to its stockholders, upon request and without charge, a copy of any such statement or summary.

      6.]  The provisions of this section do not restrict the directors of a corporation from taking action to protect the interests of the corporation and its stockholders, including, but not limited to, adopting or executing plans, arrangements or instruments that deny rights, privileges, power or authority to a holder of a specified number of shares or percentage of share ownership or voting power.

      Sec. 72.  NRS 78.196 is hereby amended to read as follows:

      78.196  1.  Each corporation must have:

      (a) One or more classes or series of shares that together have unlimited voting rights; and

      (b) One or more classes or series of shares that together are entitled to receive the net assets of the corporation upon dissolution.

If the articles of incorporation provide for only one class of stock, that class of stock has unlimited voting rights and is entitled to receive the net assets of the corporation upon dissolution.

      2.  The articles of incorporation, or a resolution of the board of directors pursuant thereto, may authorize one or more classes or series of stock that:


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

κ1999 Statutes of Nevada, Page 1584 (CHAPTER 357, SB 61)κ

 

      (a) Have special, conditional or limited voting powers, or no right to vote, except to the extent otherwise [prohibited by this chapter;] provided by this Title;

      (b) Are redeemable or convertible:

             (1) At the option of the corporation, the stockholders or another person, or upon the occurrence of a designated event;

             (2) For cash, indebtedness, securities or other property; or

             (3) In a designated amount or in an amount determined in accordance with a designated formula or by reference to extrinsic data or events;

      (c) Entitle the stockholders to distributions calculated in any manner, including dividends that may be cumulative, noncumulative or partially cumulative;

      (d) Have preference over any other class or series of shares with respect to distributions, including dividends and distributions upon the dissolution of the corporation;

      (e) Have par value; or

      (f) Have powers, designations, preferences, limitations, restrictions and relative rights dependent upon any fact or event which may be ascertained outside of the articles of incorporation or the resolution if the manner in which the fact or event may operate on such class or series of stock is stated in the articles of incorporation or the resolution.

      3.  The description of voting powers, designations, preferences, limitations, restrictions and relative rights of the [share] classes or series of shares contained in this section is not exclusive.

      Sec. 73.  NRS 78.320 is hereby amended to read as follows:

      78.320  1.  Unless this chapter, the articles of incorporation or the bylaws provide for different proportions:

      (a) A majority of the voting power, which includes the voting power that is present in person or by proxy, regardless of whether the proxy has authority to vote on all matters, constitutes a quorum for the transaction of business; and

      (b) Action by the stockholders on a matter other than the election of directors is approved if the number of votes cast in favor of the action exceeds the number of votes cast in opposition to the action.

      2.  Unless otherwise provided in the articles of incorporation or the bylaws, any action required or permitted to be taken at a meeting of the stockholders may be taken without a meeting if , before or after the action, a written consent thereto is signed by stockholders holding at least a majority of the voting power, except that if a different proportion of voting power is required for such an action at a meeting, then that proportion of written consents is required.

      3.  In no instance where action is authorized by written consent need a meeting of stockholders be called or notice given.

      4.  Unless otherwise restricted by the articles of incorporation or bylaws, stockholders may participate in a meeting of stockholders by means of a telephone conference or similar method of communication by which all persons participating in the meeting can hear each other. Participation in a meeting pursuant to this subsection constitutes presence in person at the meeting.


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

κ1999 Statutes of Nevada, Page 1585 (CHAPTER 357, SB 61)κ

 

      Sec. 74.  NRS 78.330 is hereby amended to read as follows:

      78.330  1.  Unless elected pursuant to NRS 78.320, directors of every corporation must be elected at the annual meeting of the stockholders by a plurality of the votes cast at the election. Unless otherwise provided in the bylaws, the board of directors have the authority to set the date, time and place for the annual meeting of the stockholders. If for any reason directors are not elected pursuant to NRS 78.320 or at the annual meeting of the stockholders, they may be elected at any special meeting of the stockholders which is called and held for that purpose.

      2.  The articles of incorporation or the bylaws may provide for the classification of directors as to the duration of their respective terms of office or as to their election by one or more authorized classes or series of shares, but at least one-fourth in number of the directors of every corporation must be elected annually. If an amendment reclassifying the directors would otherwise increase the term of a director, unless the amendment is to the articles of incorporation and otherwise provides, the term of each incumbent director on the effective date of the amendment terminates on the date it would have terminated had there been no reclassification.

      3.  The articles of incorporation may provide that the voting power of individual directors or classes of directors may be greater than or less than that of any other individual directors or classes of directors, and the different voting powers may be stated in the articles of incorporation or may be dependent upon any fact or event that may be ascertained outside the articles of incorporation if the manner in which the fact or event may operate on those voting powers is stated in the articles of incorporation. If the articles of incorporation provide that any directors may have voting power greater than or less than other directors, every reference in this chapter to a majority or other proportion of directors shall be deemed to refer to a majority or other proportion of the voting power of all of the directors or classes of directors, as may be required by the articles of incorporation.

      Sec. 75.  NRS 78.335 is hereby amended to read as follows:

      78.335  1.  [Any director] Except as otherwise provided in this section, any director or one or more of the incumbent directors may be removed from office by the vote of stockholders representing not less than two‑thirds of the voting power of the issued and outstanding stock entitled to voting power . [, except that:

      (a)]2.  In the case of corporations which have provided in their articles of incorporation for the election of directors by cumulative voting, [no] any director or directors who constitute fewer than all of the incumbent directors may not be removed from office at any one time or as the result of any one transaction under the provisions of this section except upon the vote of stockholders owning sufficient shares to [have prevented his election to office in the first instance; and

      (b)] prevent each director’s election to office at the time of removal.

      3.  The articles of incorporation may require the concurrence of [a larger percentage] more than two-thirds of the voting power of the issued and outstanding stock entitled to voting power in order to remove [a director.

      2.]one or more directors from office.


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

κ1999 Statutes of Nevada, Page 1586 (CHAPTER 357, SB 61)κ

 

    4.  Whenever the holders of any class or series of shares are entitled to elect one or more directors, unless otherwise provided in the articles of incorporation, removal of any such director requires only the proportion of votes, specified in subsection 1, of the holders of that class or series, and not the votes of the outstanding shares as a whole.

    [3.] 5.  All vacancies, including those caused by an increase in the number of directors, may be filled by a majority of the remaining directors, though less than a quorum, unless it is otherwise provided in the articles of incorporation.

    [4.] 6.  Unless otherwise provided in the articles of incorporation, when one or more directors give notice of his or their resignation to the board, effective at a future date, the board may fill the vacancy or vacancies to take effect when the resignation or resignations become effective, each director so appointed to hold office during the remainder of the term of office of the resigning director or directors.

      Sec. 76.  NRS 78.350 is hereby amended to read as follows:

    78.350  1.  Unless otherwise provided in the articles of incorporation, or in the resolution providing for the issuance of the stock adopted by the board of directors pursuant to authority expressly vested in it by the provisions of the articles of incorporation, every stockholder of record of a corporation is entitled at each meeting of stockholders thereof to one vote for each share of stock standing in his name on the records of the corporation. If the articles of incorporation, or the resolution providing for the issuance of the stock adopted by the board of directors pursuant to authority expressly vested in it by the articles of incorporation, provides for more or less than one vote per share for any class or series of shares on any matter, every reference in this chapter to a majority or other proportion of stock shall be deemed to refer to a majority or other proportion of the voting power of all of the shares or those classes or series of shares, as may be required by the articles of incorporation, or in the resolution providing for the issuance of the stock adopted by the board of directors pursuant to authority expressly vested in it by the provisions of the articles of incorporation, or the provisions of this chapter.

    2.  Unless contrary provisions are contained in the articles of incorporation, the directors may prescribe a period not exceeding 60 days before any meeting of the stockholders during which no transfer of stock on the books of the corporation may be made, or may fix [a day] , in advance, a record date not more than 60 or less than 10 days before the [holding] date of any such meeting as the [day] date as of which stockholders entitled to notice of and to vote at such meetings must be determined. Only stockholders of record on that [day] date are entitled to notice or to vote at such a meeting. If a record date is not fixed, the record date is at the close of business on the day before the day on which notice is given or, if notice is waived, at the close of business on the day before the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders applies to an adjournment of the meeting unless the board of directors fixes a new record date for the adjourned meeting. The board of directors must fix a new record date if the meeting is adjourned to a date more than 60 days later than the date set for the original meeting.


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

κ1999 Statutes of Nevada, Page 1587 (CHAPTER 357, SB 61)κ

 

    3.  The provisions of this section do not restrict the directors from taking action to protect the interests of the corporation and its stockholders, including, but not limited to, adopting or executing plans, arrangements or instruments that deny rights, privileges, power or authority to a holder or holders of a specified number of shares or percentage of share ownership or voting power.

      Sec. 77.  NRS 78.370 is hereby amended to read as follows:

    78.370  1.  [Whenever] If under the provisions of this chapter stockholders are required or authorized to take any action at a meeting, the notice of the meeting must be in writing and signed by the president or a vice president, or the secretary, or an assistant secretary, or by such other natural person or persons as the bylaws may prescribe or permit or the directors may designate.

    2.  The notice must state the purpose or purposes for which the meeting is called and the time when, and the place, which may be within or without this state, where it is to be held.

    3.  A copy of the notice must be delivered personally or mailed postage prepaid to each stockholder of record entitled to vote at the meeting not less than 10 nor more than 60 days before the meeting. If mailed, it must be directed to the stockholder at his address as it appears upon the records of the corporation, and upon the mailing of any such notice the service thereof is complete, and the time of the notice begins to run from the date upon which the notice is deposited in the mail for transmission to the stockholder. Personal delivery of any such notice to any officer of a corporation or association, or to any member of a partnership, constitutes delivery of the notice to the corporation, association or partnership.

    4.  The articles of incorporation or the bylaws may require that the notice be also published in one or more newspapers.

    5.  Notice delivered or mailed to a stockholder in accordance with the provisions of this section and the provisions, if any, of the articles of incorporation or the bylaws is sufficient, and in the event of the transfer of his stock after such delivery or mailing and before the holding of the meeting it is not necessary to deliver or mail notice of the meeting to the transferee.

    6.  Any stockholder may waive notice of any meeting by a writing signed by him, or his duly authorized attorney, either before or after the meeting.

    7.  Unless otherwise provided in the articles of incorporation or the bylaws, [whenever] if notice is required to be given, under any provision of this chapter or the articles of incorporation or bylaws of any corporation, to any stockholder to whom:

    (a) Notice of two consecutive annual meetings, and all notices of meetings or of the taking of action by written consent without a meeting to him during the period between those two consecutive annual meetings; or

    (b) All, and at least two, payments sent by first-class mail of dividends or interest on securities during a 12‑month period,

have been mailed addressed to him at his address as shown on the records of the corporation and have been returned undeliverable, the giving of further notices to him is not required. Any action or meeting taken or held without notice to such a stockholder has the same effect as if the notice had been given. If any such stockholder delivers to the corporation a written notice setting forth his current address, the requirement that notice be given to him is reinstated.


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

κ1999 Statutes of Nevada, Page 1588 (CHAPTER 357, SB 61)κ

 

setting forth his current address, the requirement that notice be given to him is reinstated. If the action taken by the corporation is such as to require the filing of a certificate under any of the other sections of this chapter, the certificate need not state that notice was not given to persons to whom notice was not required to be given pursuant to this subsection.

      8.  Unless the articles of incorporation or bylaws otherwise require, and except as otherwise provided in this subsection, if a stockholders’ meeting is adjourned to another date, time or place, notice need not be given of the date, time or place of the adjourned meeting if they are announced at the meeting at which the adjournment is taken. If a new record date is fixed for the adjourned meeting, notice of the adjourned meeting must be given to each stockholder of record as of the new record date.

      Sec. 78.  NRS 78.378 is hereby amended to read as follows:

    78.378  1.  The provisions of NRS 78.378 to 78.3793, inclusive, [are applicable] apply to any acquisition of a controlling interest in an issuing corporation unless the articles of incorporation or bylaws of the corporation in effect on the 10th day following the acquisition of a controlling interest by an acquiring person provide that the provisions of those sections do not apply [.] to the corporation or to an acquisition of a controlling interest specifically by types of existing or future stockholders, whether or not identified.

    2.  The articles of incorporation, the bylaws or a resolution adopted by the directors of the issuing corporation may impose stricter requirements on the acquisition of a controlling interest in the corporation than the provisions of NRS 78.378 to 78.3793, inclusive.

    3.  The provisions of NRS 78.378 to 78.3793, inclusive, do not restrict the directors of an issuing corporation from taking action to protect the interests of the corporation and its stockholders, including, but not limited to, adopting or executing plans, arrangements or instruments that deny rights, privileges, power or authority to a holder of a specified number of shares or percentage of share ownership or voting power.

      Sec. 79.  NRS 78.3787 is hereby amended to read as follows:

    78.3787  “Interested stockholder” means a person who directly or indirectly exercises [the voting power] voting rights in the shares of an issuing corporation and who is:

    1.  An acquiring person;

    2.  An officer or a director of the corporation; or

    3.  An employee [and director] of the corporation.

      Sec. 80.  NRS 78.3788 is hereby amended to read as follows:

    78.3788  “Issuing corporation” means a corporation which is organized in this state and which:

    1.  Has 200 or more stockholders [,] of record, at least 100 of whom [are stockholders of record and residents of this state;] have addresses in this state appearing on the stock ledger of the corporation; and

    2.  Does business in this state directly or through an affiliated corporation.


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

κ1999 Statutes of Nevada, Page 1589 (CHAPTER 357, SB 61)κ

 

      Sec. 81.  NRS 78.3791 is hereby amended to read as follows:

    78.3791  Except as otherwise provided by the articles of incorporation of the issuing corporation, a resolution of the stockholders granting voting rights to the control shares acquired by an acquiring person must be approved by:

    1.  The holders of a majority of the voting power of the corporation; and

    2.  If the acquisition will result in any change of the kind described in subsection 3 of NRS 78.390, the holders of a majority of each class or series affected,

excluding those shares [held by] as to which any interested stockholder [.] exercises voting rights.

      Sec. 82.  NRS 78.380 is hereby amended to read as follows:

    78.380  1.  At least two-thirds of the incorporators or of the board of directors of any corporation, before issuing any stock, may amend the original articles of incorporation thereof as may be desired by executing [and acknowledging] or proving in the manner required for original articles of incorporation, and filing with the secretary of state a certificate amending, modifying, changing or altering the original articles, in whole or in part. The certificate must:

    (a) Declare that the signers thereof are at least two-thirds of the incorporators or of the board of directors of the corporation, and state the corporation’s name.

    (b) State the date upon which the original articles thereof were filed with the secretary of state.

    (c) Affirmatively declare that to the date of the certificate, no stock of the corporation has been issued.

    2.  The amendment is effective upon the filing of the certificate with the secretary of state.

    3.  This section does not permit the insertion of any matter not in conformity with this chapter.

      Sec. 83.  NRS 78.385 is hereby amended to read as follows:

    78.385  1.  Any corporation having stock may amend its articles of incorporation in any of the following respects:

    (a) By addition to its corporate powers and purposes, or diminution thereof, or both.

    (b) By substitution of other powers and purposes, in whole or in part, for those prescribed by its articles of incorporation.

    (c) By increasing, decreasing or reclassifying its authorized stock, by changing the number, par value, preferences, or relative, participating, optional or other rights, or the qualifications, limitations or restrictions of such rights, of its shares, or of any class or series of any class thereof whether or not the shares are outstanding at the time of the amendment, or by changing shares with par value, whether or not the shares are outstanding at the time of the amendment, into shares without par value or by changing shares without par value, whether or not the shares are outstanding at the time of the amendment, into shares with par value, either with or without increasing or decreasing the number of shares, and upon such basis as may be set forth in the certificate of amendment.

    (d) By changing the name of the corporation.


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

κ1999 Statutes of Nevada, Page 1590 (CHAPTER 357, SB 61)κ

 

    (e) By making any other change or alteration in its articles of incorporation that may be desired.

    2.  All such changes or alterations may be effected by one certificate of amendment; but any articles of incorporation so amended, changed or altered, may contain only such provisions as it would be lawful and proper to insert in original articles of incorporation, pursuant to NRS 78.035 and 78.037, if the original articles were executed [, acknowledged] and filed at the time of making the amendment.

      Sec. 84.  NRS 78.390 is hereby amended to read as follows:

    78.390  1.  Every amendment adopted pursuant to the provisions of NRS 78.385 must be made in the following manner:

    (a) The board of directors must adopt a resolution setting forth the amendment proposed and declaring its advisability, and call a meeting, either annual or special, of the stockholders entitled to vote for the consideration thereof.

    (b) At the meeting, of which notice must be given to each stockholder entitled to vote pursuant to the provisions of this section, a vote of the stockholders entitled to vote in person or by proxy must be taken for and against the proposed amendment. If it appears upon the canvassing of the votes that stockholders holding shares in the corporation entitling them to exercise at least a majority of the voting power, or such greater proportion of the voting power as may be required in the case of a vote by classes or series, as provided in subsections 3 and 5, or as may be required by the provisions of the articles of incorporation, have voted in favor of the amendment, the president, or vice president, and secretary, or assistant secretary, shall execute a certificate setting forth the amendment, or setting forth the articles of incorporation as amended, and the vote by which the amendment was adopted . [, and the president or vice president shall acknowledge the certificate before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds.]

    (c) The certificate so executed [and acknowledged] must be filed in the office of the secretary of state.

    2.  Upon filing the certificate the articles of incorporation are amended accordingly.

    3.  If any proposed amendment would alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series affected by the amendment regardless of limitations or restrictions on the voting power thereof.

    4.  Provision may be made in the articles of incorporation requiring, in the case of any specified amendments, a larger proportion of the voting power of stockholders than that required by this section.

    5.  Different series of the same class of shares do not constitute different classes of shares for the purpose of voting by classes except when the series is adversely affected by an amendment in a different manner than other series of the same class.


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

κ1999 Statutes of Nevada, Page 1591 (CHAPTER 357, SB 61)κ

 

      Sec. 85.  NRS 78.427 is hereby amended to read as follows:

    78.427  1.  “Resident domestic corporation” is limited to a domestic corporation that has 200 or more stockholders [.] of record.

    2.  A resident domestic corporation does not cease to be a resident domestic corporation by reason of events occurring or actions taken while the resident domestic corporation is subject to NRS 78.411 to 78.444, inclusive.

      Sec. 86.  NRS 78.575 is hereby amended to read as follows:

    78.575  Before the payment of any part of the capital and before beginning the business for which the corporation was created, the incorporators or the board of directors named in the articles of incorporation may dissolve a corporation by filing in the office of the secretary of state a certificate, signed [and acknowledged] by a majority of the incorporators or of the board of directors named in the articles of incorporation, stating that no part of the capital has been paid and the business has not begun, and thereupon the corporation is dissolved.

      Sec. 87.  NRS 78.730 is hereby amended to read as follows:

    78.730  1.  Any corporation which did exist or is existing under the laws of this state may, upon complying with the provisions of NRS 78.180, procure a renewal or revival of its charter for any period, together with all the rights, franchises, privileges and immunities, and subject to all its existing and preexisting debts, duties and liabilities secured or imposed by its original charter and amendments thereto, or existing charter, by filing:

    (a) A certificate with the secretary of state, which must set forth:

      (1) The name of the corporation, which must be the name of the corporation at the time of the renewal or revival, or its name at the time its original charter expired.

      (2) The name of the person designated as the resident agent of the corporation, his street address for the service of process, and his mailing address if different from his street address.

      (3) The date when the renewal or revival of the charter is to commence or be effective, which may be, in cases of a revival, before the date of the certificate.

      (4) Whether or not the renewal or revival is to be perpetual, and, if not perpetual, the time for which the renewal or revival is to continue.

      (5) That the corporation desiring to renew or revive its charter is, or has been, organized and carrying on the business authorized by its existing or original charter and amendments thereto, and desires to renew or continue through revival its existence pursuant to and subject to the provisions of this chapter.

    (b) A list of its president, secretary and treasurer and all of its directors and their post office box or street addresses, either residence or business.

    2.  A corporation whose charter has not expired and is being renewed shall cause the certificate to be signed by its president or vice president and secretary or assistant secretary . [and acknowledged by those officers before any person authorized by the laws of this state to take acknowledgments of deeds.] The certificate must be approved by a majority of the voting power of the shares.


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

κ1999 Statutes of Nevada, Page 1592 (CHAPTER 357, SB 61)κ

 

    3.  A corporation seeking to revive its original or amended charter shall cause the certificate to be signed by a person or persons designated or appointed by the stockholders of the corporation . [and acknowledged by the signer or signers before any person authorized to take acknowledgments of deeds.] The execution and filing of the certificate must be approved by the written consent of stockholders of the corporation holding at least a majority of the voting power and must contain a recital that this consent was secured. If no stock has been issued, the certificate must contain a statement of that fact, and a majority of the directors then in office may designate the person to sign the certificate. The corporation shall pay to the secretary of state the fee required to establish a new corporation pursuant to the provisions of this chapter.

    4.  The filed certificate, or a copy thereof which has been certified under the hand and seal of the secretary of state, must be received in all courts and places as prima facie evidence of the facts therein stated and of the existence and incorporation of the corporation therein named.

      Sec. 88.  NRS 78.765 is hereby amended to read as follows:

    78.765  1.  The fee for filing a certificate changing the number of authorized shares pursuant to NRS 78.209 or a certificate of amendment to articles of incorporation that increases the corporation’s authorized stock or a certificate of correction that increases the corporation’s authorized stock is the difference between the fee computed at the rates specified in NRS 78.760 upon the total authorized stock of the corporation, including the proposed increase, and the fee computed at the rates specified in NRS 78.760 upon the total authorized capital, excluding the proposed increase. In no case may the amount be less than $75.

    2.  The fee for filing a certificate of amendment to articles of incorporation that does not increase the corporation’s authorized stock or a certificate of correction that does not increase the corporation’s authorized stock is $75.

    3.  The fee for filing a certificate [pursuant to NRS 78.195] or an amended certificate pursuant to NRS 78.1955 is $75.

      Sec. 89.  NRS 78.770 is hereby amended to read as follows:

    78.770  1.  The fee for filing articles of merger of two or more domestic corporations is the difference between the fee computed at the rates specified in NRS 78.760 upon the aggregate authorized stock of the corporation created by the merger and the fee so computed upon the aggregate amount of the total authorized stock of the constituent corporations.

    2.  The fee for filing articles of merger of one or more domestic corporations with one or more foreign corporations is the difference between the fee computed at the rates specified in NRS 78.760 upon the aggregate authorized stock of the corporation created by the merger and the fee so computed upon the aggregate amount of the total authorized stock of the constituent corporations which have paid fees as required by NRS 78.760 and 80.050.

    3.  In no case may the amount paid be less than [$75,] $125, and in no case may the amount paid pursuant to subsection 2 exceed $25,000.

    4.  The fee for filing articles of exchange is $125.


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

κ1999 Statutes of Nevada, Page 1593 (CHAPTER 357, SB 61)κ

 

      Sec. 90.  NRS 78.795 is hereby amended to read as follows:

    78.795  1.  Any natural person or corporation residing or located in this state may, on or after January 1 of any year but before January 31 of that year, register his willingness to serve as the resident agent of a domestic or foreign corporation, limited-liability company or limited partnership with the secretary of state. The registration must be accompanied by a fee of $250 [.] per office location of the resident agent.

    2.  The secretary of state shall maintain a list of those persons who are registered pursuant to subsection 1 and make the list available to persons seeking to do business in this state.

      Sec. 91.  NRS 78A.030 is hereby amended to read as follows:

    78A.030  1.  Any corporation organized under chapter 78 of NRS may become a close corporation pursuant to this chapter by executing, [acknowledging,] filing and recording, in accordance with NRS 78.390, a certificate of amendment of the certificate of incorporation which must:

    (a) Contain a statement that the corporation elects to become a close corporation; and

    (b) Meet the requirements of subsection 2 of NRS 78A.020.

    2.  Except as otherwise provided in subsection 3, the amendment must be adopted in accordance with the requirements of NRS 78.390.

    3.  The amendment must be approved by a vote of the holders of record of at least two-thirds of the shares of each class of stock of the corporation that are outstanding and entitled to vote, unless the articles of incorporation or bylaws require approval by a greater proportion.

      Sec. 92.  NRS 78A.090 is hereby amended to read as follows:

    78A.090  1.  A close corporation may operate without a board of directors if the certificate of incorporation contains a statement to that effect.

    2.  An amendment to the certificate of incorporation eliminating a board of directors must be approved:

    (a) By all the shareholders of the corporation, whether or not otherwise entitled to vote on amendments; or

    (b) If no shares have been issued, by all subscribers for shares, if any, or if none, by the incorporators.

    3.  While a corporation is operating without a board of directors as authorized by subsection 1:

    (a) All corporate powers must be exercised by or under the authority of, and the business and affairs of the corporation managed under the direction of, the shareholders.

    (b) Unless the articles of incorporation provide otherwise:

      (1) Action requiring the approval of the board of directors or of both the board of directors and the shareholders is authorized if approved by the shareholders; and

      (2) Action requiring a majority or greater percentage vote of the board of directors is authorized if approved by the majority or greater percentage of votes of the shareholders entitled to vote on the action.

    (c) A requirement by a state or the United States that a document delivered for filing contain a statement that specified action has been taken by the board of directors is satisfied by a statement that the corporation is a close corporation without a board of directors and that the action was approved by the shareholders.


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

κ1999 Statutes of Nevada, Page 1594 (CHAPTER 357, SB 61)κ

 

close corporation without a board of directors and that the action was approved by the shareholders.

    (d) The shareholders by resolution may appoint one or more shareholders to sign documents as designated directors.

    4.  An amendment to the articles of incorporation that deletes the provision which eliminates a board of directors must be approved by the holders of at least two-thirds of the votes of each class or series of shares of the corporation, voting as separate voting groups, whether or not otherwise entitled to vote on amendments. The amendment must specify the number, names and mailing addresses of the directors of the corporation or describe who will perform the duties of the board of directors.

      5.  As used in this section, “sign” means to execute or adopt a name, word or mark, including, without limitation, an electronic symbol as described in NRS 239.042, with the present intention to authenticate a document.

      Sec. 93.  NRS 78A.190 is hereby amended to read as follows:

    78A.190  1.  The status of a corporation as a close corporation terminates if one or more of the provisions or conditions of this chapter cease to exist or be fulfilled unless:

    (a) Within 30 days after the occurrence of the event, or within 30 days after the event has been discovered by the corporation, whichever is later, the corporation files with the secretary of state [a certificate, executed and acknowledged,] an executed certificate stating that a specified provision or condition included in the certificate of incorporation to qualify the corporation as a close corporation has ceased to be applicable and furnishes a copy of the certificate to each stockholder; and

    (b) The corporation, concurrently with the filing of a certificate, takes such steps as are necessary to correct the situation that threatens the status as a close corporation, including the refusal to register the transfer of stock which has been wrongfully transferred as provided by NRS 78A.050 or commencing a proceeding under subsection 2.

    2.  Upon the suit of the close corporation or any stockholder, the court has jurisdiction to:

    (a) Issue all orders necessary to prevent the corporation from losing its status as a close corporation.

    (b) Restore the status of the corporation as a close corporation by enjoining or setting aside any act or threatened act on the part of the corporation or a stockholder that would be inconsistent with any of the provisions or conditions required or permitted by this chapter to be stated in the certificate of incorporation of a close corporation, unless it is an act approved in accordance with NRS 78A.050.

    (c) Enjoin or set aside any transfer or threatened transfer of stock of a close corporation that is contrary to the terms of the certificate of incorporation or of any permitted restriction on transfer.

    (d) Enjoin any public offering or threatened public offering of stock of the close corporation.


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

κ1999 Statutes of Nevada, Page 1595 (CHAPTER 357, SB 61)κ

 

      Sec. 94.  Chapter 80 of NRS is hereby amended by adding thereto the provisions set forth as sections 94.1, 94.4 and 94.7 of this act.

      Sec. 94.1. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 94.4 and 94.7 of this act have the meanings ascribed to them in those sections.

      Sec. 94.4. “Signed” means to have executed or adopted a name, word or mark, including, without limitation, an electronic symbol as described in NRS 239.042, with the present intention to authenticate a document.

      Sec. 94.7. “Street address” of a resident agent means the actual physical location in this state at which a resident agent is available for service of process.

      Sec. 95.  NRS 80.007 is hereby amended to read as follows:

    80.007  1.  A foreign corporation may correct a document filed by the secretary of state if the document contains an incorrect statement or was defectively executed, attested, sealed [, verified or acknowledged.] or verified.

    2.  To correct a document, the corporation shall:

    (a) Prepare a certificate of correction which:

      (1) States the name of the corporation;

      (2) Describes the document, including, without limitation, its filing date;

      (3) Specifies the incorrect statement and the reason it is incorrect or the manner in which the execution [or other formal authentication] was defective;

      (4) Corrects the incorrect statement or defective execution; and

      (5) Is signed by an officer of the corporation; and

    (b) Deliver the certificate to the secretary of state for filing.

      3.  A certificate of correction is effective on the effective date of the document it corrects except as to persons relying on the uncorrected document and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      Sec. 96.  NRS 80.010 is hereby amended to read as follows:

    80.010  1.  Before commencing or doing any business in this state, every corporation organized pursuant to the laws of another state, territory, the District of Columbia, a dependency of the United States or a foreign country, that enters this state to do business must:

    (a) File in the office of the secretary of state of this state:

      (1) A certificate of corporate existence issued not more than 90 days before the date of filing by an authorized officer of the jurisdiction of its incorporation setting forth the filing of documents and instruments related to the articles of incorporation, or the governmental acts or other instrument or authority by which the corporation was created. If the certificate is in a language other than English, a translation, together with the oath of the translator and his attestation of its accuracy, must be attached to the certificate.

      (2) A certificate of acceptance of appointment executed by its resident agent, who must be a resident or located in this state. The certificate must set forth the name of the resident agent, his street address for the service of process, and his mailing address if different from his street address. The street address of the resident agent is the registered office of the corporation in this state.


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

κ1999 Statutes of Nevada, Page 1596 (CHAPTER 357, SB 61)κ

 

street address of the resident agent is the registered office of the corporation in this state.

      (3) A statement executed by an officer of the corporation [, acknowledged before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds,] setting forth:

         (I) A general description of the purposes of the corporation; and

         (II) The authorized stock of the corporation and the number and par value of shares having par value and the number of shares having no par value.

    (b) Lodge in the office of the secretary of state a copy of the document most recently filed by the corporation in the jurisdiction of its incorporation setting forth the authorized stock of the corporation, the number of par‑value shares and their par value, and the number of no-par-value shares.

    2.  The secretary of state shall not file the documents required by subsection 1 for any foreign corporation whose name is [the same as, or deceptively similar to the name of a corporation, limited partnership or limited-liability company existing pursuant to the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state or a name to which the exclusive right is at the time reserved in the manner provided in the laws of this state,] not distinguishable on the records of the secretary of state from the names of all other artificial persons formed, organized, registered or qualified pursuant to the provisions of this Title that are on file in the office of the secretary of state and all names that are reserved in the office of the secretary of state pursuant to the provisions of this Title, unless the written , acknowledged consent of the holder of the [registered] name on file or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

    3.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer” or “licensed engineer” unless the state board of professional engineers and land surveyors certifies that:

    (a) The principals of the corporation are licensed to practice engineering pursuant to the laws of this state; or

    (b) The corporation is exempt from the prohibitions of NRS 625.520.

    4.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if it appears from the documents that the business to be carried on by the corporation is subject to supervision by the commissioner of financial institutions, unless the commissioner certifies that:

    (a) The corporation has obtained the authority required to do business in this state; or

    (b) The corporation is not subject to or is exempt from the requirements for obtaining such authority.

    5.  The secretary of state may adopt regulations that interpret the requirements of this section.


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

κ1999 Statutes of Nevada, Page 1597 (CHAPTER 357, SB 61)κ

 

      Sec. 97.  NRS 80.012 is hereby amended to read as follows:

    80.012  1.  The secretary of state, when requested so to do, shall reserve, for a period of 90 days, the right to use any name available [under NRS 78.039 or] pursuant to NRS 80.010, for the use of any foreign corporation. During the period, a name so reserved is not available for use or reservation by any [corporation, limited partnership or limited-liability company] other artificial person forming, organizing, registering or qualifying in the office of the secretary of state pursuant to the provisions of this Title without the written , acknowledged consent of the person at whose request the reservation was made.

    2.  The use by any [corporation, limited partnership or limited-liability company] other artificial person of a name in violation of subsection 1 or NRS 80.010 [or subsection 1 of this section] may be enjoined [.] , even if the document under which the artificial person is formed, organized, registered or qualified has been filed by the secretary of state.

      Sec. 98.  NRS 80.015 is hereby amended to read as follows:

    80.015  1.  For the purposes of this chapter, the following activities do not constitute doing business in this state:

    (a) Maintaining, defending or settling any proceeding;

    (b) Holding meetings of the board of directors or stockholders or carrying on other activities concerning internal corporate affairs;

    (c) Maintaining bank accounts;

    (d) Maintaining offices or agencies for the transfer, exchange and registration of the corporation’s own securities or maintaining trustees or depositaries with respect to those securities;

    (e) Making sales through independent contractors;

    (f) Soliciting or receiving orders outside of this state through or in response to letters, circulars, catalogs or other forms of advertising, accepting those orders outside of this state and filling them by shipping goods into this state;

    (g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

    (h) Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;

    (i) Owning, without more, real or personal property;

    (j) Isolated transactions completed within 30 days and not a part of a series of similar transactions;

    (k) The production of motion pictures as defined in NRS 231.020;

    (l) Transacting business as an out-of-state depository institution pursuant to the provisions of Title 55 of NRS; and

    (m) Transacting business in interstate commerce.

    2.  The list of activities in subsection 1 is not exhaustive.

    3.  A person who is not doing business in this state within the meaning of this section need not qualify or comply with any provision of NRS 80.010 to [80.270,] 80.220, inclusive, chapter 645A or 645B of NRS or Title 55 or 56 of NRS unless he:

    (a) Maintains an office in this state for the transaction of business; or

    (b) Solicits or accepts deposits in the state, except pursuant to the provisions of chapter 666 or 666A of NRS.


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

κ1999 Statutes of Nevada, Page 1598 (CHAPTER 357, SB 61)κ

 

      Sec. 99.  NRS 80.030 is hereby amended to read as follows:

    80.030  1.  Each foreign corporation admitted to do business in this state shall, within 30 days after the filing of any document amendatory or otherwise relating to the original articles in the place of its creation, file in the office of the secretary of state:

    (a) A copy of the document certified by an authorized officer of the place of its creation, or a certificate evidencing the filing, issued by the authorized officer of the place of its creation with whom the document was filed; and

    (b) A statement of an officer of the corporation [, acknowledged before a person authorized to take acknowledgments of deeds,] of the change reflected by the filing of the document, showing its relation to the name, authorized capital stock, or general purposes.

    2.  When a foreign corporation authorized to do business in this state becomes a constituent of a merger permitted by the laws of the state or country in which it is incorporated, it shall, within 30 days after the merger becomes effective, file a copy of the agreement of merger filed in the place of its creation, certified by an authorized officer of the place of its creation, or a certificate, issued by the proper officer of the place of its creation, attesting to the occurrence of the event, in the office of the secretary of state.

      3.  The secretary of state may revoke the right of a foreign corporation to transact business in this state if it fails to file the documents required by this section or pay the fees incident to that filing.

      Sec. 100.  NRS 80.070 is hereby amended to read as follows:

    80.070  1.  A foreign corporation may change its resident agent by filing with the secretary of state:

    (a) A certificate [revoking the appointment of the agent and designating a new resident agent,] of change, signed by an officer of the corporation, setting forth [the name of that agent, his street address for the service of process, and his mailing address if different from his street address;] :

      (1) The name of the corporation;

      (2) The name and street address of the present resident agent; and

      (3) The name and street address of the new resident agent; and

    (b) A certificate of acceptance executed by the new resident agent [.] , which must be a part of or attached to the certificate of change.

The change authorized by this subsection becomes effective upon the filing of the certificate of change.

    2.  A person who has been designated by a foreign corporation as resident agent may file with the secretary of state a signed statement that he is unwilling to continue to act as the agent of the corporation for the service of process. [The execution of the statement must be acknowledged.]

    3.  Upon the filing of the statement of resignation with the secretary of state, the capacity of the resigning person as resident agent terminates. If the statement of resignation is not accompanied by [an acknowledged] a statement of the corporation appointing a successor resident agent, the resigning resident agent shall give written notice, by mail, to the corporation, of the filing of the statement and its effect. The notice must be addressed to any officer of the corporation other than the resident agent.


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

κ1999 Statutes of Nevada, Page 1599 (CHAPTER 357, SB 61)κ

 

    4.  If a resident agent dies, resigns or moves from the state, the corporation, within 30 days thereafter, shall file with the secretary of state a certificate of acceptance executed by the new resident agent. The certificate must set forth the name of the new resident agent, his street address for the service of process, and his mailing address if different from his street address.

    5.  A corporation that fails to file a certificate of acceptance executed by a new resident agent within 30 days [of] after the death, resignation or removal of its resident agent shall be deemed in default and is subject to the provisions of NRS 80.150 and 80.160.

      Sec. 101.  NRS 80.110 is hereby amended to read as follows:

    80.110  1.  Each foreign corporation doing business in this state shall, [within 60 days] on or before the first day of the second month after the filing of its certificate of corporate existence with the secretary of state, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this state occurs in each year, file with the secretary of state , on a form furnished by him, a list of its president, secretary and treasurer or their equivalent, and all of its directors and a designation of its resident agent in this state, signed by an officer of the corporation.

    2.  Upon filing the list and designation, the corporation shall pay to the secretary of state a fee of $85.

    3.  The secretary of state shall, 60 days before the last day for filing the annual list required by subsection 1, cause to be mailed to each corporation required to comply with the provisions of NRS 80.110 to 80.170, inclusive, which has not become delinquent, the blank forms to be completed and filed with him. Failure of any corporation to receive the forms does not excuse it from the penalty imposed by the provisions of NRS 80.110 to 80.170, inclusive.

    4.  An annual list for a corporation not in default which is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year [.] and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      Sec. 102.  NRS 80.120 is hereby amended to read as follows:

    80.120  [When the fee for filing] If a corporation has filed the initial or annual list of officers and directors and designation of resident agent [has been paid,] in compliance with NRS 80.110 and has paid the appropriate fee for the filing, the canceled check received by the corporation constitutes a certificate authorizing it to transact its business within this state until the last day of the month in which the anniversary of its qualification to transact business occurs in the next succeeding calendar year. If the corporation desires a formal certificate upon its payment of the initial or annual fee, its payment must be accompanied by a self-addressed, stamped envelope.

      Sec. 103.  Chapter 81 of NRS is hereby amended by adding thereto the provisions set forth as sections 103.1, 103.4 and 103.7 of this act.

      Sec. 103.1. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 103.4 and 103.7 of this act have the meanings ascribed to them in those sections.


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

κ1999 Statutes of Nevada, Page 1600 (CHAPTER 357, SB 61)κ

 

      Sec. 103.4. “Signed” means to have executed or adopted a name, word or mark, including, without limitation, an electronic symbol as described in NRS 239.042, with the present intention to authenticate a document.

      Sec. 103.7. “Street address” of a resident agent means the actual physical location in this state at which a resident agent is available for service of process.

      Sec. 104.  NRS 81.060 is hereby amended to read as follows:

    81.060  1.  The articles of incorporation must be:

    (a) Subscribed by three or more of the original members, a majority of whom must be residents of this state.

    (b) [Acknowledged by each before a person authorized to take and certify acknowledgments of conveyances of real property.

    (c)] Filed, together with a certificate of acceptance of appointment executed by the resident agent of the corporation, in the office of the secretary of state in all respects in the same manner as other articles of incorporation are filed.

    2.  If a corporation formed under NRS 81.010 to 81.160, inclusive, is authorized to issue stock there must be paid to the secretary of state for filing the articles of incorporation the fee applicable to the amount of authorized stock of the corporation which the secretary of state is required by law to collect upon the filing of articles of incorporation which authorize the issuance of stock.

    3.  The secretary of state shall issue to the corporation over the great seal of the state a certificate that a copy of the articles containing the required statements of facts has been filed in his office.

    4.  Upon the issuance of the certificate by the secretary of state, the persons signing the articles and their associates and successors are a body politic and corporate. When so filed, the articles of incorporation or certified copies thereof must be received in all the courts of this state, and other places, as prima facie evidence of the facts contained therein.

      Sec. 105.  NRS 81.200 is hereby amended to read as follows:

    81.200  1.  Every association formed under NRS 81.170 to 81.270, inclusive, shall prepare articles of association in writing, setting forth:

    (a) The name of the association.

    (b) The purpose for which it is formed.

    (c) The name of the person designated as the resident agent, the street address for service of process, and the mailing address if different from the street address.

    (d) The term for which it is to exist, which may be perpetual.

    (e) The number of the directors thereof, and the names and residences of those selected for the first year.

    (f) The amount which each member is to pay upon admission as a fee for membership, and that each member signing the articles has actually paid the fee.

    (g) That the interest and right of each member therein is to be equal.

    (h) The name and post office box or street address, either residence or business, of each of the persons executing the articles of association.


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

κ1999 Statutes of Nevada, Page 1601 (CHAPTER 357, SB 61)κ

 

    2.  The articles of association must be subscribed by the original associates or members . [, and acknowledged by each before some person competent to take an acknowledgment of a deed in this state.]

    3.  The articles so subscribed [and acknowledged] must be filed, together with a certificate of acceptance of appointment executed by the resident agent for the association, in the office of the secretary of state, who shall furnish a certified copy thereof. From the time of the filing in the office of the secretary of state, the association may exercise all the powers for which it was formed.

      Sec. 106.  NRS 81.450 is hereby amended to read as follows:

    81.450  1.  The articles of incorporation must be:

    (a) Subscribed by three or more of the original members, a majority of whom must be residents of this state.

    (b) [Acknowledged by each before a person authorized to take and certify acknowledgments of conveyances of real property.

    (c)] Filed, together with a certificate of acceptance of appointment executed by the resident agent for the corporation, in the office of the secretary of state in all respects in the same manner as other articles of incorporation are filed.

    2.  The secretary of state shall issue to the corporation over the great seal of the state a certificate that a copy of the articles containing the required statements of facts has been filed in his office.

    3.  Upon the issuance of the certificate by the secretary of state the persons signing the articles and their associates and successors are a body politic and corporate. When so filed, the articles of incorporation or certified copies thereof must be received in all the courts of this state, and other places, as prima facie evidence of the facts contained therein.

      Sec. 107.  Chapter 82 of NRS is hereby amended by adding thereto the provisions set forth as sections 108, 109 and 109.5 of this act.

      Sec. 108. “Sign” means to affix a signature to a document.

      Sec. 109. “Signature” means a name, word or mark executed or adopted by a person with the present intention to authenticate a document. The term includes, without limitation, an electronic symbol as described in NRS 239.042.

      Sec. 109.5. “Street address” of a resident agent means the actual physical location in this state at which a resident agent is available for service of process.

      Sec. 110.  NRS 82.006 is hereby amended to read as follows:

      82.006  As used in this chapter the words and terms defined in NRS 82.011 to 82.041, inclusive, and sections 108, 109 and 109.5 of this act have the meanings ascribed to them in those sections.

      Sec. 111.  NRS 82.061 is hereby amended to read as follows:

    82.061  1.  A certificate of election to accept this chapter pursuant to NRS 82.056 must be signed by the president or a vice president and by the secretary or an assistant secretary [and acknowledged before a person authorized by the laws of this state to take acknowledgments of deeds] and must set forth:

    (a) The name of the corporation.


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

κ1999 Statutes of Nevada, Page 1602 (CHAPTER 357, SB 61)κ

 

    (b) A statement by the corporation that it has elected to accept this chapter and adopt new articles of incorporation conforming to the provisions of this chapter and any other statutes pursuant to which the corporation may have been organized.

    (c) If there are members or stockholders entitled to vote thereon, a statement setting forth the date of the meeting of the members or stockholders at which the election to accept this chapter and adopt new articles was made, that a quorum was present at the meeting and that acceptance and adoption was authorized by at least a majority of the votes which members or stockholders present at the meeting in person or by proxy were entitled to cast.

    (d) If there are no members or stockholders entitled to vote thereon, a statement of that fact, the date of the meeting of the board of directors at which the election to accept and adopt was made, that a quorum was present at the meeting and that the acceptance and adoption were authorized by a majority vote of the directors present at the meeting.

    (e) A statement that, in addition, the corporation followed the requirements of the law under which it was organized, its old articles of incorporation and its old bylaws so far as applicable in effecting the acceptance.

    (f) A statement that the attached copy of the articles of incorporation of the corporation are the new articles of incorporation of the corporation.

    (g) If the corporation has issued shares of stock, a statement of that fact including the number of shares theretofore authorized, the number issued and outstanding and that upon the effective date of the certificate of acceptance the authority of the corporation to issue shares of stock is thereby terminated.

    2.  The certificate so signed [and acknowledged] must be filed in the office of the secretary of state.

      Sec. 112.  NRS 82.063 is hereby amended to read as follows:

    82.063  1.  The board of directors of a corporation without shares of stock which was organized before October 1, 1991, pursuant to any provision of chapter 81 of NRS or a predecessor statute and whose permissible term of existence as stated in the articles of incorporation has expired may, within 10 years after the date of the expiration of its existence, elect to revive its charter and accept this chapter by adopting a resolution reviving the expired charter and adopting new articles of incorporation conforming to this chapter and any other statutes pursuant to which the corporation may have been organized. The new articles of incorporation need not contain the names, addresses, signatures or acknowledgments of the incorporators.

    2.  A certificate of election to accept this chapter pursuant to this section must be signed by the president or a vice president [and acknowledged before a person authorized by the laws of this state to take acknowledgments of deeds,] and must set forth:

    (a) The name of the corporation.

    (b) A statement by the corporation that it has elected to accept this chapter and adopt new articles of incorporation conforming to the provisions of this chapter and any other statutes pursuant to which the corporation may have been organized.


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

κ1999 Statutes of Nevada, Page 1603 (CHAPTER 357, SB 61)κ

 

    (c) A statement by the corporation that since the expiration of its charter it has remained organized and continued to carry on the activities for which it was formed and authorized by its original articles of incorporation and amendments thereto, and desires to continue through revival its existence pursuant to and subject to the provisions of this chapter.

    (d) A statement that the attached copy of the articles of incorporation of the corporation are the new articles of incorporation of the corporation.

    (e) A statement setting forth the date of the meeting of the board of directors at which the election to accept and adopt was made, that a quorum was present at the meeting and that the acceptance and adoption were authorized by a majority vote of the directors present at the meeting.

    3.  The certificate so signed [and acknowledged,] and a certificate of acceptance of appointment executed by the resident agent of the corporation [,] must be filed in the office of the secretary of state.

    4.  The new articles of incorporation become effective on the date of filing the certificate. The corporation’s existence continues from the date of expiration of the original term, with all the corporation’s rights, franchises, privileges and immunities and subject to all its existing and preexisting debts, duties and liabilities.

      Sec. 113.  NRS 82.081 is hereby amended to read as follows:

    82.081  1.  One or more natural persons may associate to establish a corporation no part of the income or profit of which is distributable to its members, directors or officers, except as otherwise provided in this chapter, for the transaction of any lawful business, or to promote or conduct any legitimate object or purpose, pursuant and subject to the requirements of this chapter, by:

    (a) Executing [, acknowledging] and filing in the office of the secretary of state articles of incorporation; and

    (b) Filing a certificate of acceptance of appointment, executed by the resident agent of the corporation, in the office of the secretary of state.

    2.  The secretary of state shall require articles of incorporation to be in the form prescribed by NRS 82.086. If any articles are defective in this respect, the secretary of state shall return them for correction.

      Sec. 114.  NRS 82.086 is hereby amended to read as follows:

      82.086  The articles of incorporation must set forth:

      1.  The name of the corporation. A name appearing to be that of a natural person and containing a given name or initials must not be used as a corporate name except with an additional word or words such as “Incorporated,” “Inc.,” “Limited,” “Ltd.,” “Company,” “Co.,” “Corporation,” “Corp.,” or other word which identifies it as not being a natural person.

      2.  The name of the person designated as the corporation’s resident agent, his street address where he maintains an office for service of process, and his mailing address if different from the street address.

      3.  That the corporation is a nonprofit corporation.

      4.  The nature of the business, or objects or purposes proposed to be transacted, promoted or carried on by the corporation. It is sufficient to state, either alone or with other purposes, that the corporation may engage in any lawful activity, subject to expressed limitations, if any. Such a statement makes all lawful activities within the objects or purposes of the corporation.


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

κ1999 Statutes of Nevada, Page 1604 (CHAPTER 357, SB 61)κ

 

      5.  [Whether the members of the governing board are styled directors or trustees of the corporation, and the] The number, names and post office box or street addresses, residence or business, of the first board of directors or trustees, together with any desired provisions relative to the right to change the number of directors.

      6.  The names and post office box or street address, residence or business, of each of the incorporators signing the articles of incorporation.

      Sec. 115.  NRS 82.096 is hereby amended to read as follows:

    82.096  1.  The name [of] proposed for a corporation must be distinguishable on the records of the secretary of state from the names of all other artificial persons formed, organized [or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names] , registered or qualified pursuant to the provisions of this Title that are on file in the office of the secretary of state [.] and all names that are reserved in the office of the secretary of state pursuant to the provisions of this Title. If a proposed name is not so distinguishable, the secretary of state shall return the articles of incorporation containing it to the incorporator, unless the written , acknowledged consent of the holder of the [registered] name on file or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

    2.  For the purposes of this section and NRS 82.101, a proposed name is not [distinguished] distinguishable from a [registered] name on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination of these.

    3.  The name of a corporation whose charter has been revoked, [whose existence has terminated,] which has merged and is not the surviving [corporation, or which for any other reason is no longer in good standing in this state] entity or whose existence has otherwise terminated is available for use by any other artificial person.

    4.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 116.  NRS 82.101 is hereby amended to read as follows:

    82.101  1.  The secretary of state, when requested to do so, shall reserve, for a period of 90 days, the right to use any name available under NRS 82.096 for the use of any proposed corporation. During the period, a name so reserved is not available for use or reservation by any [for-profit or nonprofit corporation, limited partnership or limited-liability company] other artificial person forming, organizing, registering or qualifying in the office of the secretary of state pursuant to the provisions of this Title without the written , acknowledged consent of the person at whose request the reservation was made.

    2.  The use by any [for-profit or nonprofit corporation, limited partnership or limited-liability company] other artificial person of a name in violation of subsection 1 or NRS 82.096 [or subsection 1 of this section] may be enjoined, even if the [articles of incorporation or organization of the corporation or limited-liability company, or the certificate of limited partnership, have] document under which the artificial person is formed, organized, registered or qualified has been filed by the secretary of state.


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

κ1999 Statutes of Nevada, Page 1605 (CHAPTER 357, SB 61)κ

 

      Sec. 117.  NRS 82.346 is hereby amended to read as follows:

    82.346  1.  If the first meeting of the directors has not taken place and if there are no members, a majority of the incorporators of a corporation may amend the original articles by executing and [acknowledging or] proving in the manner required for original articles, and filing with the secretary of state, a certificate amending, modifying, changing or altering the original articles, in whole or in part. The certificate must:

    (a) Declare that the signers thereof are a majority of the original incorporators of the corporation;

    (b) State the date upon which the original articles were filed with the secretary of state; and

    (c) Affirmatively declare that to the date of the certification no meeting of the directors has taken place and the corporation has no members other than the incorporators.

    2.  The amendment is effective upon the filing of the certificate with the secretary of state.

    3.  This section does not permit the insertion of any matter not in conformity with this chapter.

    4.  The secretary of state shall charge the fee allowed by law for filing the amended certificate of incorporation.

      Sec. 118.  NRS 82.351 is hereby amended to read as follows:

    82.351  1.  A corporation whose directors have held a first meeting or which has members who are not incorporators may amend its articles in any of the following respects:

    (a) By addition to its corporate powers and purposes, or diminution thereof, or both.

    (b) By substitution of other powers and purposes, in whole or in part, for those prescribed by its articles of incorporation.

    (c) By changing the name of the corporation.

    (d) By making any other change or alteration in its articles of incorporation that may be desired.

    2.  All such changes or alterations may be effected by one certificate of amendment. Articles so amended, changed or altered may contain only such provisions as it would be lawful and proper to insert in original articles, pursuant to NRS 82.086 and 82.091 or the other statutes governing the contents of the corporation’s articles, if the original articles were executed [, acknowledged] and filed at the time of making the amendment.

      Sec. 119.  NRS 82.356 is hereby amended to read as follows:

    82.356  1.  Every amendment adopted pursuant to the provisions of NRS 82.351 must be made in the following manner:

    (a) The board of directors must adopt a resolution setting forth the amendment proposed, approve it and, if the corporation has members entitled to vote on an amendment to the articles, call a meeting, either annual or special, of the members. The amendment must also be approved by every public official or other person whose approval of an amendment of articles is required by the articles.

    (b) At the meeting of members, of which notice must be given to each member entitled to vote pursuant to the provisions of this section, a vote of the members entitled to vote in person or by proxy must be taken for and against the proposed amendment.


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

κ1999 Statutes of Nevada, Page 1606 (CHAPTER 357, SB 61)κ

 

against the proposed amendment. A majority of a quorum of the voting power of the members or such greater proportion of the voting power of members as may be required in the case of a vote by classes, as provided in subsection 3, or as may be required by the articles, must vote in favor of the amendment.

    (c) Upon approval of the amendment by the directors, or if the corporation has members entitled to vote on an amendment to the articles, by both the directors and those members, and such other persons or public officers, if any, as are required to do so by the articles, the chairman of the board or the president or vice president, and the secretary or assistant secretary, must execute a certificate setting forth the amendment, or setting forth the articles as amended, that the public officers or other persons, if any, required by the articles have approved the amendment, and the vote of the members and directors by which the amendment was adopted. [The chairman of the board or the president or vice president, and the secretary or assistant secretary, must acknowledge the certificate before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds.]

    (d) The certificate so executed [and acknowledged,] must be filed in the office of the secretary of state.

    2.  Upon filing the certificate, the articles of incorporation are amended accordingly.

    3.  If any proposed amendment would alter or change any preference or any relative or other right given to any class of members, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of a majority of a quorum of the voting power of each class of members affected by the amendment regardless of limitations or restrictions on their voting power.

    4.  In the case of any specified amendments, the articles may require a larger vote of members than that required by this section.

      Sec. 120.  NRS 82.466 is hereby amended to read as follows:

    82.466  1.  A federal court may take the same actions with respect to corporations governed by this chapter as a federal court may take with respect to corporations governed by chapter 78 of NRS under subsection 1 of NRS 78.622.

    2.  A corporation governed by this chapter shall file with the secretary of state a certified copy of the [plans] confirmed plan of reorganization and the [notices] notice of bankruptcy described in NRS 78.622 . [and 78.626.]

      Sec. 121.  NRS 82.471 is hereby amended to read as follows:

    82.471  1.  Whenever any corporation becomes insolvent or suspends its ordinary business for want of funds to carry on the business, or if its business has been and is being conducted at a great loss and greatly prejudicial to the interest of its creditors or members, creditors holding 10 percent of the outstanding indebtedness, or members, if any, having 10 percent of the voting power to elect directors, may, by petition or bill of complaint setting forth the facts and circumstances of the case, apply to the district court of the county in which the registered office of the corporation is located for a writ of injunction and the appointment of a receiver or receivers or trustee or trustees.


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

κ1999 Statutes of Nevada, Page 1607 (CHAPTER 357, SB 61)κ

 

    2.  The court, being satisfied by affidavit or otherwise of the sufficiency of the application and of the truth of the allegations contained in the petition or bill, and upon hearing after such notice as the court by order may direct, shall proceed in a summary way to hear the affidavits, proofs and allegations which may be offered in behalf of the parties.

    3.  If upon the inquiry it appears to the court that the corporation has become insolvent and is not about to resume its business in a short time thereafter, or that its business has been and is being conducted at a great loss and greatly prejudicial to the interests of its creditors or members, so that its business cannot be conducted with safety to the public, it may issue an injunction to restrain the corporation and its officers and agents from exercising any of its privileges or franchises and from collecting or receiving any debts or paying out, selling, assigning or transferring any of its estate, [moneys,] money, funds, lands, tenements or effects, except to a receiver appointed by the court, until the court otherwise orders.

    [4.  Within 30 days after filing for the relief described in this section, the person filing for such relief must file with the secretary of state a notice of the application, specifying:

    (a) The date of the application;

    (b) The name and address of the court where the application is filed; and

    (c) The number assigned to the case by the court.

The person filing for such relief with respect to a corporation for public benefit shall immediately send a copy of the notice to the attorney general by registered mail, return receipt requested.]

      Sec. 122.  NRS 82.491 is hereby amended to read as follows:

    82.491  1.  The court may appoint a temporary receiver upon the same grounds and pursuant to the same procedure as provided in the Nevada Rules of Civil Procedure for granting a temporary restraining order. A hearing must be held on the appointment of a temporary receiver within 15 days after the receiver’s appointment, unless the appointment is extended by order of the court or upon stipulation of the parties.

    2.  The court may, if good cause exists, appoint one or more receivers. Directors or trustees who have not been guilty of negligence or active breach of duty must be preferred in making the appointment.

    3.  Receivers so appointed have, among the usual powers, all the functions, powers, tenure and duties to be exercised under the direction of the court as are conferred on receivers and as provided in NRS 82.476 and 82.481 whether the corporation is insolvent or not.

    4.  The court may, at any time, grant lesser equitable relief, order a partial liquidation, terminate the receivership, or dissolve or terminate the corporation as would be just and proper in the circumstances.

    [5.  Within 30 days after filing for the relief described in NRS 82.486, the person filing for that relief must file with the secretary of state a notice of the application, specifying:

    (a) The date of the application;

    (b) The name and address of the court in which the application was filed; and

    (c) The number assigned to the case by the court.The person filing for such relief with respect to a corporation for public benefit shall immediately send a copy of the notice to the attorney general by registered mail, return receipt requested.]


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

κ1999 Statutes of Nevada, Page 1608 (CHAPTER 357, SB 61)κ

 

The person filing for such relief with respect to a corporation for public benefit shall immediately send a copy of the notice to the attorney general by registered mail, return receipt requested.]

      Sec. 123.  NRS 82.546 is hereby amended to read as follows:

    82.546  1.  Any corporation which did exist or is existing pursuant to the laws of this state may, upon complying with the provisions of NRS 78.150 and 82.193, procure a renewal or revival of its charter for any period, together with all the rights, franchises, privileges and immunities, and subject to all its existing and preexisting debts, duties and liabilities secured or imposed by its original charter and amendments thereto, or its existing charter, by filing:

    (a) A certificate with the secretary of state, which must set forth:

      (1) The name of the corporation, which must be the name of the corporation at the time of the renewal or revival, or its name at the time its original charter expired.

      (2) The name and street address of the resident agent of the filing corporation, and his mailing address if different from his street address.

      (3) The date when the renewal or revival of the charter is to commence or be effective, which may be, in cases of a revival, before the date of the certificate.

      (4) Whether or not the renewal or revival is to be perpetual, and, if not perpetual, the time for which the renewal or revival is to continue.

      (5) That the corporation desiring to renew or revive its charter is, or has been, organized and carrying on the business authorized by its existing or original charter and amendments thereto, and desires to renew or continue through revival its existence pursuant to and subject to the provisions of this chapter.

    (b) A list of its president, secretary and treasurer and all of its directors and their post office box and street addresses, either residence or business.

    2.  A corporation whose charter has not expired and is being renewed shall cause the certificate to be signed by its president or vice president and secretary or assistant secretary . [, and acknowledged by those officers before any person authorized by law to administer oaths or affirmations.] The certificate must be approved by a majority of the last-appointed surviving directors.

    3.  A corporation seeking to revive its original or amended charter shall cause the certificate to be signed by its president or vice president and secretary or assistant secretary . [, and acknowledged by those officers before any person authorized by law to administer oaths or affirmations.] The execution and filing of the certificate must be approved unanimously by the last-appointed surviving directors of the corporation and must contain a recital that unanimous consent was secured. The corporation shall pay to the secretary of state the fee required to establish a new corporation pursuant to the provisions of this chapter.

    4.  The filed certificate, or a copy thereof which has been certified under the hand and seal of the secretary of state, must be received in all courts and places as prima facie evidence of the facts therein stated and of the existence and incorporation of the corporation named therein.


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

κ1999 Statutes of Nevada, Page 1609 (CHAPTER 357, SB 61)κ

 

      Sec. 124.  Chapter 84 of NRS is hereby amended by adding thereto the provisions set forth as sections 124.1, 124.4 and 124.7 of this act.

      Sec. 124.1. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 124.4 and 124.7 of this act have the meanings ascribed to them in those sections.

      Sec. 124.4. “Signed” means to have executed or adopted a name, word or mark, including, without limitation, an electronic symbol as described in NRS 239.042, with the present intention to authenticate a document.

      Sec. 124.7. “Street address” of a resident agent means the actual physical location in this state at which a resident agent is available for service of process.

      Sec. 125.  NRS 84.020 is hereby amended to read as follows:

    84.020  An archbishop, bishop, president, trustee in trust, president of stake, president of congregation, overseer, presiding elder, district superintendent, other presiding officer or clergyman of a church or religious society or denomination, who has been chosen, elected or appointed in conformity with the constitution, canons, rites, regulations or discipline of the church or religious society or denomination, and in whom is vested the legal title to property held for the purposes, use or benefit of the church or religious society or denomination, may make and subscribe written articles of incorporation, in duplicate, [acknowledge the articles before a person authorized to take acknowledgments and file one copy of the articles,] together with a certificate of acceptance of appointment executed by the resident agent of the corporation, in the office of the secretary of state and retain possession of the other.

      Sec. 126.  NRS 84.060 is hereby amended to read as follows:

    84.060  All deeds and other instruments in writing [shall be:

    1.  Made] must be made in the name of the corporation and signed by the person representing the corporation.

    [2.  Sealed with the seal of the corporation, an impression of which seal shall be filed in the office of the secretary of state.]

      Sec. 127.  NRS 84.120 is hereby amended to read as follows:

    84.120  1.  A resident agent who wishes to resign shall file with the secretary of state a signed statement for each corporation sole that he is unwilling to continue to act as the agent of the corporation for the service of process. [The execution of the statement must be acknowledged.] A resignation is not effective until the signed statement is filed with the secretary of state.

    2.  The statement of resignation may contain [an acknowledged] a statement of the affected corporation sole appointing a successor resident agent for that corporation. A certificate of acceptance executed by the new resident agent, stating the full name, complete street address and, if different from the street address, mailing address of the new resident agent, must accompany the statement appointing a successor resident agent.

    3.  Upon the filing of the statement of resignation with the secretary of state, the capacity of the resigning person as resident agent terminates. If the statement of resignation contains no statement by the corporation sole appointing a successor resident agent, the resigning resident agent shall immediately give written notice, by mail, to the corporation of the filing of the statement and its effect.


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

κ1999 Statutes of Nevada, Page 1610 (CHAPTER 357, SB 61)κ

 

immediately give written notice, by mail, to the corporation of the filing of the statement and its effect. The notice must be addressed to the person in whom is vested the legal title to property specified in NRS 84.020.

    4.  If a resident agent dies, resigns or removes from the state, the corporation sole, within 30 days thereafter, shall file with the secretary of state a certificate of acceptance executed by the new resident agent. The certificate must set forth the full name and complete street address of the new resident agent for the service of process, and may have a separate mailing address, such as a post office box, which may be different from the street address.

    5.  A corporation sole that fails to file a certificate of acceptance executed by the new resident agent within 30 days after the death, resignation or removal of its former resident agent shall be deemed in default and is subject to the provisions of NRS 84.130 and 84.140.

      Sec. 128.  Chapter 86 of NRS is hereby amended by adding thereto the provisions set forth as sections 129 to 133, inclusive, of this act.

      Sec. 129. “Sign” means to affix a signature to a document.

      Sec. 130. “Signature” means a name, word or mark executed or adopted by a person with the present intention to authenticate a document. The term includes, without limitation, an electronic symbol as described in NRS 239.042.

      Sec. 130.5. “Street address” of a resident agent means the actual physical location in this state at which a resident agent is available for service of process.

      Sec. 131. 1.  A limited-liability company which did exist or is existing under the laws of this state may, upon complying with the provisions of NRS 86.276, procure a renewal or revival of its charter for any period, together with all the rights, franchises, privileges and immunities, and subject to all its existing and preexisting debts, duties and liabilities secured or imposed by its original charter and amendments thereto, or existing charter, by filing:

    (a) A certificate with the secretary of state, which must set forth:

      (1) The name of the limited-liability company, which must be the name of the limited-liability company at the time of the renewal or revival, or its name at the time its original charter expired.

      (2) The name of the person designated as the resident agent of the limited-liability company, his street address for the service of process, and his mailing address if different from his street address.

      (3) The date when the renewal or revival of the charter is to commence or be effective, which may be, in cases of a revival, before the date of the certificate.

      (4) Whether or not the renewal or revival is to be perpetual, and, if not perpetual, the time for which the renewal or revival is to continue.

      (5) That the limited-liability company desiring to renew or revive its charter is, or has been, organized and carrying on the business authorized by its existing or original charter and amendments thereto, and desires to renew or continue through revival its existence pursuant to and subject to the provisions of this chapter.


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

κ1999 Statutes of Nevada, Page 1611 (CHAPTER 357, SB 61)κ

 

    (b) A list of its managers, or if there are no managers, all its managing members and their post office box or street addresses, either residence or business.

    2.  A limited-liability company whose charter has not expired and is being renewed shall cause the certificate to be signed by its manager, or if there is no manager, by a person designated by its members. The certificate must be approved by a majority of the members.

    3.  A limited-liability company seeking to revive its original or amended charter shall cause the certificate to be signed by a person or persons designated or appointed by the members. The execution and filing of the certificate must be approved by the written consent of a majority of the members and must contain a recital that this consent was secured. The limited-liability company shall pay to the secretary of state the fee required to establish a new limited-liability company pursuant to the provisions of this chapter.

      4.  The filed certificate, or a copy thereof which has been certified under the hand and seal of the secretary of state, must be received in all courts and places as prima facie evidence of the facts therein stated and of the existence of the limited-liability company therein named.

      Sec. 132. A limited-liability company that has revived or renewed its certificate pursuant to the provisions of this chapter:

      1.  Is a limited-liability company and continues to be a limited-liability company for the time stated in the certificate of revival or renewal;

      2.  Possesses the rights, privileges and immunities conferred by the original certificate and by this chapter; and

      3.  Is subject to the restrictions and liabilities set forth in this chapter.

      Sec. 133. Before the issuance of members’ interests an organizer, and after the issuance of members’ interests a manager, of a limited-liability company may authorize the secretary of state in writing to replace any page of a document submitted for filing, on an expedited basis, before the actual filing, and to accept the page as if it were part of the originally signed filing. The signed authorization of the organizer or manager to the secretary of state permits, but does not require, the secretary of state to alter the original document as requested.

      Sec. 134.  NRS 86.011 is hereby amended to read as follows:

      86.011  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 86.021 to 86.125, inclusive, and sections 129, 130 and 130.5 of this act have the meanings ascribed to them in those sections.

      Sec. 135.  NRS 86.151 is hereby amended to read as follows:

    86.151  1.  One or more persons may form a limited-liability company by:

    (a) Executing [, acknowledging] and filing with the secretary of state articles of organization for the company; and

    (b) Filing with the secretary of state a certificate of acceptance of appointment, executed by the resident agent of the company.


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

κ1999 Statutes of Nevada, Page 1612 (CHAPTER 357, SB 61)κ

 

      2.  Upon the filing of the articles of organization and the certificate of acceptance with the secretary of state, and the payment to him of the required filing fees, the secretary of state shall issue to the company a certificate that the articles, containing the required statement of facts, have been filed.

      3.  A signer of the articles of organization or a manager designated in the articles does not thereby become a member of the company. At all times after commencement of business by the company, the company must have one or more members. The filing of the articles does not, by itself, constitute commencement of business by the company.

      Sec. 136.  NRS 86.161 is hereby amended to read as follows:

      86.161  1.  The articles of organization must set forth:

      (a) The name of the limited-liability company;

      (b) The name and complete street address of its resident agent, and the mailing address of the resident agent if different from the street address;

      (c) The name and post office or street address, either residence or business, of each of the organizers executing the articles; and

      (d) If the company is to be managed by [one] :

             (1) One or more managers, the name and post office or street address, either residence or business, of each manager; [and

      (e) If the company is to be managed by the] or

             (2) The members, the name and post office or street address, either residence or business, of each member.

      2.  The articles may set forth any other provision, not inconsistent with law, which the members elect to set out in the articles of organization for the regulation of the internal affairs of the company, including any provisions which under this chapter are required or permitted to be set out in the operating agreement of the company.

      3.  It is not necessary to set out in the articles of organization:

      (a) The rights, if any, of the members to contract debts on behalf of the limited-liability company; or

      (b) Any of the powers enumerated in this chapter.

      Sec. 137.  NRS 86.171 is hereby amended to read as follows:

      86.171  1.  The name of a limited-liability company formed under the provisions of this chapter must contain the words “Limited-Liability Company,” “Limited Company,” or “Limited” or the abbreviations “Ltd.,” “L.L.C.,” “L.C.,” “LLC” or “LC.” The word “Company” may be abbreviated as “Co.”

      2.  The name proposed for a limited-liability company must be distinguishable on the records of the secretary of state from the names of all other artificial persons formed, organized [or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names] , registered or qualified pursuant to the provisions of this Title that are on file in the office of the secretary of state [.] and all names that are reserved in the office of the secretary of state pursuant to the provisions of this Title. If a proposed name is not so distinguishable, the secretary of state shall return the articles of organization to the organizer, unless the written , acknowledged consent of the holder of the [registered] name on file or reserved name to use the same name or the requested similar name accompanies the articles of organization.


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

κ1999 Statutes of Nevada, Page 1613 (CHAPTER 357, SB 61)κ

 

    3.  For the purposes of this section and NRS 86.176, a proposed name is not [distinguished] distinguishable from a [registered] name on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination of these.

    4.  The name of a limited-liability company whose charter has been revoked, [whose existence has terminated,] which has merged and is not the surviving [company, or which for any other reason is no longer in good standing] entity or whose existence has otherwise terminated is available for use by any other artificial person.

    5.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 138.  NRS 86.176 is hereby amended to read as follows:

    86.176  1.  The secretary of state, when requested so to do, shall reserve, for a period of 90 days, the right to use any name available under NRS 86.171, for the use of any proposed limited-liability company. During the period, a name so reserved is not available for use or reservation by any [corporation, limited partnership or limited-liability company] other artificial person forming, organizing, registering or qualifying in the office of the secretary of state pursuant to the provisions of this Title without the written, acknowledged consent of the person at whose request the reservation was made.

    2.  The use by any [corporation, limited partnership or limited-liability company] other artificial person of a name in violation of subsection 1 or NRS 86.171 [or subsection 1 of this section] may be enjoined, [notwithstanding the fact that the articles of incorporation or organization of the corporation or limited-liability company or the certificate of limited partnership may have] even if the document under which the artificial person is formed, organized, registered or qualified has been filed by the secretary of state.

      Sec. 139.  NRS 86.221 is hereby amended to read as follows:

    86.221  1.  The articles of organization of a limited-liability company may be amended for any purpose, not inconsistent with law, as determined by all of the members or permitted by the articles or an operating agreement.

    2.  An amendment must be made in the form of a certificate setting forth:

    (a) The name of the limited-liability company;

    (b) The date of filing of the articles of organization; and

    (c) The amendment to the articles of organization.

    3.  The certificate of amendment must be signed [and acknowledged] by a manager of the company, or if management is not vested in a manager, by a member.

    4.  Restated articles of organization may be executed and filed in the same manner as a certificate of amendment.

      Sec. 140.  NRS 86.226 is hereby amended to read as follows:

    86.226  1.  A signed [and acknowledged] certificate of amendment, or a certified copy of a judicial decree of amendment, must be filed with the secretary of state. A person who executes a certificate as an agent, officer or fiduciary of the limited-liability company need not exhibit evidence of his authority as a prerequisite to filing. Unless the secretary of state finds that a certificate does not conform to law, upon his receipt of all required filing fees he shall file the certificate.


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

κ1999 Statutes of Nevada, Page 1614 (CHAPTER 357, SB 61)κ

 

certificate does not conform to law, upon his receipt of all required filing fees he shall file the certificate.

    2.  Upon the filing of a certificate of amendment or judicial decree of amendment in the office of the secretary of state, the articles of organization are amended as set forth therein.

      Sec. 141.  NRS 86.235 is hereby amended to read as follows:

    86.235  1.  If a limited-liability company [created] formed pursuant to this chapter desires to change [the location within this state of its registered office, or change] its resident agent, [or both,] the change may be effected by filing with the secretary of state a certificate of change , signed by a manager of the company or, if management is not vested in a manager, by a member, that sets forth:

      [1.](a) The name of the limited-liability company;

    [2.  That the change authorized by this section is effective upon the filing of the certificate of change;

    3.  The street address of its present registered office;

    4.  If the present registered office is to be changed, the street address of the new registered office;

    5.](b) The name and street address of its present resident agent; and

    [6.  If the present resident agent is to be changed, the name]

    (c) The name and street address of the new resident agent.

    2.  The new resident agent’s certificate of acceptance must be a part of or attached to the certificate of change.

[The certificate of change must be signed by a manager of the limited-liability company or, if no manager has been elected, by a member of the company.]

      3.  The change authorized by this section becomes effective upon the filing of the certificate of change.

      Sec. 142.  NRS 86.251 is hereby amended to read as follows:

    86.251  1.  A resident agent who desires to resign shall file with the secretary of state a signed statement for each limited-liability company that he is unwilling to continue to act as the agent of the limited-liability company for the service of process. [The execution of the statement must be acknowledged.] A resignation is not effective until the signed statement is filed with the secretary of state.

    2.  The statement of resignation may contain [an acknowledged] a statement of the affected limited-liability company appointing a successor resident agent for that limited-liability company, giving the agent’s full name, street address for the service of process, and mailing address if different from the street address. A certificate of acceptance executed by the new resident agent must accompany the statement appointing a successor resident agent.

    3.  Upon the filing of the statement of resignation with the secretary of state the capacity of the resigning person as resident agent terminates. If the statement of resignation contains no statement by the limited-liability company appointing a successor resident agent, the resigning agent shall immediately give written notice, by mail, to the limited-liability company of the filing of the statement and its effect. The notice must be addressed to any manager or, if none, to any member, of the limited-liability company other than the resident agent.


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

κ1999 Statutes of Nevada, Page 1615 (CHAPTER 357, SB 61)κ

 

    4.  If a resident agent dies, resigns or moves from the state, the limited-liability company, within 30 days thereafter, shall file with the secretary of state a certificate of acceptance executed by the new resident agent. The certificate must set forth the name, complete street address and mailing address, if different from the street address, of the new resident agent.

    5.  Each limited-liability company which fails to file a certificate of acceptance executed by the new resident agent within 30 days after the death, resignation or removal of its resident agent as provided in subsection 4, shall be deemed in default and is subject to the provisions of NRS 86.272 and 86.274.

      Sec. 143.  NRS 86.266 is hereby amended to read as follows:

    86.266  [When the fee for filing] If a limited-liability company has filed the annual list of managers or members and designation of a resident agent [has been paid,] in compliance with NRS 86.263 and has paid the appropriate fee for the filing, the canceled check received by the limited-liability company constitutes a certificate authorizing it to transact its business within this state until the last day of the month in which the anniversary of its formation occurs in the next succeeding calendar year. If the company desires a formal certificate upon its payment of the annual fee, its payment must be accompanied by a self-addressed, stamped envelope.

      Sec. 144.  NRS 86.278 is hereby amended to read as follows:

    86.278  1.  Except as otherwise provided in subsection 2, if a limited-liability company applies to reinstate its charter but its name has been legally acquired or reserved by [another limited-liability company or] any other artificial person formed, organized [or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS] , registered or qualified pursuant to the provisions of this Title whose name is on file [and in good standing] with the office of the secretary of state [,] or reserved in the office of the secretary of state pursuant to the provisions of this Title, the company shall submit in writing to the secretary of state some other name under which it desires its existence to be reinstated. If that name is distinguishable from all other names reserved or otherwise on file , [and in good standing,] the secretary of state shall issue to the applying limited-liability company a certificate of reinstatement under that new name.

    2.  If the applying limited-liability company submits the written , acknowledged consent of the artificial person having the name, or the person reserving the name, which is not distinguishable from the old name of the applying company or a new name it has submitted, it may be reinstated under that name.

    3.  For the purposes of this section, a proposed name is not [distinguished] distinguishable from a name [used] on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name , or any combination of [those.] these.

    4.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 145.  NRS 86.301 is hereby amended to read as follows:

    86.301  Except as otherwise provided in this chapter or in its articles of organization, no debt may be contracted or liability incurred by or on behalf of a limited-liability company, except by one or more of its managers if


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

κ1999 Statutes of Nevada, Page 1616 (CHAPTER 357, SB 61)κ

 

management of the limited-liability company has been vested by the members in a manager or managers or, if management of the limited-liability company is retained by the members, then as provided in the articles of organization [.] or the operating agreement.

      Sec. 146.  NRS 86.531 is hereby amended to read as follows:

    86.531  1.  When all debts, liabilities and obligations have been paid and discharged or adequate provision has been made therefor and all of the remaining property and assets have been distributed to the members, articles of dissolution must be prepared [, signed and acknowledged,] and signed setting forth:

    (a) The name of the limited-liability company;

    (b) That all debts, obligations and liabilities have been paid and discharged or that adequate provision has been made therefor;

    (c) That all the remaining property and assets have been distributed among its members in accordance with their respective rights and interests; and

    (d) That there are no suits pending against the company in any court or that adequate provision has been made for the satisfaction of any judgment, order or decree which may be entered against it in any pending suit.

    2.  The articles must be signed by a manager, or if there is no manager by a member, of the company.

      Sec. 147.  NRS 86.541 is hereby amended to read as follows:

    86.541  1.  The signed [and acknowledged] articles of dissolution must be filed with the secretary of state. Unless the secretary of state finds that the articles of dissolution do not conform to law, he shall when all fees and license taxes prescribed by law have been paid issue a certificate that the limited-liability company is dissolved.

    2.  Upon the filing of the articles of dissolution the existence of the company ceases, except for the purpose of suits, other proceedings and appropriate action as provided in this chapter. The manager or managers in office at the time of dissolution, or the survivors of them, are thereafter trustees for the members and creditors of the dissolved company and as such have authority to distribute any property of the company discovered after dissolution, convey real estate and take such other action as may be necessary on behalf of and in the name of the dissolved company.

      Sec. 148.  NRS 87.020 is hereby amended to read as follows:

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

    1.  “Bankrupt” includes bankrupt under the Federal Bankruptcy Act or insolvent under any state insolvent act.

    2.  “Business” includes every trade, occupation or profession.

    3.  “Conveyance” includes every assignment, lease, mortgage or encumbrance.

    4.  “Court” includes every court and judge having jurisdiction in the case.

    5.  “Professional service” means any type of personal service which may legally be performed only pursuant to a license or certificate of registration.

    6.  “Real property” includes land and any interest or estate in land.


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

κ1999 Statutes of Nevada, Page 1617 (CHAPTER 357, SB 61)κ

 

    7.  “Registered limited-liability partnership” means a partnership formed pursuant to an agreement governed by this chapter for the purpose of rendering a professional service and registered pursuant to and complying with NRS 87.440 to 87.560, inclusive.

    8.  “Signature” means a name, word or mark executed or adopted by a person with the present intention to authenticate a document. The term includes, without limitation, an electronic symbol as described in NRS 239.042.

      9.  “Signed” means to have affixed a signature to a document.

      10.  “Street address” of a resident agent means the actual physical location in this state at which a resident agent is available for service of process.

      Sec. 149.  NRS 87.450 is hereby amended to read as follows:

    87.450  1.  The name [of] proposed for a registered limited-liability partnership must contain the words “Limited-Liability Partnership” or “Registered Limited-Liability Partnership” or the abbreviation “L.L.P.” or “LLP” as the last words or letters of the name and must be distinguishable on the records of the secretary of state from the names of all other artificial persons formed, organized [or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names] , registered or qualified pursuant to the provisions of this Title that are on file in the office of the secretary of state [.] and all names that are reserved in the office of the secretary of state pursuant to the provisions of this Title. If the name of the registered limited-liability partnership on a certificate of registration of limited-liability partnership submitted to the secretary of state is not distinguishable from a name on file [,] or reserved name, the secretary of state shall return the certificate to the person who signed it unless the written , acknowledged consent of the holder of the [registered] name on file or reserved name to use the name accompanies the certificate.

    2.  For the purposes of this section, a proposed name is not [distinguished] distinguishable from a [registered] name on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination of these.

    3.  The name of a registered limited-liability partnership whose right to transact business has been forfeited, [whose existence has terminated,] which has merged and is not the surviving [partnership, or which for any other reason is no longer in good standing in this state] entity or whose existence has otherwise terminated is available for use by any other [registered limited-liability partnership or other] artificial person.

    4.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 150.  NRS 87.455 is hereby amended to read as follows:

    87.455  1.  Except as otherwise provided in subsection 2, if a registered limited-liability partnership applies to reinstate its right to transact business but its name has been legally acquired by [another registered limited-liability partnership or] any other artificial person formed, organized [or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS] , registered or qualified pursuant to the provisions of this Title whose name is on file [and in good standing] with the office of the secretary of state [,] or reserved in the office of the secretary of state pursuant to the provisions of this Title, the applying registered limited-liability partnership shall submit in writing to the secretary of state some other name under which it desires its right to transact business to be reinstated.


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

κ1999 Statutes of Nevada, Page 1618 (CHAPTER 357, SB 61)κ

 

in the office of the secretary of state pursuant to the provisions of this Title, the applying registered limited-liability partnership shall submit in writing to the secretary of state some other name under which it desires its right to transact business to be reinstated. If that name is distinguishable from all other names reserved or otherwise on file , [and in good standing,] the secretary of state shall issue to the applying registered limited-liability partnership a certificate of reinstatement under that new name.

      2.  If the applying registered limited-liability partnership submits the written , acknowledged consent of the artificial person having the name, or the person who has reserved the name, that is not distinguishable from the old name of the applying registered limited-liability partnership or a new name it has submitted, it may be reinstated under that name.

      3.  For the purposes of this section, a proposed name is not [distinguished] distinguishable from a name [used] on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination [thereof.] of these.

      4.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 151.  NRS 87.490 is hereby amended to read as follows:

      87.490  1.  If a registered limited-liability partnership wishes to change the location of its principal office in this state or its resident agent, it shall first file with the secretary of state a certificate of change that sets forth:

      (a) The name of the registered limited-liability partnership;

      (b) The street address of its principal office;

      (c) If the location of its principal office will be changed, the street address of its new principal office;

      (d) The name of its resident agent; and

      (e) If its resident agent will be changed, the name of its new resident agent.

The certificate of acceptance of its new resident agent must accompany the certificate of change.

      2.  A certificate of change filed pursuant to this section must be:

      (a) Signed by a managing partner of the registered limited-liability partnership; and

      (b) [Acknowledged by a person competent to take an acknowledgment of deeds in this state; and

      (c)] Accompanied by a fee of $15.

      Sec. 152.  NRS 87.500 is hereby amended to read as follows:

      87.500  1.  A resident agent of a registered limited-liability partnership who wishes to resign shall file with the secretary of state a signed statement that he is unwilling to continue to act as the resident agent of the registered limited-liability partnership for service of process. [The execution of the statement must be acknowledged by a person competent to take an acknowledgment of deeds in this state.] A resignation is not effective until the signed statement is filed with the secretary of state.

      2.  The statement of resignation may contain [an acknowledged] a statement by the affected registered limited-liability partnership appointing a successor resident agent. A certificate of acceptance signed by the new agent, stating the full name, complete street address and, if different from the street address, the mailing address of the new agent, must accompany the statement appointing the new resident agent.


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

κ1999 Statutes of Nevada, Page 1619 (CHAPTER 357, SB 61)κ

 

address, the mailing address of the new agent, must accompany the statement appointing the new resident agent.

      3.  Upon the filing of the statement with the secretary of state, the capacity of the person as resident agent terminates. If the statement of resignation contains no statement by the registered limited-liability partnership appointing a successor resident agent, the resigning agent shall immediately give written notice, by certified mail, to the registered limited-liability partnership of the filing of the statement and its effect. The notice must be addressed to a managing partner in this state.

      4.  If a resident agent dies, resigns or removes himself from the state, the registered limited-liability partnership shall, within 30 days thereafter, file with the secretary of state a certificate of acceptance, executed by the new resident agent. The certificate must set forth the full name, complete street address and, if different from the street address, the mailing address of the newly designated resident agent. If a registered limited-liability partnership fails to file a certificate of acceptance within the period required by this subsection, it is in default and is subject to the provisions of NRS 87.520.

      Sec. 153.  NRS 87.510 is hereby amended to read as follows:

      87.510  1.  A registered limited-liability partnership shall annually, on or before the last day of the month in which the anniversary date of the filing of its certificate of registration of limited partnership [or certificate of continuance] with the secretary of state occurs, file with the secretary of state, on a form furnished by him, a list containing:

      (a) The name of the registered limited-liability partnership;

      (b) The file number of the registered limited-liability partnership, if known;

      (c) The names of all of its managing partners;

      (d) The mailing or street address, either residence or business, of each managing partner; and

      (e) The signature of a managing partner of the registered limited-liability partnership certifying that the list is true, complete and accurate.

      2.  [If the registered limited-liability partnership has had no changes in its managing partners since its previous list was filed, no annual list need be filed if a managing partner certifies to the secretary of state as a true and accurate statement that no changes in the managing partners have occurred.

      3.]  Upon filing the list of managing partners, [or certifying that no changes have occurred,] the registered limited-liability partnership shall pay to the secretary of state a fee of $85.

      [4.] 3.  The secretary of state shall, at least 60 days before the last day for filing the annual list required by subsection 1, cause to be mailed to the registered limited-liability partnership a notice of the fee due pursuant to subsection [3] 2 and a reminder to file the annual list of managing partners . [or a certification of no change.] The failure of any registered limited-liability partnership to receive a notice or form does not excuse it from complying with the provisions of this section.

      [5.] 4.  If the list to be filed pursuant to the provisions of subsection 1 is defective, or the fee required by subsection [3] 2 is not paid, the secretary of state may return the list for correction or payment.


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

κ1999 Statutes of Nevada, Page 1620 (CHAPTER 357, SB 61)κ

 

    [6.] 5.  An annual list that is filed by a registered limited-liability partnership which is not in default more than 60 days before it is due shall be deemed an amended list for the previous year [.] and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      Sec. 154.  NRS 87.550 is hereby amended to read as follows:

    87.550  In addition to any other fees required by NRS 87.440 to 87.540, inclusive, and 87.560, the secretary of state shall charge and collect the following fees for services rendered pursuant to those sections:

    1.  For certifying documents required by NRS 87.440 to 87.540, inclusive, and 87.560, $10 [.] per certification.

    2.  For executing a certificate verifying the existence of a registered limited-liability partnership, if the registered limited-liability partnership has not filed a certificate of amendment, $15.

    3.  For executing a certificate verifying the existence of a registered limited-liability partnership, if the registered limited-liability partnership has filed a certificate of amendment, $20.

    4.  For executing, certifying or filing any certificate or document not required by NRS 87.440 to 87.540, inclusive, and 87.560, $20.

    5.  For any copies made by the office of the secretary of state, $1 per page.

    6.  For examining and provisionally approving any document before the document is presented for filing, $100.

      Sec. 155.  NRS 88.315 is hereby amended to read as follows:

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

    1.  “Certificate of limited partnership” means the certificate referred to in NRS 88.350, and the certificate as amended or restated.

    2.  “Contribution” means any cash, property, services rendered, or a promissory note or other binding obligation to contribute cash or property or to perform services, which a partner contributes to a limited partnership in his capacity as a partner.

    3.  “Event of withdrawal of a general partner” means an event that causes a person to cease to be a general partner as provided in NRS 88.450.

    4.  “Foreign limited partnership” means a partnership formed under the laws of any state other than this state and having as partners one or more general partners and one or more limited partners.

    5.  “General partner” means a person who has been admitted to a limited partnership as a general partner in accordance with the partnership agreement and named in the certificate of limited partnership as a general partner.

    6.  “Limited partner” means a person who has been admitted to a limited partnership as a limited partner in accordance with the partnership agreement.

    7.  “Limited partnership” and “domestic limited partnership” mean a partnership formed by two or more persons under the laws of this state and having one or more general partners and one or more limited partners.

    8.  “Partner” means a limited or general partner.

    9.  “Partnership agreement” means any valid agreement, written or oral, of the partners as to the affairs of a limited partnership and the conduct of its business.


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

κ1999 Statutes of Nevada, Page 1621 (CHAPTER 357, SB 61)κ

 

    10.  “Partnership interest” means a partner’s share of the profits and losses of a limited partnership and the right to receive distributions of partnership assets.

    11.  “Registered office” means the office maintained at the street address of the resident agent.

    12.  “Resident agent” means the agent appointed by the limited partnership upon whom process or a notice or demand authorized by law to be served upon the limited partnership may be served.

    13.  “Sign” means to affix a signature to a document.

    14.  “Signature” means a name, word or mark executed or adopted by a person with the present intention to authenticate a document. The term includes, without limitation, an electronic symbol as described in NRS 239.042.

    15.  “State” means a state, territory or possession of the United States, the District of Columbia or the Commonwealth of Puerto Rico.

    16.  “Street address” of a resident agent means the actual physical location in this state at which a resident is available for service of process.

      Sec. 156.  NRS 88.320 is hereby amended to read as follows:

    88.320  1.  The name [of] proposed for a limited partnership as set forth in its certificate of limited partnership:

    (a) Must contain without abbreviation the words “limited partnership”;

    (b) May not contain the name of a limited partner unless:

      (1) It is also the name of a general partner or the corporate name of a corporate general partner; or

      (2) The business of the limited partnership had been carried on under that name before the admission of that limited partner; and

    (c) Must be distinguishable on the records of the secretary of state from the names of all other artificial persons formed, organized [or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names] , registered or qualified pursuant to the provisions of this Title that are on file in the office of the secretary of state [.] and all names that are reserved in the office of the secretary of state pursuant to the provisions of this Title. If the name on the certificate of limited partnership submitted to the secretary of state is not distinguishable from any name on file [,] or reserved name, the secretary of state shall return the certificate to the filer, unless the written , acknowledged consent to the use of the same or the requested similar name of the holder of the [registered] name on file or reserved name accompanies the certificate of limited partnership.

    2.  For the purposes of this section, a proposed name is not [distinguished] distinguishable from a [registered] name on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination [thereof.] of these.

    3.  The name of a limited partnership whose right to transact business has been forfeited, [whose existence has terminated,] which has merged and is not the surviving [limited partnership, or which for any other reason is no longer in good standing in this state] entity or whose existence has otherwise terminated is available for use by any other [limited partnership or other] artificial person.


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

κ1999 Statutes of Nevada, Page 1622 (CHAPTER 357, SB 61)κ

 

      4.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 157.  NRS 88.327 is hereby amended to read as follows:

      88.327  1.  Except as otherwise provided in subsection 2, if a limited partnership applies to reinstate its right to transact business but its name has been legally acquired by [another limited partnership or] any other artificial person formed, organized [or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS] , registered or qualified pursuant to the provisions of this Title whose name is on file [and in good standing] with the office of the secretary of state [,] or reserved in the office of the secretary of state pursuant to the provisions of this Title, the applying limited partnership shall submit in writing to the secretary of state some other name under which it desires its right to be reinstated. If that name is distinguishable from all other names reserved or otherwise on file , [and in good standing,] the secretary of state shall issue to the applying limited partnership a certificate of reinstatement under that new name.

      2.  If the applying limited partnership submits the written , acknowledged consent of the [limited partnership or] other artificial person having the name, or the person who has reserved the name, that is not distinguishable from the old name of the applying limited partnership or a new name it has submitted, it may be reinstated under that name.

      3.  For the purposes of this section, a proposed name is not [distinguished] distinguishable from a name [used] on file or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination [thereof.] of these.

      4.  The secretary of state may adopt regulations that interpret the requirements of this section.

      Sec. 158.  NRS 88.331 is hereby amended to read as follows:

      88.331  1.  If a limited partnership created pursuant to this chapter desires to change [the location within this state of its registered office, or change its resident agent, or both,] its resident agent, the change may be effected by filing with the secretary of state a certificate [that] of change, signed by a general partner, which sets forth:

      [1.](a) The name of the limited partnership;

      [2.  That the change authorized by this section is effective upon the filing of the certificate of change;

      3.  The street address of its present registered office;

      4.  If the present registered office is to be changed, the street address of the new registered office;

      5.](b) The name and street address of its present resident agent; and

      [6.  If the present resident agent is to be changed, the]

      (c) The name and street address of the new resident agent.

      2.  The new resident agent’s certificate of acceptance must be a part of or attached to the certificate of change.

[The certificate of change must be signed by a general partner of the limited partnership.]

      3.  The change authorized by this section becomes effective upon the filing of the certificate of change.


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

κ1999 Statutes of Nevada, Page 1623 (CHAPTER 357, SB 61)κ

 

      Sec. 159.  NRS 88.332 is hereby amended to read as follows:

      88.332  1.  Any person who has been designated by a limited partnership as its resident agent and who thereafter desires to resign shall file with the secretary of state a signed statement that he is unwilling to continue to act as the resident agent of the limited partnership. [The execution of the statement must be acknowledged.] A resignation is not effective until the signed statement is filed with the secretary of state. The statement of resignation may contain [an acknowledged] a statement by the affected limited partnership appointing a successor resident agent for the limited partnership. A certificate of acceptance executed by the new agent, stating the full name, complete street address and, if different from the street address, mailing address of the new agent, must accompany the statement appointing the new agent.

      2.  Upon the filing of the statement with the secretary of state the capacity of the person as resident agent terminates. If the statement of resignation does not contain a statement by the limited partnership appointing a successor resident agent, the resigning agent shall immediately give written notice, by mail, to the limited partnership of the filing of the statement and the effect thereof. The notice must be addressed to a general partner of the partnership other than the resident agent.

      3.  If a designated resident agent dies, resigns or removes from the state, the limited partnership, within 30 days thereafter, shall file with the secretary of state a certificate of acceptance, executed by the new resident agent. The certificate must set forth the full name, complete street address and, if different from the street address, mailing address of the newly designated resident agent.

      4.  Each limited partnership which fails to file a certificate of acceptance executed by the new resident agent within 30 days after the death, resignation or removal of its resident agent as provided in subsection 3 shall be deemed in default and is subject to the provisions of NRS 88.400 and 88.405.

      Sec. 160.  NRS 88.395 is hereby amended to read as follows:

      88.395  1.  A limited partnership shall annually, on or before the last day of the month in which the anniversary date of the filing of its certificate of limited partnership occurs, file with the secretary of state, on a form furnished by him, a list containing:

      (a) The name of the limited partnership;

      (b) The file number of the limited partnership, if known;

      (c) The names of all of its general partners;

      (d) The mailing or street address, either residence or business, of each general partner; and

      (e) The signature of a general partner of the limited partnership certifying that the list is true, complete and accurate.

      2.  [If the limited partnership has had no changes in its general partners since its previous list was filed, no amended list need be filed if a general partner certifies to the secretary of state as a true and accurate statement that no changes in the general partners have occurred.

      3.]  Upon filing the list of general partners, [or certifying that no changes have occurred,] the limited partnership shall pay to the secretary of state a fee of $85.


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

κ1999 Statutes of Nevada, Page 1624 (CHAPTER 357, SB 61)κ

 

    [4.] 3.  The secretary of state shall, 60 days before the last day for filing the list required by subsection 1, cause to be mailed to each limited partnership required to comply with the provisions of this section which has not become delinquent a notice of the fee due pursuant to the provisions of subsection [3] 2 and a reminder to file the annual list . [or a certificate of no change.] Failure of any limited partnership to receive a notice or form does not excuse it from the penalty imposed by NRS 88.400.

    [5.] 4.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection [3] 2 is not paid, the secretary of state may return the list for correction or payment.

    [6.] 5.  An annual list for a limited partnership not in default that is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year [.] and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      Sec. 161.  NRS 88.400 is hereby amended to read as follows:

    88.400  1.  [When the annual fee for filing] If a corporation has filed the list [has been paid,] in compliance with NRS 88.395 and has paid the appropriate fee for the filing, the canceled check received by the limited partnership constitutes a certificate authorizing it to transact its business within this state until the anniversary date of the filing of its certificate of limited partnership in the next succeeding calendar year. If the limited partnership desires a formal certificate upon its payment of the annual fee, its payment must be accompanied by a self-addressed, stamped envelope.

    2.  Each limited partnership which refuses or neglects to file the list and pay the fee within the time provided is in default.

    3.  For default there must be added to the amount of the fee a penalty of $15, and unless the filings are made and the fee and penalty are paid on or before the first day of the ninth month following the month in which filing was required, the defaulting limited partnership, by reason of its default, forfeits its right to transact any business within this state.

      Sec. 162.  NRS 88.415 is hereby amended to read as follows:

    88.415  The secretary of state, for services relating to his official duties and the records of his office, shall charge and collect the following fees:

    1.  For filing a certificate of limited partnership, or for registering a foreign limited partnership, $125.

    2.  For filing a certificate of amendment of limited partnership or restated certificate of limited partnership, $75.

    3.  For filing a reinstated certificate of limited partnership, $50.

    4.  For filing the annual list of general partners and designation of a resident agent, $85.

    5.  For filing a certificate of a change of location of the records office of a limited partnership or the office of its resident agent, or a designation of a new resident agent, $15.

    6.  For certifying a certificate of limited partnership, an amendment to the certificate, or a certificate as amended where a copy is provided, $10 [.] per certification.

    7.  For certifying an authorized printed copy of the limited partnership law, $10.


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

κ1999 Statutes of Nevada, Page 1625 (CHAPTER 357, SB 61)κ

 

    8.  For reserving a limited partnership name, or for executing, filing or certifying any other document, $20.

    9.  For copies made at the office of the secretary of state, $1 per page.

    10.  For filing a certificate of cancellation of a limited partnership, $30.

Except as otherwise provided in this section, the fees set forth in NRS 78.785 apply to this chapter.

      Sec. 163.  NRS 88.575 is hereby amended to read as follows:

    88.575  Before transacting business in this state, a foreign limited partnership shall register with the secretary of state. In order to register, a foreign limited partnership shall submit to the secretary of state an application for registration as a foreign limited partnership, signed [and acknowledged] by a general partner , and a signed certificate of acceptance of a resident agent. The application for registration must set forth:

    1.  The name of the foreign limited partnership and, if different, the name under which it proposes to register and transact business in this state;

    2.  The state and date of its formation;

    3.  The name and address of the resident agent whom the foreign limited partnership elects to appoint;

    4.  A statement that the secretary of state is appointed the agent of the foreign limited partnership for service of process if the resident agent’s authority has been revoked or if the resident agent cannot be found or served with the exercise of reasonable diligence;

    5.  The address of the office required to be maintained in the state of its organization by the laws of that state or, if not so required, of the principal office of the foreign limited partnership;

    6.  The name and business address of each general partner; and

    7.  The address of the office at which is kept a list of the names and addresses of the limited partners and their capital contributions, together with an undertaking by the foreign limited partnership to keep those records until the foreign limited partnership’s registration in this state is canceled or withdrawn.

      Sec. 164.  NRS 88.595 is hereby amended to read as follows:

    88.595  A foreign limited partnership may cancel its registration by filing with the secretary of state a certificate of cancellation signed [and acknowledged] by a general partner. The certificate must set forth:

    1.  The name of the foreign limited partnership;

    2.  The date upon which its certificate of registration was filed;

    3.  The reason for filing the certificate of cancellation;

    4.  The effective date of the cancellation if other than the date of the filing of the certificate of cancellation; and

    5.  Any other information deemed necessary by the general partners of the partnership.

A cancellation does not terminate the authority of the secretary of state to accept service of process on the foreign limited partnership with respect to causes of action arising out of the transactions of business in this state.

      Sec. 165.  NRS 89.250 is hereby amended to read as follows:

    89.250  1.  A professional association shall, on or before the last day of the month in which the anniversary date of its organization occurs in each year, furnish a statement to the secretary of state showing the names and residence addresses of all members and employees in such association and shall certify that all members and employees are licensed to render professional service in this state.


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

κ1999 Statutes of Nevada, Page 1626 (CHAPTER 357, SB 61)κ

 

residence addresses of all members and employees in such association and shall certify that all members and employees are licensed to render professional service in this state.

      2.  The statement must:

      (a) Be made on a form prescribed by the secretary of state [but] and must not contain any fiscal or other information except that expressly called for by this section.

      (b) Be signed by the chief executive officer of the association.

      3.  Upon filing the annual statement required by this section, the association shall pay to the secretary of state a fee of $15.

      4.  As used in this section, “signed” means to have executed or adopted a name, word or mark, including, without limitation, an electronic symbol as described in NRS 239.042, with the present intention to authenticate a document.

      Sec. 166.  Chapter 92A of NRS is hereby amended by adding thereto the provisions set forth as sections 167 to 170, inclusive, of this act.

      Sec. 167. “Business trust” means:

      1.  A domestic business trust; or

      2.  An unincorporated association formed pursuant to, existing under or governed by the law of a jurisdiction other than this state and generally described by section 4 of this act.

      Sec. 168. “Domestic business trust” means a business trust formed and existing pursuant to the provisions of sections 2 to 51, inclusive, of this act.

      Sec. 169. Unless otherwise provided in the certificate of trust or governing instrument of a business trust, a merger must be approved by all the trustees and beneficial owners of each business trust that is a constituent entity in the merger.

      Sec. 170. After a merger or exchange is approved, at any time after the articles of merger or exchange are filed but before an effective date specified in the articles which is later than the date of filing the articles, the planned merger or exchange may be terminated in accordance with a procedure set forth in the plan of merger or exchange by filing articles of termination pursuant to the provisions of NRS 92A.240.

      Sec. 171. NRS 92A.005 is hereby amended to read as follows:

      92A.005  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 92A.007 to 92A.080, inclusive, and sections 167 and 168 of this act have the meanings ascribed to them in those sections.

      Sec. 172.  NRS 92A.045 is hereby amended to read as follows:

      92A.045  “Entity” means a foreign or domestic corporation, whether or not for profit, limited-liability company , [or] limited partnership [.] or business trust.

      Sec. 173.  NRS 92A.080 is hereby amended to read as follows:

      92A.080  “Owner’s interest” means shares of stock in a corporation, membership in a nonprofit corporation, the interest of a member of a limited-liability company or a beneficial owner of a business trust, or the partnership interest of a general or limited partner of a limited partnership.


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

κ1999 Statutes of Nevada, Page 1627 (CHAPTER 357, SB 61)κ

 

      Sec. 174.  NRS 92A.150 is hereby amended to read as follows:

    92A.150  Unless otherwise provided in the articles of organization or an operating agreement [, a] :

    1.  A plan of merger or exchange involving a domestic limited-liability company must be approved by members who own a majority of the interests in the current profits of the company then owned by all of the members [.] ; and

    2.  If the company has more than one class of members, the plan of merger must be approved by those members who own a majority of the interests in the current profits of the company then owned by the members in each class.

      Sec. 175.  NRS 92A.170 is hereby amended to read as follows:

    92A.170  After a merger or exchange is approved, and at any time before the articles of merger or exchange are filed, the planned merger or exchange may be abandoned, subject to any contractual rights, without further action, in accordance with the procedure set forth in the plan of merger or exchange or, if none is set forth, in the case of:

    1.  A domestic corporation, whether or not for profit, by the board of directors;

    2.  A domestic limited partnership, unless otherwise provided in the partnership agreement or certificate of limited partnership, by all general partners; [and]

    3.  A domestic limited-liability company, unless otherwise provided in the articles of organization or an operating agreement, by members who own a majority in interest of the company then owned by all of the members or, if the company has more than one class of members, by members who own a majority in interest of the company then owned by the members in each class [.] ; and

    4.  A domestic business trust, unless otherwise provided in the certificate of trust or governing instrument, by all the trustees.

      Sec. 176.  NRS 92A.180 is hereby amended to read as follows:

    92A.180  1.  A parent domestic corporation, whether or not for profit, parent domestic limited-liability company or parent domestic limited partnership owning at least 90 percent of the outstanding shares of each class of a subsidiary corporation, 90 percent of the percentage or other interest in the capital and profits of a subsidiary limited partnership then owned by both the general and each class of limited partners or 90 percent of the percentage or other interest in the capital and profits of a [domestic] subsidiary limited-liability company then owned by each class of members may merge the subsidiary into itself without approval of the owners of the owner’s interests of the parent domestic corporation, domestic limited-liability company or domestic limited partnership or the owners of the owner’s interests of a subsidiary domestic corporation, subsidiary domestic limited-liability company or subsidiary domestic limited partnership.

    2.  The board of directors of the parent [domestic] corporation, the managers of a parent [domestic] limited-liability company with managers unless otherwise provided in the operating agreement, all the members of a parent [domestic] limited-liability company without managers unless otherwise provided in the operating agreement, or all the general partners of the parent [domestic] limited partnership shall adopt a plan of merger that sets forth:


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

κ1999 Statutes of Nevada, Page 1628 (CHAPTER 357, SB 61)κ

 

the parent [domestic] limited partnership shall adopt a plan of merger that sets forth:

    (a) The names of the parent and subsidiary; and

    (b) The manner and basis of converting the owner’s interests of the [subsidiary] disappearing entity into the owner’s interests, obligations or other securities of the [parent] surviving or any other entity or into cash or other property in whole or in part.

    3.  The parent shall mail a copy or summary of the plan of merger to each owner of the subsidiary who does not waive the mailing requirement in writing.

    4.  The parent may not deliver articles of merger to the secretary of state for filing until at least 30 days after the date the parent mailed a copy of the plan of merger to each owner of the subsidiary who did not waive the requirement of mailing.

      5.  Articles of merger under this section may not contain amendments to the constituent documents of the [parent] surviving entity.

      Sec. 177.  NRS 92A.190 is hereby amended to read as follows:

    92A.190  1.  One or more foreign entities may merge or enter into an exchange of owner’s interests with one or more domestic entities if:

    (a) In a merger, the merger is permitted by the law of the jurisdiction under whose law each foreign entity is organized and governed and each foreign entity complies with that law in effecting the merger;

    (b) In an exchange, the entity whose owner’s interests will be acquired is a domestic entity, whether or not an exchange of owner’s interests is permitted by the law of the jurisdiction under whose law the acquiring entity is organized;

    (c) The foreign entity complies with NRS 92A.200 to 92A.240, inclusive, if it is the surviving entity in the merger or acquiring entity in the exchange and sets forth in the articles of merger or exchange its address where copies of process may be sent by the secretary of state ; [, but the execution, and acknowledgment if applicable, of the articles of merger or exchange by the foreign entity are subject to the laws governing it rather than to NRS 92A.200 to 92A.240, inclusive;] and

    (d) Each domestic entity complies with the applicable provisions of NRS 92A.100 to 92A.180, inclusive, and, if it is the surviving entity in the merger or acquiring entity in the exchange, with NRS 92A.200 to 92A.240, inclusive.

    2.  When the merger or exchange takes effect, the surviving foreign entity in a merger and the acquiring foreign entity in an exchange shall be deemed:

    (a) To appoint the secretary of state as its agent for service of process in a proceeding to enforce any obligation or the rights of dissenting owners of each domestic entity that was a party to the merger or exchange. Service of such process must be made by personally delivering to and leaving with the secretary of state duplicate copies of the process and the payment of a fee of $25 for accepting and transmitting the process. The secretary of state shall forthwith send by registered or certified mail one of the copies to the surviving or acquiring entity at its specified address, unless the surviving or acquiring entity has designated in writing to the secretary of state a different address for that purpose, in which case it must be mailed to the last address so designated.


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

κ1999 Statutes of Nevada, Page 1629 (CHAPTER 357, SB 61)κ

 

address for that purpose, in which case it must be mailed to the last address so designated.

    (b) To agree that it will promptly pay to the dissenting owners of each domestic entity that is a party to the merger or exchange the amount, if any, to which they are entitled under or created pursuant to NRS 92A.300 to 92A.500, inclusive.

    3.  This section does not limit the power of a foreign entity to acquire all or part of the owner’s interests of one or more classes or series of a domestic entity through a voluntary exchange or otherwise.

      Sec. 178.  NRS 92A.200 is hereby amended to read as follows:

    92A.200  After a plan of merger or exchange is approved as required by this chapter, the surviving or acquiring entity shall deliver to the secretary of state for filing articles of merger or exchange setting forth:

    1.  The name and jurisdiction of organization of each constituent entity;

    2.  That a plan of merger or exchange has been adopted by each constituent entity;

    3.  If approval of the owners of [the parent] one or more constituent entities was not required, a statement to that effect [;] and the name of each entity;

    4.  If approval of owners of one or more constituent entities was required, the name of each entity and a statement for each entity that:

    (a) The plan was approved by the unanimous consent of the owners; or

    (b) A plan was submitted to the owners pursuant to this chapter including:

      (1) The designation, percentage of total vote or number of votes entitled to be cast by each class of owner’s interests entitled to vote separately on the plan; and

      (2) Either the total number of votes or percentage of owner’s interests cast for and against the plan by the owners of each class of interests entitled to vote separately on the plan or the total number of undisputed votes or undisputed total percentage of owner’s interests cast for the plan separately by the owners of each class,

and the number of votes or percentage of owner’s interests cast for the plan by the owners of each class of interests was sufficient for approval by the owners of that class;

    5.  In the case of a merger, the amendment to the articles of incorporation, articles of organization , [or] certificate of limited partnership or certificate of trust of the surviving entity; and

    6.  If the entire plan of merger or exchange is not set forth, a statement that the complete executed plan of merger or plan of exchange is on file at the registered office if a corporation , [or] limited-liability company [,] or business trust, or office described in paragraph (a) of subsection 1 of NRS 88.330 if a limited partnership, [principal place of business if a general partnership,] or other place of business of the surviving entity or the acquiring entity, respectively.

      Sec. 179.  NRS 92A.210 is hereby amended to read as follows:

    92A.210  The fee for filing articles of merger , [or] articles of exchange or articles of termination is $125.


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

κ1999 Statutes of Nevada, Page 1630 (CHAPTER 357, SB 61)κ

 

      Sec. 180.  NRS 92A.230 is hereby amended to read as follows:

    92A.230  1.  Articles of merger or exchange must be signed [and acknowledged] by each domestic constituent entity as follows:

    (a) By the president or a vice president of a domestic corporation, whether or not for profit;

    (b) By all the general partners of a domestic limited partnership; [and]

    (c) By a manager of a domestic limited-liability company with managers or by all the members of a domestic limited-liability company without managers [.] ; and

    (d) By a trustee of a domestic business trust.

    2.  If the domestic entity is a corporation, the articles must also be signed by the secretary or an assistant secretary . [, but the signature need not be acknowledged.]

      3.  Articles of merger or exchange must be signed by each foreign constituent entity in the manner provided by the law governing it.

      4.  As used in this section, “signed” means to have executed or adopted a name, word or mark, including, without limitation, an electronic symbol as described in NRS 239.042, with the present intention to authenticate a document.

      Sec. 181.  NRS 92A.240 is hereby amended to read as follows:

    92A.240  [If articles of merger or exchange must be filed, a]

    1.  A merger or exchange takes effect upon filing the articles of merger or exchange or upon a later date as specified in the articles , [of merger,] which must not be more than 90 days after the articles are filed. [If no articles of merger need be filed, the merger or exchange takes effect as specified in the plan of merger or exchange.]

      2.  If the filed articles of merger or exchange specify such a later effective date, the constituent entities may file articles of termination before the effective date, setting forth:

      (a) The name of each constituent entity; and

      (b) That the merger or exchange has been terminated pursuant to the plan of merger or exchange.

      3.  The articles of termination must be executed in the manner provided in NRS 92A.230.

      Sec. 182.  NRS 92A.250 is hereby amended to read as follows:

    92A.250  1.  When a merger takes effect:

    (a) Every other entity that is a constituent entity merges into the surviving entity and the separate existence of every entity except the surviving entity ceases;

    (b) The title to all real estate and other property owned by each merging constituent entity is vested in the surviving entity without reversion or impairment;

    (c) The surviving entity has all of the liabilities of each other constituent entity;

    (d) A proceeding pending against any constituent entity may be continued as if the merger had not occurred or the surviving entity may be substituted in the proceeding for the entity whose existence has ceased;


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

κ1999 Statutes of Nevada, Page 1631 (CHAPTER 357, SB 61)κ

 

    (e) The articles of incorporation, articles of organization , [or] certificate of limited partnership or certificate of trust of the surviving entity are amended to the extent provided in the plan of merger; and

    (f) The owner’s interests of each constituent entity that are to be converted into owner’s interests, obligations or other securities of the surviving or any other entity or into cash or other property are converted, and the former holders of the owner’s interests are entitled only to the rights provided in the articles of merger or any created pursuant to NRS 92A.300 to 92A.500, inclusive.

    2.  When an exchange takes effect, the owner’s interests of each acquired entity are exchanged as provided in the plan, and the former holders of the owner’s interests are entitled only to the rights provided in the articles of exchange or any rights created pursuant to NRS 92A.300 to 92A.500, inclusive.

      Sec. 183.  NRS 92A.315 is hereby amended to read as follows:

    92A.315  “Dissenter” means a stockholder who is entitled to dissent from a domestic corporation’s action under NRS 92A.380 and who exercises that right when and in the manner required by NRS [92A.410] 92A.400 to 92A.480, inclusive.

      Sec. 184.  NRS 92A.420 is hereby amended to read as follows:

    92A.420  1.  If a proposed corporate action creating dissenters’ rights is submitted to a vote at a stockholders’ meeting, a stockholder who wishes to assert dissenter’s rights:

    (a) Must deliver to the subject corporation, before the vote is taken, written notice of his intent to demand payment for his shares if the proposed action is effectuated; and

    (b) Must not vote his shares in favor of the proposed action.

    2.  A stockholder who does not satisfy the requirements of subsection 1 and NRS 92A.400 is not entitled to payment for his shares under this chapter.

      Sec. 185.  NRS 14.020 is hereby amended to read as follows:

    14.020  1.  Every [incorporated company or association, every] corporation, limited-liability company, [every] limited-liability partnership, limited partnership, [and every] business trust and municipal corporation created and existing under the laws of any other state, territory, or foreign government, or the Government of the United States, [owning property or] doing business in this state [,] shall appoint and keep in this state [an agent, who may be either an individual or a domestic corporation,] a resident agent who resides or is located in this state, upon whom all legal process [may be served for the corporation, association, company, partnership or municipal corporation as] and any demand or notice authorized by law to be served upon it may be served in the manner provided in subsection 2. The corporation, [association,] limited-liability company, limited-liability partnership, limited partnership , business trust or municipal corporation shall file with the secretary of state a certificate of acceptance of appointment [executed] signed by its resident agent. The certificate must set forth the full name and address of the resident agent . [, which must be the same as that of the registered office.] The certificate must be renewed in the manner [required by] provided in Title 7 of NRS [80.070] whenever a change is made in the appointment or a vacancy occurs in the agency.


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

κ1999 Statutes of Nevada, Page 1632 (CHAPTER 357, SB 61)κ

 

    2.  All legal process and any demand or notice authorized by law to be served upon the foreign corporation, [association, company or] limited-liability company, limited-liability partnership, limited partnership , business trust or municipal corporation may be served upon the resident agent personally or by leaving a true copy thereof with a person of suitable age and discretion at the address shown on the current certificate of acceptance filed with the secretary of state.

    3.  Subsection 2 provides an additional mode and manner of serving process, demand or notice and does not affect the validity of any other service authorized by law.

      Sec. 186.  NRS 14.030 is hereby amended to read as follows:

    14.030  1.  If any [such company, association or municipal corporation] artificial person described in NRS 14.020 fails to appoint a resident agent, or fails to file a certificate of acceptance of appointment for 30 days after a vacancy occurs in [such] the agency, on the production of a certificate of the secretary of state showing either fact, which [certificate] is conclusive evidence of the fact so certified to be made a part of the return of service, the [company, association or municipal corporation] artificial person may be served with any and all legal process , or a demand or notice described in NRS 14.020, by delivering a copy to the secretary of state, or, in his absence, to any deputy secretary of state, and such service is valid to all intents and purposes. The copy must:

    (a) Include a specific citation to the provisions of this section. The secretary of state may refuse to accept such service if the proper citation is not included.

    (b) Be accompanied by a fee of $10.

The secretary of state shall keep a copy of the legal process received pursuant to this section in his office for at least 1 year after receipt thereof and shall make those records available for public inspection during normal business hours.

    2.  In all cases of such service, the defendant has 40 days, exclusive of the day of service, within which to answer or plead.

    3.  Before such service is authorized, the plaintiff shall make or cause to be made and filed an affidavit setting forth the facts, showing that due diligence has been used to ascertain the whereabouts of the officers of [such company, association or municipal corporation,] the artificial person to be served, and the facts showing that direct or personal service on, or notice to, [such company, association or municipal corporation] the artificial person cannot be had.

    4.  If it appears from the affidavit that there is a last known address of [such company, association or municipal corporation,] the artificial person or any known officers thereof, the plaintiff shall, in addition to and after such service on the secretary of state, mail or cause to be mailed to [such company, association or municipal corporation,] the artificial person or to the known officer, at such address, by registered or certified mail, a copy of the summons and a copy of the complaint, and in all such cases the defendant has 40 days after the date of the mailing within which to appear in the action.

    5.  This section provides an additional manner of serving process, and does not affect the validity of any other valid service.


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

κ1999 Statutes of Nevada, Page 1633 (CHAPTER 357, SB 61)κ

 

      Sec. 187.  NRS 104.9404 is hereby amended to read as follows:

    104.9404  1.  If a financing statement covering consumer goods is filed on or after July 1, 1975, then within 1 month or within 10 days following written demand by the debtor after there is no outstanding secured obligation and no commitment to make advances, incur obligations or otherwise give value, the secured party must file with each filing officer with whom the financing statement was filed, a termination statement to the effect that he no longer claims a security interest under the financing statement, which shall be identified by file number. In other cases whenever there is no outstanding secured obligation and no commitment to make advances, incur obligations or otherwise give value, the secured party must on written demand by the debtor send the debtor, for each filing officer with whom the financing statement was filed, a termination statement to the effect that he no longer claims a security interest under the financing statement, which shall be identified by file number. A termination statement signed by a person other than the secured party of record must be accompanied by a separate written statement of assignment signed by the secured party of record complying with subsection 2 of NRS 104.9405, including payment of the required fee. If the affected secured party fails to file such a termination statement as required by this subsection, or to send such a termination statement within 10 days after proper demand therefor he is liable to the debtor for $100, and in addition for any loss caused to the debtor by such failure.

    2.  On presentation to the filing officer of such a termination statement he shall note it in the index. [If he has received the termination statement in duplicate, he shall return one copy of the termination statement to the secured party stamped to show the time of receipt thereof.] If the filing officer has a microfilm or other photographic record of the financing statement and of any related continuation statement, statement of assignment and statement of release, he may remove the originals from the files at any time after receipt of the termination statement, or if he has no such record, he may remove them from the files at any time after 1 year after receipt of the termination statement.

    3.  If the termination statement is in the standard form required by the secretary of state, the uniform fee for filing and indexing the termination statement is $15, and otherwise is $20, plus $1 for each additional debtor or trade name.

      [4.  If the filing officer has microfilmed the original documents, he shall make copies of the microfilmed documents, mark the copies “terminated” and send or deliver to the secured parties and to the debtor the copies marked “terminated.”]

      Sec. 188.  NRS 113.070 is hereby amended to read as follows:

    113.070  1.  Except as otherwise provided in subsection [3, in a county whose population is 400,000 or more,] 4, a seller may not sign a sales agreement with the initial purchaser of a residence unless the seller, at least 24 hours before the time of the signing, provides the initial purchaser with a disclosure document that contains:

    (a) In a county whose population is 400,000 or more:

      (1) A copy of the most recent gaming enterprise district map that has been made available for public inspection pursuant to NRS 463.309 by the city or town in which the residence is located or, if the residence is not located in a city or town, by the county in which the residence is located; and


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

κ1999 Statutes of Nevada, Page 1634 (CHAPTER 357, SB 61)κ

 

city or town in which the residence is located or, if the residence is not located in a city or town, by the county in which the residence is located; and

    [(b)] (2) The location of the gaming enterprise district that is nearest to the residence, regardless of the jurisdiction in which the nearest gaming enterprise district is located [.

The seller shall retain a copy of the disclosure document which has been signed by the initial purchaser acknowledging the time and date of receipt by the initial purchaser of the original document.] ;

    (b) The zoning classifications for the adjoining parcels of land;

    (c) The designations in the master plan regarding land use, adopted pursuant to chapter 278 of NRS, for the adjoining parcels of land; and

    (d) A statement with the following language:

 

Zoning classifications describe the land uses currently permitted on a parcel of land. Designations in the master plan regarding land use describe the land uses that the governing city or county proposes for a parcel of land. Zoning classifications and designations in the master plan regarding land use are established and defined by local ordinances. If the zoning classification for a parcel of land is inconsistent with the designation in the master plan regarding land use for the parcel, the possibility exists that the zoning classification may be changed to be consistent with the designation in the master plan regarding land use for the parcel. Additionally, the local ordinances that establish and define the various zoning classifications and designations in the master plan regarding land use are also subject to change.

 

    2.  The information contained in the disclosure document required by subsection 1 must:

    (a) Be updated no less than once every [4] 6 months;

    (b) In a county whose population is 400,000 or more:

      (1) Advise the initial purchaser that gaming enterprise districts are subject to change; and

      (2) Provide the initial purchaser with instructions on how to obtain more current information regarding gaming enterprise districts;

    (c) Advise the initial purchaser that zoning classifications and designations in the master plan regarding land use are subject to change; and

    (d) Provide the initial purchaser with instructions on how to obtain more current information [.] regarding zoning classifications and designations in the master plan regarding land use.

    3.  The seller shall retain a copy of the disclosure document which has been signed by the initial purchaser acknowledging the time and date of receipt by the initial purchaser of the original document.

    4.  The initial purchaser of a residence may waive the 24-hour period required by subsection 1 if the seller provides the initial purchaser with the [information required by subsections 1 and 2] required disclosure document and the initial purchaser signs a written waiver. The seller shall retain a copy of the written waiver which has been signed by the initial purchaser acknowledging the time and date of receipt by the initial purchaser of the original document.


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

κ1999 Statutes of Nevada, Page 1635 (CHAPTER 357, SB 61)κ

 

acknowledging the time and date of receipt by the initial purchaser of the original document.

      [4.  Before the initial purchaser of a residence signs a sales agreement, the seller shall, by separate written document, disclose to him the zoning designations and the designations in the master plan regarding land use, adopted pursuant to chapter 278 of NRS for the adjoining parcels of land. If the]

      5.  If a residence is located within a subdivision, the disclosure must be made regarding all parcels of land adjoining the unit of the subdivision in which the residence is located. If the residence is located on land divided by a parcel map and not located within a subdivision, the disclosure must be made regarding all parcels of land adjoining the parcel map. Such a disclosure must be made regardless of whether the adjoining parcels are owned by the seller. [The seller shall retain a copy of the disclosure document which has been signed by the initial purchaser acknowledging the date of receipt by the initial purchaser of the original document.

      5.  The information contained in the disclosure document required by subsection 4 must:

      (a) Be updated no less than once every 6 months, if the information is available from the local government;

      (b) Advise the initial purchaser that the master plan and zoning ordinances and regulations adopted pursuant to the master plan are subject to change; and

      (c) Provide the initial purchaser with instructions on how to obtain more current information.]

      6.  As used in this section, “seller” means a person who sells or attempts to sell any land or tract of land in this state which is divided or proposed to be divided over any period into two or more lots, parcels, units or interests, including, but not limited to, undivided interests, which are offered, known, designated or advertised as a common unit by a common name or as a part of a common promotional plan of advertising and sale.

      Sec. 189.  NRS 278.590 is hereby amended to read as follows:

      278.590  1.  It is unlawful for any person to contract to sell, to sell or to transfer any subdivision or any part thereof, or land divided pursuant to a parcel map or map of division into large parcels, [until the] unless:

      (a) The required map thereof, in full compliance with the appropriate provisions of NRS 278.010 to 278.630, inclusive, and any local ordinance, has been recorded in the office of the recorder of [the] each county in which [any portion of] the subdivision or land divided is located [.] ; or

      (b) The person is contractually obligated to record the required map, before title is transferred or possession is delivered, whichever is earlier, as provided in paragraph (a).

      2.  A person who violates the provisions of subsection 1 is guilty of a misdemeanor and is liable for a civil penalty of not more than $300 for each lot or parcel sold or transferred.

      3.  This section does not bar any legal, equitable or summary remedy to which any aggrieved municipality or other political subdivision, or any person, may otherwise be entitled, and any such municipality or other political subdivision or person may file suit in the district court of the county in which any property attempted to be divided or sold in violation of any provision of NRS 278.010 to 278.630, inclusive, is located to restrain or enjoin any attempted or proposed division or transfer in violation of those sections.


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

κ1999 Statutes of Nevada, Page 1636 (CHAPTER 357, SB 61)κ

 

in which any property attempted to be divided or sold in violation of any provision of NRS 278.010 to 278.630, inclusive, is located to restrain or enjoin any attempted or proposed division or transfer in violation of those sections.

      Sec. 190.  NRS 600.340 is hereby amended to read as follows:

      600.340  1.  A person who has adopted and is using a mark in this state may file in the office of the secretary of state, on a form to be furnished by the secretary of state, an application for registration of that mark setting forth, but not limited to, the following information:

      (a) Whether the mark to be registered is a trade-mark, trade name or service mark;

      (b) A description of the mark by name, words displayed in it, or other information;

      (c) The name and business address of the person applying for the registration and, if it is a corporation, limited-liability company, limited partnership or registered limited-liability partnership, the state of incorporation or organization;

      (d) The specific goods or services in connection with which the mark is used and the mode or manner in which the mark is used in connection with those goods or services and the class as designated by the secretary of state which includes those goods or services;

      (e) The date when the mark was first used anywhere and the date when it was first used in this state by the applicant or his predecessor in business which must precede the filing of the application; and

      (f) A statement that the applicant is the owner of the mark and that no other person has the right to use the mark in this state either in the form set forth in the application or in such near resemblance to it as might deceive or cause mistake.

      2.  The application must:

      (a) Be signed and verified by the applicant or by a member of the firm or an officer of the corporation or association applying.

      (b) Be accompanied by a specimen or facsimile of the mark in [triplicate] duplicate and by a filing fee of $50 payable to the secretary of state.

      3.  If the application fails to comply with this section or NRS 600.343, the secretary of state shall return it for correction.

      Sec. 191. Section 362 of chapter 442, Statutes of Nevada 1991, at page 1319, is hereby amended to read as follows:

       Sec. 362.  Corporations existing, or organized and existing, pursuant to NRS 82.010 to 82.690, inclusive, [and 86.010 to 86.180, inclusive,] as those statutes existed on September 30, 1991, and all predecessor acts, continue to exist and are governed by sections 166 to 273, inclusive, of this act until October 1, 1993, when their existence ceases unless preserved pursuant to this section. At any time before October 1, 1993, any such corporation existing, or organized and existing, pursuant to NRS 86.010 to 86.180, inclusive, as those statutes existed on September 30, 1991, may file articles with the secretary of state conforming to the requirements of sections 166 to 273, inclusive, of this act, or conforming to the requirements of chapter 84 of NRS, and stating that the corporation elects to be governed by sections 166 to 273, inclusive, of this act or by chapter 84 of NRS.


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

κ1999 Statutes of Nevada, Page 1637 (CHAPTER 357, SB 61)κ

 

governed by sections 166 to 273, inclusive, of this act or by chapter 84 of NRS. Upon the filing of those articles with the secretary of state, the existence of any such corporation continues and the corporation is thereafter governed by the provisions of chapter 82 of NRS as added by this act or by the provisions of chapters 82 and 84 of NRS as so added, as set forth in the articles which are so filed.

      Sec. 192.  Section 1 of Senate Bill No. 121 of this session is hereby amended to read as follows:

       Section 1.  Chapter 113 of NRS is hereby amended by adding thereto a new section to read as follows:

       1.  Except as otherwise provided in subsection 3, in a county whose population is 400,000 or more, a seller may not sign a sales agreement with the initial purchaser of a residence unless the seller, at least 24 hours before the time of the signing, provides the initial purchaser with a disclosure document that contains:

       (a) A copy of the most recent gaming enterprise district map that has been made available for public inspection pursuant to NRS 463.309 by the city or town in which the residence is located or, if the residence is not located in a city or town, by the county in which the residence is located; and

       (b) The location of the gaming enterprise district that is nearest to the residence, regardless of the jurisdiction in which the nearest gaming enterprise district is located.

The seller shall retain a copy of the disclosure document that has been signed by the initial purchaser acknowledging the time and date of receipt by the initial purchaser of the original document.

       2.  The information contained in the disclosure document required by subsection 1 must:

       (a) Be updated not less than once every 6 months;

       (b) Advise the initial purchaser that gaming enterprise districts are subject to change; and

       (c) Provide the initial purchaser with instructions on how to obtain more current information regarding gaming enterprise districts.

       3.  The initial purchaser of a residence may waive the 24-hour period required by subsection 1 if the seller provides the initial purchaser with the information required by subsections 1 and 2 and the initial purchaser signs a written waiver. The seller shall retain a copy of the written waiver that has been signed by the initial purchaser acknowledging the time and date of receipt by the initial purchaser of the original document.

       4.  As used in this section, “seller” has the meaning ascribed to it in NRS 113.070.

      Sec. 193. Section 2 of Senate Bill No. 121 of this session is hereby amended to read as follows:

       Sec. 2.  NRS 113.070 is hereby amended to read as follows:

       113.070  1.  [Except as otherwise provided in subsection 3, in a county whose population is 400,000 or more, a seller may not sign a sales agreement with the initial purchaser of a residence unless the seller, at least 24 hours before the time of the signing, provides the initial purchaser with a disclosure document that contains:


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

κ1999 Statutes of Nevada, Page 1638 (CHAPTER 357, SB 61)κ

 

seller, at least 24 hours before the time of the signing, provides the initial purchaser with a disclosure document that contains:

     (a) A copy of the most recent gaming enterprise district map that has been made available for public inspection pursuant to NRS 463.309 by the city or town in which the residence is located or, if the residence is not located in a city or town, by the county in which the residence is located; and

     (b) The location of the gaming enterprise district that is nearest to the residence, regardless of the jurisdiction in which the nearest gaming enterprise district is located.

The seller shall retain a copy of the disclosure document which has been signed by the initial purchaser acknowledging the time and date of receipt by the initial purchaser of the original document.

     2.  The information contained in the disclosure document required by subsection 1 must:

     (a) Be updated no less than once every 4 months;

     (b) Advise the initial purchaser that gaming enterprise districts are subject to change; and

     (c) Provide the initial purchaser with instructions on how to obtain more current information.

     3.  The initial purchaser of a residence may waive the 24-hour period required by subsection 1 if the seller provides the initial purchaser with the information required by subsections 1 and 2 and the initial purchaser signs a written waiver. The seller shall retain a copy of the written waiver which has been signed by the initial purchaser acknowledging the time and date of receipt by the initial purchaser of the original document.

       4.]  Before the initial purchaser of a residence signs a sales agreement [,] or opens escrow, whichever occurs earlier, the seller shall, by separate written document, disclose to [him] the initial purchaser the zoning [designations] classifications and the designations in the master plan regarding land use [,] adopted pursuant to chapter 278 of NRS , and the general land uses described therein, for the adjoining parcels of land. The written document must contain a statement with the following language:

 

Zoning classifications describe the land uses currently permitted on a parcel of land. Designations in the master plan regarding land use describe the land uses that the governing city or county proposes for a parcel of land. Zoning classifications and designations in the master plan regarding land use are established and defined by local ordinances. If the zoning classification for a parcel of land is inconsistent with the designation in the master plan regarding land use for the parcel, the possibility exists that the zoning classification may be changed to be consistent with the designation in the master plan regarding land use for the parcel. Additionally, the local ordinances that establish and define the various zoning classifications and designations in the master plan regarding land use are also subject to change.


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

κ1999 Statutes of Nevada, Page 1639 (CHAPTER 357, SB 61)κ

 

classifications and designations in the master plan regarding land use are also subject to change.

 

       2.  If the residence is located within a subdivision, the disclosure made pursuant to subsection 1 must be made regarding all parcels of land adjoining the unit of the subdivision in which the residence is located. If the residence is located on land divided by a parcel map and not located within a subdivision, the disclosure must be made regarding all parcels of land adjoining the parcel map. Such a disclosure must be made regardless of whether the adjoining parcels are owned by the seller. The seller shall retain a copy of the disclosure document which has been signed by the initial purchaser acknowledging the date of receipt by the initial purchaser of the original document.

       [5.] 3.  The information contained in the disclosure document required by subsection [4] 1 must:

       (a) Be updated [no] not less than once every 6 months, if the information is available from the local government;

       (b) Advise the initial purchaser that the master plan is for the general, comprehensive and long-term development of land in the area and that the designations in the master plan regarding land use provide the most probable indication of future development which may occur on the surrounding properties;

       (c) Advise the initial purchaser that the master plan and zoning ordinances and regulations adopted pursuant to the master plan are subject to change; and

       [(c)] (d) Provide the initial purchaser with instructions on how to obtain more current information [.

       6.] regarding zoning classifications and designations in the master plan regarding land use.

       4.  As used in this section, “seller” means a person who sells or attempts to sell any land or tract of land in this state which is divided or proposed to be divided over any period into two or more lots, parcels, units or interests, including, but not limited to, undivided interests, which are offered, known, designated or advertised as a common unit by a common name or as a part of a common promotional plan of advertising and sale.

      Sec. 194.  1.  NRS 78.626, 78.627, 78.628 and 80.270 are hereby repealed.

      2.  Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14 of Senate Bill No. 19 of this session are hereby repealed.

      Sec. 195.  1.  This act becomes effective on July 1, 1999.

      2.  The amendatory provisions of section 188 of this act expire by limitation on November 30, 1999.

________

 


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

κ1999 Statutes of Nevada, Page 1640κ

 

CHAPTER 358, SB 97

Senate Bill No. 97–Senator Wiener

 

CHAPTER 358

 

AN ACT relating to the commission on mental health and developmental services; revising the composition of the commission to include a marriage and family therapist; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 232.303 is hereby amended to read as follows:

    232.303  1.  There is hereby created in the department a commission on mental health and developmental services consisting of [seven] eight members appointed by the governor, at least three of whom have training or experience in dealing with mental retardation.

    2.  The governor shall appoint:

    (a) A psychiatrist licensed to practice medicine in this state, from a list of three candidates submitted by the Nevada Psychiatric Association;

    (b) A psychologist licensed to practice in this state and experienced in clinical practice, from a list of four candidates , two of whom are submitted by the Northern Nevada Association for Certified Psychologists and two of whom are submitted by the Southern Society for Certified Psychologists;

    (c) A physician, other than a psychiatrist, licensed to practice medicine in this state and who has experience in dealing with mental retardation, from a list of three candidates submitted by the Nevada State Medical Association;

    (d) A social worker who has a master’s degree and has experience in dealing with mental illness or mental retardation, or both;

    (e) A registered nurse licensed to practice in this state who has experience in dealing with mental illness or mental retardation, or both, from a list of three candidates submitted by the Nevada Nurses Association;

    (f) A marriage and family therapist licensed to practice in this state, from a list of three candidates submitted by the Nevada Association for Marriage and Family Therapy;

    (g) A representative of the general public who has a special interest in the field of mental health; and

    [(g)] (h) A representative of the general public who has a special interest in the field of mental retardation.

    3.  The governor shall appoint the chairman of the commission from among its members.

      4.  After the initial terms, each member shall serve a term of 4 years. If a vacancy occurs during a member’s term, the governor shall appoint a person qualified under this section to replace that member for the remainder of the unexpired term.

________

 


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

κ1999 Statutes of Nevada, Page 1641κ

 

CHAPTER 359, SB 117

Senate Bill No. 117–Senator Wiener

 

CHAPTER 359

 

AN ACT relating to older persons; authorizing the chairman of the Nevada commission on aging to appoint former members of the commission and other interested persons to serve in an advisory capacity to the commission; providing for the payment of a per diem allowance and travel expenses to such persons; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 427A.034 is hereby amended to read as follows:

    427A.034  1.  The commission may meet at least once each calendar quarter and at other times on the call of the chairman or a majority of its members.

    2.  A majority of the voting members of the commission constitutes a quorum for the transaction of all business.

    3.  The commission shall adopt regulations for its own government.

    4.  The chairman may appoint subcommittees and advisory committees composed of the members of the commission , former members of the commission and members of the general public who have experience with or knowledge of matters relating to older persons to consider specific problems or other matters that are related to and within the scope of the functions of the commission. A subcommittee or advisory committee appointed pursuant to this subsection must not contain more than five members. To the extent practicable, the members of such a subcommittee or advisory committee must be representative of the various geographic areas and ethnic groups of this state.

      Sec. 2.  NRS 427A.036 is hereby amended to read as follows:

    427A.036  1.  Each voting member of the commission is entitled to receive a salary of not more than $80 per day, as fixed by the commission, while engaged in the business of the commission.

    2.  While engaged in the business of the commission, each member of the commission appointed pursuant to subsection 2 or paragraph (a), (b) or (d) of subsection 3 of NRS 427A.032 , each former member of the commission and each member of the general public appointed to serve on a subcommittee or advisory committee of the commission pursuant to subsection 4 of NRS 427A.034, and each employee of the commission is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.

    3.  The commission may expend in accordance with law all money made available for its use.

    4.  Except during a regular or special session of the legislature, each legislative member of the commission is entitled to receive the compensation provided for a majority of the members of the legislature during the first 60 days of the preceding regular session for each day or portion of a day during which he attends a meeting of the commission or is otherwise engaged in the business of the commission, plus the per diem allowance and travel expenses provided for state officers and employees generally.


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

κ1999 Statutes of Nevada, Page 1642 (CHAPTER 359, SB 117)κ

 

provided for state officers and employees generally. The salaries and expenses of the legislative members of the commission must be paid from the legislative fund.

________

 

CHAPTER 360, SB 131

Senate Bill No. 131–Committee on Commerce and Labor

 

CHAPTER 360

 

AN ACT relating to local governments; requiring certain cities and counties to establish requirements for the maintenance of records by certain resellers of paging services; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 244 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The board of county commissioners of a county whose population is 400,000 or more shall enact an ordinance requiring a person other than a public utility who:

      (a) Purchases paging services from a public utility; and

      (b) Resells those paging services to another person for use primarily in the unincorporated area of the county,

to maintain such records of the names and addresses of the persons to whom the paging services are resold as the board deems necessary.

      2.  The ordinance must include:

      (a) The information that must be included in the records required to be maintained; and

      (b) The length of time that the records must be maintained.

      3.  As used in this section, “public utility” means:

      (a) A public utility as defined in NRS 704.020; and

      (b) A provider of a “commercial mobile service” as defined in 47 U.S.C. § 332.

      Sec. 2.  Chapter 268 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The governing body of each city in a county whose population is 400,000 or more shall enact an ordinance requiring a person other than a public utility who:

      (a) Purchases paging services from a public utility; and

      (b) Resells those paging services to another person for use primarily in the incorporated area of the city,

to maintain such records of the names and addresses of the persons to whom the paging services are resold as the governing body deems necessary.

      2.  The ordinance must include:

      (a) The information that must be included in the records required to be maintained; and  

      (b) The length of time that the records must be maintained.


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

κ1999 Statutes of Nevada, Page 1643 (CHAPTER 360, SB 131)κ

 

      3.  As used in this section, “public utility” means:

      (a) A public utility as defined in NRS 704.020; and

      (b) A provider of a “commercial mobile service” as defined in 47 U.S.C. § 332.

________

 

CHAPTER 361, SB 139

Senate Bill No. 139–Committee on Government Affairs

 

CHAPTER 361

 

AN ACT relating to state property; authorizing the chief of the purchasing division of the department of administration to transfer, upon request, any surplus supplies, materials or equipment of a state agency to another state agency without cost to the requesting state agency; authorizing the chief of the purchasing division to sell surplus supplies, materials or equipment of state agencies under certain circumstances; extending the authority of a board of county commissioners to make charitable grants to include certain property; authorizing the governing body of a city to make charitable grants of money or certain property to certain nonprofit organizations; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 333 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The chief may donate commodities, supplies, materials and equipment that he determines have reached the end of their useful lives to any organization described in NRS 372.3261.

      2.  If the chief donates such commodities to a tax-supported or nonprofit school or other health or educational institution pursuant to subsection 1, the provisions of subsection 2 of NRS 333.124 do not apply.

      Sec. 2.  NRS 333.124 is hereby amended to read as follows:

    333.124  1.  The donated commodities account is hereby created in the state general fund for the use of the chief in acquiring commodities donated by the Federal Government and its agencies and to purchase and distribute nutritious food in accordance with NRS 333.225.

    2.  [If] Except as otherwise provided in section 1 of this act, if a tax-supported or nonprofit school or other health or educational institution receives a donated commodity secured through the purchasing division, the chief shall charge the school or institution a fee in an amount sufficient to repay part or all of the cost of transportation and other costs incurred in acquiring the commodity.

    3.  All money received by the chief pursuant to this section must be deposited in the state treasury for credit to the donated commodities account. The interest and income earned on the money in the account must be credited to the account.

      4.  Costs of freight, storage, handling charges and other administrative expenses, including compensation of purchasing division personnel, incidental to the acquisition of the donated commodities and the administration of the supplemental food program may be paid from the donated commodities account.


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

κ1999 Statutes of Nevada, Page 1644 (CHAPTER 361, SB 139)κ

 

administration of the supplemental food program may be paid from the donated commodities account.

      Sec. 3.  NRS 334.040 is hereby amended to read as follows:

      334.040  1.  The [products or any article of any state institution not required for its own consumption or use may be sold by the official in charge of such institution at its reasonable market value, and the proceeds of such sale shall be deposited in the fund or appropriation for the support of such institution and not in the general fund.

      2.  If any state institution disposes of any of its products or any article not required by it to any other state institution, the state institution selling the same shall present a claim for the agreed sale price against the institution purchasing the same, which shall be certified by the proper officer of the purchasing institution. After approval by the state board of examiners, the state controller shall draw his warrant in favor of the fund or appropriation for the support of the selling institution, and the official in charge of the selling institution is authorized to receipt for the warrant. Upon its presentation the state treasurer shall transfer the amount of the warrant to such fund or appropriation and not to the general fund.] chief of the purchasing division of the department of administration may, upon the request of a state agency, transfer any surplus supplies, materials or equipment of another state agency to the requesting state agency without cost to the requesting state agency.

      2.  The chief of the purchasing division may sell any surplus supplies, materials or equipment which is not transferred to a state agency pursuant to the provisions of subsection 1. Unless otherwise authorized by the director of the department of administration, the proceeds of the sale must be deposited in the fund from which the money to purchase the supplies, materials or equipment was expended.

      Sec. 4. NRS 244.1505 is hereby amended to read as follows:

      244.1505  1.  A board of county commissioners may expend money for any purpose which will provide a substantial benefit to the inhabitants of the county. The board may grant all or part of the money to a [private organization, not for profit,] nonprofit organization created for religious, charitable or educational purposes to be expended for the selected purpose.

      2.  A board of county commissioners or its authorized representative may donate:

      (a) Commodities, supplies, materials and equipment that the board determines to have reached the end of their useful lives; and

      (b) Stolen or embezzled property for which the county treasurer has obtained an order authorizing him to donate the property pursuant to subsection 6 of NRS 179.165,

to a nonprofit organization created for religious, charitable or educational purposes.

      3.  A grant or donation to a [private] nonprofit organization created for religious, charitable or educational purposes must be made by resolution . [which] The resolution must specify:

      (a) The purpose of the grant [;

      (b) The] or donation;


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

κ1999 Statutes of Nevada, Page 1645 (CHAPTER 361, SB 139)κ

 

      (b) If applicable, the maximum amount to be expended from the grant; and

    (c) Any conditions or other limitations upon [its expenditure.] the expenditure of the grant or the use of the donated property.

    4.  As used in this section:

    (a) “Authorized representative” has the meaning ascribed to it in NRS 332.025.

    (b) “Nonprofit organization created for religious, charitable or educational purposes” means an organization that meets the requirements set forth in NRS 372.3261.

      Sec. 5. Chapter 268 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The governing body of a city may expend money for any purpose that will provide a substantial benefit to the inhabitants of the city. The governing body may grant all or part of the money to a nonprofit organization created for religious, charitable or educational purposes to be expended for a selected purpose.

      2.  The governing body of a city or its authorized representative may donate commodities, supplies, materials and equipment that the governing body determines have reached the end of their useful lives to a nonprofit organization created for religious, charitable or educational purposes.

      3.  A grant or donation to a nonprofit organization created for religious, charitable or educational purposes must be made by resolution. The resolution must specify:

      (a) The purpose of the grant or donation;

      (b) If applicable, the maximum amount to be expended from the grant; and

      (c) Any conditions or other limitations on the expenditure of the grant or the use of the donated property.

      4.  As used in this section:

      (a) “Authorized representative” has the meaning ascribed to it in NRS 332.025.

      (b) “Nonprofit organization created for religious, charitable or educational purposes” means an organization that meets the requirements set forth in NRS 372.3261.

      Sec. 6.  This act becomes effective upon passage and approval.

________

 


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

κ1999 Statutes of Nevada, Page 1646κ

 

CHAPTER 362, SB 145

Senate Bill No. 145–Senators O’Connell and Townsend

 

CHAPTER 362

 

AN ACT relating to insurance; requiring an administrator to pay claims relating to health insurance coverage in a certain manner; limiting the amount that a health insurer may charge providers of health care to be included on a list of providers that is given to insureds of the insurer; making various changes concerning payment of claims by health insurers; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 683A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in subsection 2, an administrator shall approve or deny a claim relating to health insurance coverage within 30 days after the administrator receives the claim. If the claim is approved, the administrator shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the administrator shall pay interest on the claim at the rate of interest established pursuant to NRS 99.040 unless a different rate of interest is established pursuant to an express written contract between the administrator and the provider of health care. The interest must be calculated from 30 days after the date on which the claim is approved until the claim is paid.

      2.  If the administrator requires additional information to determine whether to approve or deny the claim, he shall notify the claimant of his request for the additional information within 20 days after he receives the claim. The administrator shall notify the provider of health care of all the specific reasons for the delay in approving or denying the claim. The administrator shall approve or deny the claim within 30 days after receiving the additional information. If the claim is approved, the administrator shall pay the claim within 30 days after he receives the additional information. If the approved claim is not paid within that period, the administrator shall pay interest on the claim in the manner prescribed in subsection 1.

      3.  An administrator shall not request a claimant to resubmit information that the claimant has already provided to the administrator, unless the administrator provides a legitimate reason for the request and the purpose of the request is not to delay the payment of the claim, harass the claimant or discourage the filing of claims.

      4.  An administrator shall not pay only part of a claim that has been approved and is fully payable.

      5.  A court shall award costs and reasonable attorney’s fees to the prevailing party in an action brought pursuant to this section.

      Sec. 2.  NRS 683A.086 is hereby amended to read as follows:

    683A.086  1.  No person may act as an administrator unless he has entered into a written agreement with an insurer, and the written agreement contains provisions to effectuate the requirements contained in NRS 683A.0867 to 683A.0883, inclusive, and section 1 of this act which apply to the duties of the administrator.


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

κ1999 Statutes of Nevada, Page 1647 (CHAPTER 362, SB 145)κ

 

683A.0867 to 683A.0883, inclusive, and section 1 of this act which apply to the duties of the administrator.

    2.  A copy of an agreement entered into under the provisions of this section must be retained in the records of the administrator and of the insurer for a period of 5 years after the termination of the agreement.

    3.  When a policy is issued to a trustee or trustees, a copy of the trust agreement and amendments must be obtained by the administrator and a copy forwarded to the insurer. Each agreement must be retained by the administrator and by the insurer for a period of 5 years after the termination of the policy.

      4.  The commissioner may adopt regulations which specify the functions an administrator may perform on behalf of an insurer.

      Sec. 3.  Chapter 689A of NRS is hereby amended by adding thereto a new section to read as follows:

      An insurer may charge a provider of health care a fee to include the name of the provider on a list of providers of health care given by the insurer to its insureds. The amount of the fee must be reasonable and must not exceed an amount that is directly related to the administrative costs of the insurer to include the provider on the list.

      Sec. 4.  NRS 689A.410 is hereby amended to read as follows:

    689A.410  1.  Except as otherwise provided in subsection 2, an insurer shall approve or deny a claim relating to a policy of health insurance within 30 days after the insurer receives the claim. If the claim is approved, the insurer shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the insurer shall pay interest on the claim at the rate of interest established pursuant to NRS 99.040 [.] unless a different rate of interest is established pursuant to an express written contract between the insurer and the provider of health care. The interest must be calculated from 30 days after the date [the payment is due] on which the claim is approved until the claim is paid.

    2.  If the insurer requires additional information to determine whether to approve or deny the claim, it shall notify the claimant of its request for the additional information within 20 days after it receives the claim. The insurer shall notify the provider of health care of all the [reason] specific reasons for the delay in approving or denying the claim. The insurer shall approve or deny the claim within 30 days after receiving the additional information. If the claim is approved, the insurer shall pay the claim within 30 days after it receives the additional information. If the approved claim is not paid within that period, the insurer shall pay interest on the claim in the manner prescribed in subsection 1.

    3.  An insurer shall not request a claimant to resubmit information that the claimant has already provided to the insurer, unless the insurer provides a legitimate reason for the request and the purpose of the request is not to delay the payment of the claim, harass the claimant or discourage the filing of claims.

    4.  An insurer shall not pay only part of a claim that has been approved and is fully payable.

    5.  A court shall award costs and reasonable attorney’s fees to the prevailing party in an action brought pursuant to this section.


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

κ1999 Statutes of Nevada, Page 1648 (CHAPTER 362, SB 145)κ

 

      Sec. 5.  Chapter 689B of NRS is hereby amended by adding thereto a new section to read as follows:

      An insurer that issues a policy of group health insurance may charge a provider of health care a fee to include the name of the provider on a list of providers of health care given by the insurer to its insureds. The amount of the fee must be reasonable and must not exceed an amount that is directly related to the administrative costs of the insurer to include the provider on the list.

      Sec. 6.  NRS 689B.255 is hereby amended to read as follows:

    689B.255  1.  Except as otherwise provided in subsection 2, an insurer shall approve or deny a claim relating to a policy of group health insurance or blanket insurance within 30 days after the insurer receives the claim. If the claim is approved, the insurer shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the insurer shall pay interest on the claim at the rate of interest established pursuant to NRS 99.040 [.] unless a different rate of interest is established pursuant to an express written contract between the insurer and the provider of health care. The interest must be calculated from 30 days after the date [the payment is due] on which the claim is approved until the claim is paid.

    2.  If the insurer requires additional information to determine whether to approve or deny the claim, it shall notify the claimant of its request for the additional information within 20 days after it receives the claim. The insurer shall notify the provider of health care of all the [reason] specific reasons for the delay in approving or denying the claim. The insurer shall approve or deny the claim within 30 days after receiving the additional information. If the claim is approved, the insurer shall pay the claim within 30 days after it receives the additional information. If the approved claim is not paid within that period, the insurer shall pay interest on the claim in the manner prescribed in subsection 1.

    3.  An insurer shall not request a claimant to resubmit information that the claimant has already provided to the insurer, unless the insurer provides a legitimate reason for the request and the purpose of the request in not to delay the payment of the claim, harass the claimant or discourage the filing of claims.

    4.  An insurer shall not pay only part of a claim that has been approved and is fully payable.

    5.  A court shall award costs and reasonable attorney’s fees to the prevailing party in an action brought pursuant to this section.

      Sec. 7.  Chapter 689C of NRS is hereby amended by adding thereto the provisions set forth as sections 8 and 9 of this act.

      Sec. 8. A carrier serving small employers and a carrier that offers a contract to a voluntary purchasing group may charge a provider of health care a fee to include the name of the provider on a list of providers of health care given by the carrier to its insureds. The amount of the fee must be reasonable and must not exceed an amount that is directly related to the administrative costs of the carrier to include the provider on the list.

    Sec. 9. 1.  Except as otherwise provided in subsection 2, a carrier serving small employers and a carrier that offers a contract to a voluntary purchasing group shall approve or deny a claim relating to a policy of health insurance within 30 days after the carrier receives the claim.


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

κ1999 Statutes of Nevada, Page 1649 (CHAPTER 362, SB 145)κ

 

health insurance within 30 days after the carrier receives the claim. If the claim is approved, the carrier shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the carrier shall pay interest on the claim at the rate of interest established pursuant to NRS 99.040 unless a different rate of interest is established pursuant to an express written contract between the carrier and the provider of health care. The interest must be calculated from 30 days after the date on which the claim is approved until the claim is paid.

    2.  If the carrier requires additional information to determine whether to approve or deny the claim, it shall notify the claimant of its request for the additional information within 20 days after it receives the claim. The carrier shall notify the provider of health care of all the specific reasons for the delay in approving or denying the claim. The carrier shall approve or deny the claim within 30 days after receiving the additional information. If the claim is approved, the carrier shall pay the claim within 30 days after it receives the additional information. If the approved claim is not paid within that period, the carrier shall pay interest on the claim in the manner prescribed in subsection 1.

    3.  A carrier shall not request a claimant to resubmit information that the claimant has already provided to the carrier, unless the carrier provides a legitimate reason for the request and the purpose of the request is not to delay the payment of the claim, harass the claimant or discourage the filing of claims.

    4.  A carrier shall not pay only part of a claim that has been approved and is fully payable.

    5.  A court shall award costs and reasonable attorney’s fees to the prevailing party in an action brought pursuant to this section.

      Sec. 10.  Chapter 695A of NRS is hereby amended by adding thereto a new section to read as follows:

      A society may charge a provider of health care a fee to include the name of the provider on a list of providers of health care given by the society to its insureds. The amount of the fee must be reasonable and must not exceed an amount that is directly related to the administrative costs of the society to include the provider on the list.

      Sec. 11.  NRS 695A.188 is hereby amended to read as follows:

    695A.188  1.  Except as otherwise provided in subsection 2, a society shall approve or deny a claim relating to a certificate of health insurance within 30 days after the society receives the claim. If the claim is approved, the society shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the society shall pay interest on the claim at the rate of interest established pursuant to NRS 99.040 [.] unless a different rate of interest is established pursuant to an express written contract between the society and the provider of health care. The interest must be calculated from 30 days after the date [the payment is due] on which the claim is approved until the claim is paid.

    2.  If the society requires additional information to determine whether to approve or deny the claim, it shall notify the claimant of its request for the additional information within 20 days after it receives the claim. The society shall notify the provider of health care of all the [reason] specific reasons for the delay in approving or denying the claim.


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

κ1999 Statutes of Nevada, Page 1650 (CHAPTER 362, SB 145)κ

 

the delay in approving or denying the claim. The society shall approve or deny the claim within 30 days after receiving the additional information. If the claim is approved, the society shall pay the claim within 30 days after it receives the additional information. If the approved claim is not paid within that period, the society shall pay interest on the claim in the manner prescribed in subsection 1.

    3.  A society shall not request a claimant to resubmit information that the claimant has already provided to the society, unless the society provides a legitimate reason for the request and the purpose of the request is not to delay the payment of the claim, harass the claimant or discourage the filing of claims.

    4.  A society shall not pay only part of a claim that has been approved and is fully payable.

    5.  A court shall award costs and reasonable attorney’s fees to the prevailing party in an action brought pursuant to this section.

      Sec. 12.  Chapter 695B of NRS is hereby amended by adding thereto a new section to read as follows:

      A corporation subject to the provisions of this chapter may charge a provider of health care a fee to include the name of the provider on a list of providers of health care given by the corporation to its insureds. The amount of the fee must be reasonable and must not exceed an amount that is directly related to the administrative costs of the corporation to include the provider on the list.

      Sec. 13.  NRS 695B.2505 is hereby amended to read as follows:

    695B.2505  1.  Except as otherwise provided in subsection 2, a corporation subject to the provisions of this chapter shall approve or deny a claim relating to a contract for dental, hospital or medical services within 30 days after the corporation receives the claim. If the claim is approved, the corporation shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the corporation shall pay interest on the claim at the rate of interest established pursuant to NRS 99.040 [.] unless a different rate of interest is established pursuant to an express written contract between the corporation and the provider of health care. The interest must be calculated from 30 days after the date [the payment is due] on which the claim is approved until the claim is paid.

    2.  If the corporation requires additional information to determine whether to approve or deny the claim, it shall notify the claimant of its request for the additional information within 20 days after it receives the claim. The corporation shall notify the provider of dental, hospital or medical services of all the [reason] specific reasons for the delay in approving or denying the claim. The corporation shall approve or deny the claim within 30 days after receiving the additional information. If the claim is approved, the corporation shall pay the claim within 30 days after it receives the additional information. If the approved claim is not paid within that period, the corporation shall pay interest on the claim in the manner prescribed in subsection 1.

    3.  A corporation shall not request a claimant to resubmit information that the claimant has already provided to the corporation, unless the corporation provides a legitimate reason for the request and the purpose of the request is not to delay the payment of the claim, harass the claimant or discourage the filing of claims.


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

κ1999 Statutes of Nevada, Page 1651 (CHAPTER 362, SB 145)κ

 

the request is not to delay the payment of the claim, harass the claimant or discourage the filing of claims.

    4.  A corporation shall not pay only part of a claim that has been approved and is fully payable.

    5.  A court shall award costs and reasonable attorney’s fees to the prevailing party in an action brought pursuant to this section.

      Sec. 14.  Chapter 695C of NRS is hereby amended by adding thereto a new section to read as follows:

      A health maintenance organization may charge a provider of health care a fee to include the name of the provider on a list of providers of health care given by the health maintenance organization to its enrollees. The amount of the fee must be reasonable and must not exceed an amount that is directly related to the administrative costs of the health maintenance organization to include the provider on the list.

      Sec. 15.  NRS 695C.185 is hereby amended to read as follows:

    695C.185  1.  Except as otherwise provided in subsection 2, a health maintenance organization shall approve or deny a claim relating to a health care plan within 30 days after the health maintenance organization receives the claim. If the claim is approved, the health maintenance organization shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the health maintenance organization shall pay interest on the claim at the rate of interest established pursuant to NRS 99.040 [.] unless a different rate of interest is established pursuant to an express written contract between the health maintenance organization and the provider of health care. The interest must be calculated from 30 days after the date [the payment is due] on which the claim is approved until the claim is paid.

    2.  If the health maintenance organization requires additional information to determine whether to approve or deny the claim, it shall notify the claimant of its request for the additional information within 20 days after it receives the claim. The health maintenance organization shall notify the provider of health care services of all the [reason] specific reasons for the delay in approving or denying the claim. The health maintenance organization shall approve or deny the claim within 30 days after receiving the additional information. If the claim is approved, the health maintenance organization shall pay the claim within 30 days after it receives the additional information. If the approved claim is not paid within that period, the health maintenance organization shall pay interest on the claim in the manner prescribed in subsection 1.

    3.  A health maintenance organization shall not request a claimant to resubmit information that the claimant has already provided to the health maintenance organization, unless the health maintenance organization provides a legitimate reason for the request and the purpose of the request is not to delay the payment of the claim, harass the claimant or discourage the filing of claims.

    4.  A health maintenance organization shall not pay only part of a claim that has been approved and is fully payable.

    5.  A court shall award costs and reasonable attorney’s fees to the prevailing party in an action brought pursuant to this section.


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

κ1999 Statutes of Nevada, Page 1652 (CHAPTER 362, SB 145)κ

 

      Sec. 16.  NRS 695F.090 is hereby amended to read as follows:

    695F.090  Prepaid limited health service organizations are subject to the provisions of this chapter and to the following provisions, to the extent reasonably applicable:

    1.  NRS 687B.310 to 687B.420, inclusive, concerning cancellation and nonrenewal of policies.

    2.  NRS 687B.122 to 687B.128, inclusive, concerning readability of policies.

    3.  The requirements of NRS 679B.152.

    4.  The fees imposed pursuant to NRS 449.465.

    5.  NRS 686A.010 to 686A.310, inclusive, concerning trade practices and frauds.

    6.  The assessment imposed pursuant to subsection 3 of NRS 679B.158.

    7.  Chapter 683A of NRS.

      8.  To the extent applicable, the provisions of NRS 689B.340 to 689B.600, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance.

      9.  NRS 689A.410, 689A.413 [.] and section 3 of this act.

      10.  NRS 680B.025 to 680B.039, inclusive, concerning premium tax, premium tax rate, annual report and estimated quarterly tax payments. For the purposes of this subsection, unless the context otherwise requires that a section apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “prepaid limited health service organization.”

      11.  Chapter 692C of NRS, concerning holding companies.

________

 

CHAPTER 363, SB 168

Senate Bill No. 168–Senator Schneider

 

Joint Sponsor: Assemblywoman Buckley

 

CHAPTER 363

 

AN ACT relating to highways; clarifying the authority of the department of transportation to include in a contract made or awarded for the construction, improvement, maintenance or repair of a highway or appurtenance to a highway a provision for the payment of an additional amount of money if the construction, improvement, maintenance or repair is completed before a certain date; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 408 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Any contract made or awarded by the department for the construction, improvement, maintenance or repair of a highway or an appurtenance to that highway may include a provision for the payment of an additional amount of money to the person with whom the contract is made or to whom it is awarded if he satisfactorily completes the construction, improvement, maintenance or repair of the highway or appurtenance before the date for completion of that construction, improvement, maintenance or repair set forth in the contract.


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

κ1999 Statutes of Nevada, Page 1653 (CHAPTER 363, SB 168)κ

 

appurtenance before the date for completion of that construction, improvement, maintenance or repair set forth in the contract.

      2.  The amount of money to be paid pursuant to a provision included in a contract specified in subsection 1 and the date before which the work must be completed must be determined by the department.

________

 

CHAPTER 364, SB 181

Senate Bill No. 181–Senators Rawson, Raggio, Wiener, Townsend, Neal and Coffin

 

Joint Sponsors: Assemblymen Perkins, Dini and Goldwater

 

CHAPTER 364

 

AN ACT relating to professional occupations; requiring the board of dental examiners of Nevada to issue a limited license to practice dentistry or dental hygiene to certain persons employed by the University and Community College System of Nevada; revising provisions relating to restricted licenses to practice dentistry; revising the fees that must be charged by the board; expanding the disciplinary powers of the board; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 631 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The board shall, without a clinical demonstration required by NRS 631.240 or a practical examination required by NRS 631.300, issue a limited license to practice dentistry or dental hygiene to a person who:

      (a) Has a license to practice dentistry or dental hygiene issued pursuant to the laws of another state or the District of Columbia;

      (b) Is otherwise qualified for a license to practice dentistry or dental hygiene in this state;

      (c) Pays the required application fee; and

      (d) Has entered into a contract with the University and Community College System of Nevada to provide services full time as a dental intern, dental resident or instructor of dentistry or dental hygiene at an educational or outpatient clinic, hospital or other  facility of the University and Community College System of Nevada. As used in this paragraph, “full time” means providing such services at least 8 hours per day, 4 days per week, during an academic year.

      2.  The board shall not issue a limited license to a person:

      (a) Whose license to practice dentistry or dental hygiene has been revoked or suspended; or

      (b) Who has been refused a license or is involved in a disciplinary action concerning his license to practice dentistry or dental hygiene,

in this state, another state or territory of the United States or the District of Columbia.

      3.  A person to whom a limited license is issued pursuant to subsection 1:


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

κ1999 Statutes of Nevada, Page 1654 (CHAPTER 364, SB 181)κ

 

      (a) May practice dentistry or dental hygiene in this state only:

             (1) At the educational or outpatient clinic, hospital or other facility where he is employed; and

             (2) In accordance with the contract required by paragraph (d) of subsection 1; and

      (b) Shall not, for the duration of the limited license, engage in the private practice of dentistry or dental hygiene in this state or accept compensation for the practice of dentistry or dental hygiene except such compensation as may be paid to him by the University and Community College System of Nevada for services provided as a dental intern, dental resident or instructor of dentistry or dental hygiene.

      4.  A limited license expires 1 year after its date of issuance and may be renewed on or before the date of its expiration. The holder of a limited license may, upon compliance with the requirements set forth in subsection 2 of NRS 631.330 and the completion of a review conducted at the discretion of the board, be granted a renewal certificate that authorizes the continuation of practice pursuant to the limited license for 1 year.

      5.  Within 7 days after the termination of his contract required by paragraph (d) of subsection 1, the holder of a limited license shall notify the board of the termination, in writing, and surrender the limited license to the board.

      6.  The board may revoke a limited license at any time upon proof satisfactory to the board that the holder of the license violated any provision of this chapter or the regulations of the board.

      Sec. 2.  NRS 631.240 is hereby amended to read as follows:

    631.240  1.  Any person desiring to obtain a license to practice dentistry in this state, after having complied with the regulations of the board to determine eligibility, must:

    (a) Present to the board a certificate granted by the National Board of Dental Examiners which contains a notation that he has passed the board’s examination with an average score of at least 75; and

    (b) Be examined by the board on his practical knowledge of dentistry.

    2.  The board shall examine each applicant in writing on the contents and interpretation of chapter 631 of NRS and the regulations of the board.

    3.  [The] Except as otherwise provided in section 1 of this act, the examination required by paragraph (b) of subsection 1 must include clinical demonstrations of the applicant’s skill in dentistry.

    4.  All persons who present the appropriate certificate and successfully complete the examination must be registered as licensed dentists on the board register, as provided in this chapter, and are entitled to receive a certificate of registration, signed by the member of the board who is a representative of the general public and those members of the board who are dentists.

      Sec. 3.  NRS 631.275 is hereby amended to read as follows:

    631.275  1.  Except as otherwise provided in subsection 2, the board shall, without examination, issue a restricted license to practice dentistry to a person who:

    (a) Has a valid license to practice dentistry issued pursuant to the laws of another state or the District of Columbia;


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

κ1999 Statutes of Nevada, Page 1655 (CHAPTER 364, SB 181)κ

 

      (b) Has received a degree from a dental school or college accredited by the American Dental Association Commission on Dental Accreditation, or its successor organization; and

      (c) [Has at least 5 years of clinical experience obtained after receiving such a degree; and

      (d)] Has entered into a contract with a facility approved by the health division of the department of human resources to provide publicly funded dental services exclusively to persons of low income for the duration of the restricted license.

      2.  The board shall not issue a restricted license to a person:

      (a) Who has failed to pass the examination of the board;

      (b) Who has been refused a license in this state, another state or territory of the United States or the District of Columbia; or

      (c) Whose license to practice dentistry has been revoked in this state, another state or territory of the United States or the District of Columbia.

      3.  A person to whom a restricted license is issued pursuant to subsection 1:

      (a) May perform dental services only:

             (1) Under the supervision of a dentist who is licensed to practice dentistry in this state and appointed by the health division of the department of human resources to supervise dental care that is provided in a facility which has entered into a contract with the person to whom a restricted license is issued and which is approved by the health division of the department; and

             (2) In accordance with the contract required pursuant to paragraph [(d)] (c) of that subsection.

      (b) Shall not, for the duration of the restricted license, engage in the private practice of dentistry, which includes, without limitation, providing dental services to a person who pays for the services.

      4.  A person who receives a restricted license must pass the examination of the board within [1 year] 3 years after receiving his restricted license. If the person fails to pass that examination, the board shall revoke the restricted license.

      5.  The board may revoke a restricted license at any time.

      Sec. 4.  NRS 631.300 is hereby amended to read as follows:

      631.300  1.  Any person desiring to obtain a license to practice dental hygiene, after having complied with the regulations of the board to determine eligibility, must be examined by the board upon such subjects as the board deems necessary, and , except as otherwise provided in section 1 of this act, be given a practical examination in dental hygiene, including, but not limited to, the removal of deposits from, and the polishing of, the exposed surface of the teeth.

      2.  The examination must be:

      (a) Written, oral or a combination of both; and

      (b) Practical, as in the opinion of the board is necessary to test the qualifications of the applicant.

      3.  The board shall examine each applicant in writing on the contents and interpretation of chapter 631 of NRS and the regulations of the board.


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

κ1999 Statutes of Nevada, Page 1656 (CHAPTER 364, SB 181)κ

 

    4.  In lieu of the written examination which may be required by subsection 2, the board shall recognize a certificate from the National Board of Dental Examiners which contains a notation that the applicant has passed the examination of the board with a score of at least 75.

      Sec. 5.  NRS 631.310 is hereby amended to read as follows:

    631.310  1.  [The] Except as otherwise provided in section 1 of this act, the holder of a license or renewal certificate to practice dental hygiene may practice dental hygiene in this state in the following places:

    (a) In the office of any licensed dentist.

    (b) In a clinic or in clinics in the public schools of this state as an employee of the health division of the department of human resources.

    (c) In a clinic or in clinics in a state institution as an employee of the institution.

    (d) In a clinic established by a hospital approved by the board as an employee of the hospital where service is rendered only to patients of the hospital, and upon the authorization of a member of the dental staff.

    (e) In an accredited school of dental hygiene.

    (f) In other places if specified in a regulation adopted by the board.

    2.  A dental hygienist may perform only the services which are authorized by a dentist licensed in the State of Nevada, unless otherwise provided in a regulation adopted by the board.

    3.  Except as otherwise specifically authorized by a regulation adopted by the board, a dental hygienist shall not provide services to a person unless that person is a patient of the dentist who authorized the performance of those services.

      Sec. 6.  NRS 631.330 is hereby amended to read as follows:

    631.330  1.  Licenses must be renewed annually.

    2.  Except as otherwise provided in section 1 of this act:

    (a) Each holder of a license to practice dentistry or dental hygiene must, upon:

    [(a)](1) Submission of the statement required pursuant to NRS 631.225;

    [(b)](2) Payment of the required fee; and

    [(c)](3) Submission of proof of completion of the required continuing education,

be granted a renewal certificate which will authorize continuation of the practice for 1 year.

    [2.](b) A licensee must comply with the provisions of this subsection and subsection 1 on or before June 30. Failure to comply with [the provisions of subsection 1] those provisions by June 30 of each year automatically suspends the license, and it may be reinstated only upon payment of the fee for reinstatement [in addition to] and compliance with the requirements of this subsection . [1.]

    3.  If a license suspended pursuant to this section is not reinstated within 12 months after suspension, it is automatically revoked.

      Sec. 7.  NRS 631.335 is hereby amended to read as follows:

    631.335  1.  The license of a person who does not actively practice in this state for 1 year automatically reverts to inactive status at the time the license renewal fee is next payable. If a person whose license has reverted to inactive status:


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

κ1999 Statutes of Nevada, Page 1657 (CHAPTER 364, SB 181)κ

 

      (a) Continues to practice actively outside this state, his license may be reinstated to active status by the secretary-treasurer if he pays the [license fee for active licensees] required reinstatement fee and complies with the conditions prescribed by the regulations of the board.

      (b) Does not continue to practice, his license may be reinstated to active status only upon the motion of the board, submission of the required reinstatement fee [for active licenses] and proof of continuing education, and compliance with the conditions prescribed by the regulations of the board.

      2.  A licensee who is disabled and cannot practice, or who is retired must be issued a license which reflects that status when the fee to renew his license is next payable. His license may be reinstated to active status only upon the motion of the board, submission of the required reinstatement fee [for an active license] and proof of continuing education, and compliance with the conditions prescribed by the regulations of the board.

      Sec. 8.  NRS 631.345 is hereby amended to read as follows:

      631.345  1.  The board shall by regulation establish fees [which must be charged by the board] for the performance of the duties imposed upon it by this chapter [are as follows:] which must not exceed the following amounts:

 

Examination fee for a license to practice dentistry.......................... [$300] $750

Examination fee for a license to practice dental hygiene............................... 150

Application fee for a specialist license................................................................ 125

Application fee for a limited or restricted license.......................................... 125

Application and examination fee for a permit to administer general anesthesia , conscious sedation or deep sedation............................................... [200] 500

Fee for any reinspection required by the board to maintain a permit to administer general anesthesia, conscious sedation or deep sedation.. 250

Annual renewal fee for a permit to administer general anesthesia , conscious sedation or deep sedation...................................................................... [50] 100

Fee for the inspection of a facility required by the board to renew a permit to administer general anesthesia, conscious sedation or deep sedation.. 100

Annual license renewal fee for a general dentist or specialist [, not to exceed]      300

Annual license renewal fee for a dental hygienist [, not to exceed].............. 150

Annual license renewal fee for a limited license............................................. 100

Annual license renewal fee for an inactive dentist........................................... 100

Annual license renewal fee for a retired or disabled dentist.............................. 25

Annual license renewal fee for an inactive dental hygienist............................. 25

Annual license renewal fee for a retired or disabled dental hygienist.............. 25


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

κ1999 Statutes of Nevada, Page 1658 (CHAPTER 364, SB 181)κ

 

Reinstatement fee for a suspended license to practice dentistry or dental hygiene [, not to exceed].............................................................................. $200

Reinstatement fee for a revoked license to practice dentistry or dental hygiene      500

Reinstatement fee to return an inactive, retired or disabled dentist or dental hygienist to active status................................................................................ 200

Fee for the certification of a license.................................................................... 50

 

    2.  Except as otherwise provided in this subsection, the board shall charge a fee to review a course of continuing education for accreditation. The fee must not exceed $150 per credit hour of the proposed course. The board shall not charge a nonprofit organization or an agency of the state or of a political subdivision of the state a fee to review a course of continuing education.

    3.  All fees prescribed in this section are payable in advance and must not be refunded.

      Sec. 9.  NRS 631.350 is hereby amended to read as follows:

    631.350  1.  Except as otherwise provided in NRS 631.347 [,] and section 1 of this act, the board may:

    (a) Refuse to issue a license to any person;

    (b) Revoke or suspend the license or renewal certificate issued by it to any person;

    (c) Fine a person it has licensed;

    (d) Place a person on probation for a specified period on any conditions the board may order;

    (e) Issue a public reprimand to a person;

    (f) Limit a person’s practice to certain branches of dentistry;

    (g) Require a person to participate in a program to correct alcohol or drug abuse or any other impairment;

    (h) Require that a person’s practice be supervised;

    (i) Require a person to perform public service without compensation;

    (j) Require a person to take a physical or mental examination or an examination of his competence;

    (k) Require a person to fulfill certain training or educational requirements; [or]

    (l) Require a person to reimburse a patient; or

    (m) Any combination thereof,

upon proof satisfactory to the board that the person has engaged in any of the activities listed in subsection 2.

    2.  The following activities may be punished as provided in subsection 1:

    (a) Engaging in the illegal practice of dentistry or dental hygiene;

    (b) Engaging in unprofessional conduct; or

    (c) Violating any regulations adopted by the board or the provisions of this chapter.

    3.  The board may delegate to a hearing officer or panel its authority to take any disciplinary action pursuant to this chapter, impose and collect fines therefor and deposit the money therefrom in banks or savings and loan associations in this state.


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

κ1999 Statutes of Nevada, Page 1659 (CHAPTER 364, SB 181)κ

 

    4.  If a hearing officer or panel is not authorized to take disciplinary action pursuant to subsection 3 and the board deposits the money collected from the imposition of fines with the state treasurer for credit to the state general fund, it may present a claim to the state board of examiners for recommendation to the interim finance committee if money is needed to pay attorney’s fees or the costs of an investigation, or both.

________

 

CHAPTER 365, SB 194

Senate Bill No. 194–Senators Rawson, Amodei, James, McGinness, O’Donnell, Porter and Titus

 

Joint Sponsors: Assemblymen Cegavske, Goldwater, Manendo and Tiffany

 

CHAPTER 365

 

AN ACT relating to local financial administration; extending the use of a fund to stabilize the operation of a local government to include mitigation of the effects of a natural disaster; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 353.2755 is hereby amended to read as follows:

    353.2755  1.  A state agency or local government may submit a request to the state board of examiners for a grant or loan from the fund as provided in NRS 353.2705 to 353.2771, inclusive, if:

    (a) The agency or local government finds that, because of a disaster, it is unable to pay for an expense or grant match specified in NRS 353.274, 353.2745 or 353.2751 from money appropriated or otherwise available to the agency or local government; and

    (b) The request has been approved by the chief administrative officer of the state agency or the governing body of the local government.

    2.  A request for a grant or loan submitted pursuant to subsection 1 must include:

    (a) A statement setting forth the amount of money requested by the state agency or local government;

    (b) An assessment of the need of the state agency or local government for the money requested; [and]

    (c) If the request is submitted by a local government that has established a fund pursuant to NRS 354.6115 to mitigate the effects of a natural disaster, a statement of the amount of money that is available in that fund, if any, for the payment of expenses incurred by the local government as a result of a disaster; and

    (d) A determination of the type, value and amount of resources the state agency or local government may be required to provide as a condition for the receipt of a grant or loan from the fund.

    3.  Upon the receipt of a request for a grant or loan submitted pursuant to subsection 1, the state board of examiners:


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

κ1999 Statutes of Nevada, Page 1660 (CHAPTER 365, SB 194)κ

 

    (a) Shall consider the request; and

    (b) May require any additional information that it determines is necessary to make a recommendation.

    4.  If the state board of examiners finds that a grant or loan is appropriate, it shall include in its recommendation to the interim finance committee the proposed amount of the grant or loan. If the state board of examiners recommends a loan for a local government, it shall include the information required pursuant to subsection 1 of NRS 353.2765. If the state board of examiners finds that a grant or loan is not appropriate, it shall include in its recommendation the reason for its determination.

    5.  The provisions of this section do not prohibit a state agency or local government from submitting more than one request for a grant or loan from the fund.

    6.  As used in this section, the term “natural disaster” has the meaning ascribed to it in NRS 354.6115.

      Sec. 2.  NRS 354.6115 is hereby amended to read as follows:

    354.6115  1.  The governing body of a local government may, by resolution, establish a fund to stabilize the operation of the local government [.] and mitigate the effects of natural disasters.

    2.  The money in the fund must be used only [if] :

    (a) If the total actual revenue of the local government falls short of the total anticipated revenue in the general fund for the fiscal year in which the local government uses that money [.] ; or

    (b) To pay expenses incurred by the local government to mitigate the effects of a natural disaster.

The money in the fund at the end of the fiscal year may not revert to any other fund or be a surplus for any purpose other than [the] a purpose specified in this subsection.

    3.  The money in the fund may not be used to pay expenses incurred to mitigate the effects of a natural disaster until the governing body of the local government issues a formal declaration that a natural disaster exists. The governing body shall not make such a declaration unless a natural disaster is occurring or has occurred. Upon the issuance of such a declaration, the money in the fund may be used for the payment of the following expenses incurred by the local government as a result of the natural disaster:

    (a) The repair or replacement of roads, streets, bridges, water control facilities, public buildings, public utilities, recreational facilities and parks owned by the local government and damaged by the natural disaster;

    (b) Any emergency measures undertaken to save lives, protect public health and safety or protect property within the jurisdiction of the local government;

    (c) The removal of debris from publicly or privately owned land and waterways within the jurisdiction of the local government that was undertaken because of the natural disaster;

    (d) Expenses incurred by the local government for any overtime worked by an employee of the local government because of the natural disaster or any other extraordinary expenses incurred by the local government because of the natural disaster; and


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

κ1999 Statutes of Nevada, Page 1661 (CHAPTER 365, SB 194)κ

 

    (e) The payment of any grant match the local government must provide to obtain a grant from a federal disaster assistance agency for an eligible project to repair damage caused by the natural disaster within the jurisdiction of the local government.

    4.  The balance in the fund must not exceed 10 percent of the expenditures from the general fund for the previous fiscal year, excluding any federal funds expended by the local government.

    5.  The annual budget and audit report of the local government prepared pursuant to NRS 354.624 must specifically identify the fund and:

    (a) Indicate in detail the manner in which money in the fund was expended during the previous fiscal year;

    (b) Specify the amount of money, if any, that will be deposited in the fund for the next fiscal year; and

    (c) Identify any planned accumulation of the money in the fund.

The audit report must include a statement by the auditor whether the local government has complied with the provisions of this subsection.

    6.  As used in this section:

    (a) “Grant match” has the meaning ascribed to it in NRS 353.2725.

    (b) “Natural disaster” means a fire, flood, earthquake, drought or any other occurrence that:

      (1) Results in widespread or severe damage to property or injury to or the death of persons within the jurisdiction of the local government; and

             (2) As determined by the governing body of the local government, requires immediate action to protect the health, safety and welfare of persons residing within the jurisdiction of the local government.

      Sec. 3. NRS 354.6117 is hereby amended to read as follows:

    354.6117  1.  Except as otherwise provided in subsection 2, the total amount of money which may be transferred in a fiscal year from the general fund of a local government to the funds established pursuant to NRS 354.611, 354.6113 and 354.6115 must not exceed 10 percent of the total amount of the budgeted expenditures of the general fund, plus any money transferred from the general fund, other than the money transferred to those funds, for that fiscal year.

    2.  Any money that a local government, pursuant to NRS 354.6116, deposits in or transfers to one or more of the funds established by the local government pursuant to NRS 354.611, 354.6113 or 354.6115:

    (a) Is not subject to the limitation on the amount of money that a local government may transfer to those funds pursuant to subsection 1.

    (b) Must not be included in the determination of the total amount of money transferred to those funds for the purposes of the limitation set forth in subsection 1.

      Sec. 4.  This act becomes effective on July 1, 1999.

________

 


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

κ1999 Statutes of Nevada, Page 1662κ

 

CHAPTER 366, SB 211

Senate Bill No. 211–Senator O’Connell

 

CHAPTER 366

 

AN ACT relating to the division of wildlife of the state department of conservation and natural resources; allowing a change in the location of the headquarters of the division; requiring the division to contract with a private entity to conduct a drawing to award and issue tags for a special season; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 501.341 is hereby amended to read as follows:

    501.341  The headquarters of the division must be maintained at [Reno. Other] such a location in the state, and other offices may be established throughout the state in such number and location , as will, in the opinion of the administrator and commission, provide an efficient divisional operation.

    Sec. 2.  Chapter 502 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  The division shall contract with a private entity to conduct a drawing and to award and issue the tags for a special season. The drawing must be conducted using a computer program that awards tags based on a random order of selection. The contract must provide for the acquisition by the division of the ownership of the computer program at the end of the term of the contract. The division shall solicit bids for the contract pursuant to the provisions of chapter 333 of NRS.

    2.  The division shall:

    (a) Provide to the private entity to whom a contract is awarded pursuant to the provisions of subsection 1 any applications for tags, documents or other information required by the private entity to conduct the drawing; and

    (b) Otherwise cooperate with the private entity in conducting the drawing.

    3.  As soon as practicable after the drawing is completed, the private entity shall submit the results of the drawing to the division.

    4.  If no private entity qualifies for the awarding of the contract specified in subsection 1, the division shall conduct a drawing to award tags for a special season in the manner set forth in the regulations adopted by the commission pursuant to the provisions of subsection 5.

    5.  The commission shall adopt regulations necessary to carry out the provisions of this section, including regulations that prescribe the manner in which the division must conduct a drawing specified in subsection 1 if no private entity qualifies for the awarding of the contract.

      Sec. 3.  NRS 242.131 is hereby amended to read as follows:

    242.131  1.  The department shall provide state agencies and elected state officers with all of their required design of information systems. All agencies and officers must use those services and equipment, except as otherwise provided in subsection 2.


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

κ1999 Statutes of Nevada, Page 1663 (CHAPTER 366, SB 211)κ

 

    2.  The following agencies may negotiate with the department for its services or the use of its equipment, subject to the provisions of this chapter, and the department shall provide [such] those services and the use of [such] that equipment as may be mutually agreed:

    (a) [Court] The court administrator;

    (b) [Department] The department of motor vehicles and public safety;

    (c) [Department] The department of transportation;

    (d) [Employment] The employment security division of the department of employment, training and rehabilitation;

    (e) [Legislative] The division of wildlife of the state department of conservation and natural resources;

    (f) The legislative counsel bureau;

    [(f) State]

    (g) The state industrial insurance system;

    [(g) State controller;

    (h) State]

    (h) The state controller;

    (i) The state gaming control board and Nevada gaming commission; and

    [(i)](j) The University and Community College System of Nevada.

    3.  Any state agency or elected state officer who uses the services of the department and desires to withdraw substantially from that use must apply to the director for approval. The application must set forth justification for the withdrawal. If the director denies the application, the agency or officer must:

    (a) If the legislature is in regular or special session, obtain the approval of the legislature by concurrent resolution.

    (b) If the legislature is not in regular or special session, obtain the approval of the interim finance committee. The director shall, within 45 days after receipt of the application, forward the application together with his recommendation for approval or denial to the interim finance committee. The interim finance committee has 45 days after the application and recommendation are submitted to its secretary within which to consider the application. Any application which is not considered by the committee within the 45-day period shall be deemed approved.

    4.  If the demand for services or use of equipment exceeds the capability of the department to provide them, the department may contract with other agencies or independent contractors to furnish the required services or use of equipment and is responsible for the administration of the contracts.

      Sec. 4. Section 17 of chapter 507, Statutes of Nevada 1991, at page 1578, is hereby repealed.

________

 


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

κ1999 Statutes of Nevada, Page 1664κ

 

CHAPTER 367, SB 235

Senate Bill No. 235–Committee on Transportation

 

CHAPTER 367

 

AN ACT relating to traffic laws; providing standards for making a right turn under certain circumstances; deleting the provision which allows a driver of a motor vehicle to stop, stand, park or drive within a pathway or lane provided for bicycles if he is preparing to make or making a turn; clarifying the prohibition against entering or proceeding through an intersection while driving within a pathway or lane provided for bicycles; providing a penalty; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 484.305 is hereby amended to read as follows:

    484.305  1.  [Whenever any] If a highway has two or more clearly marked lanes for traffic traveling in one direction, vehicles [shall be] must:

    (a) Be driven as nearly as practicable entirely within a single lane ; and [shall not]

    (b) Not be moved from [such] that lane until the driver has given the appropriate turn signal and ascertained that such movement can be made with safety.

    2.  Upon a highway which has been divided into three clearly marked lanes a vehicle [shall] must not be driven in the extreme left lane at any time. A vehicle on such a highway [shall] must not be driven in the center lane except:

    (a) When overtaking and passing another vehicle where the highway is clearly visible and [such] the center lane is clear of traffic for a safe distance;

    (b) In preparation for a left turn; or

    (c) [Where such] When the center lane is [at the time] allocated exclusively to traffic moving in the direction in which the vehicle is proceeding [,] and a sign is posted to give notice of such allocation.

    3.  [Whenever] If a highway has been designed to provide a single center lane to be used only for turning [,] by traffic moving in both directions, the following rules apply:

    (a) A vehicle [shall] may be driven in the center turn lane only for the purpose of making a left-hand turn.

    (b) A vehicle [shall] must not travel more than 200 feet in a center turn lane [prior to] before making a left-hand turn.

    4.  If a highway has been designed to provide a single right lane to be used only for turning, a vehicle must:

    (a) Be driven in the right turn lane only for the purpose of making a right turn; and

    (b) While being driven in the right turn lane, not travel through an intersection.

      Sec. 2.  NRS 484.324 is hereby amended to read as follows:

    484.324  1.  The driver of a motor vehicle shall not:

    (a) Intentionally interfere with the movement of a person lawfully riding a bicycle; or


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

κ1999 Statutes of Nevada, Page 1665 (CHAPTER 367, SB 235)κ

 

    (b) Overtake and pass a person riding a bicycle unless he can do so safely without endangering the person riding the bicycle.

    2.  The driver of a motor vehicle shall yield the right of way to any person riding a bicycle on the pathway or lane. The driver of a motor vehicle shall not enter, stop, stand, park or drive within a pathway or lane provided for bicycles except:

    (a) [When preparing to make or making a turn;

    (b)] When entering or exiting an alley or driveway;

    [(c)] (b) When operating or parking a disabled vehicle;

    [(d)] (c) To avoid conflict with other traffic;

    [(e)] (d) In the performance of official duties;

    [(f)] (e) In compliance with the directions of a police officer; or

    [(g)] (f) In an emergency.

      3.  Except as otherwise provided in subsection 2, the driver of a motor vehicle shall not enter or proceed through an intersection while driving within a pathway or lane provided for bicycles.

    4.  The driver of a motor vehicle shall:

    (a) Exercise due care to avoid a collision with a person riding a bicycle; and

    (b) Give an audible warning with the horn of the vehicle if appropriate and when necessary to avoid such a collision.

    [4.] 5.  The operator of a bicycle shall not:

    (a) Intentionally interfere with the movement of a motor vehicle; or

    (b) Overtake and pass a motor vehicle unless he can do so safely without endangering himself or the occupants of the motor vehicle.

      Sec. 3.  NRS 484.333 is hereby amended to read as follows:

    484.333  [When] If the driver of a vehicle intends to turn at an intersection [:

    1.  When the] and:

      1.  The turn is a right turn, both the approach for the right turn and the right turn [shall] must be made [as close as practicable to the right-hand curb or edge of the highway.

      2.  Where both] from the right turn lane if the highway has a right turn lane as set forth in subsection 4 of NRS 484.305, or must be made from the extreme right lane.

    2.  Both intersecting highways are two-directional [, the] :

    (a) The approach for a left turn [shall] must be made in that portion of the right half of the highway nearest the centerline thereof; [and after]

    (b) After entering the intersection , the left turn [shall] must be made so as to leave the intersection to the right of the centerline of the highway being entered; and [in all cases, except where]

    (c) Except as otherwise directed by official traffic-control devices, simultaneous left turns by opposing traffic [shall] must be made in front of each other.

    3.  [When the] The turn is a left turn from a two‑directional highway [into] onto a one‑way highway, the approach for [a] the left turn [shall] must be made in that portion of the right half of the highway nearest the centerline thereof , and the turn [shall] must be made by turning from the right of [such] the centerline where it enters the intersection as close as practicable to the left-hand curb of the one‑way highway.


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

κ1999 Statutes of Nevada, Page 1666 (CHAPTER 367, SB 235)κ

 

the centerline where it enters the intersection as close as practicable to the left-hand curb of the one‑way highway.

    4.  [When making] The turn is a left turn from a one‑way highway [into] onto a two‑directional highway, [such turn shall] the left turn must be made by passing to the right of the centerline of the highway being entered upon leaving the intersection, and the approach [of such turn shall] for the left turn must be made as close as practicable to the left-hand curb of the one‑way highway.

      5.  [When making] The turn is a left turn where both intersecting highways are one‑way, both the approach for the left turn and the left turn [shall] must be made as close as practicable to the left-hand curb or edge of the highway.

      Sec. 4.  The amendatory provisions of this act do not apply to offenses that were committed before October 1, 1999.

________

 

CHAPTER 368, SB 244

Senate Bill No. 244–Senator Jacobsen (by request)

 

CHAPTER 368

 

AN ACT relating to taxation; prohibiting a dealer from taking certain actions regarding cigarettes manufactured for export outside the United States; prohibiting a dealer from affixing a revenue stamp or meter impression upon certain containers of cigarettes; providing a penalty; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 370 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A wholesale or retail dealer shall not affix a Nevada cigarette revenue stamp or a metered machine impression upon a package, carton, packet or other container of cigarettes which:

      (a) Does not meet the requirements of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331 et seq., for the placement of labels, warnings or any other information required by that Act to be placed upon a container of cigarettes sold within the United States;

      (b) Is labeled as “for export only,” “U.S. tax exempt,” “for use outside the U.S.” or with similar wording indicating that the manufacturer did not intend for the product to be sold in the United States;

      (c) Has been altered by the unauthorized addition or removal of wording, labels or warnings described in paragraph (a) or (b);

      (d) Has been exported from the United States after January 1, 2000, and imported into the United States in violation of 26 U.S.C. § 5754; or

      (e) Violates a federal trade-mark or copyright law.

      2.  A wholesale or retail dealer shall not:

      (a) Affix Nevada cigarette revenue stamps or metered machine impressions on;

      (b) Sell or distribute in this state; or


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

κ1999 Statutes of Nevada, Page 1667 (CHAPTER 368, SB 244)κ

 

      (c) Possess in this state with the intent to sell or distribute in this state,

cigarettes manufactured for export outside the United States.

      3.  The department may impose a penalty on a wholesale or retail dealer who violates subsection 1 or 2 as follows:

      (a) For the first violation, a penalty of $5,000.

      (b) For each subsequent violation, a penalty of $10,000.

      4.  Notwithstanding any other provision of law, the department may seize, destroy or sell to the manufacturer, for export only, a container of cigarettes upon which a revenue stamp or metered machine impression was placed in violation of subsection 1 or 2.

      5.  As used in this section, “cigarettes manufactured for export outside the United States” means cigarettes contained in a package or carton which indicates that the cigarettes are tax exempt and for use outside the United States.

      Sec. 2.  NRS 370.001 is hereby amended to read as follows:

    370.001  As used in NRS 370.005 to 370.430, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 370.005 to 370.055, inclusive, have the meanings ascribed to them in those sections.

      Sec. 3.  NRS 370.070 is hereby amended to read as follows:

    370.070  The provisions of NRS 370.001 to 370.430, inclusive, and section 1 of this act do not apply to common carriers while engaged in interstate commerce which sell or furnish cigarettes on their trains, buses or airplanes.

      Sec. 4.  The amendatory provisions of this act do not apply to violations committed before January 1, 2000.

      Sec. 5.  This act becomes effective on January 1, 2000.

________

 

CHAPTER 369, SB 287

Senate Bill No. 287–Senator Porter

 

CHAPTER 369

 

AN ACT relating to taxes on fuels; revising procedures pursuant to which a board of county commissioners may impose a tax on fuel for jet or turbine‑powered aircraft; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

      Whereas, It is vitally important to the economy of a county and to the general welfare of the inhabitants of the county that the board of county commissioners have the ability and discretion to impose a tax or tax increase upon certain products, such as jet fuel, which are sold within the borders of the county; and

      Whereas, The imposition of a tax or tax increase upon jet fuel by a board of county commissioners has ramifications beyond the borders of the county because such an increase may cause an increase in airfare prices that results in a decrease in the accessibility of affordable air service for residents of the State of Nevada and tourists and other visitors from outside the state; and


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

κ1999 Statutes of Nevada, Page 1668 (CHAPTER 369, SB 287)κ

 

      Whereas, The accessibility of affordable air service in the State of Nevada is crucial to the vitality of tourism, one of the primary industries in this state, and hence is crucial to the economy of the State of Nevada and the general welfare of the inhabitants of this state; and

      Whereas, A fine line separates a reasonable tax imposed upon jet fuel to maintain or increase the general welfare of the inhabitants of a county from an unduly burdensome tax imposed upon jet fuel that adversely affects the tourism industry in Nevada and decreases the economy of this state and the general welfare of its inhabitants; and

      Whereas, A board of county commissioners is in the best position to determine the county’s need for revenue and whether such revenue should come from a tax or tax increase upon jet fuel, and when making such a determination should consider whether imposing a tax or tax increase upon jet fuel crosses the line from reasonable and appropriate tax to unduly burdensome tax; and

      Whereas, It is the intent of the legislature by adopting this act to increase the amount of discretion a board of county commissioners has to impose a tax or tax increase upon jet fuel but it is not the intent of the legislature to authorize a county to impose unduly burdensome taxes which have a detrimental effect upon the tourism industry in the State of Nevada; and

      Whereas, The legislature trusts that a board of county commissioners will consider the effects of a tax or tax increase upon jet fuel on the price of air travel and the tourism industry in this state and will consult with the airline industry when considering the imposition or increase of such a tax before it exercises the discretion granted in this act; now, therefore,

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 365.203 is hereby amended to read as follows:

    365.203  1.  A board of county commissioners may by ordinance, but not as in a case of emergency, impose a tax of not more than:

    (a) Four cents per gallon on fuel for jet or turbine-powered aircraft sold, distributed or used in the county ; [, after receiving the approval of a majority of the registered voters of the county voting on the question at a primary, general or special election;] and

    (b) Eight cents per gallon on aviation fuel.

[A county may combine this question with questions submitted pursuant to NRS 244.3351, 278.710, 371.045 or 377A.020, or any combination thereof.

    2.  A special election may be held only if the board of county commissioners determines, by a unanimous vote, that an emergency exists. The determination made by the board is conclusive unless it is shown that the board acted with fraud or a gross abuse of discretion. An action to challenge the determination made by the board must be commenced within 15 days after the board’s determination is final. As used in this subsection, “emergency” means any unexpected occurrence or combination of occurrences which requires immediate action by the board of county commissioners to prevent or mitigate a substantial financial loss to the county or to enable the board to provide an essential service to the residents of the county.


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

κ1999 Statutes of Nevada, Page 1669 (CHAPTER 369, SB 287)κ

 

    3.] 2.  A tax imposed pursuant to this section must be imposed on all taxpayers at the same rate. The county shall not allow any discounts, exemptions or other variance of the rate of the tax for any taxpayer except for the state or a political subdivision of the state.

    [4.] 3.  Collection of the tax imposed pursuant to this section must not commence earlier than the first day of the second calendar month after adoption of the ordinance imposing the tax.

      Sec. 2.  NRS 371.045 is hereby amended to read as follows:

    371.045  1.  A board of county commissioners may by ordinance, but not as in a case of emergency, after receiving the approval of a majority of the registered voters voting on the question at a primary, general or special election, impose a supplemental privilege tax of not more than 1 cent on each $1 of valuation of the vehicle for the privilege of operating upon the public streets, roads and highways of the county on each vehicle based in the county except:

    (a) A vehicle exempt from the motor vehicle privilege tax pursuant to this chapter; or

    (b) A vehicle subject to NRS 706.011 to 706.861, inclusive, which is engaged in interstate or intercounty operations.

    2.  A county may combine this question with questions submitted pursuant to NRS 244.3351, 278.710 [, 365.203] or 377A.020, or any combination thereof.

    3.  A special election may be held only if the board of county commissioners determines, by a unanimous vote, that an emergency exists. The determination made by the board is conclusive unless it is shown that the board acted with fraud or a gross abuse of discretion. An action to challenge the determination made by the board must be commenced within 15 days after the board’s determination is final. As used in this subsection, “emergency” means any unexpected occurrence or combination of occurrences which requires immediate action by the board of county commissioners to prevent or mitigate a substantial financial loss to the county or to enable the board to provide an essential service to the residents of the county.

    4.  Collection of the tax imposed pursuant to this section must not commence earlier than the first day of the second calendar month after adoption of the ordinance imposing the tax.

    5.  Except as otherwise provided in subsection 6 and NRS 371.047, the county shall use the proceeds of the tax to pay the cost of:

    (a) Projects related to the construction and maintenance of sidewalks, streets, avenues, boulevards, highways and other public rights of way used primarily for vehicular traffic, including, without limitation, overpass projects, street projects or underpass projects, as defined in NRS 244A.037, 244A.053 and 244A.055, within the boundaries of the county or within 1 mile outside those boundaries if the board of county commissioners finds that such projects outside the boundaries of the county will facilitate transportation within the county;

    (b) Payment of principal and interest on notes, bonds or other obligations incurred to fund projects described in paragraph (a); or

    (c) Any combination of those uses.


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

κ1999 Statutes of Nevada, Page 1670 (CHAPTER 369, SB 287)κ

 

    6.  The county may expend the proceeds of the supplemental privilege tax authorized by this section and NRS 371.047, or any borrowing in anticipation of that tax, pursuant to an interlocal agreement between the county and the regional transportation commission of the county with respect to the projects to be financed with the proceeds of the tax.

    7.  As used in this section, “based” has the meaning ascribed to it in NRS 482.011.

      Sec. 3.  NRS 377A.020 is hereby amended to read as follows:

    377A.020  1.  The board of county commissioners of any county may enact an ordinance imposing a tax for a public transit system or for the construction, maintenance and repair of public roads, or both, pursuant to NRS 377A.030. The board of county commissioners of any county whose population is less than 400,000 may enact an ordinance imposing a tax to promote tourism pursuant to NRS 377A.030.

    2.  An ordinance enacted pursuant to this chapter may not become effective before a question concerning the imposition of the tax is approved by a majority of the registered voters of the county voting upon the question which the board may submit to the voters at any general election. A county may combine the questions for a public transit system and for the construction, maintenance and repair of public roads with questions submitted pursuant to NRS 244.3351, 278.710 [, 365.203] or 371.045, or any combination thereof. The board shall also submit to the voters at a general election any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax.

    3.  Any ordinance enacted pursuant to this section must specify the date on which the tax must first be imposed or on which an increase in the rate of the tax becomes effective, which must not be earlier than the first day of the second calendar month following the approval of the question by the voters.

      Sec. 4.  NRS 244.3351 is hereby amended to read as follows:

    244.3351  1.  Except as otherwise provided in subsection 2 of NRS 244.3359, in addition to all other taxes imposed on the revenue from the rental of transient lodging, a board of county commissioners may by ordinance, but not as in a case of emergency, impose a tax at the rate of 1 percent of the gross receipts from the rental of transient lodging pursuant to either paragraph (a) or (b) as follows:

    (a) After receiving the approval of a majority of the registered voters of the county voting on the question at a special, primary or general election, the board of county commissioners may impose the tax throughout the county, including its incorporated cities, upon all persons in the business of providing lodging. The question may be combined with a question submitted pursuant to NRS 278.710, [365.203,] 371.045 or 377A.020, or any combination thereof.

    (b) After receiving the approval of a majority of the registered voters who reside within the boundaries of a transportation district created pursuant to NRS 244A.252, voting on the question at a special, primary or general district election, the board of county commissioners may impose the tax within the boundaries of the transportation district upon all persons in the business of providing lodging. The question may be combined with a question submitted pursuant to NRS 278.710.


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

κ1999 Statutes of Nevada, Page 1671 (CHAPTER 369, SB 287)κ

 

    2.  A special election may be held only if the board of county commissioners determines, by a unanimous vote, that an emergency exists. The determination made by the board of county commissioners is conclusive unless it is shown that the board acted with fraud or a gross abuse of discretion. An action to challenge the determination made by the board must be commenced within 15 days after the board’s determination is final. As used in this subsection, “emergency” means any unexpected occurrence or combination of occurrences which requires immediate action by the board of county commissioners to prevent or mitigate a substantial financial loss to the county or to enable the board to provide an essential service to the residents of the county.

    3.  The ordinance imposing the tax must include all the matters required by NRS 244.3352 for the mandatory tax, must be administered in the same manner, and imposes the same liabilities, except:

    (a) Collection of the tax imposed pursuant to this section must not commence earlier than the first day of the second calendar month after adoption of the ordinance imposing the tax; and

    (b) The governmental entity collecting the tax [must] shall transfer all collections to the county and may not retain any part of the tax as a collection or administrative fee.

      Sec. 5.  NRS 278.710 is hereby amended to read as follows:

    278.710  1.  A board of county commissioners may by ordinance, but not as in a case of emergency, impose a tax for the improvement of transportation on the privilege of new residential, commercial, industrial and other development pursuant to paragraph (a) or (b) as follows:

    (a) After receiving the approval of a majority of the registered voters of the county voting on the question at a special election or the next primary or general election, the board of county commissioners may impose the tax throughout the county, including any such development in incorporated cities in the county. A county may combine this question with a question submitted pursuant to NRS 244.3351, [365.203,] 371.045 or 377A.020, or any combination thereof.

    (b) After receiving the approval of a majority of the registered voters who reside within the boundaries of a transportation district created pursuant to NRS 244A.252, voting on the question at a special or general district election or primary or general state election, the board of county commissioners may impose the tax within the boundaries of the district. A county may combine this question with a question submitted pursuant to NRS 244.3351.

    2.  A special election may be held only if the board of county commissioners determines, by a unanimous vote, that an emergency exists. The determination made by the board of county commissioners is conclusive unless it is shown that the board acted with fraud or a gross abuse of discretion. An action to challenge the determination made by the board must be commenced within 15 days after the board’s determination is final. As used in this subsection, “emergency” means any unexpected occurrence or combination of occurrences which requires immediate action by the board of county commissioners to prevent or mitigate a substantial financial loss to the county or to enable the board of county commissioners to provide an essential service to the residents of the county.


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

κ1999 Statutes of Nevada, Page 1672 (CHAPTER 369, SB 287)κ

 

    3.  The tax imposed pursuant to this section must be at such a rate and based on such criteria and classifications as the board of county commissioners determines to be appropriate. Each such determination is conclusive unless it constitutes an arbitrary and capricious abuse of discretion, but the tax imposed must not exceed $500 per single-family dwelling unit of new residential development, or the equivalent thereof as determined by the board of county commissioners, or 50 cents per square foot on other new development. If so provided in the ordinance, a newly developed lot for a mobile home shall be considered a single-family dwelling unit of new residential development.

    4.  The tax imposed pursuant to this section must be collected before the time a certificate of occupancy for a building or other structure constituting new development is issued, or at such other time as is specified in the ordinance imposing the tax. If so provided in the ordinance, no certificate of occupancy may be issued by any local government unless proof of payment of the tax is filed with the person authorized to issue the certificate of occupancy. Collection of the tax imposed pursuant to this section must not commence earlier than the first day of the second calendar month after adoption of the ordinance imposing the tax.

    5.  In a county in which a tax has been imposed pursuant to paragraph (a) of subsection 1, the revenue derived from the tax must be used exclusively to pay the cost of:

    (a) Projects related to the construction and maintenance of sidewalks, streets, avenues, boulevards, highways and other public rights of way used primarily for vehicular traffic, including, without limitation, overpass projects, street projects and underpass projects, as defined in NRS 244A.037, 244A.053 and 244A.055, within the boundaries of the county or within 1 mile outside those boundaries if the board of county commissioners finds that such projects outside the boundaries of the county will facilitate transportation within the county;

    (b) The principal and interest on notes, bonds or other obligations incurred to fund projects described in paragraph (a); or

    (c) Any combination of those uses.

    6.  In a transportation district in which a tax has been imposed pursuant to paragraph (b) of subsection 1, the revenue derived from the tax must be used exclusively to pay the cost of:

    (a) Projects related to the construction and maintenance of sidewalks, streets, avenues, boulevards, highways and other public rights of way used primarily for vehicular traffic, including, without limitation, overpass projects, street projects and underpass projects, as defined in NRS 244A.037, 244A.053 and 244A.055, within the boundaries of the district or within such a distance outside those boundaries as is stated in the ordinance imposing the tax, if the board of county commissioners finds that such projects outside the boundaries of the district will facilitate transportation within the district;

    (b) The principal and interest on notes, bonds or other obligations incurred to fund projects described in paragraph (a); or

    (c) Any combination of those uses.


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

κ1999 Statutes of Nevada, Page 1673 (CHAPTER 369, SB 287)κ

 

    7.  The county may expend the proceeds of the tax authorized by this section, or any borrowing in anticipation of the tax, pursuant to an interlocal agreement between the county and the regional transportation commission of the county with respect to the projects to be financed with the proceeds of the tax.

    8.  The provisions of chapter 278B of NRS and any action taken pursuant to that chapter do not limit or in any other way apply to any tax imposed pursuant to this section.

      Sec. 6.  This act becomes effective on July 1, 1999.

________

 

CHAPTER 370, SB 289

Senate Bill No. 289–Senator Washington

 

CHAPTER 370

 

AN ACT relating to public schools; clarifying the provision regarding the prohibition of nonsecular activities in the public schools; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

    Whereas, The First Amendment to the United States Constitution guarantees the free exercise of religion, as does section 4 of article 1 of the Nevada constitution; and

    Whereas, The Equal Access Act enacted by Congress in 1984 was designed to ensure that, consistent with the First Amendment, religious activities by pupils are accorded the same access to public school facilities as are any other nonreligious activities by the pupils; and

    Whereas, The provisions of article 11 of the Nevada constitution that prohibit sectarian instruction in the common schools and universities in this state and prohibit the expenditure of public money for sectarian purpose must be considered together with the aforementioned constitutional guarantees of free religious expression; and

    Whereas,On July 12, 1995, in remarks regarding religious liberty in this country, President Clinton said that some school officials, teachers and parents incorrectly “believe that the Constitution forbids any religious expression at all in public schools” even though our courts have made it clear that religious expression must not be denied as long as it is not sponsored by school officials and it does not interfere with the rights of the other pupils; and

    Whereas,Because of the continued misinterpretation of the Constitution as it relates to the voluntary expression of religion by pupils in their art projects, homework assignments, class presentations, clothing and extracurricular clubs, President Clinton directed the Secretary of Education and the Attorney General to provide every school district in America with a statement of principles addressing the extent to which religious expression and activity are permitted in our public schools; and

    Whereas,On August 10, 1995, such a statement of principles was issued with a statement from the Secretary of Education that reminded the local school superintendents of two basic and equally important obligations on public school administrators in their dealings with religion: First, that public schools may not forbid pupils who are acting on their own from expressing their personal religious views or beliefs solely because they are of a religious nature, but must instead give pupils the same right to engage in religious activity and discussion as they have to engage in other comparable nonreligious activity; and secondly, that schools may not endorse religious activity or doctrine, nor may they coerce participation in religious activity or allow the religious expression by one pupil to interfere unreasonably with the activity of others; and


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

κ1999 Statutes of Nevada, Page 1674 (CHAPTER 370, SB 289)κ

 

schools may not forbid pupils who are acting on their own from expressing their personal religious views or beliefs solely because they are of a religious nature, but must instead give pupils the same right to engage in religious activity and discussion as they have to engage in other comparable nonreligious activity; and secondly, that schools may not endorse religious activity or doctrine, nor may they coerce participation in religious activity or allow the religious expression by one pupil to interfere unreasonably with the activity of others; and

    Whereas,The Secretary of Education acknowledged that the implementation of these principles by school administrators must depend on their careful application of the principles to each specific factual situation based on a full understanding of the relevant constitutional and statutory obligations; now, therefore,

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 388.150 is hereby amended to read as follows:

    388.150  1.  No books, tracts or papers of a sectarian or denominational character may be used or introduced in any public school established pursuant to the provisions of this Title of NRS, nor may any sectarian or denominational doctrines be taught in any public school.

    2.  Any school district or charter school whose officers knowingly allow any public schools to be taught in violation of this section forfeits all right to any public school funds.

      3.  Nothing in this section prohibits a school district or charter school from complying with applicable federal laws, such as the Equal Access Act, 20 U.S.C. §§ 4071 et seq.

________

 

CHAPTER 371, SB 300

Senate Bill No. 300–Committee on Transportation

 

CHAPTER 371

 

AN ACT relating to vehicles; revising provisions governing the removal and disposition of abandoned vehicles; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 487.210 is hereby amended to read as follows:

    487.210  As used in NRS 487.220 to 487.300, inclusive, unless the context otherwise requires, “abandoned vehicle” means [any vehicle which] a vehicle:

    1.  That the owner has discarded [.] ; or

    2.  Which has not been reclaimed by the registered owner or a person having a security interest in the vehicle within 15 days after notification pursuant to NRS 487.250.


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

κ1999 Statutes of Nevada, Page 1675 (CHAPTER 371, SB 300)κ

 

      Sec. 2.  NRS 487.260 is hereby amended to read as follows:

    487.260  1.  If the vehicle is appraised at a value of more than $500 the state agency or political subdivision shall dispose of it as provided in NRS 487.270.

    2.  If the vehicle is appraised as a junk vehicle, the department may issue a junk certificate to the automobile wrecker or tow operator who removed the vehicle.

    3.  An automobile wrecker who possesses a junk certificate for a junk vehicle may dismantle, scrap, crush or otherwise destroy the vehicle.

    4.  A vehicle for which a junk certificate has been issued may be sold to an automobile wrecker by the person to whom the junk certificate was issued by the seller’s endorsement on the certificate. An automobile wrecker who purchases a vehicle for which a junk certificate has been issued shall, within 10 days after purchase, apply to the department for a new junk certificate and surrender the original certificate.

    5.  A person who sells, dismantles, scraps, crushes or otherwise destroys a junk vehicle shall maintain, for at least 2 years, a copy of the junk certificate and a record of the name and address of the person from whom the vehicle was acquired and the date thereof. He shall allow any peace officer or any investigator employed by a state agency to inspect the records during business hours.

    6.  As used in this section, “junk vehicle” means a vehicle, including component parts, which:

    (a) Has been discarded or abandoned;

    (b) Has been ruined, wrecked, dismantled or rendered inoperative;

    (c) Is unfit for further use in accordance with the original purpose for which it was constructed;

    (d) Is not registered with the department [;] or has not been reclaimed by the registered owner or a person having a security interest in the vehicle within 15 days after notification pursuant to NRS 487.250; and

      (e) Has value principally as scrap which does not exceed $200.

________

 


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

κ1999 Statutes of Nevada, Page 1676κ

 

CHAPTER 372, SB 310

Senate Bill No. 310–Senators Rhoads, McGinness, Jacobsen and Amodei

 

CHAPTER 372

 

AN ACT relating to livestock; creating the rangeland resources commission; providing for its membership; prescribing its powers and duties; imposing a fee for certain animal unit months that are authorized for use on grazing lands; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 563 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 14, inclusive, of this act.

      Sec. 2. As used in sections 2 to 14, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3, 4 and 5 of this act have the meanings ascribed to them in those sections.

      Sec. 3. “Commission” means the rangeland resources commission created by section 6 of this act.

      Sec. 4. “Grazing lands” means any public lands in this state:

      1.  That are managed or controlled by the United States Forest Service or the Bureau of Land Management; and

      2.  Upon which a person herds or grazes cattle or sheep pursuant to a license, lease or permit issued for that purpose by the Secretary of Agriculture or the Secretary of the Interior.

      Sec. 5. “State grazing board” means a state grazing board created by the provisions of NRS 568.040.

      Sec. 6. 1.  The rangeland resources commission is hereby created. The commission consists of:

      (a) One member from each state grazing board; and

      (b) The president of:

             (1) The Nevada Cattlemen’s Association or its successor organization;

             (2) The Nevada Woolgrowers’ Association or its successor organization; and

             (3) The Nevada Farm Bureau or its successor organization.

Each member specified in this paragraph serves as an ex officio member of the commission and may designate another person to serve on his behalf.

      2.  Not less than 30 days before the expiration of the term of a member of the commission, the state grazing board from which the member was appointed shall submit to the governor a written list of two persons for appointment to the commission. A person nominated by a state grazing board must be a member of that board. If such a list is submitted to the governor by a state grazing board within the period prescribed in this subsection, the governor shall appoint to the commission one member from the list. If the list is not submitted to the governor by a state grazing board within that period, the governor shall appoint to the commission one member who is a member of that board.


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

κ1999 Statutes of Nevada, Page 1677 (CHAPTER 372, SB 310)κ

 

within that period, the governor shall appoint to the commission one member who is a member of that board.

      3.  The members of the commission shall elect a chairman and vice chairman by a majority vote. After the initial election, the chairman and vice chairman serve in the office for a term of 1 year beginning on July 1 of each year. If a vacancy occurs in the chairmanship or vice chairmanship, the members of the commission shall elect a chairman or vice chairman from among its members to serve for the remainder of the unexpired term.

      4.  After the initial terms, each member of the commission who is appointed serves for a term of 4 years.

      5.  A vacancy on the commission must be filled in the same manner as the original appointment.

      6.  Each member of the commission:

      (a) Serves without compensation; and

      (b) While engaged in the business of the commission, and to the extent that money is available for that purpose from the fees collected pursuant to section 11 of this act, is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.

      7.  The per diem allowance and travel expenses of a member of the commission must be paid from the fees collected pursuant to section 11 of this act.

      Sec. 7. 1.  The members of the commission shall meet at least quarterly and at the times and places specified by a call of the chairman or by a majority of the members of the commission.

      2.  A majority of the members of the commission constitute a quorum, and a quorum may exercise all the powers and duties of the commission.

      Sec. 8. The commission may:

      1.  Conduct research and surveys to determine the opinions and knowledge of the residents of this state concerning the livestock industry on grazing lands;

      2.  Establish programs to provide information to the residents of this state concerning the livestock industry on grazing lands;

      3.  Conduct advertising campaigns to promote the livestock industry on grazing lands;

      4.  Support the responsible control, management or use of grazing lands;

      5.  Compile information concerning the livestock industry on grazing lands and disseminate that information to each state grazing board;

      6.  Make determinations concerning the availability of forage on grazing lands; and

      7.  Take any action it determines is necessary to stabilize the livestock industry on grazing lands.

      Sec. 9. The commission may:

      1.  Cooperate with any local, state or federal agency, any local, state or national organization or any representatives of an industry whose duties and powers are the same as or similar to the duties and powers of the commission;


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

κ1999 Statutes of Nevada, Page 1678 (CHAPTER 372, SB 310)κ

 

      2.  Employ such persons or enter into such contracts as it determines are necessary to assist it in carrying out the provisions of sections 2 to 14, inclusive, of this act;

      3.  Grant, donate or expend money:

      (a) To construct or maintain a range improvement; or

      (b) For any other purpose beneficial to the livestock industry on grazing lands; and

      4.  Purchase, lease or own any real or personal property.

      Sec. 10. 1.  The commission may apply for or accept any gifts, grants, donations or contributions from any source to assist it in carrying out the provisions of sections 2 to 14, inclusive, of this act.

      2.  Any money the commission receives pursuant to subsection 1 must be deposited in the state treasury pursuant to the provisions of section 12 of this act.

      Sec. 11. 1.  The commission shall, not later than January 15 of each year, charge and collect from each person who grazed cattle or sheep on grazing lands during the preceding calendar year a fee of 10 cents for each animal unit month that he was authorized by the United States Forest Service or the Bureau of Land Management to use during the immediately preceding year.

      2.  A person who pays the fee required by this section may, not earlier than January 15 of each year and not later than February 15 of that year, apply to the commission for a refund of the fee paid for the immediately preceding year. The application must be submitted on a form prescribed by the commission. Upon receipt of the request and after determining that the fee has been paid by the person requesting the refund, the commission shall, within 60 days after making that determination, refund to that person an amount equal to the fee paid by the person.

      3.  As used in this section, “animal unit month” means the amount of forage required to sustain one cow or its equivalent for 1 month.

      Sec. 12. 1.  Any money the commission receives pursuant to sections 10 and 11 of this act:

      (a) Must be deposited in the state treasury and accounted for separately in the state general fund;

      (b) May be used by the commission only for the costs of carrying out the provisions of sections 2 to 14, inclusive, of this act; and

      (c) Does not revert to the state general fund at the end of any fiscal year.

      2.  Any interest or income earned on the money in the account must be credited to the account. Any claims against the account must be paid in the manner that other claims against the state are paid.

      Sec. 13. 1.  If a person fails to pay the fee required by section 11 of this act, the commission may provide a written notice of that fact to the attorney general or the district attorney of the county in which the person resides.

      2.  A person who fails to pay the fee required by section 11 of this act shall:

      (a) For the first violation, pay a civil penalty of not more than $250.

      (b) For the second violation, pay a civil penalty of not more than $500.


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

κ1999 Statutes of Nevada, Page 1679 (CHAPTER 372, SB 310)κ

 

    (c) For the third or subsequent violation, pay a civil penalty of not more than $750.

      Sec. 13.5. 1.  On or before June 1 of each year, the commission shall submit to the director of the department of administration a financial statement setting forth:

      (a) The assets and obligations of the commission; and

      (b) The amount of the fees, if any:

             (1) Collected by the commission pursuant to the provisions of section 11 of this act for the immediately preceding calendar year; and

             (2) Refunded by the commission pursuant to that section for that year.

    2.  On or before July 1 of each year, the governor shall proclaim the percentage of the fees collected pursuant to subsection 1 of section 11 of this act for the immediately preceding calendar year that were refunded by the commission pursuant to the provisions of subsection 2 of section 11 of this act. The director of the department of administration shall transmit a copy of the proclamation to the director of the legislative counsel bureau.

    Sec. 14.  The division of agriculture of the department of business and industry shall, within the resources available to it, provide administrative services to the commission to assist the commission in carrying out the provisions of sections 2 to 14, inclusive, of this act.

      Sec. 15.  1.  Not later than September 1, 1999, each state grazing board shall submit to the governor a written list of two persons for appointment to the rangeland resources commission created by section 6 of this act. Each person included in the list must be a member of the state grazing board that submits the list.

      2.  As soon as practicable after October 1, 1999, the appointed members of the rangeland resources commission must be appointed by the governor from the lists submitted pursuant to subsection 1 to initial terms as follows:

      (a) Two members to terms that expire on October 1, 2000;

      (b) Two members to terms that expire on October 1, 2001; and

      (c) Three members to terms that expire on October 1, 2002.

The governor shall not appoint more than one person from each list submitted pursuant to subsection 1.

      Sec. 16.  The provisions of this act:

      1.  Become effective on July 1, 1999, for the purpose of appointing the members of the rangeland resources commission created by section 6 of this act, and on October 1, 1999, for all other purposes.

      2.  Expire by limitation on December 31 of the first year during which the governor proclaims that the amount of the fees refunded by the rangeland resources commission pursuant to the provisions of section 11 of this act for the immediately preceding calendar year is more than 50 percent of the fees collected by the commission pursuant to that section for that calendar year. The commission may continue to operate after December 31 of the year the proclamation is issued to dispose of any property owned by the commission and to take any other action necessary to dissolve the commission, but in no case may the commission charge or collect any fees pursuant to the provisions of sections 2 to 14, inclusive, of this act after the provisions of this act expire by limitation, other than to collect any fees owed for a previous year.


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

κ1999 Statutes of Nevada, Page 1680 (CHAPTER 372, SB 310)κ

 

year. If the provisions of this act expire by limitation pursuant to this subsection, the commission shall, as soon as practicable after taking all actions necessary to dissolve the commission, refund any money remaining in the account created by section 12 of this act to each person who paid the fee required by section 11 of this act for the calendar year immediately preceding the year in which the provisions expire by limitation and who did not receive a refund of that fee pursuant to that section. Each of those persons must be paid a pro rata share of the remaining amount based on the ratio of the number of animal unit months for which he paid the fee to the total fees paid for animal unit months and not refunded.

________

 

CHAPTER 373, SB 338

Senate Bill No. 338–Senator Rawson

 

CHAPTER 373

 

AN ACT relating to traffic laws; providing for the exclusive use of certain parking spaces designated for the handicapped by certain vehicles; prohibiting persons from parking in certain spaces; providing a penalty; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 484.408 is hereby amended to read as follows:

    484.408  1.  Any parking space designated for the handicapped must be indicated by a sign:

    (a) Bearing the international symbol of access with or without the words “Parking,” “Handicapped Parking,” “Handicapped Parking Only,” or “Reserved for the Handicapped,” or any other word or combination of words indicating that the space is designated for the handicapped;

    (b) Stating “Minimum fine of $100 for use by others” or equivalent words; and

    (c) The bottom of which must be not less than 4 feet above the ground.

      2.  In addition to the requirements of subsection 1, a parking space designated for the handicapped which:

      (a) Is designed for the exclusive use of a vehicle with a side-loading wheelchair lift; and

      (b) Is located in a parking lot with 60 or more parking spaces,

must be indicated by a sign using a combination of words to state that the space is for the exclusive use of a vehicle with a side-loading wheelchair lift.

      3.  If a parking space is designed for the use of a vehicle with a side-loading wheelchair lift, the space which is immediately adjacent and intended for use in the loading and unloading of a wheelchair into or out of such a vehicle must be indicated by a sign:

      (a) Stating “No Parking” or similar words which indicate that parking in such a space is prohibited;


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

κ1999 Statutes of Nevada, Page 1681 (CHAPTER 373, SB 338)κ

 

      (b) Stating “Minimum fine of $100 for violation” or similar words indicating that the minimum fine for parking in such a space is $100; and

    (c) The bottom of which must not be less than 4 feet above the ground.

    4.  A person shall not park a vehicle in a space designated for the handicapped by a sign that meets the requirements of subsection 1, whether on public or privately owned property, unless he is eligible to do so and the vehicle displays:

    (a) Special license plates issued pursuant to NRS 482.384;

    (b) A special or temporary parking placard issued pursuant to NRS 482.384;

    (c) Special license plates or a special or temporary parking placard displaying the international symbol of access issued by another state or a foreign country; or

    (d) Special license plates for a disabled veteran and a special parking placard issued pursuant to NRS 482.384.

    [3.] 5.  Except as otherwise provided in this subsection, a person shall not park a vehicle in a space that is reserved for the exclusive use of a vehicle with a side-loading wheelchair lift and is designated for the handicapped by a sign that meets the requirements of subsection 2, whether on public or privately owned property, unless:

    (a) He is eligible to do so;

      (b) The vehicle displays the special license plates or placard set forth in subsection 4; and

      (c) The vehicle is equipped with a side-loading wheelchair lift.

A person who meets the requirements of paragraphs (a) and (b) may park a vehicle that is not equipped with a side-loading wheelchair lift in such a parking space if the space is in a parking lot with fewer than 60 parking spaces.

      6.  A person shall not park in a space which:

      (a) Is immediately adjacent to a space designed for use by a vehicle with a side-loading wheelchair lift; and

      (b) Is designated as a space in which parking is prohibited by a sign that meets the requirements of subsection 3,

whether on public or privately owned property.

      7.  A person shall not use [such] a plate or placard [for a vehicle] set forth in subsection 4 to park in a space designated for the handicapped unless he is a person with a disability which limits or impairs the ability to walk, a disabled veteran or the driver of a vehicle in which such a person is a passenger.

      [4.]8.  A person who violates any provision of this section is guilty of a misdemeanor and shall be punished:

      (a) Upon the first offense, by a fine of $100.

      (b) Upon the second offense, by a fine of $250 and not less than 8 hours, but not more than 50 hours, of community service.

    (c) Upon the third or subsequent offense, by a fine of not less than $500, but not more than $1,000 and not less than 25 hours, but not more than 100 hours, of community service.


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

κ1999 Statutes of Nevada, Page 1682 (CHAPTER 373, SB 338)κ

 

    Sec. 2.  The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1999.

      Sec. 3.  This act becomes effective at 12:01 a.m. on October 1, 1999.

________

 

CHAPTER 374, SB 341

Senate Bill No. 341–Committee on Government Affairs

 

CHAPTER 374

 

AN ACT relating to local governmental purchasing; limiting the time certain local governments are required to maintain a record of requests for bids and bids received; authorizing the authorized representative of a local government to let contracts in an emergency and to assign awarded contracts; authorizing local governments to reaward contracts; prohibiting the sale of personal property of a local government unless the property is no longer required for public use; authorizing local governments to join or use the contracts of the State of Nevada; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 332.039 is hereby amended to read as follows:

      332.039  1.  Except as otherwise provided by specific statute:

      (a) A governing body or its authorized representative in a county whose population is 100,000 or more shall advertise all contracts for which the estimated amount required to perform the contract exceeds $25,000.

      (b) Such a governing body or its authorized representative may enter into a contract of any nature without advertising if the estimated amount required to perform the contract is $25,000 or less.

      (c) If the estimated amount required to perform the contract is more than $10,000 but not more than $25,000, requests for bids must be submitted to two or more persons capable of performing the contract, if available. The governing body or its authorized representative shall maintain a [permanent] record of all requests for bids and all bids received [.

      2.  Nothing in this section prohibits] for at least 7 years after the date of execution of the contract.

      2.  This section does not prohibit a governing body or its authorized representative from advertising for or requesting bids regardless of the estimated amount to perform the contract.

      Sec. 2.  NRS 332.055 is hereby amended to read as follows:

      332.055  1.  For the purposes of this section, an “emergency” is one which:

      (a) Results from the occurrence of a disaster [such as,] including, but not limited to, fire, flood, hurricane, riot, power outage or disease; or

      (b) May lead to impairment of the health, safety or welfare of the public if not immediately attended to.

      2.  If the authorized representative, chief administrative officer or [the] governing body of the local government determines that an emergency exists affecting the public health, safety or welfare, a contract or contracts necessary to contend with [such] the emergency may be let without complying with the requirements of this chapter. If such emergency action was taken by the authorized representative or chief administrative officer, he shall report it to the governing body at its next regularly scheduled meeting.


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

κ1999 Statutes of Nevada, Page 1683 (CHAPTER 374, SB 341)κ

 

authorized representative or chief administrative officer, he shall report it to the governing body at its next regularly scheduled meeting.

      Sec. 3.  NRS 332.065 is hereby amended to read as follows:

    332.065  1.  [When] If a governing body or its authorized representative has advertised for or requested bids in letting a contract, the award must, except as otherwise provided in subsection 2, be made to the lowest responsive and responsible bidder. The lowest responsive and responsible bidder must be judged on the basis of price, conformance to specifications, bidders’ qualifications , including the bidders’ past performance in such matters, quality and utility of services, supplies, materials or equipment offered and their adaptability to the required purpose and in the best interest of the public, each of the factors being considered.

    2.  The governing body:

    (a) Shall give preference to recycled products if:

      (1) The product meets the applicable standards;

      (2) The product can be substituted for a comparable nonrecycled product; and

      (3) The product costs no more than a comparable nonrecycled product.

    (b) May give preference to recycled products if:

      (1) The product meets the applicable standards;

      (2) The product can be substituted for a comparable nonrecycled product; and

      (3) The product costs no more than 5 percent more than a comparable nonrecycled product.

    (c) May purchase recycled paper products if the specific recycled paper product is:

      (1) Available at a price which is not more than 10 percent higher than that of paper products made from virgin material;

      (2) Of adequate quality; and

      (3) Available to the purchaser within a reasonable period.

    3.  If after the lowest responsive and responsible bidder has been awarded the contract, during the term of the contract he does not supply goods or services in accordance with the bid specifications, or if he repudiates the contract, the governing body [of any hospital] may reaward the contract to the next lowest responsive and responsible bidder without requiring that new bids be submitted. Reawarding the contract to the next lowest responsive and responsible bidder is not a waiver of any liability of the initial bidder awarded the contract.

    4.  As used in this section:

    (a) “Post-consumer waste” means a finished material which would normally be disposed of as a solid waste having completed its life cycle as a consumer item.

    (b) “Recycled paper product” means all paper and wood-pulp products containing in some combination at least 50 percent of its total weight:

      (1) Post-consumer waste; and

      (2) Secondary waste,

but does not include fibrous waste generated during the manufacturing process such as fibers recovered from waste water or trimmings of paper machine rolls, wood slabs, chips, sawdust or other wood residue from a manufacturing process.


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

κ1999 Statutes of Nevada, Page 1684 (CHAPTER 374, SB 341)κ

 

machine rolls, wood slabs, chips, sawdust or other wood residue from a manufacturing process.

    (c) “Secondary waste” means fragments of products or finished products of a manufacturing process, which has converted a virgin resource into a commodity of real economic value.

      Sec. 4.  NRS 332.095 is hereby amended to read as follows:

    332.095  1.  No contract awarded may be assigned to any other person without the consent of the governing body [.] or its authorized representative.

    2.  No contract awarded or any portion thereof may be assigned to any person who was declared by the governing body not to be a responsible person to perform the particular contract.

      Sec. 5.  NRS 332.115 is hereby amended to read as follows:

    332.115  1.  Contracts which by their nature are not adapted to award by competitive bidding, including contracts for:

    (a) Items which may only be contracted from a sole source;

    (b) Professional services;

    (c) Additions to and repairs and maintenance of equipment which may be more efficiently added to, repaired or maintained by a certain person;

    (d) Equipment which, by reason of the training of the personnel or of an inventory of replacement parts maintained by the local government is compatible with existing equipment;

    (e) [Purchases of perishable goods by a county or district hospital;] Perishable goods;

    (f) Insurance;

      (g) Hardware and associated peripheral equipment and devices for computers;

    (h) Software for computers;

    (i) Books, library materials and subscriptions;

    (j) Motor vehicle fuel purchased by a local law enforcement agency for use in an undercover investigation;

    (k) Motor vehicle fuel for use in a vehicle operated by a local law enforcement agency or local fire department if such fuel is not available within the vehicle’s assigned service area from a fueling station owned by the State of Nevada or a local government;

    (l) Purchases made with money in a store fund for prisoners in a jail or local detention facility for the provision and maintenance of a canteen for the prisoners; [and]

    (m) Supplies, materials or equipment that are available from the General Services Administration or another governmental agency in the regular course of its business [,] ; and

    (n) Items for resale through a retail outlet operated in this state by a local government or the State of Nevada,

are not subject to the requirements of this chapter for competitive bidding as determined by the governing body or its authorized representative.

    2.  The purchase of equipment for use by a local law enforcement agency in the course of an undercover investigation is not subject to the requirements of this chapter for competitive bidding if:


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

κ1999 Statutes of Nevada, Page 1685 (CHAPTER 374, SB 341)κ

 

    (a) The equipment is an electronic or mechanical device which by design is intended to monitor and document in a clandestine manner suspected criminal activity; and

    (b) Purchasing the equipment pursuant to such requirements would limit or compromise the use of such equipment by an agency authorized to conduct such investigations.

    3.  The governing body of a hospital required to comply with the provisions of this chapter, or its authorized representative, may purchase goods commonly used by the hospital, under a contract properly awarded pursuant to NRS 332.065, without additional competitive bidding even if at the time the contract was awarded:

    (a) The vendor supplying such goods to the person awarded the contract was not identified as a supplier to be used by the person awarded the contract; or

    (b) The vendor was identified as a supplier but was not identified as the supplier of such goods.

The governing body of the hospital shall make available for public inspection each such contract and records related to those purchases.

    4.  Except in cases of emergency, at least 60 days before the expiration of an existing contract for insurance in which the local government is the insured, the governing body shall cause to be given, by advertising or in another manner deemed adequate and desirable by the governing body, notice of the date the contract for insurance expires.

    5.  [Nothing in this section prohibits] This section does not prohibit a governing body or its authorized representative from advertising for or requesting bids.

      Sec. 6.  NRS 332.148 is hereby amended to read as follows:

    332.148  1.  Except as otherwise provided in subsection 2, when a governing body or its authorized representative has advertised for or requested bids in letting a contract and no responsible bids are received, the governing body or its authorized representative may let the contract without competitive bidding not less than 7 days after it publishes a notice stating that no bids were received on the contract and that the contract may be let without further bidding.

    2.  A governing body or its authorized representative shall entertain any bid which is submitted after it publishes such notice and before the expiration of the waiting period.

      Sec. 7.  NRS 332.175 is hereby amended to read as follows:

    332.175  When purchasing personal property, the governing body or its authorized representative may solicit and accept advantageous trade‑in allowances for personal property of the public entity which has been determined by the governing body or its authorized representative to be no longer required for public use, and may award any bid to the bidder submitting the lowest net bid after deduction of [such] the trade‑in allowance.

      Sec. 8.  NRS 332.185 is hereby amended to read as follows:

    332.185  1.  Except as otherwise provided in NRS 334.070, all sales or leases of personal property of the local government must be made, as nearly as possible, under the same conditions and limitations as required by this chapter in the purchase of personal property . [; but the] The governing body or its authorized representative may sell any such personal property at public auction if it determines that the property is no longer required for public use and deems such a sale desirable and in the best interests of the local government.


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

κ1999 Statutes of Nevada, Page 1686 (CHAPTER 374, SB 341)κ

 

or its authorized representative may sell any such personal property at public auction if it determines that the property is no longer required for public use and deems such a sale desirable and in the best interests of the local government.

    2.  The provisions of this chapter do not apply to the purchase, sale, lease or transfer of real property by the governing body.

      Sec. 9.  NRS 332.195 is hereby amended to read as follows:

    332.195  1.  Local governments and the State of Nevada may join or use the contracts of other local governments within this state with the authorization of the contracting vendor. The originally contracting local government is not liable for the obligations of the local government which joins or uses the contract.

    2.  Local governments may join or use the contracts of the State of Nevada with the authorization of the contracting vendor. The State of Nevada is not liable for the obligations of the local government which joins or uses the contract.

      Sec. 10.  Section 5 of this act becomes effective at 12:01 a.m. on October 1, 1999.

________

 

CHAPTER 375, SB 366

Senate Bill No. 366–Committee on Government Affairs

 

CHAPTER 375

 

AN ACT relating to telephone services; extending the prospective expiration of certain provisions concerning surcharges on telephone services in certain counties for the enhancement of the telephone systems for reporting emergencies in those counties; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Section 6 of chapter 427, Statutes of Nevada 1995, at page 1057, is hereby amended to read as follows:

       Sec. 6.  This act becomes effective on January 1, 1996, and expires by limitation on December 31, [1999.] 2001.

      Sec. 2.  1.  This act becomes effective upon passage and approval.

    2.  Notwithstanding the provisions of NRS 244A.7643, a board of county commissioners that has imposed a surcharge pursuant to NRS 244A.7643 shall not impose such a surcharge on the mobile telephone service provided to each customer of that service who resides in the county on or after the date on which the advisory committee established in that county pursuant to NRS 244A.7645 notifies the board of county commissioners that the enhancement of the telephone system for reporting an emergency in that county has been completed in such a manner that when a person reports an emergency by placing a call on a mobile telephone, the:

    (a) Identification of the person who pays for that mobile telephone service; and


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

κ1999 Statutes of Nevada, Page 1687 (CHAPTER 375, SB 366)κ

 

    (b) Location of the antenna that receives and transmits that call,

are transmitted to the location that has been designated to receive calls that report an emergency and to route them to the appropriate personnel for the provision of emergency services.

      3.  A board of county commissioners that has imposed a surcharge pursuant to NRS 244A.7643 shall notify in a timely manner each telephone company and supplier that collects such a surcharge to cease collecting the surcharge:

      (a) On each access line or trunk line of each customer to the local exchange of any telephone company providing those lines in the county on or after December 31, 2001.

      (b) On the mobile telephone service provided to each customer of that service who resides in the county on or after the earlier of the following dates:

             (1) December 31, 2001; or

             (2) The date on which the advisory committee established in that county pursuant to NRS 244A.7645 notifies the board of county commissioners of that county that the enhancement of the telephone system for reporting an emergency in that county has been completed in the manner described in subsection 2.

________

 

CHAPTER 376, SB 397

Senate Bill No. 397–Senator Porter

 

CHAPTER 376

 

AN ACT relating to cooperative agreements; authorizing certain public entities to enter into cooperative agreements for the preservation, protection, restoration and enhancement of unique archeological or historical sites in this state; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 277 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

      Sec. 2. The legislature hereby finds and declares that:

      1.  There are various unique and irreplaceable sites in this state of archeological or historical significance.

      2.  Certain of these sites are in danger of degradation and destruction from the encroachment of urban development.

      3.  This state has a compelling interest in preserving, protecting, restoring and enhancing these sites.

      4.  The preservation, protection, restoration and enhancement of these sites is a matter of such significance that it must be carried out on a continual basis.

      5.  It is in the best interest of this state to ensure that certain public entities have continuing authority to enter into cooperative agreements for the preservation, protection, restoration and enhancement of such unique and irreplaceable sites in this state.


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

κ1999 Statutes of Nevada, Page 1688 (CHAPTER 376, SB 397)κ

 

the preservation, protection, restoration and enhancement of such unique and irreplaceable sites in this state.

      Sec. 3. 1.  A public entity, in consultation with any Indian tribe that has local aboriginal ties to the geographical area in which a unique archeological or historical site is located and in cooperation with the office of historic preservation of the department of museums, library and arts, may enter into a cooperative agreement with the owner of any property that contains a unique archeological or historical site in this state or with any other person, agency of the Federal Government or other public entity for the preservation, protection, restoration and enhancement of unique archeological or historical sites in this state, including, without limitation, cooperative agreements to:

      (a) Monitor compliance with and enforce any federal or state statutes or regulations for the protection of such sites.

      (b) Ensure the sensitive treatment of such sites in a manner that provides for their long-term preservation and the consideration of the values of relevant cultures.

      (c) Apply for and accept grants and donations for the preservation, protection, restoration and enhancement of such sites.

      (d) Create and enforce:

             (1) Legal restrictions on the use of real property; and

             (2) Easements for conservation, as defined in NRS 111.410,

for the protection of such sites.

      2.  As used in this section, “public entity” means any:

      (a) Agency of this state, including the office of historic preservation; and

      (b) County, city or town in this state.

________

 

CHAPTER 377, SB 407

Senate Bill No. 407–Committee on Government Affairs

 

CHAPTER 377

 

AN ACT relating to counties; authorizing a board of county commissioners to enter into certain agreements with respect to the construction or remodeling of buildings and facilities; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 244.286 is hereby amended to read as follows:

    244.286  1.  The board of county commissioners of any county may enter into an agreement with a person whereby the person agrees to construct or remodel a building or facility according to specifications adopted by the board of county commissioners and thereupon enter into a lease or a lease-purchase agreement with the board of county commissioners for that building or facility.


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

κ1999 Statutes of Nevada, Page 1689 (CHAPTER 377, SB 407)κ

 

    2.  The board of county commissioners may convey property to a person where the purpose of the conveyance is the entering into of an agreement contemplated by subsection 1.

      3.  The provisions of NRS 338.010 to 338.090, inclusive, apply to any agreement for the construction or remodeling of a building or facility entered into pursuant to subsection 1.

________

 

CHAPTER 378, SB 408

Senate Bill No. 408–Committee on Government Affairs

 

CHAPTER 378

 

AN ACT relating to the residential construction tax; revising the provisions governing the rate of the tax that may be imposed on the development of mobile home lots; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 278.4973 is hereby amended to read as follows:

    278.4973  “Mobile home” [means a vehicle without motive power designed or equipped for living purposes and to carry property or passengers wholly on its own structure and to be drawn by a motor vehicle.] has the meaning ascribed to it in NRS 461A.050.

      Sec. 2.  NRS 278.4983 is hereby amended to read as follows:

    278.4983  1.  The city council of any city or the board of county commissioners of any county which has adopted a master plan and recreation plan, as provided in this chapter, which includes, as a part of the plan, future or present sites for neighborhood parks may, by ordinance, impose a residential construction tax pursuant to this section.

    2.  If imposed, the residential construction tax must be imposed on the privilege of constructing apartment houses and residential dwelling units and developing mobile home lots in the respective cities and counties. The rate of the tax must not exceed :

    (a) With respect to the construction of apartment houses and residential dwelling units, 1 percent of the valuation of each building permit issued [,] or $1,000 per residential dwelling unit , [or mobile home lot,] whichever is less. For the purpose of the residential construction tax, the city council of the city or the board of county commissioners of the county shall adopt an ordinance basing the valuation of building permits on the actual costs of residential construction in the area.

    (b) With respect to the development of mobile home lots, for each mobile home lot authorized by a lot development permit, 80 percent of the average residential construction tax paid per residential dwelling unit in the respective city or county during the calendar year next preceding the fiscal year in which the lot development permit is issued.


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

κ1999 Statutes of Nevada, Page 1690 (CHAPTER 378, SB 408)κ

 

    3.  The purpose of the tax is to raise revenue to enable the cities and counties to provide neighborhood parks and facilities for parks which are required by the residents of those apartment houses, mobile homes and residences.

    4.  An ordinance enacted pursuant to subsection 1 must establish the procedures for collecting the tax, set its rate, and determine the purposes for which the tax is to be used, subject to the restrictions and standards provided in this chapter. The ordinance must, without limiting the general powers conferred in this chapter, also include:

    (a) Provisions for the creation, in accordance with the applicable master plan, of park districts which would serve neighborhoods within the city or county.

    (b) A provision for collecting the tax at the time of issuance of a building permit for the construction of any apartment houses [,] or residential dwelling units , or a lot development permit for the development of mobile home lots . [is issued.]

    5.  All [of the] residential construction taxes collected pursuant to the provisions of this section and any ordinance enacted by a city council or board of county commissioners, and all interest accrued on the money, must be placed with the city treasurer or county treasurer in a special fund. Except as otherwise provided in subsection 6, the money in the fund may only be used for the acquisition, improvement and expansion of neighborhood parks or the installation of facilities in existing or neighborhood parks in the city or county. Money in the fund must be expended for the benefit of the neighborhood from which it was collected.

    6.  If a neighborhood park has not been developed or facilities have not been installed in an existing park in the park district created to serve the neighborhood in which the subdivision or development is located within 3 years after the date on which 75 percent of the residential dwelling units authorized within that subdivision or development first became occupied, all money paid by the subdivider or developer, together with interest at the rate at which the city or county has invested the money in the fund, must be refunded to the owners of the lots in the subdivision or development at the time of the reversion on a pro rata basis.

    7.  The limitation of time established pursuant to subsection 6 is suspended for any period, not to exceed 1 year, during which this state or the Federal Government takes any action to protect the environment or an endangered species which prohibits, stops or delays the development of a park or installation of facilities.

    8.  For the purposes of this section:

    (a) “Facilities” means turf, trees, irrigation, playground apparatus, playing fields, areas to be used for organized amateur sports, play areas, picnic areas, horseshoe pits and other recreational equipment or appurtenances designed to serve the natural persons, families and small groups from the neighborhood from which the tax was collected.

    (b) “Neighborhood park” means a site not exceeding 25 acres, designed to serve the recreational and outdoor needs of natural persons, families and small groups.


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

κ1999 Statutes of Nevada, Page 1691 (CHAPTER 378, SB 408)κ

 

      Sec. 3.  1.  This section and section 1 of this act become effective on July 1, 1999.

      2.  Section 2 of this act becomes effective at 12:01 a.m. on July 1, 1999.

________

 

CHAPTER 379, SB 421

Senate Bill No. 421–Committee on Judiciary

 

CHAPTER 379

 

AN ACT relating to public health; establishing certain requirements related to smoking in certain public areas of grocery stores; providing a penalty; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 202 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A store that is principally devoted to the sale of food for human consumption off the premises may allow the smoking of tobacco in a public area of the store that is leased to or operated by a person who is licensed pursuant to NRS 463.160 if:

      (a) The entire interior public area of the store is 10,000 square feet or less; or

      (b) The area:

             (1) Is segregated from the other public areas of the store by two or more walls or partial walls, or any combination thereof, in a configuration that includes at least one corner; and

             (2) Contains a method of ventilation which substantially removes smoke from the area.

      2.  Except as otherwise provided in subsection 3, until January 1, 2010, a store that is principally devoted to the sale of food for human consumption off the premises may allow the smoking of tobacco in a public area of the store that is leased to or operated by a person who is licensed pursuant to NRS 463.160 if the store was constructed before October 1, 1999, or received final approval for construction before October 1, 1999. On or after January 1, 2010, such a store may allow smoking in that public area only if the area contains a method of ventilation which substantially removes smoke from the area.

      3.  If at any time before January 1, 2010, a store described in subsection 2 remodels 25 percent or more of the square footage of the entire public area within the store, the store may continue to allow the smoking of tobacco in a public area of the store that is leased to or operated by a person who is licensed pursuant to NRS 463.160 only if the store includes as part of the remodel a method of ventilation which substantially removes smoke from the area.

      4.  For the purposes of this section, “partial wall” or “wall” may include, without limitation, one or more gaming devices, as defined in NRS 463.0155, if the gaming devices are configured together or in conjunction with other structures to create a barrier that is similar to a partial wall or wall.


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

κ1999 Statutes of Nevada, Page 1692 (CHAPTER 379, SB 421)κ

 

with other structures to create a barrier that is similar to a partial wall or wall.

      Sec. 2.  NRS 202.249 is hereby amended to read as follows:

    202.249  1.  It is the public policy of the State of Nevada and the purpose of NRS 202.2491 and 202.2492 and section 1 of this act to place restrictions on the smoking of tobacco in public places to protect human health and safety.

    2.  The quality of air is declared to be affected with the public interest and NRS 202.2491 and 202.2492 and section 1 of this act are enacted in the exercise of the police power of this state to protect the health, peace, safety and general welfare of its people.

    3.  Health authorities, police officers of cities or towns, sheriffs and their deputies and other peace officers of this state shall, within their respective jurisdictions, enforce the provisions of NRS 202.2491 and 202.2492 [.] and section 1 of this act. Police officers of cities or towns, sheriffs and their deputies and other peace officers of this state shall, within their respective jurisdictions, enforce the provisions of NRS 202.2493 and 202.2494.

      4.  An agency, board, commission or political subdivision of this state, including any agency, board, commission or governing body of a local government, shall not impose more stringent restrictions on the smoking, use, sale, distribution, marketing, display or promotion of tobacco or products made from tobacco than are provided by NRS 202.2491, 202.2492, 202.2493 and 202.2494 [.] and section 1 of this act.

      Sec. 3.  NRS 202.2491 is hereby amended to read as follows:

    202.2491  1.  Except as otherwise provided in subsections 5 and 6, and section 1 of this act, the smoking of tobacco in any form is prohibited if done in any:

    (a) Public elevator.

    (b) Public building.

    (c) Public waiting room, lobby or hallway of any:

      (1) Medical facility or facility for the dependent as defined in chapter 449 of NRS; or

      (2) Office of any chiropractor, dentist, physical therapist, physician, podiatric physician, psychologist, optician, optometrist, doctor of Oriental medicine or doctor of acupuncture.

    (d) Hotel or motel when so designated by the operator thereof.

    (e) Public area of a store principally devoted to the sale of food for human consumption off the premises . [, except in those areas leased to or operated by a person licensed pursuant to NRS 463.160.]

    (f) Child care facility.

    (g) Bus used by the general public, other than a chartered bus, or in any maintenance facility or office associated with a bus system operated by any regional transportation commission.

    (h) School bus.

    2.  The person in control of an area listed in paragraph (c), (d), (e), (f) or (g) of subsection 1:

    (a) Shall post in the area signs prohibiting smoking in any place not designated for that purpose as provided in paragraph (b).


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

κ1999 Statutes of Nevada, Page 1693 (CHAPTER 379, SB 421)κ

 

    (b) May designate separate rooms or portions of the area which may be used for smoking [.] , except for a room or portion of the area of a store described in paragraph (e) of subsection 1 if the room or portion of the area:

      (1) Is leased to or operated by a person licensed pursuant to NRS 463.160; and

      (2) Does not otherwise qualify for an exemption set forth in section 1 of this act.

    3.  The person in control of a public building:

    (a) Shall post in the area signs prohibiting smoking in any place not designated for that purpose as provided in paragraph (b).

    (b) Shall, except as otherwise provided in this subsection, designate a separate area which may be used for smoking.

A school district which prohibits the use of tobacco by pupils need not designate an area which may be used by the pupils to smoke.

    4.  The operator of a restaurant with a seating capacity of 50 or more shall maintain a flexible nonsmoking area within the restaurant and offer each patron the opportunity to be seated in a smoking or nonsmoking area.

    5.  A business which derives more than 50 percent of its gross receipts from the sale of alcoholic beverages or 50 percent of its gross receipts from gaming operations may be designated as a smoking area in its entirety by the operator of the business.

    6.  The smoking of tobacco is not prohibited in:

    (a) Any room or area designated for smoking pursuant to paragraph (b) of subsection 2 or paragraph (b) of subsection 3.

    (b) A licensed gaming establishment. A licensed gaming establishment may designate separate rooms or areas within the establishment which may or may not be used for smoking.

    7.  The person in control of a child care facility shall not allow children in any room or area he designates for smoking pursuant to paragraph (b) of subsection 2. Any such room or area must be sufficiently separate or ventilated so that there are no irritating or toxic effects of smoke in the other areas of the facility.

    8.  As used in this section:

    (a) “Child care facility” means an establishment licensed pursuant to chapter 432A of NRS to provide care for 13 or more children.

    (b) “Licensed gaming establishment” has the meaning ascribed to it in NRS 463.0169.

    (c) “Public building” means any building or office space owned or occupied by:

      (1) Any component of the University and Community College System of Nevada and used for any purpose related to the system.

      (2) The State of Nevada and used for any public purpose, other than that used by the department of prisons to house or provide other services to offenders.

      (3) Any county, city, school district or other political subdivision of the state and used for any public purpose.


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

κ1999 Statutes of Nevada, Page 1694 (CHAPTER 379, SB 421)κ

 

If only part of a building is owned or occupied by an entity described in this paragraph, the term means only that portion of the building which is so owned or occupied.

    (d) “School bus” has the meaning ascribed to it in NRS 483.160.

      Sec. 4.  NRS 202.2492 is hereby amended to read as follows:

    202.2492  1.  A person who violates NRS 202.2491 or section 1 of this act is guilty of a misdemeanor.

    2.  In each health district, the district health officer shall, and, for areas of this state which are not within a health district, the state health officer shall, designate one or more of his employees to prepare, sign and serve written citations on persons accused of violating NRS 202.2491 [.] or section 1 of this act. Such an employee:

    (a) May exercise the authority to prepare, sign and serve those citations only within the geographical jurisdiction of the district or state health officer by which he is employed; and

    (b) Shall comply with the provisions of NRS 171.1773.

      Sec. 5.  NRS 202.24925 is hereby amended to read as follows:

    202.24925  1.  In addition to any criminal penalty, a person who violates NRS 202.2491 or section 1 of this act is liable for a civil penalty of $100 for each violation.

    2.  A health authority within whose jurisdiction a violation of NRS 202.2491 or section 1 of this act is committed shall:

    (a) Collect the civil penalty, and may commence a civil proceeding for that purpose; and

    (b) Deposit any money he collects pursuant to this section with the state treasurer for credit to the account for health education for minors, which is hereby created in the state general fund.

    3.  The superintendent of public instruction:

    (a) Shall administer the account for health education for minors; and

    (b) May, with the advice of the state health officer, expend money in the account only for programs of education for minors regarding human health.

    4.  The interest and income earned on the money in the account for health education for minors, after deducting any applicable charges, must be credited to the account.

      5.  All claims against the account for health education for minors must be paid as other claims against the state are paid.

      Sec. 6.  The amendatory provisions of this act do not apply to offenses that were committed before October 1, 1999.

________

 


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

κ1999 Statutes of Nevada, Page 1695κ

 

CHAPTER 380, SB 439

Senate Bill No. 439–Committee on Commerce and Labor

 

CHAPTER 380

 

AN ACT relating to accountants; revising provisions governing the qualifications and examination of applicants for certificates of certified public accounting; making various changes relating to the professional conduct of companies practicing certified public accounting or public accounting; revising provisions governing the organizational structure of companies practicing certified public accounting or public accounting; prohibiting the secretary of state from accepting for filing certain articles of incorporation or amendments thereto that contain certain words relating to accounting; repealing certain prohibited acts; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 628.033 is hereby amended to read as follows:

    628.033  “State” [includes] means any state , territory or possession of the United States and the District of Columbia.

      Sec. 2.  NRS 628.160 is hereby amended to read as follows:

    628.160  1.  The board may by regulation adopt and amend rules of professional conduct appropriate to establish and maintain a high standard of quality, integrity and dignity in the profession of public accountancy.

    2.  In addition to the requirements of chapter 233B of NRS, the board shall, at least 60 days before the adoption of any such rule or amendment, mail copies of the proposed rule or amendment to each holder of a live permit , [issued pursuant to NRS 628.380,] to the address shown in the records of the board, together with a notice advising him of the date, time and place of the hearing on the proposed rule or amendment and requesting that he submit his comments thereon at least 15 days before the hearing. The comments are advisory only. Failure by inadvertence or error to mail the rule, amendment or notice to each holder of a permit does not affect the validity of any rule or amendment if the board has made an effort in good faith to mail the notice to all holders of permits.

    3.  The board may adopt regulations concerning the professional conduct of corporations , [and] partnerships and limited-liability companies practicing certified public accounting or public accounting which it deems consistent with or required by the public welfare, including regulations:

    (a) Governing the style, name and title of [such corporations and partnerships.] the corporations, partnerships and limited-liability companies.

    (b) Governing the affiliation of [such corporations and] the corporations, partnerships and limited-liability companies with any other organizations.

      Sec. 3.  NRS 628.190 is hereby amended to read as follows:

    628.190  [The]

    1.  Except as otherwise provided in this section and NRS 628.310, a certificate of certified public accountant must be granted by the board to any person who:


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

κ1999 Statutes of Nevada, Page 1696 (CHAPTER 380, SB 439)κ

 

    [1.] (a) Is a resident of this state or, if not a resident, has designated to the board an agent who is a resident for notification and service of process;

    [2.] (b) Is a person [of fiscal integrity] who is without any history of acts involving dishonesty or moral turpitude;

    [3.  Meets]

    (c) Complies with the requirements of education and experience as provided in NRS 628.200; [and

    4.  Has passed a written examination selected by the board containing the following sections:

    (a) Business law and professional responsibilities;

    (b) Auditing;

    (c) Accounting and reporting, including taxation, managerial accounting and auditing for governmental and nonprofit organizations;

    (d) Financial accounting and reporting, including for business enterprises; and

    (e) Other related sections that the board determines to be appropriate.]

    (d) Has submitted to the board a complete set of his fingerprints and written permission authorizing the board to forward the fingerprints to the central repository for Nevada records of criminal history for submission to the Federal Bureau of Investigation for its report; and

    (e) Has passed the examination prescribed by the board.

      2.  The board may refuse to grant a certificate of certified public accountant to an applicant if he has been convicted of a felony under the laws of any state or of the United States.

      3.  The board may issue a provisional certificate to an applicant until the board receives the report from the Federal Bureau of Investigation.

      Sec. 4.  NRS 628.200 is hereby amended to read as follows:

    628.200  1.  [The] Except as otherwise provided in subsection 4, the requirement of education for a certificate of certified public accountant is at least 150 semester hours or an equivalent number of quarter hours and includes a baccalaureate degree or an equivalent degree from a college or university recognized by the board:

    (a) With a major in accounting, or what the board determines to be substantially the equivalent of a major in accounting; or

    (b) With a major other than accounting supplemented by what the board determines to be substantially the equivalent of an accounting major, including related courses in other areas of business administration.

    2.  The requirement for experience for a certificate of certified public accountant is:

    (a) Two years of public accounting experience ; [, including, but in no way limited to, attesting while in practice as a certified public accountant, a registered public accountant, a staff accountant employed by a person who is licensed to practice public accounting or any combination of these types of experience;] or

    (b) Experience in internal auditing work or governmental accounting and auditing work of a character and for a length of time sufficient in the opinion of the board to be substantially equivalent to the requirements of paragraph (a).

    3.  The board:


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

κ1999 Statutes of Nevada, Page 1697 (CHAPTER 380, SB 439)κ

 

    (a) Shall adopt regulations concerning [the] :

      (1) The number of semester hours or an equivalent number of quarter hours in accounting and other courses required by an applicant to satisfy the requirements of subsection 1.

      (2) The public accounting experience, internal auditing work, and governmental accounting and auditing work required by an applicant to satisfy the requirements of subsection 2.

    (b) May provide by regulation for the substitution of qualified programs of continuing education to satisfy partially the requirement of experience described in paragraph (b) of subsection 2 or may add any program to the requirement of experience.

    4.  Notwithstanding any provision of this section to the contrary, an applicant for a certificate of certified public accountant who has received conditional credit pursuant to NRS 628.260 for passing sections of the examination required for a certificate, and who applies that credit to his subsequent passage of the examination, is subject to the educational requirements to receive a certificate that were in effect on the date on which he first received the conditional credit.

      Sec. 5.  NRS 628.230 is hereby amended to read as follows:

    628.230  1.  The [examinations described in NRS 628.190] examination prescribed by the board must be conducted by the board [and take place as often as the board finds desirable, but not less frequently] not less than once each year.

    2.  The board shall prescribe by regulation the methods of applying for [examination and for] and conducting the examination, including the grading of papers and the determination of passing grades. The board may [make such use of] use all or any part of the Uniform Certified Public Accountants’ Examination and Advisory Grading Service as it deems appropriate to assist it in performing its duties hereunder.

      Sec. 5.3.  NRS 628.240 is hereby amended to read as follows:

    628.240  A candidate for a certificate of certified public accountant, who has met the educational requirements as provided in NRS 628.200, is eligible to take the examination without waiting until he meets the requirements of experience if he also meets the requirements of [subsections 1 and 2] paragraphs (a) and (b) of subsection 1 of NRS 628.190.

      Sec. 5.5.  NRS 628.260 is hereby amended to read as follows:

    628.260  1.  The board may by regulation prescribe the terms and conditions under which a candidate:

    (a) Must pass all sections of the examination [indicated in] prescribed by the board pursuant to NRS 628.190 [in order] to qualify for a certificate.

    (b) Who , at any given examination , passes two or more sections, but not all sections, may receive conditional credit for the sections passed, and need not sit for re-examination in those sections. The board may by regulation:

      (1) Provide minimum grades for each section not passed in order to receive credit for those passed;

      (2) Provide a limit on the time in which each candidate must pass all sections of the examination or lose any credit received; and

      (3) Require a candidate to sit for all sections of the examination which he did not pass in a previous examination.


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

κ1999 Statutes of Nevada, Page 1698 (CHAPTER 380, SB 439)κ

 

    2.  The board may give credit to a candidate who has passed all or part of the examination in another state or other jurisdiction of the United States, if the certified public accountant members of the board have determined by regulation that the standards under which the examination was held are as high as the standards established for the examination required by this chapter.

      Sec. 5.7.  NRS 628.280 is hereby amended to read as follows:

    628.280  1.  The board shall charge each candidate for a certificate of certified public accountant a fee to be determined by the board by regulation for the initial examination [provided for in] prescribed by the board pursuant to NRS 628.190.

    2.  Fees for re-examinations under NRS 628.190 must also be charged by the board in amounts determined by it by regulation for each section of the examination in which the candidate is re-examined.

    3.  The applicable fee must be paid by the candidate at the time he applies for examination or re-examination.

      4.  The board shall charge each candidate for a certificate of certified public accountant a fee to be determined by the board by regulation for review and inspection of his examination paper.

      Sec. 6.  NRS 628.310 is hereby amended to read as follows:

    628.310  1.  The board may waive the examination , the requirements for education or the requirements for experience, or any combination thereof, required under NRS 628.190, and may issue a certificate as a certified public accountant to any person who is the holder of a certificate as a certified public accountant then in effect issued under the laws of any state or other jurisdiction of the United States approved by the board, constituting a recognized qualification for the practice of public accounting comparable to that of a certified public accountant of this state, state [,and who:

    1.  Possesses the qualifications set forth in subsection 3 of NRS 628.190 which were in effect in this state on the date on which he received his original certificate; and

      2.  Either possesses the qualifications set forth in subsection 4 of NRS 628.190, which were in effect in this state on the date on which he received his original certificate, or has:

      (a) Passed] if:

      (a) The person has passed an examination that is substantially the same as the examination [required by subsection 4 of NRS 628.190; and

      (b) Experience] conducted pursuant to NRS 628.230 with a grade that would have been a passing grade in this state on the date on which he received his original certificate;

      (b) The person has experience in the practice of public accountancy, either as a certified public accountant or as a staff accountant employed by or under the direct supervision of a person who is a certified public accountant, while holding a certificate as a certified public accountant for more than [5] 4 of the 10 years immediately preceding his making application pursuant to this chapter [.] ; and

    (c) The requirements for education of the state or other jurisdiction from which the person received his original certificate were substantially equivalent to the requirements for education of this state on the date on which the person received his original certificate.


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

κ1999 Statutes of Nevada, Page 1699 (CHAPTER 380, SB 439)κ

 

      2.  The board may waive the examination, the requirements for education or the requirements for experience, or any combination thereof, under NRS 628.190, and may issue a certificate as a certified public accountant to any person who is the holder of an equivalent certificate then in effect issued by a foreign country if:

      (a) Persons who are certified as public accountants in this state are granted similar privileges by the foreign country in which the applicant is certified;

      (b) The applicant’s certificate:

             (1) Was issued by the appropriate authority that regulates the practice of public accountancy in the foreign country in which the certificate was issued;

             (2) Has not expired or been revoked or suspended; and

             (3) Authorizes the applicant to issue reports upon financial statements;

      (c) The requirements for education and examination of the regulatory authority of the foreign country were substantially equivalent to the requirements for education and examination of this state on the date on which the applicant received his certificate;

      (d) The applicant:

             (1) Complied with requirements for experience in the foreign country in which the certificate was issued that are substantially equivalent to the requirements set forth in NRS 628.200; or

             (2) Has completed in this state at least 4 years of public accounting experience, or equivalent experience determined to be appropriate by the board, within the 10 years immediately preceding his making application for certification in this state;

      (e) The applicant has passed a written examination on national standards for public accounting and ethics that is acceptable to the board; and

      (f) The applicant submits with his application a list of all jurisdictions in which he has applied for and received a certificate to practice public accounting.

      3.  A person who is granted a certificate as a certified public accountant pursuant to subsection 2 shall notify the board, in writing, within 30 days after:

      (a) He is issued an equivalent certificate to practice public accounting by another jurisdiction or is denied the issuance of such a certificate;

      (b) A certificate to practice public accounting issued to him by another jurisdiction is revoked or suspended; or

      (c) Another jurisdiction in which he is certified to practice public accounting commences any type of disciplinary action against him.

      Sec. 6.5.  NRS 628.325 is hereby amended to read as follows:

    628.325  1.  One or more natural persons may organize a corporation for the practice of public accounting under the Professional Corporations and Associations Act, chapter 89 of NRS. The corporation is not required to have more directors than shareholders, but at least one director must be a shareholder. The other directors need not, but may, be shareholders.

    2.  One or more natural persons may:


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

κ1999 Statutes of Nevada, Page 1700 (CHAPTER 380, SB 439)κ

 

    (a) Organize a corporation pursuant to chapter 78 of NRS;

    (b) Qualify to do business as a foreign corporation pursuant to chapter 80 of NRS;

    (c) Organize a limited-liability company pursuant to chapter 86 of NRS; or

    (d) Register as a foreign limited-liability company pursuant to chapter 86 of NRS,

to practice public accounting.

    3.  The organization, qualification or registration of a corporation or company pursuant to subsection 2:

    (a) Does not modify:

      (1) The relationship between an accountant and a client;

      (2) The liability arising out of that relationship; or

      (3) The compliance of the corporation or company with this chapter or any regulations adopted pursuant thereto.

    (b) Does not render:

      (1) A person liable in tort for any act in which he has not personally participated.

      (2) The manager, a member or an employee of a limited-liability company liable in contract for any contract which he executes on behalf of a limited-liability company within the limits of his authority.

    4.  Notwithstanding any specific statute to the contrary, a simple majority of the ownership of a corporation, partnership or limited-liability company organized for the practice of public accounting in this state, in terms of the financial interests and voting rights of all shareholders, partners, officers, members and principals thereof, must belong to persons who are certified public accountants in any state or registered public accountants in this state. Each shareholder, partner, officer, member or principal whose principal place of business is in this state and who performs professional services in this state must be:

    (a) If the corporation, partnership or limited-liability company registered with the board is a corporation, partnership or limited-liability company of certified public accountants, a certified public accountant in this state in good standing; and

    (b) If the corporation, partnership or limited-liability company registered with the board is a corporation, partnership or limited-liability company of public accountants, a certified public accountant or registered public accountant in this state in good standing.

    5.  A corporation, partnership or limited-liability company organized for the practice of public accounting in this state may have as a shareholder, partner, officer, member or principle any natural person who is not a certified public accountant in any state or a registered public accountant in this state if:

    (a) The natural person is actively engaged in the business of the corporation, partnership or limited-liability company, or any affiliate thereof; and

      (b) The corporation, partnership or limited-liability company complies with any other requirements that the board by regulation may impose.


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

κ1999 Statutes of Nevada, Page 1701 (CHAPTER 380, SB 439)κ

 

      Sec. 7.  NRS 628.343 is hereby amended to read as follows:

    628.343  1.  A corporation organized for the practice of public accounting shall register with the board as a corporation of certified public accountants and comply with the following requirements:

    (a) The sole purpose and business of the corporation must be to furnish to the public services not inconsistent with this chapter or the regulations of the board, except that the corporation may invest its money in a manner not incompatible with the practice of public accounting.

    (b) [Each shareholder of the corporation must be a certified public accountant of some state in good standing, and be principally employed by the corporation or actively engaged in its business. No other person may have any interest in the stock of the corporation.] The principal officer of the corporation and any officer or director having authority over the practice of public accounting by the corporation must be a certified public accountant of some state in good standing.

    (c) At least one shareholder of the corporation must be a certified public accountant of this state in good standing.

    (d) Each manager in charge of an office of the corporation in this state and each shareholder or director who is regularly and personally engaged within this state in the practice of public accounting must be a certified public accountant of this state in good standing.

    (e) In order to facilitate compliance with the provisions of this section relating to the ownership of stock, there must be a written agreement binding the shareholders or the corporation to purchase any shares offered for sale by, or not under the ownership or effective control of, a qualified shareholder. The corporation may retire any amount of stock for this purpose, notwithstanding any impairment of its capital, so long as one share remains outstanding.

    (f) The corporation shall comply with other regulations pertaining to corporations practicing public accounting in this state adopted by the board.

    2.  Application for registration must be made upon the affidavit of a shareholder who holds a live permit to practice in this state as a certified public accountant. The board shall determine whether the applicant is eligible for registration and may charge an initial fee and an annual renewal fee set by the board by regulation. A corporation which is so registered may use the words “certified public accountants” or the abbreviation “C.P.A.’s” or “CPA’s” in connection with its corporate name. Notice must be given to the board within 1 month after the admission to or withdrawal of a shareholder from any corporation so registered.

      Sec. 8.  NRS 628.345 is hereby amended to read as follows:

    628.345  1.  A limited-liability company organized for the practice of public accounting shall register with the board as a limited-liability company of certified public accountants and comply with the following requirements:

    (a) The sole purpose and business of the limited-liability company must be to furnish to the public services not inconsistent with this chapter or the regulations of the board, except that the limited-liability company may invest its money in a manner not incompatible with the practice of public accounting.


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

κ1999 Statutes of Nevada, Page 1702 (CHAPTER 380, SB 439)κ

 

    (b) [Each member of the limited-liability company must be a certified public accountant of some state in good standing, and be principally employed by the limited-liability company or actively engaged in its business. No other person may have any interest in the limited-liability company.] The manager, if any, of the limited-liability company must be a certified public accountant of some state in good standing.

    (c) At least one member of the limited-liability company must be a certified public accountant of this state in good standing.

    (d) Each person in charge of an office of the limited-liability company in this state and each member who is regularly and personally engaged within this state in the practice of public accounting must be a certified public accountant of this state in good standing.

    (e) In order to facilitate compliance with the provisions of this section relating to the ownership of interests, there must be a written agreement binding the members or the limited-liability company to purchase any interest offered for sale by, or not under the ownership or effective control of, a qualified member.

    (f) The limited-liability company shall comply with other regulations pertaining to limited-liability companies practicing public accounting in this state adopted by the board.

    2.  Application for registration must be made upon the affidavit of the manager or a member of the limited-liability company. The affiant must hold a live permit to practice in this state as a certified public accountant. The board shall determine whether the applicant is eligible for registration and may charge an initial fee and an annual renewal fee set by the board by regulation. A limited-liability company which is so registered may use the words “certified public accountants” or the abbreviation “C.P.A.’s” or “CPA’s” in connection with its name. Notice must be given to the board within 1 month after the admission to or withdrawal of a member from any limited-liability company so registered.

      Sec. 9.  NRS 628.363 is hereby amended to read as follows:

    628.363  1.  A corporation organized for the practice of public accounting shall register with the board as a corporation of public accountants and comply with the following requirements:

    (a) The sole purpose and business of the corporation must be to furnish to the public services not inconsistent with this chapter or the regulations of the board, except that the corporation may invest its money in a manner not incompatible with the practice of public accounting.

    (b) [Each shareholder of the corporation must be a certified public accountant in any state or a public accountant of this state in good standing, and be principally employed by the corporation or actively engaged in its business. No other person may have any interest in the stock of the corporation.] The principal officer of the corporation and any officer or director having authority over the practice of public accounting by the corporation must be a certified public accountant or registered public accountant of this state in good standing.

    (c) Each manager in charge of an office of the corporation in this state must be a certified public accountant or a registered public accountant of this state in good standing.


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

κ1999 Statutes of Nevada, Page 1703 (CHAPTER 380, SB 439)κ

 

    (d) In order to facilitate compliance with the provisions of this section relating to the ownership of stock, there must be a written agreement binding the shareholders or the corporation to purchase any shares offered for sale by, or not under the ownership or effective control of, a qualified shareholder. The corporation may retire any amount of stock for this purpose, notwithstanding any impairment of its capital, so long as one share remains outstanding.

    (e) The corporation shall comply with other regulations pertaining to corporations practicing public accounting in this state adopted by the board.

    2.  Application for registration must be made upon the affidavit of a shareholder who holds a live permit to practice in this state as a certified public accountant or as a registered public accountant. The board shall determine whether the applicant is eligible for registration. The board may charge a registration fee and renewal fee and a reporting fee in an amount set by regulation. A corporation which is so registered may use the words “public accountants” in connection with its corporate name. Notice must be given to the board within 1 month after the admission to or withdrawal of a shareholder from any corporation so registered.

      Sec. 10.  NRS 628.365 is hereby amended to read as follows:

    628.365  1.  A limited-liability company organized for the practice of public accounting shall register with the board as a limited-liability company of public accountants and comply with the following requirements:

    (a) The sole purpose and business of the limited-liability company must be to furnish to the public services not inconsistent with this chapter or the regulations of the board, except that the limited-liability company may invest its money in a manner not incompatible with the practice of public accounting.

    (b) [Each member of the limited-liability company must be a certified public accountant in any state or a public accountant of this state in good standing, and be principally employed by the limited-liability company or actively engaged in its business. No other person may have any interest in the limited-liability company.] The manager, if any, of the limited-liability company must be a certified public accountant or registered public accountant of this state in good standing.

    (c) Each person in charge of an office of the limited-liability company in this state must be a certified public accountant or a registered public accountant of this state in good standing.

    (d) In order to facilitate compliance with the provisions of this section relating to the ownership of interests, there must be a written agreement binding the members or the limited-liability company to purchase any interest offered for sale by, or not under the ownership or effective control of, a qualified member.

    (e) The limited-liability company shall comply with other regulations pertaining to limited-liability companies practicing public accounting in this state adopted by the board.

    2.  Application for registration must be made upon the affidavit of the manager or a member of the limited-liability company. The affiant must hold a live permit to practice in this state as a certified public accountant or as a registered public accountant. The board shall determine whether the applicant is eligible for registration.


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

κ1999 Statutes of Nevada, Page 1704 (CHAPTER 380, SB 439)κ

 

is eligible for registration. The board may charge a registration fee and renewal fee and a reporting fee in an amount set by regulation. A limited-liability company which is so registered may use the words “public accountants” in connection with its name. Notice must be given to the board within 1 month after the admission to or withdrawal of a member of a limited-liability company so registered.

      Sec. 11.  NRS 628.380 is hereby amended to read as follows:

    628.380  1.  Permits to engage in the practice of public accounting in this state must be issued by the board to holders of the certificate of certified public accountant issued under NRS 628.190 to 628.310, inclusive, and to registered public accountants registered or licensed pursuant to NRS 628.350, if all offices of the certificate holder or registrant are maintained and registered as required under NRS 628.370, and if the certificate holder or registrant has complied with the continuing education requirements provided in this chapter and in the board’s regulations.

    2.  All permits expire on December 31 of each year and may be renewed annually for a period of 1 year by certificate holders and registrants in good standing upon payment of an annual renewal fee set by the board by regulation.

    3.  Failure of a certificate holder or registrant to apply for an annual permit to practice [within:

    (a) Three years after the expiration date of the permit to practice last obtained or renewed; or

    (b) Three years after the date upon which the certificate holder or registrant was granted his certificate or registration, if no permit was ever issued to him,] deprives him of the right to a permit, unless the board, in its discretion, determines that the failure was caused by excusable neglect.

    4.  The board shall adopt a regulation specifying the fee for issuance or renewal of a permit more than [3 years] 1 year after the expiration of a previous permit or granting of a certificate or registration.

    5.  The board may provide by regulation for the placing of certificates and registrations in a retired or inactive status. The regulation may provide for a procedure for applying for retired or inactive status and for applying to return to active status, and must specify fees, if any, to accompany the applications.

      Sec. 12.  NRS 628.390 is hereby amended to read as follows:

    628.390  1.  After giving notice and conducting a hearing, the board may revoke, or may suspend for a period of not more than 5 years, any certificate issued under NRS 628.190 to 628.310, inclusive, any registration or license granted to a registered public accountant under NRS 628.350, or any registration of a partnership, corporation, limited-liability company or office, or may revoke, suspend or refuse to renew any permit issued under NRS 628.380, or may censure the holder of any permit, for any one or any combination of the following causes:

    (a) Fraud or deceit in obtaining a certificate as certified public accountant, or in obtaining registration or a license as a public accountant under this chapter, or in obtaining a permit to practice public accounting under this chapter.


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

κ1999 Statutes of Nevada, Page 1705 (CHAPTER 380, SB 439)κ

 

    (b) Dishonesty, fraud or gross negligence by a certified or registered public accountant in the practice of public accounting or, if not in the practice of public accounting, of a kind which adversely affects the ability to perform public accounting.

    (c) Violation of any of the provisions of this chapter.

    (d) Violation of a regulation or rule of professional conduct adopted by the board under the authority granted by this chapter.

    (e) Conviction of a felony under the laws of any state or of the United States.

    (f) Conviction of any crime, an element of which is dishonesty or fraud, under the laws of any state or of the United States.

    (g) Cancellation, revocation, suspension or refusal to renew authority to practice as a certified public accountant or a registered public accountant by any other state, for any cause other than failure to pay an annual registration fee or to comply with requirements for continuing education or review of his practice in the other state.

    (h) Suspension or revocation of the right to practice before any state or federal agency.

    (i) Unless the person has been placed on inactive or retired status, failure to obtain an annual permit under NRS 628.380, within:

      (1) One year after the expiration date of the permit to practice last obtained or renewed by the certificate holder or registrant; or

      (2) One year after the date upon which the certificate holder or registrant was granted his certificate or registration, if no permit was ever issued to him, unless the failure has been excused by the board.

    (j) Conduct discreditable to the profession of public accounting or which reflects adversely upon the fitness of the person to engage in the practice of public accounting.

    (k) Making a false or misleading statement in support of an application for a certificate, registration or permit of another person.

    2.  In addition to other penalties prescribed by this section, the board may impose a civil penalty of not more than $5,000 for each violation. The board may recover:

    (a) Attorney’s fees and costs incurred in respect to a hearing held pursuant to subsection 1 from a licensee if he is found in violation thereof; and

    (b) Attorney’s fees and costs incurred in the recovery of a civil penalty imposed.

      Sec. 12.5.  NRS 628.510 is hereby amended to read as follows:

    628.510  1.  Except as otherwise provided in subsection 2, a person shall not sign or affix his name or the name of a partnership, corporation or limited-liability company, or any trade or assumed name used by him or by the partnership, corporation or limited-liability company in business, with any wording indicating that he is an accountant or auditor, or that the partnership, corporation or limited-liability company is authorized to practice as an accountant or auditor or with any wording indicating that he or the partnership, corporation or limited-liability company has expert knowledge in accounting or auditing, to any accounting or financial statement, or attest to any accounting or financial statement, unless he holds a live permit, or the partnership, corporation or limited-liability company is registered pursuant to NRS 628.340, 628.343, 628.345, 628.360, 628.363 or 628.365 and all of his offices in this state for the practice of public accounting are maintained and registered under NRS 628.370.


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

κ1999 Statutes of Nevada, Page 1706 (CHAPTER 380, SB 439)κ

 

NRS 628.340, 628.343, 628.345, 628.360, 628.363 or 628.365 and all of his offices in this state for the practice of public accounting are maintained and registered under NRS 628.370.

    2.  The provisions of subsection 1 do not prohibit:

    (a) Any officer, employee, partner, principal or member of any organization from affixing his signature to any statement or report in reference to the financial affairs of that organization with any wording designating the position, title or office which he holds in the organization.

    (b) Any act of a public official or public employee in the performance of his duties as such.

    (c) Any person who does not hold a live permit from preparing a financial statement or issuing a report if the statement or report, respectively, includes a disclosure that:

      (1) The person who prepared the statement or issued the report does not hold a live permit issued by the board; and

             (2) The statement or report does not purport to have been prepared in compliance with the professional standards of accounting adopted by the board.

      Sec. 13.  NRS 78.045 is hereby amended to read as follows:

    78.045  1.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed pursuant to the laws of this state which provides that the name of the corporation contain the word “bank” or “trust,” unless:

    (a) It appears from the articles or the certificate of amendment that the corporation proposes to carry on business as a banking or trust company, exclusively or in connection with its business as a bank or savings and loan association; and

    (b) The articles or certificate of amendment is first approved by the commissioner of financial institutions.

    2.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed pursuant to the provisions of this chapter when it appears from the articles or the certificate of amendment that the business to be carried on by the corporation is subject to supervision by the commissioner of insurance or by the commissioner of financial institutions, unless the articles or certificate of amendment is first approved by the commissioner who will be supervising the business of the corporation.

    3.  Except as otherwise provided in subsection [4,] 5, the secretary of state shall not accept for filing any articles of incorporation or any certificate or amendment of articles of incorporation of any corporation formed pursuant to the laws of this state if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer” or “licensed engineer” unless:

    (a) The state board of professional engineers and land surveyors certifies that the principals of the corporation are licensed to practice engineering pursuant to the laws of this state; or

    (b) The state board of professional engineers and land surveyors certifies that the corporation is exempt from the prohibitions of NRS 625.520.


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

κ1999 Statutes of Nevada, Page 1707 (CHAPTER 380, SB 439)κ

 

      4.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed pursuant to the laws of this state which provides that the name of the corporation contain the words “accountant,” “accounting,” “accountancy,” “auditor” or “auditing” unless the Nevada state board of accountancy certifies that the corporation:

      (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

    (b) Has filed with the state board of accountancy under penalty of perjury a written statement that the corporation is not engaged in the practice of accounting and is not offering to practice accounting in this state.

    5.  The provisions of subsection 3 do not apply to any corporation, whose securities are publicly traded and regulated by the Securities Exchange Act of 1934, which does not engage in the practice of professional engineering.

    [5.] 6.  The commissioner of financial institutions and the commissioner of insurance may approve or disapprove the articles or amendments referred to them pursuant to the provisions of this section.

      Sec. 14.  NRS 80.010 is hereby amended to read as follows:

    80.010  1.  Before commencing or doing any business in this state, [every] each corporation organized pursuant to the laws of another state, territory, the District of Columbia, a [dependency] possession of the United States or a foreign country, that enters this state to do business must:

    (a) File in the office of the secretary of state of this state:

      (1) A certificate of corporate existence issued not more than 90 days before the date of filing by an authorized officer of the jurisdiction of its incorporation setting forth the filing of documents and instruments related to the articles of incorporation, or the governmental acts or other instrument or authority by which the corporation was created. If the certificate is in a language other than English, a translation, together with the oath of the translator and his attestation of its accuracy, must be attached to the certificate.

      (2) A certificate of acceptance of appointment executed by its resident agent, who must be a resident or located in this state. The certificate must set forth the name of the resident agent, his street address for the service of process, and his mailing address if different from his street address. The street address of the resident agent is the registered office of the corporation in this state.

      (3) A statement executed by an officer of the corporation, acknowledged before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds, setting forth:

         (I) A general description of the purposes of the corporation; and

         (II) The authorized stock of the corporation and the number and par value of shares having par value and the number of shares having no par value.

    (b) Lodge in the office of the secretary of state a copy of the document most recently filed by the corporation in the jurisdiction of its incorporation setting forth the authorized stock of the corporation, the number of par‑value shares and their par value, and the number of no-par-value shares.


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

κ1999 Statutes of Nevada, Page 1708 (CHAPTER 380, SB 439)κ

 

    2.  The secretary of state shall not file the documents required by subsection 1 for any foreign corporation whose name is the same as, or deceptively similar to the name of a corporation, limited partnership or limited-liability company existing pursuant to the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state or a name to which the exclusive right is at the time reserved in the manner provided in the laws of this state, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

    3.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer” or “licensed engineer” unless the state board of professional engineers and land surveyors certifies that:

    (a) The principals of the corporation are licensed to practice engineering pursuant to the laws of this state; or

    (b) The corporation is exempt from the prohibitions of NRS 625.520.

    4.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if it appears from the documents that the business to be carried on by the corporation is subject to supervision by the commissioner of financial institutions, unless the commissioner certifies that:

    (a) The corporation has obtained the authority required to do business in this state; or

    (b) The corporation is not subject to or is exempt from the requirements for obtaining such authority.

      5.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “accountant,” “accounting,” “accountancy,” “auditor” or “auditing” unless the Nevada state board of accountancy certifies that the foreign corporation:

      (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

      (b) Has filed with the state board of accountancy under penalty of perjury a written statement that the foreign corporation is not engaged in the practice of accounting and is not offering to practice accounting in this state.

      Sec. 15.  NRS 82.106 is hereby amended to read as follows:

    82.106  1.  The secretary of state shall not accept for filing pursuant to this chapter any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed or existing pursuant to this chapter if the name of the corporation contains the words “trust,” “engineer,” “engineered,” “engineering,” “professional engineer” or “licensed engineer.”

    2.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed or existing under this chapter when it appears from the articles or the certificate of amendment that the business to be carried on by the corporation is subject to supervision by the commissioner of insurance.


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

κ1999 Statutes of Nevada, Page 1709 (CHAPTER 380, SB 439)κ

 

by the corporation is subject to supervision by the commissioner of insurance.

      3.  The secretary of state shall not accept for filing pursuant to this chapter any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed or existing pursuant to this chapter if the name of the corporation contains the words “accountant,” “accounting,” “accountancy,” “auditor” or “auditing.”

      Sec. 16.  NRS 86.171 is hereby amended to read as follows:

    86.171  1.  The name of a limited-liability company formed under the provisions of this chapter must contain the words “Limited-Liability Company,” “Limited Company,” or “Limited” or the abbreviations “Ltd.,” “L.L.C.,” “L.C.,” “LLC” or “LC.” The word “Company” may be abbreviated as “Co.”

    2.  The name proposed for a limited-liability company must be distinguishable from the names of all other artificial persons organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names are on file in the office of the secretary of state. If a proposed name is not so distinguishable, the secretary of state shall return the articles of organization to the organizer, unless the written acknowledged consent of the holder of the registered name to use the same name or the requested similar name accompanies the articles of organization.

    3.  For the purposes of this section and NRS 86.176, a proposed name is not distinguished from a registered or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination of these.

    4.  The name of a limited-liability company whose charter has been revoked, whose existence has terminated, which has merged and is not the surviving company, or which for any other reason is no longer in good standing is available for use by any other artificial person.

      5.  The secretary of state shall not accept for filing any articles of organization for any limited-liability company if the name of the limited-liability company contains the words “accountant,” “accounting,” “accountancy,” “auditor” or “auditing” unless the Nevada state board of accountancy certifies that the limited-liability company:

      (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

      (b) Has filed with the state board of accountancy under penalty of perjury a written statement that the limited-liability company is not engaged in the practice of accounting and is not offering to practice accounting in this state.

      Sec. 16.5. Section 2 of Senate Bill No. 19 of this session is hereby amended to read as follows:

       Sec. 2.  NRS 80.010 is hereby amended to read as follows:

       80.010  1.  Before commencing or doing any business in this state, each corporation organized pursuant to the laws of another state, territory, the District of Columbia, a possession of the United States or a foreign country, that enters this state to do business must:

       (a) File in the office of the secretary of state of this state:

             (1) A certificate of corporate existence issued not more than 90 days before the date of filing by an authorized officer of the jurisdiction of its incorporation setting forth the filing of documents and instruments related to the articles of incorporation, or the governmental acts or other instrument or authority by which the corporation was created.


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

κ1999 Statutes of Nevada, Page 1710 (CHAPTER 380, SB 439)κ

 

jurisdiction of its incorporation setting forth the filing of documents and instruments related to the articles of incorporation, or the governmental acts or other instrument or authority by which the corporation was created. If the certificate is in a language other than English, a translation, together with the oath of the translator and his attestation of its accuracy, must be attached to the certificate.

             (2) A certificate of acceptance of appointment executed by its resident agent, who must be a resident or located in this state. The certificate must set forth the name of the resident agent, his street address for the service of process, and his mailing address if different from his street address. The street address of the resident agent is the registered office of the corporation in this state.

             (3) A statement executed by an officer of the corporation, acknowledged before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds, setting forth:

                   (I) A general description of the purposes of the corporation; and

                   (II) The authorized stock of the corporation and the number and par value of shares having par value and the number of shares having no par value.

       (b) Lodge in the office of the secretary of state a copy of the document most recently filed by the corporation in the jurisdiction of its incorporation setting forth the authorized stock of the corporation, the number of par‑value shares and their par value, and the number of no-par-value shares.

       2.  The secretary of state shall not file the documents required by subsection 1 for any foreign corporation whose name is the same as, or deceptively similar to the name of a corporation, limited partnership or limited-liability company existing pursuant to the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state or a name to which the exclusive right is at the time reserved in the manner provided in the laws of this state, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

       3.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer” or “licensed engineer” unless the state board of professional engineers and land surveyors certifies that:

       (a) The principals of the corporation are licensed to practice engineering pursuant to the laws of this state; or

       (b) The corporation is exempt from the prohibitions of NRS 625.520.

       4.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if it appears from the documents that the business to be carried on by the corporation is subject to supervision by the commissioner of financial institutions, unless the commissioner certifies that:


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

κ1999 Statutes of Nevada, Page 1711 (CHAPTER 380, SB 439)κ

 

it appears from the documents that the business to be carried on by the corporation is subject to supervision by the commissioner of financial institutions, unless the commissioner certifies that:

       (a) The corporation has obtained the authority required to do business in this state; or

       (b) The corporation is not subject to or is exempt from the requirements for obtaining such authority.

       5.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “accountant,” “accounting,” “accountancy,” “auditor” or “auditing” unless the Nevada state board of accountancy certifies that the foreign corporation:

       (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

       (b) Has filed with the state board of accountancy under penalty of perjury a written statement that the foreign corporation is not engaged in the practice of accounting and is not offering to practice accounting in this state.

       6.  As used in this section, “street address” of a resident means the actual physical location in this state at which a resident agent is available for service of process.

      Sec. 17. NRS 628.382 is hereby repealed.

      Sec. 18.  1.  This section and sections 1, 2, 3 and 5 to 17, inclusive, of this act become effective on July 1, 1999.

      2.  Section 4 of this act becomes effective at 12:01 a.m. on January 1, 2001.

________

 

CHAPTER 381, SB 442

Senate Bill No. 442–Senators Rhoads, Neal, Jacobsen, Care, Townsend, James, Amodei, Carlton, Coffin, Mathews, McGinness, Raggio, Rawson, Schneider, Shaffer, Titus and Washington

 

CHAPTER 381

 

AN ACT relating to traffic laws; revising the penalty for exceeding the posted speed limit in certain circumstances; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 484.3685 is hereby amended to read as follows:

    484.3685  1.  Except as otherwise provided in subsection 3, a person driving a motor vehicle during the hours of daylight at a speed in excess of the speed limit posted by a public authority for the portion of highway being traversed shall be punished by a fine of $25 if:

    (a) The posted speed limit is 60 miles per hour and the person is not exceeding a speed of 70 miles per hour.


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

κ1999 Statutes of Nevada, Page 1712 (CHAPTER 381, SB 442)κ

 

    (b) The posted speed limit is 65 miles per hour and the person is not exceeding a speed of 75 miles per hour.

    (c) The posted speed limit is 70 miles per hour and the person is not exceeding a speed of 75 miles per hour.

    2.  A violation of the speed limit under any of the circumstances set forth in subsection 1 must not be recorded by the department on a driver’s record and shall not be deemed a moving traffic violation.

    3.  The provisions of this section do not apply to a violation specified in subsection 1 that occurs in a county whose population is 100,000 or more [.] if the portion of highway being traversed is in:

    (a) An urban area; or

    (b) An area which is adjacent to an urban area and which has been designated by the public authority that established the posted speed limit for the portion of highway being traversed as an area that requires strict observance of the posted speed limit to protect public health and safety.

      Sec. 2.  The amendatory provisions of this act do not apply to offenses committed before July 1, 1999.

      Sec. 3.  This act becomes effective on July 1, 1999.

________

 

CHAPTER 382, SB 464

Senate Bill No. 464–Committee on Commerce and Labor

 

CHAPTER 382

 

AN ACT relating to unemployment compensation; revising provisions in cases of delinquency in payment of employers’ assessments; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

    Section 1.  Chapter 612 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

      Sec. 2. 1.  If a check is tendered on or before the due date in payment of contributions but is afterward dishonored by the financial institution on which it is drawn, the check does not constitute timely payment unless the administrator determines that dishonor occurred because of fault on the part of the financial institution.

      2.  The administrator may charge an additional fee of not more than $25 for handling against a person who presents a check afterward dishonored. The fee must be deposited in the unemployment compensation administration fund.

      Sec. 3. 1.  If a debtor of an employing unit is notified of a delinquency pursuant to NRS 612.685, he shall neither transfer, pay over nor make any other disposition of money or property belonging to the delinquent employing unit, or any portion thereof, until the administrator consents thereto in writing.


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

κ1999 Statutes of Nevada, Page 1713 (CHAPTER 382, SB 464)κ

 

    2.  A person so notified shall, within 10 days after receipt of the notice, advise the administrator of all credits, debts or other personal property of the delinquent employing unit in his possession, under his control or owing by him, as the case may be.

    3.  The administrator may, personally or by registered or certified mail, give the person so notified a demand to transmit. Upon receipt of the demand, that person shall transmit to the division, within the time and in the manner stated in the demand, the lesser of:

    (a) All the credits, debts or other personal property of the delinquent employing unit in his possession, under his control or owing by him; or

    (b) The amount specified in the demand.

Except as otherwise provided in subsection 4, no further notice is required.

    4.  If the property of the delinquent employing unit consists of a series of payments owed to it, the person who owes or controls the payments shall transmit them to the division until otherwise notified by the administrator. If the debt is not paid within 1 year after the demand to transmit was given, the administrator shall give another demand to the person who owes or controls the payments, instructing him to continue to transmit the payments or informing him that his duty to transmit them has ceased.

    5.  A person notified of a delinquency who makes any transfer or other disposition of property required to be withheld or transmitted to the division is liable for the amount of the delinquency to the extent of the value of the property or the amount of the debt so transferred or paid.

    6.  The division shall determine as promptly as practicable whether sufficient liquid assets have been withheld or transmitted to satisfy its claim. As soon as the division determines that the assets are sufficient, it shall consent in writing to a transfer or other disposition of assets in excess of the amount needed.

      Sec. 4.  NRS 612.620 is hereby amended to read as follows:

    612.620  1.  When any contribution as provided in this chapter remains unpaid on the date on which it becomes due , [and payable,] as prescribed by the administrator, it bears interest at the rate of [one-half of] 1 percent for each month or portion of a month thereafter until such payment, plus accrued interest, is received by the administrator.

    2.  Interest accrued under this section may not be waived under any circumstances.

    3.  Interest collected pursuant to this section must be paid into the employment security fund.

      Sec. 5.  NRS 612.685 is hereby amended to read as follows:

    612.685  1.  As used in this section, “person” includes this state, and any county, municipality, district or other political subdivision thereof.

    2.  If any employing unit is delinquent in the payment of any contribution, forfeit or interest provided for in this chapter, the administrator may, not later than 3 years after the payment became delinquent, or within 6 years of the recording of the judgment under NRS 612.635, give notice of the [amount of such] delinquency by registered or certified mail to any person having in his possession or under his control any credit or other personal property belonging to such delinquent employing unit, or owing any debt to such employing unit at the time of the receipt of the registered or certified notice.


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

κ1999 Statutes of Nevada, Page 1714 (CHAPTER 382, SB 464)κ

 

Notice to a state officer, department or agency is effective only if it is given before the claim of the delinquent taxpayer is presented to the state controller.

    3.  [Any person so notified shall neither transfer, pay over, nor make any other disposition of such debt, credit or other personal property until the administrator consents thereto in writing, or until 30 days have elapsed from and after the receipt of the notice.

    4.  All persons so notified must, within 5 days after receipt of the notice, advise the administrator of any and all such credits, debts or other personal property in their possession, under their control, or owing by them, as the case may be.] A state officer, department or agency which receives such a notice may satisfy any debt owed to it by the delinquent employing unit before it honors the administrator’s notice.

      Sec. 6.  1.  This section and sections 1, 3 and 5 of this act become effective upon passage and approval.

      2.  Sections 2 and 4 of this act become effective on July 1, 2000.

________

 

CHAPTER 383, SB 495

Senate Bill No. 495–Committee on Commerce and Labor

 

CHAPTER 383

 

AN ACT relating to industrial insurance; revising the provisions concerning employee leasing companies; revising the provisions concerning the modified programs of industrial insurance for the department of prisons, jails and other detention facilities; revising the provision concerning the timing of payment of premiums and reporting of payroll to insurers; clarifying that a rate service organization used by an association of self-insured public or private employers must be licensed; clarifying the authority of the commissioner of insurance over private carriers who provide industrial insurance; specifying the authority of the commissioner of insurance to suspend the authorization of a private carrier to provide industrial insurance; revising various provisions to facilitate the authorization of private carriers to provide industrial insurance; reducing the penalty for misrepresenting information that will affect the amount of an employer’s premium; revising the provisions concerning payment from the uninsured employers’ claim fund; increasing the amount a real estate licensee is deemed to receive as a wage; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 616A.465 is hereby amended to read as follows:

    616A.465  1.  Except as otherwise provided in this section, the division shall:

    (a) Regulate insurers pursuant to chapters 616A to 617, inclusive, of NRS; [and]

    (b) Investigate insurers regarding compliance with statutes and the division’s regulations [.] ;

    (c) Determine whether an employee leasing company is entitled to a certificate of registration pursuant to NRS 616B.673; and

    (d) Regulate employee leasing companies pursuant to the provisions of NRS 616B.670 to 616B.697, inclusive.


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

κ1999 Statutes of Nevada, Page 1715 (CHAPTER 383, SB 495)κ

 

    2.  The commissioner is responsible for reviewing rates, investigating the solvency of insurers, authorizing private carriers pursuant to chapter 680A of NRS and certifying:

    (a) Self-insured employers pursuant to NRS 616B.300 to 616B.330, inclusive, and 616B.336;

    (b) Associations of self-insured public or private employers pursuant to NRS 616B.350 to 616B.446, inclusive; and

    (c) Third-party administrators pursuant to chapter 683A of NRS.

    3.  The department of administration is responsible for contested claims relating to industrial insurance pursuant to NRS 616C.310 to 616C.385, inclusive. The administrator is responsible for administrative appeals pursuant to NRS 616B.215.

    4.  The Nevada attorney for injured workers is responsible for legal representation of claimants pursuant to NRS 616A.435 to 616A.460, inclusive, and 616D.120.

    5.  The division is responsible for the investigation of complaints. If a complaint is filed with the division, the administrator shall cause to be conducted an investigation which includes a review of relevant records and interviews of affected persons. If the administrator determines that a violation may have occurred, the administrator shall proceed in accordance with the provisions of NRS 616D.120 and 616D.130.

      Sec. 2.  Chapter 616B of NRS is hereby amended by adding thereto a new section to read as follows:

      An insurer shall not issue a policy of industrial insurance to an employer that does not cover each employee of that employer who satisfies the definition of employee set forth in NRS 616A.105 to 616A.225, inclusive.

      Sec. 3.  NRS 616B.039 is hereby amended to read as follows:

    616B.039  [The] To determine the total amount paid to employees for services performed, the maximum amount paid to any one employee during the year in which a policy of industrial insurance is effective shall be deemed to be $36,000 . [in determining the total amount paid to employees by each employer for services performed during a year.]

      Sec. 4.  NRS 616B.086 is hereby amended to read as follows:

    616B.086  1.  Except as otherwise provided in subsection 3, all premiums, contributions, penalties, bonds, securities and all other properties received, collected or acquired by the system pursuant to the terms of chapters 616A to 616D, inclusive, of NRS:

    (a) Must be credited on the records of the system to the state insurance fund.

    (b) Constitute, for the purpose of custody thereof, the state insurance fund, which must be held by the manager as custodian thereof for the benefit of employees and their dependents within the provisions of chapters 616A to 616D, inclusive, of NRS. The manager is liable on his official bond for the faithful performance of his custodial duty.

    2.  The commissioner or the administrator may delegate to a hearing officer or panel his authority to take any disciplinary action pursuant to NRS 616B.318, 616B.321, 616B.350 to 616B.446, inclusive, 616B.463, 616B.472 or 616D.120, impose and collect administrative fines pursuant to those sections and deposit the money in the fund for workers’ compensation and safety.


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

κ1999 Statutes of Nevada, Page 1716 (CHAPTER 383, SB 495)κ

 

those sections and deposit the money in the fund for workers’ compensation and safety.

    3.  If a hearing officer or panel is not authorized to take disciplinary action pursuant to subsection 2 and the commissioner or the administrator deposits the money collected from the imposition of administrative fines with the state treasurer for credit to the state general fund, he may present a claim to the state board of examiners for recommendation to the interim finance committee if money is needed to pay attorney’s fees or the costs of an investigation, or both.

      Sec. 5.  NRS 616B.095 is hereby amended to read as follows:

    616B.095  If the provisions of NRS [616B.218, 616B.224 and 616B.230 for the creation of a] 616B.224 concerning the state insurance fund, or the provisions of chapters 616A to 616D, inclusive, of NRS making the compensation to the workman provided in those chapters exclusive of any other remedy on the part of the workman, shall be held invalid, each of those chapters shall be thereby invalidated, except the provisions of NRS 616B.101, and an accounting according to the justice of the case shall be had on moneys received. In other respects an adjudication of invalidity of any part of this chapter or chapter 616A, 616C or 616D of NRS shall not affect the validity of any of those chapters as a whole or any part thereof.

      Sec. 6.  NRS 616B.104 is hereby amended to read as follows:

    616B.104  1.  Notwithstanding the provisions of chapter 355 of NRS or of any other law, the manager may invest and reinvest any money in the funds of the system deemed available for investment [as provided in] pursuant to NRS 616B.107 [and 616B.116 to 616B.164, inclusive,] and may employ investment counsel for that purpose.

    2.  The provisions of this section and NRS 616B.107 [and 616B.116 to 616B.164, inclusive,] do not prevent the manager from making investments in accordance with the provisions of chapter 355 of NRS.

      Sec. 7.  NRS 616B.107 is hereby amended to read as follows:

    616B.107  1.  No person engaged in business as a broker or dealer in securities or who has a direct pecuniary interest in any such business who receives commissions for transactions performed as an agent for the system is eligible for employment as investment counsel for the system.

    2.  The manager shall not engage investment counsel unless:

    (a) The principal business of the person selected by the manager consists of rendering investment supervisory services, that is, the giving of continuous advice as to the investment of money on the basis of the individual needs of each client;

    (b) The person and his predecessors have been continuously engaged in such business for a period of 3 or more years, and, if a firm or corporation, the senior management personnel of the firm or corporation have an average of 10 years professional experience as investment managers;

    (c) The person as of the time originally hired, has at least $250,000,000 of assets under management contract, exclusive of any assets related to governmental agencies in this state;

    (d) The person is registered as an investment adviser under the laws of the United States as from time to time in effect, or is a bank or an investment management subsidiary of a bank;


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

κ1999 Statutes of Nevada, Page 1717 (CHAPTER 383, SB 495)κ

 

    (e) The contract between the system and the investment counsel is of no specific duration and is voidable at any time by either party; and

    (f) The person has been approved by the state board of finance for employment as investment counsel.

    3.  More than one investment counsel may be employed in the discretion of the manager.

    4.  The expense of such employment must be paid from the state insurance fund.

    5.  Any investment program adopted by the system and all investments made thereunder must be reported quarterly in writing by the manager to the state board of finance, and the report is subject to review by the state board of finance. The state board of finance may require the manager to provide further reports and may recommend modifications in the investment program, including replacement of the investment counsel. If, after a reasonable time, the manager has not taken suitable corrective action in response to recommendations by the state board of finance, the state board of finance may direct the manager to carry out its recommendations in a manner acceptable to the state board of finance. Any directives from the state board of finance must be in writing.

    6.  With the approval of the state board of finance, the manager may designate the bank or banks which shall have the custody of the various investments [authorized in NRS 616B.116 to 616B.164, inclusive.] made pursuant to this section.

    7.  The system may accept due bills from brokers upon delivery of warrants if the certificates representing the investments are not readily available.

      Sec. 8.  NRS 616B.185 is hereby amended to read as follows:

    616B.185  1.  Any offender confined at the state prison, while engaged in work in a prison industry or work program, whether the program is operated by an institution of the department of prisons, by contract with a public entity or by a private employer, is entitled to coverage under the modified program of industrial insurance established by regulations adopted by the [system when] division if the director of the department of prisons [requests such coverage and] complies with the provisions of the regulations, and coverage is approved by the system [.] or a private carrier.

    2.  An offender is limited to the rights and remedies established by the provisions of the modified program of industrial insurance established by regulations adopted by the [system.] division. The offender is not entitled to any rights and remedies established by the provisions of chapters 616A to 617, inclusive, of NRS.

    3.  The [system] division shall, in cooperation with the department of prisons and the risk management division of the department of administration, adopt regulations setting forth a modified program of industrial insurance to provide offenders with industrial insurance against personal injuries arising out of and in the course of their work in a prison industry or work program.

      Sec. 9.  NRS 616B.186 is hereby amended to read as follows:

    616B.186  1.  Any offender confined in a county jail, city jail or other local detention facility, while engaged in work in a work program directed by


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

κ1999 Statutes of Nevada, Page 1718 (CHAPTER 383, SB 495)κ

 

the administrator of the jail or other detention facility, whether the work program is operated by contract with a public entity or by a private employer, may receive coverage under the modified program of industrial insurance established by regulations adopted by the division if the administrator of the jail or other detention facility [requests such coverage and] complies with the provisions of the regulations [.] and coverage is approved by the system or a private carrier.

    2.  An offender is limited to the rights and remedies established by the provisions of the modified program of industrial insurance established by regulations adopted by the division. The offender is not entitled to any rights and remedies established by the provisions of chapters 616A to 617, inclusive, of NRS.

    3.  The division, in cooperation with the various administrators of jails and other detention facilities, shall adopt regulations setting forth a modified program of industrial insurance to provide offenders with industrial insurance against personal injuries arising out of and in the course of their work in a work program.

    4.  As used in this section, “administrator of the jail or other detention facility” means the sheriff of a county jail, chief of police of a city jail or director of a local detention facility.

      Sec. 10.  NRS 616B.211 is hereby amended to read as follows:

    616B.211  [In addition to the authority given the manager to determine and fix premium rates pursuant to NRS 616B.218 to 616B.230, inclusive, the] The manager may establish a plan for classifying employers insured by the system as small employers pursuant to chapters 616A to 616D, inclusive, or [chapter] 617 of NRS. Upon establishing such a plan, the manager may, with the approval of the commissioner, determine and fix the premium rates of those employers pursuant to the plan.

      Sec. 11.  NRS 616B.212 is hereby amended to read as follows:

    616B.212  [In addition to the authority given the manager to determine and fix premium rates of employers pursuant to NRS 616B.218 to 616B.230, inclusive, the] The manager may by regulation establish a plan for classifying employers insured by the system who, because of the risks inherent in the businesses in which the employers are engaged, are reasonably likely to incur a greater number of claims for compensation pursuant to chapters 616A to 616D, inclusive, or [chapter] 617 of NRS. Upon establishing such a plan, the manager may, with the approval of the commissioner, determine and fix the premium rates of those employers.

      Sec. 12.  NRS 616B.224 is hereby amended to read as follows:

    616B.224  1.  Every private or public employer who is not a self-insured employer or a member of an association of self-insured public or private employers shall, at intervals and on or before dates established by his insurer, furnish the insurer with [a] :

    (a) A true and accurate payroll showing:

    [(a)] (1) The total amount paid to employees for services performed;

    [(b)] (2) The amount of tips reported to him by every employee pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more; and


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

κ1999 Statutes of Nevada, Page 1719 (CHAPTER 383, SB 495)κ

 

      [(c)] (3) A segregation of employment in accordance with the requirements of the commissioner [, together with the premium due thereon.] ; and

      (b) Any premium due pursuant to the terms of the policy of industrial insurance.

The payroll reports and any premium [must] may be furnished to the insurer on [or before the date] different dates, as established by the insurer . [for the receipt of the payroll and premium.

      2.  Any employer by agreement in writing with the insurer may arrange for the payment of premiums in advance at an interval established by the insurer.

      3.] 2.  Failure of any employer to comply with the provisions of this section [and NRS 616B.218] operates as a rejection of chapters 616A to 616D, inclusive, of NRS, effective [at the expiration of the period covered by his estimate.] on the date established by the insurer pursuant to subsection 1. The insurer shall notify the administrator of each such rejection.

      [4.  If an audit of the accounts or actual payroll of an employer shows that the actual premium earned exceeds the estimated premium paid in advance, the insurer may require the payment of money sufficient to cover the deficit, together with such amount as in his judgment constitutes an adequate advance premium for the period covered by the estimate.

      5.] 3.  The insurer shall notify any employer or his representative by first-class mail of any failure on his part to comply with the provisions of this section. The notice or its omission does not modify or waive the requirements or effective rejection of chapters 616A to 616D, inclusive, and 617 of NRS as otherwise provided in those chapters.

      [6.] 4.  The system may impose a penalty not to exceed 10 percent of the premiums which are due for the failure of an employer insured by the system to submit the information and premium required in subsection 1 within the time allowed, unless the employer has applied for and been granted an extension of that time by the manager.

      [7.] 5.  To the extent permitted by federal law, the insurer shall vigorously pursue the collection of premiums that are due under the provisions of chapters 616A to 616D, inclusive, and 617 of NRS even if an employer’s debts have been discharged in a bankruptcy proceeding.

      6.  Every employer insured by the system shall pay its premiums to the state insurance fund. All money received by the system pursuant to this section must be deposited with the state treasurer to the credit of the state insurance fund.

      Sec. 13.  NRS 616B.386 is hereby amended to read as follows:

      616B.386  1.  If an employer wishes to become a member of an association of self-insured public or private employers, the employer must:

      (a) Submit an application for membership to the board of trustees or third-party administrator of the association; and

      (b) Enter into an indemnity agreement as required by NRS 616B.353.

      2.  The membership of the applicant becomes effective when each member of the association approves the application or on a later date specified by the association. The application for membership and the action taken on the application must be maintained as permanent records of the board of trustees.


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

κ1999 Statutes of Nevada, Page 1720 (CHAPTER 383, SB 495)κ

 

taken on the application must be maintained as permanent records of the board of trustees.

    3.  Each member who is a member of an association during the 12 months immediately following the formation of the association must:

    (a) Have a tangible net worth of at least $500,000; or

    (b) Have had a reported payroll for the previous 12 months which would have resulted in a manual premium of at least $15,000, calculated in accordance with a manual prepared pursuant to subsection 4 of NRS 686B.1765.

    4.  An employer who seeks to become a member of the association after the 12 months immediately following the formation of the association must meet the requirement set forth in paragraph (a) or (b) of subsection 3 unless the commissioner adjusts the requirement for membership in the association after conducting an annual review of the actuarial solvency of the association pursuant to subsection 1 of NRS 616B.353.

    5.  An association of self-insured private employers may apply to the commissioner for authority to determine the amount of tangible net worth and manual premium that an employer must have to become a member of the association. The commissioner shall approve the application if the association:

    (a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the commissioner;

    (b) Has a combined tangible net worth of all members in the association of at least $5,000,000;

    (c) Has at least 15 members; and

    (d) Has not been required to meet informally with the commissioner pursuant to subsection 1 of NRS 616B.431 during the 18-month period immediately preceding the date on which the association filed the application with the commissioner or, if the association has been required to attend such a meeting during that period, has not had its certificate withdrawn before the date on which the association filed the application.

    6.  An association of self-insured private employers may apply to the commissioner for authority to determine the documentation demonstrating solvency that an employer must provide to become a member of the association. The commissioner shall approve the application if the association:

    (a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the commissioner;

    (b) Has a combined tangible net worth of all members in the association of at least $5,000,000; and

    (c) Has at least 15 members.

    7.  The commissioner may withdraw his approval of an application submitted pursuant to subsection 5 or 6 if he determines the association has ceased to comply with any of the requirements set forth in subsection 5 or 6, as applicable.


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

κ1999 Statutes of Nevada, Page 1721 (CHAPTER 383, SB 495)κ

 

    8.  [Except as otherwise provided in NRS 616B.389, a] A member of an association may terminate his membership at any time. To terminate his membership, a member must submit to the association’s administrator a notice of intent to withdraw from the association at least 120 days before the effective date of withdrawal. The association’s administrator shall, within 10 days after receipt of the notice, notify the commissioner of the employer’s intent to withdraw from the association.

    9.  The members of an association may cancel the membership of any member of the association in accordance with the bylaws of the association.

    10.  The association shall:

    (a) Within 30 days after the addition of an employer to the membership of the association, notify the commissioner of the addition and:

      (1) If the association has not received authority from the commissioner pursuant to subsection 5 or 6, as applicable, provide to the commissioner all information and assurances for the new member that were required from each of the original members of the association upon its organization; or

      (2) If the association has received authority from the commissioner pursuant to subsection 5 or 6, as applicable, provide to the commissioner evidence that is satisfactory to the commissioner that the new member is a member or associate member of the bona fide trade association as required pursuant to paragraph (a) of subsection 2 of NRS 616B.350, a copy of the indemnity agreement that jointly and severally binds the new member, the other members of the association and the association that is required to be executed pursuant to paragraph (a) of subsection 1 of NRS 616B.353 and any other information the commissioner may reasonably require to determine whether the amount of security deposited with the commissioner pursuant to paragraph (d) or (e) of subsection 1 of NRS 616B.353 is sufficient, but such information must not exceed the information required to be provided to the commissioner pursuant to subparagraph (1);

    (b) Notify the commissioner and the administrator of the termination or cancellation of the membership of any member of the association within 10 days after the termination or cancellation; and

    (c) At the expense of the member whose membership is terminated or canceled, maintain coverage for that member for 30 days after notice is given pursuant to paragraph (b), unless the association first receives notice from the administrator that the member has:

      (1) Become insured by the system;

      (2) Been certified as a self-insured employer pursuant to NRS 616B.312;

      (3) Become a member of another association of self-insured public or private employers; or

      (4) Become insured by a private carrier.

    11.  If a member of an association changes his name or form of organization, the member remains liable for any obligations incurred or any responsibilities imposed pursuant to chapters 616A to 617, inclusive, of NRS under his former name or form of organization.

    12.  An association is liable for the payment of any compensation required to be paid by a member of the association pursuant to chapters 616A to 616D, inclusive, or [chapter] 617 of NRS during his period of membership.


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

κ1999 Statutes of Nevada, Page 1722 (CHAPTER 383, SB 495)κ

 

membership. The insolvency or bankruptcy of a member does not relieve the association of liability for the payment of the compensation.

      Sec. 14.  NRS 616B.407 is hereby amended to read as follows:

    616B.407  1.  Except as otherwise provided in subsection 2, the annual assessment required to be paid by each member of an association of self-insured public or private employers must be [calculated by a rating organization approved by the commissioner and based] :

    (a) Calculated by a rate service organization that is licensed pursuant to chapter 686B of NRS; and

    (b) Based on the premium rate for the standard industrial classification of that member, adjusted by the member’s individual experience.

If approved by the commissioner, payments of assessments may be reduced by an amount based on the association’s level of expenses and loss experience.

    2.  If approved by the commissioner, an association may calculate the annual assessment required to be paid by each member of the association. An assessment calculated by the association must be based on at least 5 years of the member’s individual experience.

      Sec. 15.  NRS 616B.463 is hereby amended to read as follows:

    616B.463  1.  Before a private carrier may provide industrial insurance pursuant to chapters 616A to 617, inclusive, of NRS, the private carrier must be authorized by the commissioner pursuant to chapter 680A of NRS and maintain such security of the kind described in NRS 680A.120 and 680A.140 as may be required.

    2.  A private carrier shall not provide industrial insurance pursuant to chapters 616A to 617, inclusive, of NRS as an unauthorized insurer pursuant to subsection 9 of NRS 680A.070.

    3.  A private carrier that is authorized by the commissioner to provide industrial insurance pursuant to subsection 1:

    (a) Constitutes an authorized insurer, as that term is defined in NRS 679A.030; and

    (b) Is subject to the provisions of Title 57 of NRS that govern authorized insurers.

      Sec. 16.  NRS 616B.472 is hereby amended to read as follows:

    616B.472  1.  The commissioner shall suspend the authorization of a private carrier to provide industrial insurance for 1 year if , after a hearing thereon, the commissioner finds that the private carrier has intentionally or repeatedly failed to comply with the provisions of chapters 616A to 616D, inclusive, or [chapter] 617 of NRS or the regulations of the division [.

    2.  Before the commissioner suspends the authorization of a private carrier, he shall arrange an informal meeting with the private carrier to discuss and seek correction of any conduct which would be grounds for suspension.

    3.  Before the suspension of the authorization, the commissioner shall give written notice to the private carrier by certified mail or electronic transmission that its authorization will be suspended within 10 days after it receives the notice unless, within that time, the private carrier corrects the conduct set forth in the notice as the reason for the withdrawal or submits a written request for a hearing to the commissioner.


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

κ1999 Statutes of Nevada, Page 1723 (CHAPTER 383, SB 495)κ

 

    4.  If the private carrier requests a hearing:

    (a) The commissioner shall set a date for a hearing within 20 days after receiving the notice of the appeal and shall give the private carrier at least 10 business days’ notice of the time and place of the hearing.

    (b)]or the commissioner.

    2.  A hearing to determine whether the authorization of a private carrier to provide industrial insurance will be suspended pursuant to subsection 1 must be conducted by the commissioner pursuant to the provisions of NRS 679B.310 to 679B.370, inclusive, the regulations adopted pursuant thereto and the provisions of chapter 233B of NRS concerning adjudication of contested cases. A record of the hearing must be kept but it need not be transcribed unless requested by the private carrier. The cost of transcription must be charged to the private carrier.

    [5.  Within 5 days after the hearing, the commissioner shall affirm or deny his order suspending the authorization of the private carrier and notify the private carrier by certified mail or electronic transmission of his decision.

    6.  If the private carrier does not comply with the order of the commissioner during the period of suspension of the authorization, the commissioner shall file an order prohibiting the private carrier from issuing new policies until the order has expired. A copy of the order must be sent by certified mail or electronic transmission to the private carrier.]

      Sec. 17.  NRS 616B.612 is hereby amended to read as follows:

    616B.612  1.  Every employer within the provisions of chapters 616A to 616D, inclusive, or 617 of NRS, and those employers who accept the terms of those chapters and are governed by their provisions, shall provide and secure compensation according to the terms, conditions and provisions of those chapters for any personal injuries by accident sustained by an employee arising out of and in the course of the employment.

    2.  Travel for which an employee receives wages shall, for the purposes of chapters 616A to 616D, inclusive, of NRS, be deemed in the course of employment.

    3.  In such cases the employer or any insurer of the employer is relieved from other liability for recovery of damages or other compensation for those personal injuries unless otherwise provided by the terms of chapters 616A to 616D, inclusive, of NRS.

      Sec. 18.  NRS 616B.624 is hereby amended to read as follows:

    616B.624  1.  If a quasi-public or private corporation or a limited-liability company is required to be insured pursuant to chapters 616A to 616D, inclusive, of NRS, an officer of the corporation or a manager of the company who:

    (a) Receives pay for services performed as an officer, manager or employee of the corporation or company shall be deemed for the purposes of those chapters to receive a minimum pay of $6,000 per [calendar] year the policy of industrial insurance for the employer is effective and a maximum pay of $36,000 per [calendar year.] year the policy of industrial insurance is effective.

    (b) Does not receive pay for services performed as an officer, manager or employee of the corporation or company shall be deemed for the purposes of


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

κ1999 Statutes of Nevada, Page 1724 (CHAPTER 383, SB 495)κ

 

those chapters to receive a minimum pay of $500 per month or $6,000 per [calendar year.] year the policy of industrial insurance is effective.

    2.  An officer or manager who does not receive pay for services performed as an officer, manager or employee of the corporation or company may elect to reject coverage by filing written notice thereof with the corporation or company and the insurer. The rejection is effective upon receipt of the notice by the insurer.

    3.  An officer or manager who has rejected coverage may rescind that rejection by filing written notice thereof with the corporation or company and the insurer. The rescission is effective upon receipt of the notice by the insurer. If an officer or manager who has rejected coverage receives pay for services performed as an officer, manager or employee of the corporation or company, the officer or manager shall be deemed to have rescinded that rejection.

    4.  A nonprofit corporation whose officers do not receive pay for services performed as officers or employees of the corporation may elect to reject coverage for its current officers and all future officers who do not receive such pay by filing written notice thereof with the corporation and the insurer. The rejection is effective upon receipt of the notice by the insurer.

    5.  A nonprofit corporation which has rejected coverage for its officers who do not receive pay for services performed as officers or employees of the corporation may rescind that rejection by filing written notice thereof with the corporation and the insurer. The rescission is effective upon receipt of the notice by the insurer. If an officer of a nonprofit corporation which has rejected coverage receives pay for services performed as an officer or employee of the corporation, the corporation shall be deemed to have rescinded that rejection.

      Sec. 19.  NRS 616B.670 is hereby amended to read as follows:

    616B.670  As used in NRS 616B.670 to 616B.697, inclusive, unless the context otherwise requires:

    1.  “Applicant” means a person seeking a certificate of [insurance] registration pursuant to NRS 616B.670 to 616B.697, inclusive, to operate an employee leasing company.

    2.  “Client company” means a company which leases employees, for a fee, from an employee leasing company pursuant to a written or oral agreement.

    3.  “Employee leasing company” means a company which, pursuant to a written or oral agreement:

    (a) Places any of the regular, full-time employees of a client company on its payroll and, for a fee, leases them to the client company on a regular basis without any limitation on the duration of their employment; or

    (b) Leases to a client company:

      (1) Five or more part-time or full-time employees; or

      (2) Ten percent or more of the total number of employees within a classification of risk established by the [system.] commissioner.

      Sec. 20.  NRS 616B.673 is hereby amended to read as follows:

    616B.673  1.  A person shall not operate an employee leasing company in this state unless he has complied with the provisions of NRS 616B.670 to 616B.697, inclusive. The [manager] administrator shall issue a certificate of [insurance] registration to each applicant who complies with the provisions of NRS 616B.670 to 616B.697, inclusive.


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

κ1999 Statutes of Nevada, Page 1725 (CHAPTER 383, SB 495)κ

 

[insurance] registration to each applicant who complies with the provisions of NRS 616B.670 to 616B.697, inclusive.

    2.  Any person who violates the provisions of subsection 1 is guilty of a misdemeanor.

    3.  Each certificate of [insurance] registration issued by the [manager] administrator pursuant to NRS 616B.670 to 616B.697, inclusive, expires 1 year after it is issued unless renewed before that date.

      Sec. 21.  NRS 616B.676 is hereby amended to read as follows:

    616B.676  An applicant for the issuance or renewal of a certificate of [insurance] registration must submit to the [manager] administrator a written application upon a form provided by the [manager.] administrator.

      Sec. 22.  NRS 616B.679 is hereby amended to read as follows:

    616B.679  1.  Each application must include:

    (a) The applicant’s name and title of his position with the employee leasing company.

    (b) The applicant’s age, place of birth and social security number.

    (c) The applicant’s address.

    (d) The business address of the employee leasing company.

    (e) The business address of the resident agent of the employee leasing company, if the applicant is not the resident agent.

    (f) If the applicant is a:

      (1) Partnership, the name of the partnership and the name, address, age, social security number and title of each partner.

      (2) Corporation, the name of the corporation and the name, address, age, social security number and title of each officer of the corporation.

    (g) Proof of:

      (1) The payment of any taxes required by chapter 364A of NRS.

      (2) The payment of any premiums for industrial insurance required by chapters 616A to 617, inclusive, of NRS.

      (3) The payment of contributions or payments in lieu of contributions required by chapter 612 of NRS.

      (4) Insurance coverage for any benefit plan from an insurer authorized pursuant to Title 57 of NRS that is offered by the employee leasing company to its employees.

      [(5) Membership in the National Staff Leasing Association, or its successor organization.]

    (h) Any other information the [manager] administrator requires.

    2.  Each application must be notarized and signed under penalty of perjury:

    (a) If the applicant is a sole proprietorship, by the sole proprietor.

    (b) If the applicant is a partnership, by each partner.

    (c) If the applicant is a corporation, by each officer of the corporation.

    3.  An applicant shall submit to the [manager] administrator any change in the information required by this section within 30 days after the change occurs. The [manager] administrator may revoke the certificate of [insurance] registration of an employee leasing company which fails to comply with the provisions of [this subsection. If the manager revokes the certificate of insurance and cancels the] NRS 616B.670 to 616B.697, inclusive.


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

κ1999 Statutes of Nevada, Page 1726 (CHAPTER 383, SB 495)κ

 

    4.  If an insurer cancels an employee leasing company’s policy, the [manager] insurer shall immediately notify the administrator [, who shall proceed in accordance with the provisions of NRS 616D.110.] in writing. The notice must comply with the provisions of NRS 687B.310 to 687B.355, inclusive, and must be served personally on or sent by first-class mail or electronic transmission to the administrator.

      Sec. 23.  NRS 616B.694 is hereby amended to read as follows:

    616B.694  The [manager, in cooperation with the administrator of the employment security division of the department of employment, training and rehabilitation, shall, and the commissioner of insurance] administrator may, adopt regulations to carry out the provisions of NRS 616B.670 to 616B.697, inclusive.

      Sec. 24.  NRS 616B.697 is hereby amended to read as follows:

    616B.697  An action for damages caused by the failure of an employee leasing company to comply with the provisions of NRS 616B.670 to 616B.697, inclusive, may be brought against any person who is required to sign the application for a certificate of [insurance] registration for the employee leasing company.

      Sec. 25.  NRS 616C.220 is hereby amended to read as follows:

    616C.220  1.  The division shall designate one:

    (a) Third-party administrator who has a valid certificate issued by the commissioner pursuant to NRS 683A.085; or

    (b) Insurer, other than a self-insured employer or association of self-insured public or private employers,

to administer claims against the uninsured employers’ claim fund. The designation must be made pursuant to reasonable competitive bidding procedures established by the administrator.

    2.  An employee may receive compensation from the uninsured employers’ claim fund if:

    (a) He was hired in this state or he is regularly employed in this state;

    (b) He suffers an accident or injury in this state which arises out of and in the course of his employment;

    (c) He files a claim for compensation with the division; and

    (d) He makes an irrevocable assignment to the division of a right to be subrogated to the rights of the injured employee pursuant to NRS 616C.215.

    [2.] 3.  If the division receives a claim pursuant to subsection [1,] 2, the division shall immediately notify the employer of the claim.

    [3.] 4.  For the purposes of this section, the employer has the burden of proving that he provided mandatory industrial insurance coverage for the employee or that he was not required to maintain industrial insurance for the employee.

    [4.] 5.  Any employer who has failed to provide mandatory coverage required by the provisions of chapters 616A to 616D, inclusive, of NRS is liable for all payments made on his behalf, including any benefits, administrative costs or attorney’s fees paid from the uninsured employers’ claim fund or incurred by the division.

    [5.] 6.  The division:


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

κ1999 Statutes of Nevada, Page 1727 (CHAPTER 383, SB 495)κ

 

    (a) May recover from the employer the payments made by the division that are described in subsection [4] 5 and any accrued interest by bringing a civil action in district court.

    (b) In any civil action brought against the employer, is not required to prove that negligent conduct by the employer was the cause of the employee’s injury.

    (c) May enter into a contract with any person to assist in the collection of any liability of an uninsured employer.

    (d) In lieu of a civil action, may enter into an agreement or settlement regarding the collection of any liability of an uninsured employer.

    [6.] 7.  The division shall:

    (a) Determine whether the employer was insured within 30 days after receiving notice of the claim from the employee.

    (b) Assign the claim to the [system] third-party administrator or insurer designated pursuant to subsection 1 for administration [of the claim, payment of benefits and reimbursement of costs of administration and benefits paid to the system. Upon determining that a claim is invalid, the system] and payment of compensation.

Upon determining whether the claim is accepted or denied, the designated third-party administrator or insurer shall notify the [claimant,] injured employee, the named employer and the division [that the claim will not be assigned for benefits from the uninsured employers’ claim fund.

    7.] of its determination.

    8.  Upon demonstration of the:

    (a) Costs incurred by the designated third-party administrator or insurer to administer the claim or pay compensation to the injured employee; or

    (b) Amount that the designated third-party administrator or insurer will pay for administrative expenses or compensation to the injured employee and that such amounts are justified by the circumstances of the claim,

the division shall authorize payment from the uninsured employers’ claim fund.

    9.  Any party aggrieved by a [decision] determination regarding the administration of an assigned claim or a [decision] determination made by the division or by the [system] designated third-party administrator or insurer regarding any claim made pursuant to this section may appeal that [decision] determination within 60 days after the [decision] determination is rendered to the hearings division of the department of administration in the manner provided by NRS 616C.305 and 616C.315 to 616C.385, inclusive.

    [8.] 10.  All insurers shall bear a proportionate amount of a claim made pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a proportionate amount of any collection made pursuant to this section as an offset against future liabilities.

    [9.] 11.  An uninsured employer is liable for the interest on any amount paid on his claims from the uninsured employers’ claim fund. The interest must be calculated at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the claim, plus 3 percent, compounded monthly, from the date the claim is paid from the fund until payment is received by the division from the employer.


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

κ1999 Statutes of Nevada, Page 1728 (CHAPTER 383, SB 495)κ

 

claim, plus 3 percent, compounded monthly, from the date the claim is paid from the fund until payment is received by the division from the employer.

    [10.] 11.  Attorney’s fees recoverable by the division pursuant to this section must be:

    (a) If a private attorney is retained by the division, paid at the usual and customary rate for that attorney.

    (b) If the attorney is an employee of the division, paid at the rate established by regulations adopted by the division.

Any money collected must be deposited to the uninsured employers’ claim fund.

    [11.] 12.  In addition to any other liabilities provided for in this section, the administrator may impose an administrative fine of not more than $10,000 against an employer if the employer fails to provide mandatory coverage required by the provisions of chapters 616A to 616D, inclusive, of NRS.

      Sec. 26.  NRS 616C.355 is hereby amended to read as follows:

    616C.355  At any time 10 or more days before a scheduled hearing before an appeals officer, the administrator [, the manager or the manager’s] or the administrator’s designee, a party shall mail or deliver to the opposing party any affidavit or declaration which he proposes to introduce into evidence and notice to the effect that unless the opposing party, within 7 days after the mailing or delivery of such affidavit or declaration, mails or delivers to the proponent a request to cross-examine the affiant or declarant, his right to cross-examine the affiant or declarant is waived and the affidavit or declaration, if introduced into evidence, will have the same effect as if the affiant or declarant had given sworn testimony before the appeals officer, the administrator [, the manager or the manager’s] or the administrator’s designee.

    Sec. 27.  NRS 616C.385 is hereby amended to read as follows:

    616C.385  If a party petitions the district court for judicial review of a final decision of an appeals officer, the [manager or the manager’s] administrator or the administrator’s designee, and the petition is found by the district court to be frivolous or brought without reasonable grounds, the district court may order costs and a reasonable attorney’s fee to be paid by the petitioner.

      Sec. 28.  NRS 616D.050 is hereby amended to read as follows:

    616D.050  1.  Appeals officers, the administrator [, the manager and the manager’s] and the administrator’s designee, in conducting hearings or other proceedings pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS or regulations adopted pursuant to those chapters may:

    (a) Issue subpoenas requiring the attendance of any witness or the production of books, accounts, papers, records and documents.

    (b) Administer oaths.

    (c) Certify to official acts.

    (d) Call and examine under oath any witness or party to a claim.

    (e) Maintain order.

    (f) Rule upon all questions arising during the course of a hearing or proceeding.

    (g) Permit discovery by deposition or interrogatories.


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

κ1999 Statutes of Nevada, Page 1729 (CHAPTER 383, SB 495)κ

 

    (h) Initiate and hold conferences for the settlement or simplification of issues.

    (i) Dispose of procedural requests or similar matters.

    (j) Generally regulate and guide the course of a pending hearing or proceeding.

    2.  Hearing officers, in conducting hearings or other proceedings pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS or regulations adopted pursuant to those chapters, may:

    (a) Issue subpoenas requiring the attendance of any witness or the production of books, accounts, papers, records and documents that are relevant to the dispute for which the hearing or other proceeding is being held.

    (b) Maintain order.

    (c) Permit discovery by deposition or interrogatories.

    (d) Initiate and hold conferences for the settlement or simplification of issues.

    (e) Dispose of procedural requests or similar matters.

    (f) Generally regulate and guide the course of a pending hearing or proceeding.

      Sec. 29.  NRS 616D.070 is hereby amended to read as follows:

    616D.070  If any person:

    1.  Disobeys an order of an appeals officer, a hearing officer, the administrator [, the manager or the manager’s] or the administrator’s designee, or a subpoena issued by the [manager, manager’s designee,] administrator, administrator’s designee, appeals officer, hearing officer, inspector or examiner;

    2.  Refuses to permit an inspection; or

    3.  As a witness, refuses to testify to any matter for which he may be lawfully interrogated,

the district judge of the county in which the person resides, on application of the appeals officer, the hearing officer, the administrator [, the manager or the manager’s] or the administrator’s designee, shall compel obedience by attachment proceedings as for contempt, as in the case of disobedience of the requirements of subpoenas issued from the court on a refusal to testify therein.

      Sec. 30.  NRS 616D.080 is hereby amended to read as follows:

    616D.080  1.  Each officer who serves a subpoena is entitled to receive the same fees as a sheriff.

    2.  Each witness who appears, in obedience to a subpoena which has been issued pursuant to this chapter or chapter 616A, 616B or 616C of NRS, before an appeals officer, a hearing officer, the administrator [, the manager or the manager’s] or the administrator’s designee, is entitled to receive for his attendance the fees and mileage provided for witnesses in civil cases in courts of record. For subpoenas issued on behalf of this state or an officer or agency thereof, the fees and mileage are not required to be tendered at the same time that the subpoena is delivered to the person named therein.

    3.  The appeals officer, hearing officer, administrator [, manager or the manager’s] or the administrator’s designee shall:


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

κ1999 Statutes of Nevada, Page 1730 (CHAPTER 383, SB 495)κ

 

    (a) Authorize payment from his administrative budget of the fees and mileage due to such a witness; or

    (b) Impose those costs upon the party at whose instance the witness was subpoenaed or, for good cause shown, upon any other party.

      Sec. 31.  NRS 616D.100 is hereby amended to read as follows:

    616D.100  1.  A transcribed copy of the evidence and proceedings, or any specific part thereof, of any final hearing or investigation, made by a stenographer appointed by an appeals officer, a hearing officer, the administrator [, the manager or the manager’s] or the administrator’s designee, being certified by that stenographer to be a true and correct transcript of the testimony in the final hearing or investigation, or of a particular witness, or of a specific part thereof, and carefully compared by him with his original notes, and to be a correct statement of the evidence and proceedings had on the final hearing or investigation so purporting to be taken and transcribed, may be received in evidence with the same effect as if the stenographer had been present and testified to the facts so certified.

    2.  A copy of the transcript must be furnished on demand to any party upon the payment of the fee required for transcripts in courts of record.

      Sec. 32.  NRS 616D.200 is hereby amended to read as follows:

    616D.200  1.  If the administrator finds that an employer within the provisions of NRS 616B.633 has failed to provide and secure compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS or that the employer has provided and secured that compensation but has failed to maintain it, he shall make a determination thereon and may charge the employer an amount equal to the sum of:

    (a) The premiums that would otherwise have been owed to the system or a private carrier pursuant to the terms of chapters 616A to 616D, inclusive, of NRS for the period that the employer was doing business in this state without providing, securing or maintaining that compensation, but not to exceed 6 years; and

    (b) [The actual costs incurred by the system in reinstating the policy, but not to exceed 10 percent of the premiums owed by the employer; and

    (c)] Interest at a rate determined pursuant to NRS 17.130 computed from the time that the premiums should have been paid.

The money collected pursuant to this subsection must be paid into the uninsured employers’ claim fund.

    2.  The administrator shall deliver a copy of his determination to the employer. An employer who is aggrieved by the determination of the administrator may appeal from the determination pursuant to subsection 2 of NRS 616D.220.

    3.  Any employer within the provisions of NRS 616B.633 who fails to provide, secure or maintain compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS, is:

    (a) For the first offense, guilty of a misdemeanor.

    (b) For a second or subsequent offense committed within 7 years after the previous offense, guilty of a category C felony and shall be punished as provided in NRS 193.130.

Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.


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

κ1999 Statutes of Nevada, Page 1731 (CHAPTER 383, SB 495)κ

 

      Sec. 33.  NRS 616D.210 is hereby amended to read as follows:

    616D.210  1.  Any person who:

    (a) Is the legal or beneficial owner of 25 percent or more of a business which terminates operations while owing a premium , interest or penalty to the system or a private carrier and becomes, or induces or procures another person to become, the legal or beneficial owner of 25 percent or more of a new business engaging in similar operations; or

    (b) Knowingly aids or abets another person in carrying out such conduct,

is liable in a civil action for the payment of any premium, interest and penalties owed to the system or the private carrier and the reasonable costs incurred by the system or private carrier to investigate and act upon such conduct.

    2.  The system or private carrier shall not insure any business which engages in the conduct described in subsection 1 unless the premium and any interest and penalties owed to the [system or private carrier] prior insurer have been paid [.] to that insurer.

    3.  As used in this section, “business” includes, but is not limited to, a firm, sole proprietorship, voluntary association or private corporation.

      Sec. 34.  NRS 616D.220 is hereby amended to read as follows:

    616D.220  1.  If the administrator finds that any employer or any employee, officer or agent of any employer has knowingly:

    (a) Made a false statement or has knowingly failed to report a material fact concerning the amount of payroll upon which a premium is based; or

    (b) Misrepresented the classification or duties of an employee,

he shall make a determination thereon and charge the employer’s account an amount equal to [three times] the amount of the premium [due.] that would have been due had the proper information been submitted. The administrator shall deliver a copy of his determination to the employer. The money collected pursuant to this subsection must be paid into the uninsured employers’ claim fund.

    2.  An employer who is aggrieved by the determination of the administrator may appeal from the determination by filing a request for a hearing. The request must be filed within 30 days after the date on which a copy of the determination was delivered to the employer. The administrator shall hold a hearing within 30 days after he receives the request. The determination of the administrator made pursuant to a hearing is a final decision for the purposes of judicial review. The amount of the determination as finally decided by the administrator becomes due within 30 days after the determination is served on the employer.

    3.  A person who knowingly:

    (a) Makes a false statement or representation or who knowingly fails to report a material fact concerning the amount of payroll upon which a premium is based; or

    (b) Misrepresents the classification or duties of an employee,

is guilty of a gross misdemeanor. Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.

      Sec. 35.  NRS 617.105 is hereby amended to read as follows:

    617.105  Any real estate licensee doing business in this state and receiving wages, commissions or other compensation based upon sales shall be deemed for the purpose of this chapter to earn wages of [$900] $1,500 per month.


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

κ1999 Statutes of Nevada, Page 1732 (CHAPTER 383, SB 495)κ

 

be deemed for the purpose of this chapter to earn wages of [$900] $1,500 per month.

      Sec. 36.  NRS 617.207 is hereby amended to read as follows:

    617.207  1.  If a quasi-public or private corporation or limited-liability company is required to be insured pursuant to this chapter, an officer of the corporation or a manager of the company who:

    (a) Receives pay for service performed shall be deemed for the purposes of this chapter to receive a minimum pay of $6,000 per [calendar] year the policy of industrial insurance for the employer is effective and a maximum pay of $36,000 per [calendar year.] year the policy of industrial insurance is effective.

    (b) Does not receive pay for services performed shall be deemed for the purposes of this chapter to receive a minimum pay of $500 per month or $6,000 per [calendar year.] year the policy of industrial insurance is effective.

    2.  An officer or manager who does not receive pay for services performed may elect to reject coverage by filing written notice thereof with the corporation or company and the insurer. The rejection is effective upon receipt of the notice by the insurer.

    3.  An officer or manager who has rejected coverage may rescind that rejection by filing written notice thereof with the corporation or company and the insurer. The rescission is effective upon receipt of the notice by the insurer.

      Sec. 37.  NRS 617.401 is hereby amended to read as follows:

    617.401  1.  The division shall designate one:

    (a) Third-party administrator who has a valid certificate issued by the commissioner pursuant to NRS 683A.085; or

    (b) Insurer, other than a self-insured employer or association of self-insured public or private employers,

to administer claims against the uninsured employers’ claim fund. The designation must be made pursuant to reasonable competitive bidding procedures established by the administrator.

    2.  An employee may receive compensation from the uninsured employers’ claim fund if:

    (a) He was hired in this state or he is regularly employed in this state;

    (b) He contracts an occupational disease as a result of work performed in this state;

    (c) He files a claim for compensation with the division; and

    (d) He makes an irrevocable assignment to the division of a right to be subrogated to the rights of the employee pursuant to NRS 616C.215.

    [2.] 3.  If the division receives a claim pursuant to subsection [1,] 2, the division shall immediately notify the employer of the claim.

    [3.] 4.  For the purposes of this section, the employer has the burden of proving that he provided mandatory coverage for occupational diseases for the employee or that he was not required to maintain industrial insurance for the employee.

    [4.] 5.  Any employer who has failed to provide mandatory coverage required by the provisions of this chapter is liable for all payments made on his behalf, including, but not limited to, any benefits, administrative costs or attorney’s fees paid from the uninsured employers’ claim fund or incurred by the division.


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

κ1999 Statutes of Nevada, Page 1733 (CHAPTER 383, SB 495)κ

 

attorney’s fees paid from the uninsured employers’ claim fund or incurred by the division.

      [5.] 6.  The division:

      (a) May recover from the employer the payments made by the division that are described in subsection [4] 5 and any accrued interest by bringing a civil action in district court.

      (b) In any civil action brought against the employer, is not required to prove that negligent conduct by the employer was the cause of the occupational disease.

      (c) May enter into a contract with any person to assist in the collection of any liability of an uninsured employer.

      (d) In lieu of a civil action, may enter into an agreement or settlement regarding the collection of any liability of an uninsured employer.

      [6.] 7.  The division shall:

      (a) Determine whether the employer was insured within 30 days after receiving the claim from the employee.

      (b) Assign the claim to the [system] third-party administrator or insurer designated pursuant to subsection 1 for administration [of the claim, payment of benefits and reimbursement of costs of administration and benefits paid to the system. Upon determining that a claim is invalid, the system] and payment of compensation.

Upon determining whether the claim is accepted or denied, the designated third-party administrator or insurer shall notify the [claimant,] injured employee, the named employer and the division [that the claim will not be assigned for benefits from the uninsured employers’ claim fund.

      7.] of its determination.

      8.  Upon demonstration of the:

      (a) Costs incurred by the designated third-party administrator or insurer to administer the claim or pay compensation to the injured employee; or

      (b) Amount that the designated third-party administrator or insurer will pay for administrative expenses or compensation to the injured employee and that such amounts are justified by the circumstances of the claim,

the division shall authorize payment from the uninsured employers’ claim fund.

      9.  Any party aggrieved by a [decision] determination regarding the administration of an assigned claim or a [decision] determination made by the division or by the [system] designated third-party administrator or insurer regarding any claim made pursuant to this section may appeal that [decision] determination within 60 days after the [decision] determination is rendered to the hearings division of the department of administration in the manner provided by NRS 616C.305 and 616C.315 to 616C.385, inclusive.

      [8.] 10.  All insurers shall bear a proportionate amount of a claim made pursuant to this chapter, and are entitled to a proportionate amount of any collection made pursuant to this section as an offset against future liabilities.

      [9.] 11.  An uninsured employer is liable for the interest on any amount paid on his claims from the uninsured employers’ claim fund. The interest must be calculated at a rate equal to the prime rate at the largest bank in


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

κ1999 Statutes of Nevada, Page 1734 (CHAPTER 383, SB 495)κ

 

Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the claim, plus 3 percent, compounded monthly, from the date the claim is paid from the fund until payment is received by the division from the employer.

    [10.] 12.  Attorney’s fees recoverable by the division pursuant to this section must be:

    (a) If a private attorney is retained by the division, paid at the usual and customary rate for that attorney.

    (b) If the attorney is an employee of the division, paid at the rate established by regulations adopted by the division.

Any money collected must be deposited to the uninsured employers’ claim fund.

    [11.] 13.  In addition to any other liabilities provided for in this section, the administrator may impose an administrative fine of not more than $10,000 against an employer if the employer fails to provide mandatory coverage required by the provisions of this chapter.

      Sec. 38.  NRS 209.189 is hereby amended to read as follows:

    209.189  1.  The fund for prison industries is hereby created as an enterprise fund to receive all revenues derived from programs for vocational training and employment of offenders and the operation of the prison farm and to receive all revenues raised by the department from private employers for the leasing of space, facilities or equipment within the institutions or facilities of the department of prisons.

    2.  Money in the fund must be maintained in separate budgetary accounts, including at least one account for industrial programs and one for the prison farm.

    3.  Subject to the approval of the state board of examiners, the director may expend money deposited in this fund for the promotion and development of these programs and the prison farm. The director shall expend money deposited in this fund to pay [to the state industrial insurance system] the premiums required for coverage of offenders under the modified program of industrial insurance adopted pursuant to NRS 616B.185.

    4.  The interest and income earned on the money in the fund, after deducting any applicable charges, must be credited to the fund.

    5.  If money owed to the department for the leasing of space, facilities or equipment within the institutions or facilities of the department or for the purchase of goods or services, which must be deposited into the fund for prison industries pursuant to subsection 1, is not paid on or before the date due, the department shall charge and collect, in addition to the money due, interest on the money due at the rate of 1.5 percent per month or fraction thereof from the date on which the money became due until the date of payment.

      Sec. 39.  NRS 280.270 is hereby amended to read as follows:

    280.270  The county auditor or comptroller of a county in which a department is located shall comply with the provisions of NRS [616B.230] 616B.224 on behalf of the department.

      Sec. 40.  NRS 680A.200 is hereby amended to read as follows:

    680A.200  1.  [The] Except as otherwise provided in NRS 616B.472, the commissioner may refuse to continue or may suspend, limit or revoke an insurer’s certificate of authority if he finds after a hearing thereon, or upon waiver of hearing by the insurer, that the insurer has:


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

κ1999 Statutes of Nevada, Page 1735 (CHAPTER 383, SB 495)κ

 

insurer’s certificate of authority if he finds after a hearing thereon, or upon waiver of hearing by the insurer, that the insurer has:

    (a) Violated or failed to comply with any lawful order of the commissioner;

    (b) Conducted his business in an unsuitable manner;

    (c) Willfully violated or willfully failed to comply with any lawful regulation of the commissioner; or

    (d) Violated any provision of this code other than one for violation of which suspension or revocation is mandatory.

In lieu of such a suspension or revocation, the commissioner may levy upon the insurer, and the insurer shall pay forthwith, an administrative fine of not more than $2,000 for each act or violation.

    2.  Except as otherwise provided in chapter 696B of NRS, the commissioner shall suspend or revoke an insurer’s certificate of authority on any of the following grounds if he finds after a hearing thereon that the insurer:

    (a) Is in unsound condition, is being fraudulently conducted, or is in such a condition or is using such methods and practices in the conduct of its business as to render its further transaction of insurance in this state currently or prospectively hazardous or injurious to policyholders or to the public.

    (b) With such frequency as to indicate its general business practice in this state:

      (1) Has without just cause failed to pay, or delayed payment of, claims arising under its policies, whether the claims are in favor of an insured or in favor of a third person with respect to the liability of an insured to the third person; or

      (2) Without just cause compels insureds or claimants to accept less than the amount due them or to employ attorneys or to bring suit against the insurer or such an insured to secure full payment or settlement of such claims.

    (c) Refuses to be examined, or its directors, officers, employees or representatives refuse to submit to examination relative to its affairs, or to produce its books, papers, records, contracts, correspondence or other documents for examination by the commissioner when required, or refuse to perform any legal obligation relative to the examination.

    (d) Except as otherwise provided in NRS 681A.110, has reinsured all its risks in their entirety in another insurer.

    (e) Has failed to pay any final judgment rendered against it in this state upon any policy, bond, recognizance or undertaking as issued or guaranteed by it, within 30 days after the judgment became final or within 30 days after dismissal of an appeal before final determination, whichever date is the later.

    3.  The commissioner may, without advance notice or a hearing thereon, immediately suspend the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation or other delinquency proceedings have been commenced in any state by the public officer who supervises insurance for that state.

    4.  No proceeding to suspend, limit or revoke a certificate of authority pursuant to this section may be maintained unless it is commenced by the giving of notice to the insurer within 5 years after the occurrence of the charged act or omission.


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

κ1999 Statutes of Nevada, Page 1736 (CHAPTER 383, SB 495)κ

 

charged act or omission. This limitation does not apply if the commissioner finds fraudulent or willful evasion of taxes.

      Sec. 41. Section 11 of Senate Bill No. 92 of this session is hereby amended to read as follows:

       Sec. 11.  NRS 616B.095 is hereby amended to read as follows:

       616B.095  If the provisions of NRS 616B.224 concerning the state insurance fund, or the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS making the compensation to the workman provided in those chapters exclusive of any other remedy on the part of the workman, [shall be] are held invalid, each of those chapters [shall] must be thereby invalidated, except the provisions of NRS 616B.101, and an accounting according to the justice of the case [shall] must be had on [moneys] money received. In other respects an adjudication of invalidity of any part of this chapter or chapter 616A, 616C , [or] 616D or 617 of NRS [shall] must not affect the validity of any of those chapters as a whole or any part thereof.

      Sec. 42. Section 15 of Senate Bill No. 92 of this session is hereby amended to read as follows:

       Sec. 15.  NRS 616B.224 is hereby amended to read as follows:

       616B.224  1.  Every private or public employer who is not a self-insured employer or a member of an association of self-insured public or private employers shall, at intervals and on or before dates established by his insurer, furnish the insurer with:

       (a) A true and accurate payroll showing:

             (1) The total amount paid to employees for services performed;

             (2) The amount of tips reported to him by every employee pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more; and

             (3) A segregation of employment in accordance with the requirements of the commissioner; and

       (b) Any premium due pursuant to the terms of the policy of industrial insurance.

The payroll reports and any premium may be furnished to the insurer on different dates, as established by the insurer.

       2.  Failure of any employer to comply with the provisions of this section operates as a rejection of chapters 616A to 616D, inclusive, and chapter 617 of NRS, effective on the date established by the insurer pursuant to subsection 1. The insurer shall notify the administrator of each such rejection.

       3.  The insurer shall notify any employer or his representative by first-class mail of any failure on his part to comply with the provisions of this section. The notice or its omission does not modify or waive the requirements or effective rejection of chapters 616A to 616D, inclusive, and chapter 617 of NRS as otherwise provided in those chapters.

       4.  The system may impose a penalty not to exceed 10 percent of the premiums which are due for the failure of an employer insured by the system to submit the information and premium required in subsection 1 within the time allowed, unless the employer has applied for and been granted an extension of that time by the manager.


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

κ1999 Statutes of Nevada, Page 1737 (CHAPTER 383, SB 495)κ

 

subsection 1 within the time allowed, unless the employer has applied for and been granted an extension of that time by the manager.

       5.  To the extent permitted by federal law, the insurer shall vigorously pursue the collection of premiums that are due under the provisions of chapters 616A to 616D, inclusive, and chapter 617 of NRS even if an employer’s debts have been discharged in a bankruptcy proceeding.

       6.  Every employer insured by the system shall pay its premiums to the state insurance fund. All money received by the system pursuant to this section must be deposited with the state treasurer to the credit of the state insurance fund.

      Sec. 43. Section 41 of Senate Bill No. 92 of this session is hereby amended to read as follows:

       Sec. 41.  NRS 616D.050 is hereby amended to read as follows:

       616D.050  1.  Appeals officers, the administrator and the administrator’s designee, in conducting hearings or other proceedings pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or regulations adopted pursuant to those chapters may:

       (a) Issue subpoenas requiring the attendance of any witness or the production of books, accounts, papers, records and documents.

       (b) Administer oaths.

       (c) Certify to official acts.

       (d) Call and examine under oath any witness or party to a claim.

       (e) Maintain order.

       (f) Rule upon all questions arising during the course of a hearing or proceeding.

       (g) Permit discovery by deposition or interrogatories.

       (h) Initiate and hold conferences for the settlement or simplification of issues.

       (i) Dispose of procedural requests or similar matters.

       (j) Generally regulate and guide the course of a pending hearing or proceeding.

       2.  Hearing officers, in conducting hearings or other proceedings pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or regulations adopted pursuant to those chapters, may:

       (a) Issue subpoenas requiring the attendance of any witness or the production of books, accounts, papers, records and documents that are relevant to the dispute for which the hearing or other proceeding is being held.

       (b) Maintain order.

       (c) Permit discovery by deposition or interrogatories.

       (d) Initiate and hold conferences for the settlement or simplification of issues.

       (e) Dispose of procedural requests or similar matters.

       (f) Generally regulate and guide the course of a pending hearing or proceeding.


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

κ1999 Statutes of Nevada, Page 1738 (CHAPTER 383, SB 495)κ

 

      Sec. 44. Section 43 of Senate Bill No. 92 of this session is hereby amended to read as follows:

       Sec. 43.  NRS 616D.080 is hereby amended to read as follows:

       616D.080  1.  Each officer who serves a subpoena is entitled to receive the same fees as a sheriff.

       2.  Each witness who appears, in obedience to a subpoena which has been issued pursuant to this chapter or chapter 616A, 616B , [or] 616C or 617 of NRS, before an appeals officer, a hearing officer, the administrator or the administrator’s designee, is entitled to receive for his attendance the fees and mileage provided for witnesses in civil cases in courts of record. For subpoenas issued on behalf of this state or an officer or agency thereof, the fees and mileage are not required to be tendered at the same time that the subpoena is delivered to the person named therein.

       3.  The appeals officer, hearing officer, administrator or the administrator’s designee shall:

       (a) Authorize payment from his administrative budget of the fees and mileage due to such a witness; or

       (b) Impose those costs upon the party at whose instance the witness was subpoenaed or, for good cause shown, upon any other party.

      Sec. 45. Section 1 of Senate Bill No. 175 of this session is hereby amended to read as follows:

       Section 1.  NRS 616D.200 is hereby amended to read as follows:

       616D.200  1.  If the administrator finds that an employer within the provisions of NRS 616B.633 has failed to provide and secure compensation as required by the terms of chapters 616A to 616D, inclusive, or chapter 617 of NRS or that the employer has provided and secured that compensation but has failed to maintain it, he shall make a determination thereon and may charge the employer an amount equal to the sum of:

       (a) The premiums that would otherwise have been owed to the system or a private carrier pursuant to the terms of chapters 616A to 616D, inclusive, or chapter 617 of NRS for the period that the employer was doing business in this state without providing, securing or maintaining that compensation, but not to exceed 6 years; and

       (b) Interest at a rate determined pursuant to NRS 17.130 computed from the time that the premiums should have been paid.

The money collected pursuant to this subsection must be paid into the uninsured employers’ claim fund.

       2.  The administrator shall deliver a copy of his determination to the employer. An employer who is aggrieved by the determination of the administrator may appeal from the determination pursuant to subsection 2 of NRS 616D.220.

       3.  Any employer within the provisions of NRS 616B.633 who fails to provide, secure or maintain compensation as required by the terms of chapters 616A to 616D, inclusive, or chapter 617 of NRS, [is:

       (a) For the first offense, guilty of a misdemeanor.


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

κ1999 Statutes of Nevada, Page 1739 (CHAPTER 383, SB 495)κ

 

       (b) For a second or subsequent offense committed within 7 years after the previous offense, guilty of a category C felony and shall be punished as provided in NRS 193.130.] shall be punished as follows:

       (a) Except as otherwise provided in paragraph (b), if it is a first offense, for a misdemeanor.

       (b) If it is a first offense and, during the period the employer was doing business in this state without providing, securing or maintaining compensation, one of his employees suffers an injury arising out of and in the course of his employment that results in substantial bodily harm to the employee or the death of the employee, for a category C felony punishable by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 5 years and by a fine of not less than $1,000 nor more than $50,000.

       (c) If it is a second or subsequent offense committed within 7 years after the previous offense, for a category C felony punishable by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 5 years and by a fine of not less than $1,000 nor more than $50,000.

       4.  In addition to any other penalty imposed pursuant to paragraph (b) or (c) of subsection 3, the court shall order the employer to:

       (a) Pay restitution to an insurer who has incurred costs as a result of the violation in an amount equal to the costs that have been incurred minus any costs incurred that have otherwise been recovered; and

       (b) Reimburse the uninsured employers’ claim fund for all payments made from the fund on the employer’s behalf, including any benefits, administrative costs or attorney’s fees paid from the fund, that have not otherwise been recovered pursuant to NRS 616C.220.

       5.  Any criminal penalty imposed pursuant to subsections 3 and 4 must be in addition to the amount charged pursuant to subsection 1.

    Sec. 46.  Senate Bill No. 175 of this session is hereby amended by adding thereto a new section designated sec. 2, following section 1, to read as follows:

       Sec. 2.  This act becomes effective at 12:01 a.m. on October 1, 1999.

      Sec. 47.  1.  NRS 616A.235, 616B.218, 616B.389 and 616C.535 are hereby repealed.

      2.  NRS 616B.230 is hereby repealed.

      Sec. 48.  1.  This section and sections 2, 5 to 9, inclusive, 11, 14, 19 to 24, inclusive, 26 to 32, inclusive, 34, 35, 36, 38, 39, 40 to 46, inclusive, and subsection 1 of section 47 of this act become effective on July 1, 1999.

      2.  Sections 1, 3, 4, 10, 12, 15, 16, 17, 18, 25, 33, 37 and subsection 2 of section 47 of this act become effective at 12:01 a.m. on July 1, 1999.

      3.  Section 13 of this act becomes effective at 12:02 a.m. on July 1, 1999.

________

 


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

κ1999 Statutes of Nevada, Page 1740κ

 

CHAPTER 384, SB 537

Senate Bill No. 537–Committee on Government Affairs

 

CHAPTER 384

 

AN ACT relating to taxation; providing for the revision of the provisions governing tax abatements for certain businesses to provide uniformity in the criteria for qualification; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 360 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A person who intends to locate or expand a business in this state may apply to the commission on economic development for a partial abatement of one or more of the taxes imposed on the new or expanded business pursuant to chapter 361, 364A or 374 of NRS.

      2.  The commission on economic development shall approve an application for a partial abatement if the commission makes the following determinations:

      (a) The business is consistent with:

             (1) The state plan for industrial development and diversification that is developed by the commission pursuant to NRS 231.067; and

             (2) Any guidelines adopted pursuant to the state plan.

      (b) The applicant has executed an agreement with the commission which states that the business will, after the date on which a certificate of eligibility for the abatement is issued pursuant to subsection 5, continue in operation in this state for a period specified by the commission, which must be at least 5 years, and will continue to meet the eligibility requirements set forth in this subsection. The agreement must bind the successors in interest of the business for the specified period.

      (c) The business is registered pursuant to the laws of this state or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the business operates.

      (d) Except as otherwise provided in NRS 361.0687, if the business is a new business in a county or city whose population is 50,000 or more, the business meets at least two of the following requirements:

             (1) The business will have 75 or more full-time employees on the payroll of the business by the fourth quarter that it is in operation.

             (2) Establishing the business will require the business to make a capital investment of at least $1,000,000 in this state.

             (3) The average hourly wage that will be paid by the new business to its employees in this state is at least 100 percent of the average statewide hourly wage as established by the employment security division of the department of employment, training and rehabilitation on July 1 of each fiscal year and:

                   (I) The business will provide a health insurance plan for all employees that includes an option for health insurance coverage for dependents of the employees; and


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

κ1999 Statutes of Nevada, Page 1741 (CHAPTER 384, SB 537)κ

 

                   (II) The cost to the business for the benefits the business provides to its employees in this state will meet the minimum requirements for benefits established by the commission by regulation pursuant to subsection 9.

      (e) Except as otherwise provided in NRS 361.0687, if the business is a new business in a county or city whose population is less than 50,000, the business meets at least two of the following requirements:

             (1) The business will have 25 or more full-time employees on the payroll of the business by the fourth quarter that it is in operation.

             (2) Establishing the business will require the business to make a capital investment of at least $250,000 in this state.

             (3) The average hourly wage that will be paid by the new business to its employees in this state is at least 100 percent of the average statewide hourly wage as established by the employment security division of the department of employment, training and rehabilitation on July 1 of each fiscal year and:

                   (I) The business will provide a health insurance plan for all employees that includes an option for health insurance coverage for dependents of the employees; and

                   (II) The cost to the business for the benefits the business provides to its employees in this state will meet the minimum requirements for benefits established by the commission by regulation pursuant to subsection 9.

      (f) If the business is an existing business, the business meets at least two of the following requirements:

             (1) The business will increase the number of employees on its payroll by 10 percent more than it employed in the immediately preceding fiscal year or by six employees, whichever is greater.

             (2) The business will expand by making a capital investment in this state in an amount equal to at least 20 percent of the value of the tangible property possessed by the business in the immediately preceding fiscal year. The determination of the value of the tangible property possessed by the business in the immediately preceding fiscal year must be made by the:

                   (I) County assessor of the county in which the business will expand, if the business is locally assessed; or

                   (II) Department, if the business is centrally assessed.

             (3) The average hourly wage that will be paid by the existing business to its new employees in this state is at least 100 percent of the average statewide hourly wage as established by the employment security division of the department of employment, training and rehabilitation on July 1 of each fiscal year and:

                   (I) The business will provide a health insurance plan for all new employees that includes an option for health insurance coverage for dependents of the employees; and

                   (II) The cost to the business for the benefits the business provides to its new employees in this state will meet the minimum requirements for benefits established by the commission by regulation pursuant to subsection 9.


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

κ1999 Statutes of Nevada, Page 1742 (CHAPTER 384, SB 537)κ

 

      3.  Notwithstanding the provisions of subsection 2, the commission on economic development may:

      (a) Approve an application for a partial abatement by a business that does not meet the requirements set forth in paragraph (d), (e) or (f) of subsection 2;

      (b) Make the requirements set forth in paragraph (d), (e) or (f) of subsection 2 more stringent; or

      (c) Add additional requirements that a business must meet to qualify for a partial abatement,

if the commission determines that such action is necessary.

      4.  If a person submits an application to the commission on economic development pursuant to subsection 1, the commission shall provide notice to the governing body of the county and the city or town, if any, in which the person intends to locate or expand a business. The notice required pursuant to this subsection must set forth the date, time and location of the hearing at which the commission will consider the application.

      5.  If the commission on economic development approves an application for a partial abatement, the commission shall immediately forward a certificate of eligibility for the abatement to:

      (a) The department;

      (b) The Nevada tax commission; and

      (c) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer.

      6.  An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the executive director of the commission on economic development, furnish the executive director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

      7.  If a business whose partial abatement has been approved pursuant to this section and is in effect ceases:

      (a) To meet the requirements set forth in subsection 2; or

      (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 2,

the business shall repay to the department or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada tax commission determines that the business has substantially complied with the requirements of this section. The business is also required to pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

      8.  A county treasurer:

      (a) Shall deposit any money that he receives pursuant to subsection 7 in one or more of the funds established by a local government of the county pursuant to NRS 354.611, 354.6113 or 354.6115; and


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

κ1999 Statutes of Nevada, Page 1743 (CHAPTER 384, SB 537)κ

 

      (b) May use the money deposited pursuant to paragraph (a) only for the purposes authorized by NRS 354.611, 354.6113 and 354.6115.

      9.  The commission on economic development:

      (a) Shall adopt regulations regarding:

             (1) The minimum level of benefits that a business must provide to its employees if the business is going to use benefits paid to employees as a basis to qualify for a partial abatement; and

             (2) The notice that must be provided pursuant to subsection 4.

      (b) May adopt such other regulations as the commission on economic development determines to be necessary to carry out the provisions of this section.

      10.  The Nevada tax commission:

      (a) Shall adopt regulations regarding:

             (1) The capital investment that a new business must make to meet the requirement set forth in paragraph (d) or (e) of subsection 2; and

             (2) Any security that a business is required to post to qualify for a partial abatement pursuant to this section.

      (b) May adopt such other regulations as the Nevada tax commission determines to be necessary to carry out the provisions of this section.

      11.  An applicant for an abatement who is aggrieved by a final decision of the commission on economic development may petition for judicial review in the manner provided in chapter 233B of NRS.

      Sec. 2.  NRS 361.0687 is hereby amended to read as follows:

      361.0687  1.  A person who intends to locate or expand a business in this state may , pursuant to section 1 of this act, apply to the commission on economic development for a partial abatement from the taxes imposed by this chapter . [on the personal property of the new or expanded business.

      2.  The commission on economic development may approve an application for a partial abatement if the commission makes the following determinations:

      (a) The goals of the business are consistent with the goals of the commission and the community concerning industrial development and diversification.

      (b) The abatement is a significant factor in the decision of the applicant to locate or expand a business in this state or the appropriate affected local government determines that the abatement will be beneficial to the economic development of the community.

      (c) The average hourly wage which will be paid by the new or expanded business to its employees in this state is at least 125 percent of the average statewide industrial hourly wage as established by the employment security division of the department of employment, training and rehabilitation on July 1 of each fiscal year.

      (d) The business will provide a health insurance plan for all employees that includes an option for health insurance coverage for dependents of the employees.

      (e) The cost to the business for the benefits the business provides to its employees in this state will meet the minimum requirements for benefits established by the commission pursuant to subsection 8.


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

κ1999 Statutes of Nevada, Page 1744 (CHAPTER 384, SB 537)κ

 

      (f) A capital investment for personal property will be made to locate or expand the business in Nevada which is at least:

             (1) If the personal property directly related to the establishment of the business in this state is primarily located in a county whose population:

                   (I) Is 100,000 or more, $50,000,000.

                   (II) Is less than 100,000, $20,000,000.

             (2) If the personal property directly related to the expansion of the business is primarily located in a county whose population:

                   (I) Is 100,000 or more, $10,000,000.

                   (II) Is less than 100,000, $4,000,000.

      (g) The business will create at least the following number of new, full-time and permanent jobs in the State of Nevada by the fourth quarter that it is in operation:

             (1) If a new business will be primarily located in a county whose population:

                   (I) Is 100,000 or more, 100 jobs.

                   (II) Is less than 100,000, 35 jobs.

             (2) If an expanded business will be primarily located in a county whose population:

                   (I) Is 100,000 or more, and the business has at least 100 employees in this state, 20 jobs. An expanded business primarily located in such a county that has less than 100 employees is not eligible for a partial abatement pursuant to this section.

                   (II) Is less than 100,000, and the business has at least 35 employees in this state, 10 jobs. An expanded business primarily located in such a county that has less than 35 employees is not eligible for a partial abatement pursuant to this section.

      (h) For the expansion of a business primarily located in a county whose population:

             (1) Is 100,000 or more, the book value of the assets of the business in this state is at least $20,000,000.

             (2) Is less than 100,000, the book value of the assets of the business in this state is at least $5,000,000.

      (i) The business is registered pursuant to the laws of this state or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the business operates.

      (j) The proposed abatement has been approved by the governing body of the appropriate affected local government as determined pursuant to the regulations adopted pursuant to subsection 8. In determining whether to approve a proposed abatement, the governing body shall consider whether the taxes to be paid by the business are sufficient to pay for any investment required to be made by the local government for services associated with the relocation or expansion of the business, including, without limitation, costs related to the construction and maintenance of roads, sewer and water services, fire and police protection and the construction and maintenance of schools.

      (k) The applicant has executed an agreement with the commission which states that the business will continue in operation in Nevada for 10 or more years after the date on which a certificate of eligibility for the abatement is issued pursuant to subsection 5 and will continue to meet the eligibility requirements contained in this subsection.


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

κ1999 Statutes of Nevada, Page 1745 (CHAPTER 384, SB 537)κ

 

issued pursuant to subsection 5 and will continue to meet the eligibility requirements contained in this subsection. The agreement must bind the successors in interest of the business for the required period.

      3.  An applicant shall, upon the request of the executive director of the commission on economic development, furnish him with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

      4.  The percentage of the abatement must be 50 percent of the taxes payable each year.

      5.  If an application for a partial abatement is approved, the commission on economic development shall immediately forward a certificate of eligibility for the abatement to:

      (a) The department; and

      (b) The county assessor of each county in which personal property directly related to the establishment or expansion of the business will be located.

      6.  Upon receipt by the department of the certificate of eligibility, the taxpayer is eligible for an abatement from the tax imposed by this chapter for 10 years:

      (a) For the expansion of a business, on all personal property of the business that is located in Nevada and directly related to the expansion of the business in this state.

      (b) For a new business, on all personal property of the business that is located in Nevada and directly related to the establishment of the business in this state.

      7.  If a business for which an abatement has been approved is not maintained in this state in accordance with the agreement required in subsection 2, for at least 10 years after the commission on economic development approved the abatement, the person who applied for the abatement shall repay to the county treasurer or treasurers who would have received the taxes but for the abatement the total amount of all taxes that were abated pursuant to this section. The person who applied for the abatement shall pay interest on the amount due at the rate of 10 percent per annum for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made if the abatement had not been granted until the date of the actual payment of the tax.

      8.  A county treasurer:

      (a) Shall deposit any money that he receives pursuant to subsection 7 in one or more of the funds established by a local government of the county pursuant to NRS 354.611, 354.6113 or 354.6115; and

      (b) May use the money deposited pursuant to paragraph (a) only for the purposes authorized by NRS 354.611, 354.6113 and 354.6115.

      9.  The commission on economic development shall adopt regulations necessary to carry out the provisions of this section. The regulations must include, but not be limited to:

      (a) A method for determining the appropriate affected local government to approve a proposed abatement and the procedure for obtaining such approval; and


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

κ1999 Statutes of Nevada, Page 1746 (CHAPTER 384, SB 537)κ

 

      (b) Minimum requirements for benefits that a business applying for a partial abatement must offer to its employees to be approved for the partial abatement.

      10.  The department shall adopt regulations concerning how county assessors shall administer partial abatements approved pursuant to this section.

      11.  An applicant for an abatement who is aggrieved by a final decision of the commission on economic development may petition for judicial review in the manner provided in chapter 233B of NRS.]

    2.  For a business to qualify pursuant to section 1 of this act for a partial abatement from the taxes imposed by this chapter, the commission on economic development must determine that, in addition to meeting the other requirements set forth in subsection 2 of that section:

    (a) If the business is a new business in a county or city whose population is 50,000 or more:

      (1) The business will make a capital investment in the county of at least $50,000,000 if the business is an industrial or manufacturing business or at least $5,000,000 if the business is not an industrial or manufacturing business; and

      (2) The average hourly wage that will be paid by the new business to its employees in this state is at least 100 percent of the average statewide hourly wage as established by the employment security division of the department of employment, training and rehabilitation on July 1 of each fiscal year.

    (b) If the business is a new business in a county or city whose population is less than 50,000:

      (1) The business will make a capital investment in the county of at least $5,000,000 if the business is an industrial or manufacturing business or at least $500,000 if the business is not an industrial or manufacturing business; and

      (2) The average hourly wage that will be paid by the new business to its employees in this state is at least 100 percent of the average statewide hourly wage as established by the employment security division of the department of employment, training and rehabilitation on July 1 of each fiscal year.

    3.  If a partial abatement from the taxes imposed by this chapter is approved by the commission on economic development pursuant to section 1 of this act:

    (a) The partial abatement must:

      (1) Be for a duration of at least 1 year but not more than 10 years;

      (2) Not exceed 50 percent of the taxes payable by a business each year pursuant to this chapter; and

      (3) Be administered and carried out in the manner set forth in section 1 of this act.

    (b) The executive director of the commission on economic development shall notify the county assessor of the county in which the business is located of the approval of the partial abatement, including, without limitation, the duration and percentage of the partial abatement that the commission granted. The executive director shall, on or before April 15 of each year, advise the county assessor of each county in which a business qualifies for a partial abatement during the current fiscal year as to whether the business is still eligible for the partial abatement in the next succeeding fiscal year.


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

κ1999 Statutes of Nevada, Page 1747 (CHAPTER 384, SB 537)κ

 

each year, advise the county assessor of each county in which a business qualifies for a partial abatement during the current fiscal year as to whether the business is still eligible for the partial abatement in the next succeeding fiscal year.

      Sec. 3.  NRS 364A.170 is hereby amended to read as follows:

      364A.170  1.  A [proposed] business that qualifies pursuant to the provisions of [this] section 1 of this act is entitled to an exemption of:

      (a) Eighty percent of the amount of tax otherwise due pursuant to NRS 364A.140 during the first 4 quarters of its operation;

      (b) Sixty percent of the amount of tax otherwise due pursuant to NRS 364A.140 during the second 4 quarters of its operation;

      (c) Forty percent of the amount of tax otherwise due pursuant to NRS 364A.140 during the third 4 quarters of its operation; and

      (d) Twenty percent of the amount of tax otherwise due pursuant to NRS 364A.140 during the fourth 4 quarters of its operation.

      2.  [A proposed business is entitled to the exemption pursuant to subsection 1 if:

      (a) In a county whose population is 35,000 or more:

             (1) The business will have 75 or more full-time employees on the payroll of the business by the fourth quarter that it is in operation;

             (2) Establishing the business will require the business to make a capital investment of $1,000,000 in Nevada; and

             (3) The exemption is approved by the commission on economic development pursuant to subsection 3.

      (b) In a county whose population is less than 35,000:

             (1) The business will have 25 or more full-time employees on the payroll of the business by the fourth quarter that it is in operation;

             (2) Establishing the business will require the business to make a capital investment of $250,000 in Nevada; and

             (3) The exemption is approved by the commission on economic development pursuant to subsection 3.

      3.  A proposed business must apply to the commission on economic development to obtain the exemption authorized pursuant to this section. The commission shall certify a business’s eligibility for the exemption pursuant to this section if:

      (a) The proposed business commits to the requirements of subparagraphs (1) and (2) of paragraph (a) or (b) of subsection 2, whichever is applicable; and

      (b) The proposed business is consistent with the commission’s plan for economic diversification and development.

Upon certification, the commission shall immediately forward the certificate of eligibility for the exemption to the Nevada tax commission.

      4.  Upon receipt of such a certificate, the Nevada tax commission shall include the exemption in the calculation of the tax paid by the business. A business for which an exemption is approved that does not:

      (a) Have the required number of full-time employees on the payroll of the business by the fourth quarter that it is in operation; or

      (b) Make the required capital investment in Nevada in the course of establishing the business,is required to repay to the department the amount of the exemption that was allowed pursuant to this section before the business’s failure to comply unless the Nevada tax commission determines that the business has substantially complied with the requirements of this section.


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

κ1999 Statutes of Nevada, Page 1748 (CHAPTER 384, SB 537)κ

 

is required to repay to the department the amount of the exemption that was allowed pursuant to this section before the business’s failure to comply unless the Nevada tax commission determines that the business has substantially complied with the requirements of this section. The business is also required to pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the exemption not been granted until the date of payment of the tax.

      5.  The commission on economic development shall adopt regulations governing the determination made pursuant to subsection 3 of a proposed business’s eligibility for the exemption provided in this section.

      6.  The Nevada tax commission:

      (a) Shall adopt regulations governing the investments that qualify for the purposes of the required capital investment pursuant to subparagraph (2) of paragraph (a) or (b) of subsection 2.

      (b) May adopt such other regulations as are necessary to carry out the provisions of this section.] If a partial abatement from the taxes otherwise due pursuant to NRS 364A.140 is approved by the commission on economic development pursuant to section 1 of this act, the partial abatement must be administered and carried out in the manner set forth in section 1 of this act.

      Sec. 4.  NRS 374.357 is hereby amended to read as follows:

      374.357  1.  A person who maintains a business or intends to locate a business in this state may , pursuant to section 1 of this act, apply to the commission on economic development for an abatement from the taxes imposed by this chapter on the gross receipts from the sale, and the storage, use or other consumption, of eligible machinery or equipment for use by a business which has been approved for an abatement pursuant to [subsection 2.

      2.  The commission on economic development may approve an application for an abatement if:

      (a) The goals of the business are consistent with the goals of the commission concerning industrial development and diversification;

      (b) The commission determines that the abatement is a significant factor in the decision of the applicant to locate or expand a business in this state;

      (c) The average hourly wage paid by the business to its employees in this state is at least equal to the average statewide industrial hourly wage as established by the employment security division of the department of employment, training and rehabilitation on July 1 of each fiscal year;

      (d) The business provides a health insurance plan for its employees that includes an option for health insurance coverage for dependents of employees;

      (e) The business is registered pursuant to the laws of this state or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the business operates;

      (f) The business will provide at least 10 full-time, permanent jobs in Nevada by the fourth quarter that it is in operation; and


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

κ1999 Statutes of Nevada, Page 1749 (CHAPTER 384, SB 537)κ

 

    (g) The applicant commits to maintaining his business in this state for at least 5 years.

    3.  An applicant shall, upon the request of the executive director of the commission on economic development, furnish to the director copies of all records necessary for the director to verify that the applicant meets the requirement of paragraph (c) of subsection 2.

    4.  The commission on economic development may approve an application for an abatement which does not meet the requirements of subsection 2 if the commission determines that such an approval is warranted.

    5.] section 1 of this act.

    2.  If an application for an abatement is approved [, the] pursuant to section 1 of this act:

    (a) The taxpayer is eligible for an abatement from the tax imposed by this chapter for not more than 2 years.

    [6.  If an application for an abatement is approved, the commission on economic development shall immediately forward a certificate of eligibility for the abatement to the Nevada tax commission.

    7.  If a business for which an abatement has been approved is not maintained in this state for at least 5 years after the commission on economic development approved the abatement, the person who applied for the abatement shall repay to the department the amount of the abatement that was allowed pursuant to this section before the failure of the business to comply unless the Nevada tax commission determines that the business has substantially complied with the requirements of this section. The person who applied for the abatement shall pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the abatement not been granted until the date of the actual payment of the tax.

    8.  The commission on economic development shall adopt regulations which it considers necessary to carry out the provisions of this section.

    9.] (b) The abatement must be administered and carried out in the manner set forth in section 1 of this act.

    3.  As used in this section, unless the context otherwise requires, “eligible machinery or equipment” means machinery or equipment for which a deduction is authorized pursuant to 26 U.S.C. § 179. The term does not include:

    (a) Buildings or the structural components of buildings;

    (b) Equipment used by a public utility;

    (c) Equipment used for medical treatment;

    (d) Machinery or equipment used in mining; or

    (e) Machinery or equipment used in gaming.

      Sec. 5.  Chapter 231 of NRS is hereby amended by adding thereto a new section to read as follows:

      The commission on economic development shall, on or before January 15 of each odd-numbered year, prepare and submit to the director of the legislative counsel bureau for transmission to the legislature a report concerning the abatements from taxation that the commission approved pursuant to section 1 of this act.


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

κ1999 Statutes of Nevada, Page 1750 (CHAPTER 384, SB 537)κ

 

pursuant to section 1 of this act. The report must set forth, for each abatement from taxation that the commission approved in the 2-year period immediately preceding the submission of the report:

      1.  The dollar amount of the abatement;

      2.  The location of the business for which the abatement was approved;

      3.  The number of employees that the business for which the abatement was approved employs or will employ;

      4.  Whether the business for which the abatement was approved is a new business or an existing business; and

      5.  Any other information that the committee determines to be useful.

      Sec. 6.  NRS 231.020 is hereby amended to read as follows:

    231.020  As used in NRS [231.030 to 231.130,] 231.020 to 231.139, inclusive, and section 5 of this act, unless the context otherwise requires, “motion pictures” includes feature films, movies made for broadcast on television and programs made for broadcast on television in episodes.

      Sec. 7.  The amendatory provisions of this act apply only to an abatement from taxation for which a person applies on or after the effective date of this act.

      Sec. 8.  This act becomes effective upon passage and approval.

________

 

CHAPTER 385, AB 3

Assembly Bill No. 3–Committee on Education

 

CHAPTER 385

 

AN ACT relating to education; requiring the department of education to prescribe a form for use by school districts in the development of individualized education programs for pupils with disabilities; authorizing school districts to use expanded forms that comply with the form prescribed by the department; requiring the department to provide information to the boards of trustees of school districts concerning the identification and evaluation of pupils with disabilities; and providing other matters properly relating thereto.

 

[Approved May 29, 1999]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 388.520 is hereby amended to read as follows:

    388.520  1.  The department shall:

    (a) Prescribe a form that contains the basic information necessary for the uniform development, review and revision of an individualized education program for a pupil with a disability in accordance with 20 U.S.C. § 1414(d); and

    (b) Make the form available on a computer disk for use by school districts and, upon request, in any other manner deemed reasonable by the department.

    2.  Except as otherwise provided in this subsection, each school district shall ensure that the form prescribed by the department is used for the development, review and revision of an individualized education program for each pupil with a disability who receives special education in the school district. A school district may use an expanded form that contains additions to the form prescribed by the department if the basic information contained in the expanded form complies with the form prescribed by the department.

 

Link to Page 1751