[Rev. 2/11/2019 1:26:27 PM]
κ2001 Statutes of Nevada, Page 1323κ
Senate Bill No. 289Committee on Human Resources and Facilities
CHAPTER 289
AN ACT relating to schools; requiring the board of trustees of each school district and the governing body of each charter school and private school to establish a committee to develop a plan to be used in responding to certain crises involving violence on school property, at school activities or on school buses; requiring each school to establish a committee to review such a plan developed for the school; requiring the state board of education to develop a statewide plan for the management of certain crises that involve violence on school property, at school activities or on school buses and that require immediate action; requiring the division of emergency management of the department of motor vehicles and public safety to assist, under certain circumstances, with such crises; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 392 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 16, inclusive, of this act.
Sec. 2. As used in sections 2 to 16, 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. Crisis means a traumatic and sudden event or emergency condition that:
1. Involves violence;
2. Profoundly and negatively affects or will affect pupils or employees of a public school, or both;
3. Occurs on the property of a public school, at an activity sponsored by a public school or on a school bus while the bus is engaged in its official duties for a public school; and
4. May involve serious injury or death.
Sec. 4. Development committee means a committee established pursuant to section 6 of this act.
Sec. 5. School committee means a committee established pursuant to section 9 of this act.
Sec. 6. 1. The board of trustees of each school district shall establish a development committee to develop one plan to be used by all the public schools other than the charter schools in the school district in responding to a crisis. The governing body of each charter school shall establish a development committee to develop a plan to be used by the charter school in responding to a crisis.
2. The membership of a development committee must consist of:
(a) At least one member of the board of trustees or of the governing body that established the committee;
(b) At least one administrator of a school in the school district or of the charter school;
(c) At least one licensed teacher of a school in the school district or of the charter school;
κ2001 Statutes of Nevada, Page 1324 (CHAPTER 289, SB 289)κ
(d) At least one employee of a school in the school district or of the charter school who is not a licensed teacher and who is not responsible for the administration of the school;
(e) At least one parent or legal guardian of a pupil who is enrolled in a school in the school district or in the charter school;
(f) At least one representative of a local law enforcement agency in the county in which the school district or charter school is located; and
(g) At least one school police officer, including, without limitation, a chief of school police of the school district if the school district has school police officers.
3. The membership of a development committee may also include any other person whom the board of trustees or the governing body deems appropriate, including, without limitation:
(a) A counselor of a school in the school district or of the charter school;
(b) A psychologist of a school in the school district or of the charter school;
(c) A licensed social worker of a school in the school district or of the charter school;
(d) A pupil in grade 10 or higher of a school in the school district or a pupil in grade 10 or higher of the charter school if a school in the school district or the charter school includes grade 10 or higher; and
(e) An attorney or judge who resides or works in the county in which the school district or charter school is located.
4. The board of trustees of each school district and the governing body of each charter school shall determine the term of each member of the development committee that it establishes. Each development committee may adopt rules for its own management and government.
Sec. 7. 1. Each development committee established by the board of trustees of a school district shall develop one plan to be used by all the public schools other than the charter schools in the school district in responding to a crisis. Each development committee established by the governing body of a charter school shall develop a plan to be used by the charter school in responding to a crisis. Each development committee shall, when developing the plan, consult with the local social service agencies and local law enforcement agencies in the county in which its school district or charter school is located. The plan must include, without limitation, a procedure for:
(a) Assisting persons within a school in the school district or the charter school to communicate with each other;
(b) Assisting persons within a school in the school district or the charter school to communicate with persons located outside the school, including, without limitation, relatives of pupils and relatives of employees of the school, the news media and persons from local, state or federal agencies that are responding to a crisis;
(c) Immediately responding to a crisis and for responding during the period after a crisis has concluded, including, without limitation, a crisis that results in immediate physical harm to a pupil or employee of a school in the school district or the charter school;
(d) Assisting pupils of a school in the school district or the charter school, employees of the school and relatives of such pupils and employees to move safely within and away from the school, including, without limitation, a procedure for evacuating the school and a procedure for securing the school; and
κ2001 Statutes of Nevada, Page 1325 (CHAPTER 289, SB 289)κ
limitation, a procedure for evacuating the school and a procedure for securing the school; and
(e) Enforcing discipline within a school in the school district or the charter school and for obtaining and maintaining a safe and orderly environment during a crisis.
2. Each development committee shall provide a copy of the plan that it develops pursuant to this section to the board of trustees of the school district that established the committee or the governing body of the charter school that established the committee.
3. Except as otherwise provided in sections 10 and 11 of this act, each public school, including, without limitation, each charter school, must comply with the plan developed for it pursuant to this section.
Sec. 8. 1. Each development committee shall, at least once each year, review and update as appropriate the plan that it developed pursuant to section 7 of this act, and provide an updated copy of the plan to the board of trustees of the school district that established the committee or the governing body of the charter school that established the committee.
2. The board of trustees of each school district and the governing body of each charter school shall:
(a) Post a notice of the completion of each review and update that its development committee performs pursuant to subsection 1 at each school in its school district or at its charter school;
(b) Post a copy of sections 2 to 16, inclusive, of this act at each school in its school district or at its charter school;
(c) Retain a copy of each plan developed pursuant to section 7 of this act, each plan updated pursuant to subsection 1 and each deviation approved pursuant to section 11 of this act;
(d) Provide a copy of each plan developed pursuant to section 7 of this act and each plan updated pursuant to subsection 1 to:
(1) The state board;
(2) Each local law enforcement agency in the county in which the school district or charter school is located; and
(3) The division of emergency management of the department of motor vehicles and public safety;
(e) Upon request, provide a copy of each plan developed pursuant to section 7 of this act and each plan updated pursuant to subsection 1 to a local agency that is included in the plan and to an employee of a school who is included in the plan;
(f) Upon request, provide a copy of each deviation approved pursuant to section 11 of this act to:
(1) The state board;
(2) A local law enforcement agency in the county in which the school district or charter school is located;
(3) The division of emergency management of the department of motor vehicles and public safety;
(4) A local agency that is included in the plan; and
(5) An employee of a school who is included in the plan; and
(g) At least once each year, provide training in responding to a crisis to each employee of the school district or of the charter school, including, without limitation, training concerning drills for evacuating and securing schools.
κ2001 Statutes of Nevada, Page 1326 (CHAPTER 289, SB 289)κ
3. The board of trustees of each school district and the governing body of each charter school may apply for and accept gifts, grants and contributions from any public or private source to carry out the provisions of sections 2 to 16, inclusive, of this act.
Sec. 9. 1. The principal of each public school, including, without limitation, each charter school, shall establish a school committee to review the plan developed for the school pursuant to section 7 of this act.
2. The membership of a school committee must consist of:
(a) The principal of the school;
(b) Two licensed employees of the school;
(c) One employee of the school who is not a licensed employee and who is not responsible for the administration of the school;
(d) One school police officer of the school if the school has school police officers; and
(e) One parent or legal guardian of a pupil who is enrolled in the school.
3. The membership of a school committee may also include any other person whom the principal of the school deems appropriate, including, without limitation:
(a) A member of the board of trustees of the school district in which the school is located or a member of the governing body of the charter school;
(b) A counselor of the school;
(c) A psychologist of the school;
(d) A licensed social worker of the school;
(e) A representative of a local law enforcement agency in the county, city or town in which the school is located; and
(f) A pupil in grade 10 or higher from the school if the school includes grade 10 or higher.
4. The principal of a public school, including, without limitation, a charter school, shall determine the term of each member of the school committee. Each school committee may adopt rules for its own management and government.
Sec. 10. 1. Each school committee shall, at least once each year, review the plan developed for the school pursuant to section 7 of this act and determine whether the school should deviate from the plan. Each school committee shall, when reviewing the plan, consult with the local social service agencies and law enforcement agencies in the county, city or town in which its school is located. If a school committee determines that the school should deviate from the plan, the school committee shall notify the development committee that developed the plan, describe the proposed deviation and explain the reason for the proposed deviation. The school may deviate from the plan only if the deviation is approved by the development committee pursuant to section 11 of this act.
2. Each public school, including, without limitation, each charter school, shall post at the school a notice of the completion of each review that the school committee performs pursuant to this section.
Sec. 11. 1. A development committee that receives a proposed deviation from a school committee pursuant to section 10 of this act shall, within 60 days after it receives the proposed deviation:
(a) Review the proposed deviation and any information submitted with the proposed deviation; and
κ2001 Statutes of Nevada, Page 1327 (CHAPTER 289, SB 289)κ
(b) Notify the school committee that submitted the proposed deviation whether the proposed deviation has been approved.
2. A development committee shall provide a copy of each deviation that it approves pursuant to this section to the board of trustees of the school district that established the committee or to the governing body of the charter school that established the committee.
Sec. 12. 1. The state board shall adopt regulations setting forth requirements for:
(a) The plan required to be developed pursuant to section 7 of this act; and
(b) Reviewing and approving a deviation pursuant to section 11 of this act.
2. The regulations adopted pursuant to this section must include, without limitation, requirements concerning training and practice in procedures for responding to a crisis.
Sec. 13. 1. The state board shall, with assistance from other state agencies, including, without limitation, the division of emergency management, the investigation division, and the Nevada highway patrol of the department of motor vehicles and public safety, develop a plan for the management of a crisis that involves a public school, including, without limitation, a charter school, or a private school and that requires immediate action. The plan must include, without limitation, a procedure for coordinating the resources of local, state and federal agencies, officers and employees, as appropriate. In developing the plan, the state board shall consider the plans to respond to crises developed pursuant to sections 7 and 25 of this act and updated pursuant to sections 8 and 26 of this act.
2. The state board may disseminate to any appropriate local, state or federal agency, officer or employee, as the state board determines is necessary:
(a) The plan developed by the state board pursuant to subsection 1;
(b) A plan developed pursuant to section 7 of this act or updated pursuant to section 8 of this act;
(c) A plan developed pursuant to section 25 of this act or updated pursuant to section 26 of this act; and
(d) A deviation approved pursuant to section 11 or 29 of this act.
Sec. 14. 1. If a crisis that requires immediate action occurs at a public school, including, without limitation, a charter school, the principal of the school involved, or his designated representative, shall, in accordance with the plan to respond to a crisis developed for the school pursuant to section 7 of this act and in accordance with any deviation approved pursuant to section 11 of this act, contact all appropriate local agencies to respond to the crisis.
2. If a local agency that is responsible for responding to a crisis is contacted pursuant to subsection 1 and the local agency determines that the crisis requires assistance from a state agency, the local agency may:
(a) If a local organization for emergency management has been established in the city or county in which the local agency that was contacted is located, through such local organization for emergency management, notify the division of emergency management of the department of motor vehicles and public safety of the crisis and request assistance from the division in responding to the crisis; or
κ2001 Statutes of Nevada, Page 1328 (CHAPTER 289, SB 289)κ
(b) If a local organization for emergency management has not been established in the city or county in which the local agency that was contacted is located, directly notify the division of emergency management of the department of motor vehicles and public safety of the crisis and request assistance from the division in responding to the crisis.
3. If the division of emergency management of the department of motor vehicles and public safety receives notification of a crisis and a request for assistance pursuant to subsection 2 and the governor or his designated representative determines that the crisis requires assistance from a state agency, the division shall carry out its duties set forth in the plan developed pursuant to section 13 of this act and its duties set forth in chapter 414 of NRS, including, without limitation, addressing the immediate crisis and coordinating the appropriate and available local, state and federal resources to provide support services and counseling to pupils, teachers, and parents or legal guardians of pupils, and providing support for law enforcement agencies, for as long as is reasonably necessary.
Sec. 15. A plan developed pursuant to section 7 of this act or updated pursuant to section 8 of this act, a deviation and any information submitted to a development committee pursuant to section 10 of this act, a deviation approved pursuant to section 11 of this act and the plan developed pursuant to section 13 of this act are confidential and, except as otherwise provided in sections 2 to 16, inclusive, of this act, must not be disclosed to any person or government, governmental agency or political subdivision of a government.
Sec. 16. The provisions of chapter 241 of NRS do not apply to a meeting of:
1. A development committee;
2. A school committee; or
3. The state board if the meeting concerns a regulation adopted pursuant to section 12 of this act or the plan developed pursuant to section 13 of this act.
Sec. 17. NRS 392.375 is hereby amended to read as follows:
392.375 1. At least twice each school year, a school district shall require all the pupils in the school district who ride a school bus to practice the evacuation of a school bus for a purpose other than a crisis governed by sections 2 to 16, inclusive, of this act and to receive instruction in the responsibility of a passenger of a school bus to use the emergency exit doors on the bus during such an evacuation.
2. Each school district shall adopt a safety program which does not concern a crisis governed by sections 2 to 16, inclusive, of this act and which includes, without limitation:
(a) The procedure for pupils to safely enter and exit a school bus, including entering and exiting with a driver of a school bus as an escort;
(b) Proper behavior and conduct of pupils while in areas around a school bus where a high risk of danger to pupils exists, including the area that is used to load and unload school buses;
(c) Behavior and conduct of pupils while on a school bus that will enhance the safety of the pupils;
(d) Evacuation of pupils from a school bus; and
(e) The location of emergency equipment on a school bus.
At least annually, a school district shall require all pupils who are enrolled in preschool, kindergarten and in grades 1 to 4, inclusive, in the school district who ride a school bus to participate in the safety program created pursuant to this section.
κ2001 Statutes of Nevada, Page 1329 (CHAPTER 289, SB 289)κ
who ride a school bus to participate in the safety program created pursuant to this section.
3. If a parent or legal guardian enrolls his child in preschool, kindergarten or grades 1 to 6, inclusive, and the child will be riding a school bus for the first time, the school shall provide the parent or legal guardian, upon enrollment, with written information concerning the safety of pupils on a school bus. The information must include, without limitation:
(a) A description of each location that is designated to load and unload a school bus which is in geographical proximity to the pupils residence;
(b) Rules of conduct for pupils on a school bus and at an area that is designated for pupils to enter and exit a school bus;
(c) Instructions for the operation of a motor vehicle:
(1) At school crossing zones and in areas that are designated to load and unload a school bus; and
(2) When a driver of a school bus operates a system of flashing red lights;
(d) A description of the area around a school bus that poses a high risk of danger to pupils and other pedestrians; and
(e) Behavior and conduct for pupils who walk to and from an area that is designated for pupils to enter and exit a school bus that will enhance the safety of the pupils.
4. The board of trustees of each school district shall adopt regulations regarding practices conducted pursuant to subsection 1 and participation in safety programs required by subsection 2, including the requirement of such practices and participation in such programs at the beginning of any field trip by school bus.
Sec. 18. NRS 392.450 is hereby amended to read as follows:
392.450 1. The board of trustees of each school district and the governing body of each charter school shall provide drills for the pupils in the schools in the school district or the charter schools at least once each month during the school year to instruct those pupils in the appropriate procedures to be followed in the event of a fire or other emergency [.] , except a crisis governed by sections 2 to 16, inclusive, of this act. Not more than three of those drills may include instruction in the appropriate procedures to be followed in the event of a chemical explosion, related emergencies and other natural disasters.
2. In all cities or towns which have regularly organized, paid fire departments or voluntary fire departments, the drills required by subsection 1 must be conducted under the supervision of the:
(a) Person designated for this purpose by the board of trustees of the school district or the governing body of a charter school; and
(b) Chief of the fire department of the city or town.
3. A diagram of the approved escape route and any other information related to the drills required by subsection 1 which is approved by the chief of the fire department or, if there is no fire department, the state fire marshal must be kept posted in every classroom of every public school by the principal or teacher in charge thereof.
4. The principal, teacher or other person in charge of each school building shall cause the provisions of this section to be enforced.
5. Any violation of the provisions of this section is a misdemeanor.
κ2001 Statutes of Nevada, Page 1330 (CHAPTER 289, SB 289)κ
Sec. 19. Chapter 394 of NRS is hereby amended by adding thereto the provisions set forth as sections 20 to 33, inclusive, of this act.
Sec. 20. As used in sections 20 to 33, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 21, 22 and 23 of this act have the meanings ascribed to them in those sections.
Sec. 21. Crisis means a traumatic and sudden event or emergency condition that:
1. Involves violence;
2. Profoundly and negatively affects or will affect pupils or employees of a private school;
3. Occurs on the property of a private school, at an activity sponsored by a private school or on a school bus while the bus is engaged in its official duties for a private school; and
4. May involve serious injury or death.
Sec. 22. Development committee means a committee established pursuant to section 24 of this act.
Sec. 23. School committee means a committee established for each private school pursuant to section 27 of this act.
Sec. 24. 1. The governing body of each private school shall establish a development committee to develop a plan to be used by the private school in responding to a crisis.
2. The membership of a development committee consists of:
(a) At least one member of the governing body;
(b) At least one administrator of the school;
(c) At least one teacher of the school;
(d) At least one employee of the school who is not a teacher and who is not responsible for the administration of the school;
(e) At least one parent or legal guardian of a pupil who is enrolled in the school; and
(f) At least one representative of a local law enforcement agency in the county in which the school is located.
3. The membership of a development committee may also include any other person whom the governing body deems appropriate, including, without limitation:
(a) A counselor of the school;
(b) A psychologist of the school;
(c) A licensed social worker of the school;
(d) A pupil in grade 10 or higher of the school if the school includes grade 10 or higher; and
(e) An attorney or judge who resides or works in the county in which the school is located.
4. The governing body of each private school shall determine the term of each member of the development committee that it established. Each development committee may adopt rules for its own management and government.
Sec. 25. 1. Each development committee shall develop a plan to be used by its school in responding to a crisis. Each development committee shall, when developing the plan, consult with the local social service agencies and local law enforcement agencies in the county in which its school is located. The plan must include, without limitation, a procedure for:
(a) Assisting persons within the school to communicate with each other;
κ2001 Statutes of Nevada, Page 1331 (CHAPTER 289, SB 289)κ
(b) Assisting persons within the school to communicate with persons located outside the school, including, without limitation, relatives of pupils and relatives of employees of the school, the news media and persons from local, state or federal agencies that are responding to a crisis;
(c) Immediately responding to a crisis and for responding during the period after a crisis has concluded, including, without limitation, a crisis that results in immediate physical harm to a pupil or employee of the school;
(d) Assisting pupils of the school, employees of the school and relatives of such pupils and employees to move safely within and away from the school, including, without limitation, a procedure for evacuating the school and a procedure for securing the school; and
(e) Enforcing discipline within the school and for obtaining and maintaining a safe and orderly environment during a crisis.
2. Each development committee shall provide a copy of the plan that it develops pursuant to this section to the governing body of the school that established the committee.
3. Except as otherwise provided in sections 28 and 29 of this act, each private school must comply with the plan developed for it pursuant to this section.
Sec. 26. 1. Each development committee shall, at least once each year, review and update as appropriate the plan that it developed pursuant to section 25 of this act, and provide an updated copy of the plan to the governing body of the school.
2. The governing body of each private school shall:
(a) Post a notice of the completion of each review and update that its development committee performs pursuant to subsection 1 at the school;
(b) Post a copy of sections 13 and 20 to 33, inclusive, of this act at the school;
(c) Retain a copy of each plan developed pursuant to section 25 of this act, each plan updated pursuant to subsection 1 and each deviation approved pursuant to section 29 of this act;
(d) Provide a copy of each plan developed pursuant to section 25 of this act and each plan updated pursuant to subsection 1 to:
(1) The board;
(2) Each local law enforcement agency in the county in which the school is located; and
(3) The division of emergency management of the department of motor vehicles and public safety;
(e) Upon request, provide a copy of each plan developed pursuant to section 25 of this act and each plan updated pursuant to subsection 1 to a local agency that is included in the plan and to an employee of the school who is included in the plan;
(f) Upon request, provide a copy of each deviation approved pursuant to section 29 of this act to:
(1) The board;
(2) A local law enforcement agency in the county in which the school is located;
(3) The division of emergency management of the department of motor vehicles and public safety;
(4) A local agency that is included in the plan; and
(5) An employee of the school who is included in the plan; and
κ2001 Statutes of Nevada, Page 1332 (CHAPTER 289, SB 289)κ
(g) At least once each year, provide training in responding to a crisis to each employee of the school, including, without limitation, training concerning drills for evacuating and securing the school.
Sec. 27. 1. The principal or other person in charge of each private school shall establish a school committee to review the plan developed for the private school pursuant to section 25 of this act.
2. The membership of a school committee consists of:
(a) The principal or other person in charge of the school;
(b) Two employees of the school;
(c) One employee of the school who is not responsible for the administration of the school; and
(d) One parent or legal guardian of a pupil who is enrolled in the school.
3. The membership of a school committee may include any other person whom the principal or other person in charge of the school deems appropriate, including, without limitation:
(a) A member of the governing body of the school;
(b) A counselor of the school;
(c) A psychologist of the school;
(d) A licensed social worker of the school;
(e) A representative of a local law enforcement agency in the county, city or town in which the school is located; and
(f) A pupil in grade 10 or higher from the school if the school includes grade 10 or higher.
4. The principal or other person in charge of a private school shall determine the term of each member of the school committee established for the school. Each school committee may adopt rules for its own management and government.
Sec. 28. 1. Each school committee shall, at least once each year, review the plan developed for its school pursuant to section 25 of this act and determine whether the school should deviate from the plan. Each school committee shall, when reviewing the plan, consult with the local social service agencies and law enforcement agencies in the county, city or town in which its school is located. If a school committee determines that its school should deviate from the plan, the school committee shall notify the development committee that developed the plan, describe the proposed deviation and explain the reason for the proposed deviation. The school may deviate from the plan only if the deviation is approved by the development committee pursuant to section 29 of this act.
2. Each private school shall post at the school a notice of the completion of each review that its school committee performs pursuant to this section.
Sec. 29. 1. A development committee that receives a proposed deviation from a school committee pursuant to section 28 of this act shall, within 60 days after it receives the proposed deviation:
(a) Review the proposed deviation and any information submitted with the proposed deviation; and
(b) Notify the school committee that submitted the proposed deviation whether the proposed deviation has been approved.
2. A development committee shall provide a copy of each deviation that it approves pursuant to this section to the governing body of the private school that established the committee.
κ2001 Statutes of Nevada, Page 1333 (CHAPTER 289, SB 289)κ
Sec. 30. 1. The board shall adopt regulations setting forth requirements for:
(a) The plan required to be developed pursuant to section 25 of this act; and
(b) Reviewing and approving a deviation pursuant to section 29 of this act.
2. The regulations adopted pursuant to this section must include, without limitation, requirements concerning training and practice in procedures for responding to a crisis.
Sec. 31. 1. If a crisis that requires immediate action occurs at a private school, the principal or other person in charge of the private school involved, or his designated representative, shall, in accordance with the plan to respond to a crisis developed for the school pursuant to section 25 of this act and in accordance with any deviation approved pursuant to section 29 of this act, contact all appropriate local agencies to respond to the crisis.
2. If a local agency that is responsible for responding to a crisis is contacted pursuant to subsection 1 and the local agency determines that the crisis requires assistance from a state agency, the local agency may:
(a) If a local organization for emergency management has been established in the city or county in which the local agency that was contacted is located, through such local organization for emergency management, notify the division of emergency management of the department of motor vehicles and public safety of the crisis and request assistance from the division in responding to the crisis; or
(b) If a local organization for emergency management has not been established in the city or county in which the local agency that was contacted is located, directly notify the division of emergency management of the department of motor vehicles and public safety of the crisis and request assistance from the division in responding to the crisis.
3. If the division of emergency management of the department of motor vehicles and public safety receives notification of a crisis and a request for assistance pursuant to subsection 2 and the governor or his designated representative determines that the crisis requires assistance from a state agency, the division shall carry out its duties set forth in the plan developed pursuant to section 13 of this act and its duties set forth in chapter 414 of NRS, including, without limitation, addressing the immediate crisis and coordinating the appropriate and available local, state and federal resources to provide support services and counseling to pupils, teachers, and parents or legal guardians of pupils, and providing support for law enforcement agencies, for as long as is reasonably necessary.
Sec. 32. A plan developed pursuant to section 25 of this act or updated pursuant to section 26 of this act, a deviation and any information submitted to a development committee pursuant to section 28 of this act and a deviation approved pursuant to section 29 of this act are confidential and, except as otherwise provided in sections 13 and 20 to 33, inclusive, of this act, must not be disclosed to any person or government, governmental agency or political subdivision of a government.
Sec. 33. The provisions of chapter 241 of NRS do not apply to a meeting of:
1. A development committee;
2. A school committee; or
κ2001 Statutes of Nevada, Page 1334 (CHAPTER 289, SB 289)κ
3. The board if the meeting concerns a regulation adopted pursuant to section 30 of this act.
Sec. 34. NRS 394.170 is hereby amended to read as follows:
394.170 1. The authorities in charge of every private school within this state shall provide drills for the pupils in the schools at least twice in each month during the school year to instruct those pupils in the appropriate procedures to be followed in the event of a fire or other emergency [.] , except a crisis governed by sections 20 to 33, inclusive, of this act. Not more than three of those drills may include instruction in the appropriate procedures to be followed in the event of a chemical explosion, related emergencies and other natural disasters.
2. In all cities or towns which have regularly organized, paid fire departments or voluntary fire departments, the drills required by subsection 1 must be conducted under the supervision of the chief of the fire department of the city or town.
3. The state fire marshal shall prescribe general regulations governing the drills required by subsection 1 and shall, with the cooperation of the superintendent of public instruction, arrange for the supervision of drills in schools where the drills are not supervised pursuant to subsection 2.
4. A copy of this section must be kept posted in every classroom of every private school by the principal or teacher in charge thereof.
5. The principal, teacher or other person in charge of each school building shall cause the provisions of this section to be enforced.
6. Any violation of the provisions of this section is a misdemeanor.
Sec. 35. NRS 233B.039 is hereby amended to read as follows:
233B.039 1. The following agencies are entirely exempted from the requirements of this chapter:
(a) The governor.
(b) The department of prisons.
(c) The University and Community College System of Nevada.
(d) The office of the military.
(e) The state gaming control board.
(f) The Nevada gaming commission.
(g) The welfare division of the department of human resources.
(h) The division of health care financing and policy of the department of human resources.
(i) The state board of examiners acting pursuant to chapter 217 of NRS.
(j) Except as otherwise provided in NRS 533.365, the office of the state engineer.
(k) The division of industrial relations of the department of business and industry acting to enforce the provisions of NRS 618.375.
(l) The board to review claims in adopting resolutions to carry out its duties pursuant to NRS 590.830.
2. Except as otherwise provided in NRS 391.323 [,] and subsection 5, the department of education, the board of the public employees benefits program and the commission on professional standards in education are subject to the provisions of this chapter for the purpose of adopting regulations but not with respect to any contested case.
3. The special provisions of:
(a) Chapter 612 of NRS for the distribution of regulations by and the judicial review of decisions of the employment security division of the department of employment, training and rehabilitation;
κ2001 Statutes of Nevada, Page 1335 (CHAPTER 289, SB 289)κ
(b) Chapters 616A to 617, inclusive, of NRS for the determination of contested claims;
(c) Chapter 703 of NRS for the judicial review of decisions of the public utilities commission of Nevada;
(d) Chapter 91 of NRS for the judicial review of decisions of the administrator of the securities division of the office of the secretary of state; and
(e) NRS 90.800 for the use of summary orders in contested cases,
prevail over the general provisions of this chapter.
4. The provisions of NRS 233B.122, 233B.124, 233B.125 and 233B.126 do not apply to the department of human resources in the adjudication of contested cases involving the issuance of letters of approval for health facilities and agencies.
5. The provisions of this chapter do not apply to:
(a) Any order for immediate action, including, but not limited to, quarantine and the treatment or cleansing of infected or infested animals, objects or premises, made under the authority of the state board of agriculture, the state board of health, the state board of sheep commissioners or any other agency of this state in the discharge of a responsibility for the preservation of human or animal health or for insect or pest control; [or]
(b) An extraordinary regulation of the state board of pharmacy adopted pursuant to NRS 453.2184 [.] ; or
(c) A regulation adopted by the state board of education pursuant to section 12 or 30 of this act.
6. The state board of parole commissioners is subject to the provisions of this chapter for the purpose of adopting regulations but not with respect to any contested case.
Sec. 36. NRS 353.271 is hereby amended to read as follows:
353.271 Disaster means a fire, flood, earthquake, drought, explosion, civil disturbance , crisis involving violence on school property, at a school activity or on a school bus, or any other occurrence or threatened occurrence that, regardless of cause:
1. Results in, or may result in, widespread or severe damage to property or injury to or the death of persons in this state; and
2. As determined by:
(a) The governor; or
(b) The governing body of a local government pursuant to NRS 414.090 and the division pursuant to NRS 353.2753,
requires immediate action to protect the health, safety and welfare of the residents of this state.
Sec. 37. NRS 353.2735 is hereby amended to read as follows:
353.2735 1. The disaster relief fund is hereby created as a special revenue fund. The interim finance committee shall administer the fund.
2. The division may accept grants, gifts or donations for deposit in the fund. Except as otherwise provided in subsection [2,] 3, money received from:
(a) A direct legislative appropriation to the fund;
(b) A transfer of one-half of the interest earned on money in the fund to stabilize the operation of state government made pursuant to NRS 353.288; and
(c) A grant, gift or donation to the fund, must be deposited in the fund.
κ2001 Statutes of Nevada, Page 1336 (CHAPTER 289, SB 289)κ
must be deposited in the fund. Except as otherwise provided in NRS 414.135, the interest and income earned on the money in the fund must, after deducting any applicable charges, be credited to the fund.
[2.] 3. If, at the end of each quarter of a fiscal year, the balance in the fund exceeds 0.75 percent of the total amount of all appropriations from the state general fund for the operation of all departments, institutions and agencies of state government and authorized expenditures from the state general fund for the regulation of gaming for that fiscal year, the state controller shall not, until the balance in the fund is 0.75 percent or less of that amount, transfer any interest earned on money in the fund to stabilize the operation of state government from the state general fund to the fund pursuant to the provisions of NRS 353.288.
[3.] 4. Money in the fund may be distributed through grants and loans to state agencies and local governments as provided in NRS 353.2705 to 353.2771, inclusive. Except as otherwise provided in NRS 353.276, such grants will be disbursed on the basis of reimbursement of costs authorized pursuant to NRS 353.274 and 353.2745.
[4.] 5. If the governor declares a disaster, the state board of examiners shall estimate:
(a) The money in the fund that is available for grants and loans for the disaster pursuant to the provisions of NRS 353.2705 to 353.2771, inclusive; and
(b) The anticipated amount of those grants and loans for the disaster.
Except as otherwise provided in this subsection, if the anticipated amount determined pursuant to paragraph (b) exceeds the available money in the fund for such grants and loans, all grants and loans from the fund for the disaster must be reduced in the same proportion that the anticipated amount of the grants and loans exceeds the money in the fund that is available for grants and loans for the disaster. If the reduction of a grant or loan from the fund would result in a reduction in the amount of money that may be received by a state agency or local government from the Federal Government, the reduction in the grant or loan must not be made.
Sec. 38. NRS 353.274 is hereby amended to read as follows:
353.274 Money in the fund may be distributed as a grant to a state agency because of a disaster for the payment of expenses incurred by the state agency for:
1. The repair or replacement of public roads, public streets, bridges, water control facilities, public buildings, public utilities, recreational facilities and parks owned by the state and damaged by the disaster;
2. Any emergency measures undertaken to save lives, protect public health and safety or protect public property , including, without limitation, an emergency measure undertaken in response to a crisis involving violence on school property, at a school activity or on a school bus, in the jurisdiction in which the disaster occurred;
3. The removal of debris from publicly or privately owned land and waterways undertaken because of the disaster; and
4. The administration of a disaster assistance program.
Sec. 39. NRS 353.2745 is hereby amended to read as follows:
353.2745 Money in the fund may be distributed as a grant to a local government because of a disaster for:
κ2001 Statutes of Nevada, Page 1337 (CHAPTER 289, SB 289)κ
1. The payment of not more than 50 percent of the expenses incurred by the local government for:
(a) The repair or replacement of public roads, public streets, bridges, water control facilities, public buildings, public utilities, recreational facilities and parks owned by the local government and damaged by the disaster; and
(b) Any emergency measures undertaken to save lives, protect public health and safety or protect public property , including, without limitation, an emergency measure undertaken in response to a crisis involving violence on school property, at a school activity or on a school bus, in the jurisdiction in which the disaster occurred; and
2. The payment of not more than 50 percent 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 disaster within the jurisdiction of the local government.
Sec. 40. NRS 414.035 is hereby amended to read as follows:
414.035 Emergency management means the preparation for and the carrying out of all emergency functions, other than functions for which military forces are primarily responsible, to minimize injury and repair damage resulting from emergencies or disasters caused by enemy attack, sabotage or other hostile action, by fire, flood, earthquake, storm or other natural causes, or by technological or man-made catastrophes [.] , including, without limitation, a crisis involving violence on school property, at a school activity or on a school bus. These functions include, without limitation:
1. The provision of support for search and rescue operations for persons and property in distress.
2. Organized analysis, planning and coordination of available resources for the mitigation of, preparation for, response to or recovery from emergencies or disasters.
Sec. 41. NRS 414.135 is hereby amended to read as follows:
414.135 1. There is hereby created the emergency assistance account within the disaster relief fund created pursuant to NRS 353.2735. Beginning with the fiscal year that begins on July 1, 1999, the state controller shall, at the end of each fiscal year, transfer the interest earned during the previous fiscal year on the money in the disaster relief fund to the account in an amount not to exceed $500,000.
2. The division of emergency management of the department of motor vehicles and public safety shall administer the account. The division may adopt regulations authorized by this section before, on or after July 1, 1999.
3. All expenditures from the account must be approved in advance by the division. Except as otherwise provided in subsection 4, all money in the account must be expended solely to:
(a) Provide supplemental emergency assistance to this state or to local governments in this state that are severely and adversely affected by a natural, technological or man-made emergency or disaster for which available resources of this state or the local government are inadequate to provide a satisfactory remedy; and
(b) Pay any actual expenses incurred by the division for administration during a natural, technological or man-made emergency or disaster.
4. Beginning with the fiscal year that begins on July 1, 1999, if any balance remains in the account at the end of a fiscal year and the balance has not otherwise been committed for expenditure, the division may, with the approval of the interim finance committee, allocate all or any portion of the remaining balance, not to exceed $250,000, to this state or to a local government to:
κ2001 Statutes of Nevada, Page 1338 (CHAPTER 289, SB 289)κ
not otherwise been committed for expenditure, the division may, with the approval of the interim finance committee, allocate all or any portion of the remaining balance, not to exceed $250,000, to this state or to a local government to:
(a) Purchase equipment or supplies required for emergency management; [and]
(b) Provide training to personnel related to emergency management [.] ; and
(c) Carry out the provisions of sections 2 to 16, inclusive, of this act.
5. Beginning with the fiscal year that begins on July 1, 1999, the division shall, at the end of each quarter of a fiscal year, submit to the interim finance committee a report of the expenditures made from the account for the previous quarter.
6. The division shall adopt such regulations as are necessary to administer the account.
7. The division may adopt regulations to provide for reimbursement of expenditures made from the account. If the division requires such reimbursement, the attorney general shall take such action as is necessary to recover the amount of any unpaid reimbursement plus interest at a rate determined pursuant to NRS 17.130, computed from the date on which the money was removed from the fund, upon request by the division.
Sec. 42. This act becomes effective on July 1, 2001.
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Senate Bill No. 311Senators Schneider, Neal and Shaffer
Joint Sponsors: Assemblymen Buckley, Parks, Bache, Price, Beers, Arberry, Berman, Brown, Chowning, Claborn, Giunchigliani, Lee, Manendo, McClain, Mortenson and Tiffany
CHAPTER 290
AN ACT relating to public schools; requiring the Board of Trustees of the Clark County School District to establish a special planning committee to plan for the construction of smaller schools; requiring the board to report to the Legislative Committee on Education concerning the activities of the special planning committee; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
Whereas, The education of the children of the State of Nevada is of fundamental importance; and
Whereas, Extraordinarily rapid population growth in certain counties has compelled some local governments to establish programs for school construction that require all new schools to be built to accommodate large numbers of pupils; and
Whereas, Studies suggest that pupils who attend schools with relatively smaller pupil populations tend to perform better on academic tests, suffer from fewer social and behavioral problems and enjoy greater opportunities for participation in extracurricular activities, and that the parents of such pupils are more likely to become actively involved in such schools; and
Whereas, It would be beneficial to the residents of this state if some of the new schools to be built in counties experiencing rapid population growth accommodated a comparatively smaller number of pupils so that the relative merits of smaller schools might be the more readily demonstrated; and
κ2001 Statutes of Nevada, Page 1339 (CHAPTER 290, SB 311)κ
accommodated a comparatively smaller number of pupils so that the relative merits of smaller schools might be the more readily demonstrated; and
Whereas, The explosive growth in population that is responsible for the exclusive reliance on schools intended to accommodate large numbers of pupils does not affect all parts of the state equally and, therefore, a general law to redress this problem cannot be made applicable; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. The Board of Trustees of the Clark County School District shall establish a special planning committee to plan for the construction of smaller schools within the district.
2. The committee established pursuant to subsection 1 shall:
(a) Review research concerning the ideal size of different types of schools and the benefits of smaller schools; and
(b) Make recommendations to the board concerning the construction of smaller schools, including the construction of elementary schools, middle schools, junior high schools and high schools.
3. The Board of Trustees of the Clark County School District shall report to the Legislative Committee on Education on or before November 1, 2002, and November 1, 2004, and at such other times as the board deems appropriate, concerning the activities of the committee established pursuant to subsection 1.
Sec. 2. This act expires by limitation on October 1, 2005.
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Senate Bill No. 483Committee on Human Resources and Facilities
CHAPTER 291
AN ACT relating to medical facilities; requiring the state board of health to adopt regulations for the licensure of certain mobile units and facilities for refractive laser surgery as medical facilities; requiring facilities for refractive laser surgery to file a surety bond or deposit other security to provide indemnification to certain patients; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 449 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.
Sec. 2. Facility for refractive laser surgery means a freestanding facility that provides limited medical services for the evaluation of patients with refractive errors of the eye and the surgical treatment of those patients by photorefractive keratectomy or laser in situ keratomeleusis.
Sec. 3. Mobile unit means a motor vehicle, other than a vehicle operated under the authority of a permit issued pursuant to chapter 450B of NRS, that is specially designed, constructed and equipped to provide any of the medical services provided by a medical facility described in subsections 1 to 13, inclusive, of NRS 449.0151.
κ2001 Statutes of Nevada, Page 1340 (CHAPTER 291, SB 483)κ
of the medical services provided by a medical facility described in subsections 1 to 13, inclusive, of NRS 449.0151.
Sec. 4. 1. Except as otherwise provided in section 5 of this act, each facility for refractive laser surgery shall, when applying for a license or renewing a license, file with the administrator of the health division a surety bond:
(a) If the facility employs less than seven employees, in the amount of $10,000;
(b) If the facility employs at least seven but not more than 25 employees, in the amount of $50,000; or
(c) If the facility employs more than 25 employees, in the amount of $100,000.
2. A bond filed pursuant to this section must be executed by the facility as principal and by a surety company as surety. The bond must be payable to the health division and must be conditioned to provide indemnification to a patient of the facility who the administrator of the health division or his designee determines has sustained any damages as a result of the bankruptcy of or any breach of contract by the facility.
3. Except when a surety is released, the surety bond must cover the period of the initial license to operate or the period of the renewal, as appropriate.
4. A surety on any bond filed pursuant to this section may be released after the surety gives 30 days written notice to the administrator of the health division, but the release does not discharge or otherwise affect any claim filed by a patient for any damages sustained as a result of the bankruptcy of or any breach of contract by the facility while the bond was in effect.
5. The license of a facility for refractive laser surgery is suspended by operation of law when the facility is no longer covered by a surety bond as required by this section or by a substitute for the surety bond pursuant to section 5 of this act. The administrator of the health division shall give the facility at least 20 days written notice before the release of the surety or the substitute for the surety, to the effect that the license will be suspended by operation of law until another surety bond is filed or substitute for the surety bond is deposited in the same manner and amount as the bond or substitute being terminated.
Sec. 5. 1. As a substitute for the surety bond required pursuant to section 4 of this act, a facility for refractive laser surgery may deposit with any bank or trust company authorized to do business in this state, upon approval of the administrator of the health division:
(a) An obligation of a bank, savings and loan association, thrift company or credit union licensed to do business in this state;
(b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or
(c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state, or guaranteed by this state, in an aggregate amount, based upon principal amount or market value, whichever is lower.
2. The obligations of a bank, savings and loan association, thrift company or credit union must be held to secure the same obligation as would the surety bond required by section 4 of this act. With the approval of the administrator of the health division, the facility may substitute other suitable obligations for those deposited, which must be assigned to the health division and are negotiable only upon approval of the administrator of the health division.
κ2001 Statutes of Nevada, Page 1341 (CHAPTER 291, SB 483)κ
of the administrator of the health division, the facility may substitute other suitable obligations for those deposited, which must be assigned to the health division and are negotiable only upon approval of the administrator of the health division.
3. Any interest or dividends earned on the deposit accrue to the account of the facility.
4. The deposit must be an amount at least equal to the surety bond required by section 4 of this act and must state that the amount may not be withdrawn except by the direct and sole order of the administrator of the health division.
Sec. 6. NRS 449.001 is hereby amended to read as follows:
449.001 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 449.0015 to 449.019, inclusive, and sections 2 and 3 of this act have the meanings ascribed to them in those sections.
Sec. 7. NRS 449.0151 is hereby amended to read as follows:
449.0151 Medical facility includes:
1. A surgical center for ambulatory patients;
2. An obstetric center;
3. An independent center for emergency medical care;
4. An agency to provide nursing in the home;
5. A facility for intermediate care;
6. A facility for skilled nursing;
7. A facility for hospice care;
8. A hospital;
9. A psychiatric hospital;
10. A facility for the treatment of irreversible renal disease;
11. A rural clinic;
12. A nursing pool; [and]
13. A facility for modified medical detoxification [.] ;
14. A facility for refractive laser surgery; and
15. A mobile unit.
Sec. 8. NRS 449.037 is hereby amended to read as follows:
449.037 1. The board shall adopt:
(a) Licensing standards for each class of medical facility or facility for the dependent covered by NRS 449.001 to 449.240, inclusive, and sections 2 to 5, inclusive, of this act and for programs of hospice care.
(b) Regulations governing the licensing of such facilities and programs.
(c) Regulations governing the procedure and standards for granting an extension of the time for which a natural person may provide certain care in his home without being considered a residential facility for groups pursuant to NRS 449.017. The regulations must require that such grants are effective only if made in writing.
(d) Regulations establishing a procedure for the indemnification by the health division, from the amount of any surety bond or other obligation filed or deposited by a facility for refractive laser surgery pursuant to section 4 or 5 of this act, of a patient of the facility who has sustained any damages as a result of the bankruptcy of or any breach of contract by the facility.
(e) Any other regulations as it deems necessary or convenient to carry out the provisions of NRS 449.001 to 449.240, inclusive [.] , and sections 2 to 5, inclusive, of this act.
κ2001 Statutes of Nevada, Page 1342 (CHAPTER 291, SB 483)κ
2. The board shall adopt separate regulations governing the licensing and operation of:
(a) Facilities for the care of adults during the day; and
(b) Residential facilities for groups,
which provide care to persons with Alzheimers disease.
3. The board shall adopt separate regulations for [the] :
(a) The licensure of rural hospitals which take into consideration the unique problems of operating such a facility in a rural area.
(b) The licensure of facilities for refractive laser surgery which take into consideration the unique factors of operating such a facility.
(c) The licensure of mobile units which take into consideration the unique factors of operating a facility that is not in a fixed location.
4. The board shall require that the practices and policies of each medical facility or facility for the dependent provide adequately for the protection of the health, safety and physical, moral and mental well-being of each person accommodated in the facility.
5. The board shall establish minimum qualifications for administrators and employees of residential facilities for groups. In establishing the qualifications, the board shall consider the related standards set by nationally recognized organizations which accredit such facilities.
6. The board shall adopt separate regulations regarding the assistance which may be given pursuant to NRS 453.375 and 454.213 to an ultimate user of controlled substances or dangerous drugs by employees of residential facilities for groups. The regulations must require at least the following conditions before such assistance may be given:
(a) The ultimate users physical and mental condition is stable and is following a predictable course.
(b) The amount of the medication prescribed is at a maintenance level and does not require a daily assessment.
(c) A written plan of care by a physician or registered nurse has been established that:
(1) Addresses possession and assistance in the administration of the medication; and
(2) Includes a plan, which has been prepared under the supervision of a registered nurse or licensed pharmacist, for emergency intervention if an adverse condition results.
(d) The prescribed medication is not administered by injection or intravenously.
(e) The employee has successfully completed training and examination approved by the health division regarding the authorized manner of assistance.
7. The board shall, if it determines necessary, adopt regulations and requirements to ensure that each residential facility for groups and its staff are prepared to respond to an emergency, including, without limitation:
(a) The adoption of plans to respond to a natural disaster and other types of emergency situations, including, without limitation, an emergency involving fire;
(b) The adoption of plans to provide for the evacuation of a residential facility for groups in an emergency, including, without limitation, plans to ensure that nonambulatory patients may be evacuated;
(c) Educating the residents of residential facilities for groups concerning the plans adopted pursuant to paragraphs (a) and (b); and
κ2001 Statutes of Nevada, Page 1343 (CHAPTER 291, SB 483)κ
(d) Posting the plans or a summary of the plans adopted pursuant to paragraphs (a) and (b) in a conspicuous place in each residential facility for groups.
Sec. 9. NRS 449.230 is hereby amended to read as follows:
449.230 1. Any authorized member or employee of the health division may enter and inspect any building or premises at any time to secure compliance with or prevent a violation of any provision of NRS 449.001 to 449.245, inclusive [.] , and sections 2 to 5, inclusive, of this act. For the purposes of this subsection, building or premises does not include a mobile unit that is operated by a medical facility which is accredited by the Joint Commission on Accreditation of Healthcare Organizations or the American Osteopathic Association.
2. The state fire marshal or his designee shall, upon receiving a request from the health division or a written complaint concerning compliance with the plans and requirements to respond to an emergency adopted pursuant to subsection 7 of NRS 449.037:
(a) Enter and inspect a residential facility for groups; and
(b) Make recommendations regarding the adoption of plans and requirements pursuant to subsection 7 of NRS 449.037,
to ensure the safety of the residents of the facility in an emergency.
3. The state health officer or his designee shall enter and inspect at least annually each building or the premises of a residential facility for groups to ensure compliance with standards for health and sanitation.
4. An authorized member or employee of the health division shall enter and inspect any building or premises operated by a residential facility for groups within 72 hours after the health division is notified that a residential facility for groups is operating without a license.
Sec. 10. NRS 449.235 is hereby amended to read as follows:
449.235 [Every]
1. Except as otherwise provided in subsection 2, every medical facility or facility for the dependent may be inspected at any time, with or without notice, as often as is necessary by:
[1.] (a) The health division to [assure that there is] ensure compliance with all applicable regulations and standards; and
[2.] (b) Any person designated by the aging services division of the department of human resources to investigate complaints made against the facility.
2. The provisions of subsection 1 do not authorize the health division to inspect a mobile unit that is operated by a medical facility which is accredited by the Joint Commission on Accreditation of Healthcare Organizations or the American Osteopathic Association, unless the health division has reasonable cause to believe that the mobile unit has violated any provision of NRS 449.001 to 449.240, inclusive, and sections 2 to 5, inclusive, of this act or any regulation or standard adopted pursuant thereto.
Sec. 11. This act becomes effective upon passage and approval for the purposes of adopting regulations and on July 1, 2001, for all other purposes.
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κ2001 Statutes of Nevada, Page 1344κ
Senate Bill No. 484Committee on Human Resources and Facilities
CHAPTER 292
AN ACT relating to health care; requiring the Legislative Committee on Health Care to conduct a study of the diversion of patients in need of emergency services and care from hospitals that lack sufficient resources to provide the emergency services and care needed by those patients; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
Whereas, As a result of the extremely rapid increase in the population of the State of Nevada, there currently exists an insufficient number of hospital beds adequately to serve the needs of its residents for the provision of emergency services and care; and
Whereas, When a hospital has exhausted its ability to provide the beds and staff necessary for the adequate provision of emergency services and care, emergency patients must be diverted to other hospitals; and
Whereas, The diversion of emergency patients is occurring with alarming frequency in this state, often resulting in lengthy delays before emergency personnel can provide those patients with the emergency services and care they urgently need; and
Whereas, The diversion of emergency patients appears to be having a significant adverse effect on the delivery and costs of health care services in this state; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The Legislative Committee on Health Care shall:
1. Conduct a study of the diversion of patients in need of emergency services and care from hospitals that lack sufficient resources to provide the emergency services and care needed by those patients. The study must include an examination of:
(a) The causes of those diversions; and
(b) The effect of those diversions on:
(1) The delivery of health care services to patients in this state; and
(2) The costs of health care incurred by patients and employers in this state.
2. Submit a report of its findings and any recommendations for legislation to the Director of the Legislative Counsel Bureau for transmission to the appropriate standing committees of the 72nd session of the Nevada Legislature.
Sec. 2. This act becomes effective on July 1, 2001, and expires by limitation on June 30, 2003.
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κ2001 Statutes of Nevada, Page 1345κ
Assembly Bill No. 325Assemblymen Goldwater and Parks
CHAPTER 293
AN ACT relating to property; revising the provisions concerning the rule against perpetuities; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 111.1037 is hereby amended to read as follows:
111.1037 NRS 111.1031 does not apply to:
1. A nonvested property interest or a power of appointment arising out of a nondonative transfer, except a nonvested property interest or a power of appointment arising out of:
(a) A premarital or postmarital agreement;
(b) A separation or divorce settlement;
(c) A spouses election;
(d) A similar arrangement arising out of a prospective, existing or previous marital relationship between the parties;
(e) A contract to make or not to revoke a will or trust;
(f) A contract to exercise or not to exercise a power of appointment;
(g) A transfer in satisfaction of a duty of support; or
(h) A reciprocal transfer;
2. A fiduciarys power relating to the administration or management of assets, including the power of a fiduciary to sell, lease or mortgage property, and the power of a fiduciary to determine principal and income;
3. A power to appoint a fiduciary;
4. A discretionary power of a trustee to distribute principal before termination of a trust to a beneficiary having an indefeasibly vested interest in the income and principal;
5. A nonvested property interest held by a charity, government, or governmental agency or subdivision, if the nonvested property interest is preceded by an interest held by another charity, government, or governmental agency or subdivision;
6. A nonvested property interest in , or a power of appointment with respect to , a trust or other property arrangement forming part of a pension, profit-sharing, stock bonus, health, disability, death benefit, income deferral, or other current or deferred benefit plan for one or more employees, independent contractors, or their beneficiaries or spouses, to which contributions are made for the purpose of distributing to or for the benefit of the participants or their beneficiaries or spouses the property, income or principal in the trust or other property arrangement, except a nonvested property interest or a power of appointment that is created by an election of a participant or a beneficiary or spouse; [or]
7. A nonvested property interest in, or a power of appointment with respect to, a trust if:
(a) The trustee of the trust has the unlimited power to sell assets of the trust or at least one person, including, without limitation, the trustee, has the power to terminate the entire trust;
κ2001 Statutes of Nevada, Page 1346 (CHAPTER 293, AB 325)κ
(b) The instrument creating the trust states that the rule against perpetuities or the provisions of NRS 111.1031 do not apply to the trust; and
(c) The trust:
(1) Is executed in this state;
(2) Has at least one trustee who is domiciled in this state;
(3) Is administered in this state, regardless of whether a portion or all of the assets of the trust are physically deposited for safekeeping in another state; or
(4) Has assets of which a substantial portion is located in this state; or
8. A property interest, power of appointment or arrangement that was not subject to the common-law rule against perpetuities or is expressly excluded by another statute of this state.
Sec. 2. NRS 111.1039 is hereby amended to read as follows:
111.1039 1. Except as extended by subsection 2 [,] and as otherwise provided in subsection 3, NRS 111.103 to 111.1037, inclusive, apply to a nonvested property interest or a power of appointment that is created on or after July 1, 1987. For purposes of this section only, a nonvested property interest or a power of appointment created by the exercise of a power of appointment is created when the power is irrevocably exercised or when a revocable exercise becomes irrevocable.
2. With respect to a nonvested property interest or a power of appointment that was created before July 1, 1987, and that violates the rule against perpetuities as that rule existed before that date, a court , upon the petition of an interested person , may exercise its equitable power to reform the disposition in the manner that most closely approximates the transferors manifested plan of distribution and is within the limits of the rule against perpetuities applicable when the nonvested property interest or power of appointment was created.
3. The provisions of subsection 7 of NRS 111.1037 apply to an interest in property that is created by:
(a) A testamentary trust if the testator dies on or after December 1, 2002;
(b) An inter vivos trust if the settlor dies on or after December 1, 2002;
(c) An inter vivos trust that is executed on or after December 1, 2002; or
(d) The exercise of a general power of appointment on or after December 1, 2002.
Sec. 3. This act becomes effective on December 1, 2002, only if Assembly Joint Resolution No. 4 of the 70th session of the Nevada Legislature is approved by the voters at the general election on November 5, 2002.
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κ2001 Statutes of Nevada, Page 1347κ
Assembly Bill No. 443Assemblywoman Freeman
CHAPTER 294
AN ACT relating to elections; providing for certain designated areas for gathering signatures on petitions; prohibiting state and local government, for certain periods, from expending money to support or oppose candidates or ballots questions; extending the period for gathering signatures on certain petitions; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 293 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. At each building that is open to the general public and occupied by the government of this state or a political subdivision of this state or an agency thereof, other than a building of a public elementary or secondary school, an area must be made available for the use of any person to gather signatures on a petition at any time that the building is open to the public. The area must be reasonable and may be inside or outside of the building. Each public officer or employee in control of the operation of a building governed by this subsection shall designate and approve the area required by this subsection for the building.
2. Before a person may use an area designated pursuant to subsection 1, the person must notify the public officer or employee in control of the operation of the building governed by subsection 1 of the dates and times that the person intends to use the area to gather signatures on a petition. The public officer or employee may not deny the person the use of the area.
3. A person aggrieved by a decision made by a public officer or employee pursuant to subsection 1 may appeal the decision to the secretary of state. The secretary of state shall review the decision to determine whether the public officer or employee designated a reasonable area as required by subsection 1.
4. The decision of the secretary of state is a final decision for the purposes of judicial review. The decision of the secretary of state may only be appealed in the first judicial district court.
5. The secretary of state may adopt regulations to carry out the provisions of subsection 3.
Sec. 3. The government of this state or a political subdivision of this state or an agency thereof shall not incur an expense or make an expenditure to support or oppose:
1. A ballot question.
2. A candidate.
Sec. 4. NRS 306.015 is hereby amended to read as follows:
306.015 1. Before a petition to recall a public officer is circulated, the persons proposing to circulate the petition must file a notice of intent with the filing officer.
2. The notice of intent:
κ2001 Statutes of Nevada, Page 1348 (CHAPTER 294, AB 443)κ
(a) Must be signed by three registered voters who actually voted in this state or in the county, district or municipality electing the officer at the last preceding general election.
(b) Must be signed before a person authorized by law to administer oaths that the statements and signatures contained in the notice are true.
(c) Is valid until the date on which the call for a special election is issued, as set forth in NRS 306.040.
3. The petition may consist of more than one document. The persons filing the notice of intent shall submit the petition that was circulated for signatures to the filing officer within [60] 90 days after the date on which the notice of intent was filed. The filing officer shall immediately submit the petition to the county clerk for verification pursuant to NRS 306.035. Any person who fails to file the petition as required by this subsection is guilty of a misdemeanor. Copies of the petition are not valid for any subsequent petition.
4. The county clerk shall, upon completing the verification of the signatures on the petition, file the petition with the filing officer.
5. Any person who signs a petition to recall any public officer may request that the county clerk remove his name from the petition by submitting a request in writing to the county clerk at any time before the petition is submitted for the verification of the signatures thereon pursuant to NRS 306.035.
6. A person who signs a notice of intent pursuant to subsection 1 or a petition to recall a public officer is immune from civil liability for conduct related to the exercise of his right to participate in the recall of a public officer.
7. As used in this section, filing officer means the officer with whom the public officer to be recalled filed his declaration of candidacy or acceptance of candidacy pursuant to NRS 293.185, 293C.145 or 293C.175.
Sec. 5. NRS 350.020 is hereby amended to read as follows:
350.020 1. Except as otherwise provided by subsections 3 and 4, if a municipality proposes to issue or incur general obligations, the proposal must be submitted to the electors of the municipality at a special election called for that purpose or the next general municipal election or general state election.
2. Such a special election may be held:
(a) At any time, including, without limitation, on the date of a primary municipal election or a primary state election, if the governing body of the municipality determines, by a unanimous vote, that an emergency exists; or
(b) On the first Tuesday after the first Monday in June of an odd-numbered year.
The determination made by the governing body is conclusive unless it is shown that the governing body acted with fraud or a gross abuse of discretion. An action to challenge the determination made by the governing body must be commenced within 15 days after the governing bodys determination is final. As used in this subsection, emergency means any occurrence or combination of occurrences which requires immediate action by the governing body of the municipality to prevent or mitigate a substantial financial loss to the municipality or to enable the governing body to provide an essential service to the residents of the municipality.
3. If payment of a general obligation of the municipality is additionally secured by a pledge of gross or net revenue of a project to be financed by its issue, and the governing body determines, by an affirmative vote of two-thirds of the members elected to the governing body, that the pledged revenue will at least equal the amount required in each year for the payment of interest and principal, without regard to any option reserved by the municipality for early redemption, the municipality may, after a public hearing, incur this general obligation without an election unless, within [60] 90 days after publication of a resolution of intent to issue the bonds, a petition is presented to the governing body signed by not less than 5 percent of the registered voters of the [municipality who together with any corporate petitioners own not less than 2 percent in assessed value of the taxable property of the] municipality.
κ2001 Statutes of Nevada, Page 1349 (CHAPTER 294, AB 443)κ
thirds of the members elected to the governing body, that the pledged revenue will at least equal the amount required in each year for the payment of interest and principal, without regard to any option reserved by the municipality for early redemption, the municipality may, after a public hearing, incur this general obligation without an election unless, within [60] 90 days after publication of a resolution of intent to issue the bonds, a petition is presented to the governing body signed by not less than 5 percent of the registered voters of the [municipality who together with any corporate petitioners own not less than 2 percent in assessed value of the taxable property of the] municipality. Any member elected to the governing body whose authority to vote is limited by charter, statute or otherwise may vote on the determination required to be made by the governing body pursuant to this subsection. The determination by the governing body becomes conclusive on the last day for filing the petition. For the purpose of this subsection, the number of registered voters must be determined as of the close of registration for the last preceding general election . [and assessed values must be determined from the next preceding final assessment roll. An authorized corporate officer may sign such a petition whether or not he is a registered voter.] The resolution of intent need not be published in full, but the publication must include the amount of the obligation and the purpose for which it is to be incurred. Notice of the public hearing must be published at least 10 days before the day of the hearing. The publications must be made once in a newspaper of general circulation in the municipality. When published, the notice of the public hearing must be at least as large as 5 inches high by 4 inches wide.
4. The board of trustees of a school district may issue general obligation bonds which are not expected to result in an increase in the existing property tax levy for the payment of bonds of the school district without holding an election for each issuance of the bonds if the qualified electors approve a question submitted by the board of trustees that authorizes issuance of bonds for a period of 10 years after the date of approval by the voters. If the question is approved, the board of trustees of the school district may issue the bonds for a period of 10 years after the date of approval by the voters, after obtaining the approval of the debt management commission in the county in which the school district is located and, in a county whose population is 100,000 or more, the approval of the oversight panel for school facilities established pursuant to NRS 393.092 in that county, if the board of trustees of the school district finds that the existing tax for debt service will at least equal the amount required to pay the principal and interest on the outstanding general obligations of the school district and the general obligations proposed to be issued. The finding made by the board of trustees is conclusive in the absence of fraud or gross abuse of discretion. As used in this subsection, general obligations does not include medium-term obligations issued pursuant to NRS 350.085 to 350.095, inclusive.
5. At the time of issuance of bonds authorized pursuant to subsection 4, the board of trustees shall establish a reserve account in its debt service fund for payment of the outstanding bonds of the school district. The reserve account must be established and maintained in an amount at least equal to the lesser of the amount of principal and interest payments due on all of the outstanding bonds of the school district in the next fiscal year or 10 percent of the outstanding principal amount of the outstanding bonds of the school district.
κ2001 Statutes of Nevada, Page 1350 (CHAPTER 294, AB 443)κ
district. If the amount in the reserve account falls below the amount required by this subsection:
(a) The board of trustees shall not issue additional bonds pursuant to subsection 4 until the reserve account is restored to the level required by this subsection; and
(b) The board of trustees shall apply all of the taxes levied by the school district for payment of bonds of the school district that are not needed for payment of the principal and interest on bonds of the school district in the current fiscal year to restore the reserve account to the level required pursuant to this subsection.
6. A municipality may issue special or medium-term obligations without an election.
Sec. 6. The amendatory provisions of this act do not apply to any building leased pursuant to an agreement that would prohibit the lessee from complying with the provisions of section 1 of this act until the agreement expires or is renewed.
________
Assembly Bill No. 444Assemblywoman Freeman
CHAPTER 295
AN ACT relating to the preservation of neighborhoods; providing for the revocation of the license or certification of certain facilities for the care and treatment of persons in certain circumstances; requiring certain rental agreements to contain certain additional information; requiring that the responsible person whose telephone number a landlord is required to provide to a tenant for emergencies must reside in the same county in which the premises are located; authorizing the real estate commission to discipline certain licensees in certain circumstances; requiring certain governmental agencies to maintain a log of certain complaints and to submit certain reports to the director of the legislative counsel bureau; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 449.160 is hereby amended to read as follows:
449.160 1. The health division may deny an application for a license or may suspend or revoke any license issued under the provisions of NRS 449.001 to 449.240, inclusive, upon any of the following grounds:
[1.] (a) Violation by the applicant or the licensee of any of the provisions of NRS 439B.410 [,] or 449.001 to 449.245, inclusive, or of any other law of this state or of the standards, rules and regulations adopted thereunder.
[2.] (b) Aiding, abetting or permitting the commission of any illegal act.
[3.] (c) Conduct inimical to the public health, morals, welfare and safety of the people of the State of Nevada in the maintenance and operation of the premises for which a license is issued.
[4.] (d) Conduct or practice detrimental to the health or safety of the occupants or employees of the facility.
[5.] (e) Failure of the applicant to obtain any written approval required by NRS 439A.100 or an ordinance adopted pursuant to section 1 of Senate Bill No.
κ2001 Statutes of Nevada, Page 1351 (CHAPTER 295, AB 444)κ
No. 328 of this [act] session or as provided in any regulation adopted pursuant to this chapter, if such approval is required.
2. In addition to the provisions of subsection 1, the health division may revoke a license to operate a facility for the dependent if, with respect to that facility, the licensee that operates the facility, or an agent or employee of the licensee:
(a) Is convicted of violating any of the provisions of NRS 202.470;
(b) Is ordered to but fails to abate a nuisance pursuant to NRS 244.360, 244.3603 or 268.4124; or
(c) Is ordered by the appropriate governmental agency to correct a violation of a building, safety or health code or regulation but fails to correct the violation.
3. The health division shall maintain a log of any complaints that it receives relating to activities for which the health division may revoke the license to operate a facility for the dependent pursuant to subsection 2.
4. On or before February 1 of each odd-numbered year, the health division shall submit to the director of the legislative counsel bureau a written report setting forth, for the previous biennium:
(a) Any complaints included in the log maintained by the health division pursuant to subsection 3; and
(b) Any disciplinary actions taken by the health division pursuant to subsection 2.
Sec. 2. NRS 458.155 is hereby amended to read as follows:
458.155 1. If a halfway house for alcohol and drug abusers violates any provisions related to its certification, including, without limitation, any law of this state or any applicable condition, standard or regulation adopted by the board, the health division may:
(a) Suspend or revoke its certification; and
(b) Impose an administrative fine of not more than $1,000 per day for each violation, together with interest thereon at a rate not to exceed 10 percent per annum.
2. In addition to the provisions of subsection 1, the health division may revoke the certification of a halfway house for alcohol and drug abusers if, with respect to that halfway house, the person or governmental entity that operates and maintains the halfway house, or an agent or employee of the person or governmental entity:
(a) Is convicted of violating any of the provisions of NRS 202.470;
(b) Is ordered to but fails to abate a nuisance pursuant to NRS 244.360, 244.3603 or 268.4124; or
(c) Is ordered by the appropriate governmental agency to correct a violation of a building, safety or health code or regulation but fails to correct the violation.
3. If a halfway house for alcohol and drug abusers fails to pay an administrative fine imposed pursuant to subsection 1, the health division may:
(a) Suspend the certificate of the halfway house until the administrative fine is paid; and
(b) Collect court costs, reasonable attorneys fees and other costs incurred to collect the administrative fine.
[3.] 4. Any money collected as an administrative fine must be deposited in the state general fund. If money is needed to pay the costs of an investigation or inspection to carry out the provisions of NRS 458.141 to 458.171, inclusive, the health division may present a claim to the state board of examiners for recommendation to the interim finance committee.
κ2001 Statutes of Nevada, Page 1352 (CHAPTER 295, AB 444)κ
458.171, inclusive, the health division may present a claim to the state board of examiners for recommendation to the interim finance committee.
5. The health division shall maintain a log of any complaints that it receives relating to activities for which the health division may revoke the certification of a halfway house for alcohol and drug abusers pursuant to subsection 2.
6. On or before February 1 of each odd-numbered year, the health division shall submit to the director of the legislative counsel bureau a written report setting forth, for the previous biennium:
(a) Any complaints included in the log maintained by the health division pursuant to subsection 5; and
(b) Any disciplinary actions taken by the health division pursuant to subsection 2.
Sec. 3. NRS 118A.200 is hereby amended to read as follows:
118A.200 1. Any written agreement for the use and occupancy of a dwelling unit or premises [shall] must be signed by the landlord or his agent and the tenant or his agent.
2. Any written rental agreement [shall] must contain , but is not limited to , provisions relating to the following subjects:
(a) Duration of the agreement.
(b) Amount of rent and the manner and time of its payment.
(c) Occupancy by children or pets.
(d) Services included with the dwelling rental.
(e) Fees which are required and the purposes for which they are required.
(f) Deposits which are required and the conditions for their refund.
(g) Charges which may be required for late or partial payment of rent or for return of any dishonored check.
(h) Inspection rights of the landlord.
(i) A listing of persons or numbers of persons who are to occupy the dwelling.
(j) Respective responsibilities of the landlord and the tenant as to the payment of utility charges.
(k) A signed record of the inventory and condition of the premises under the exclusive custody and control of the tenant.
(l) A summary of the provisions of NRS 202.470.
(m) Information regarding the procedure pursuant to which a tenant may report to the appropriate authorities:
(1) A nuisance.
(2) A violation of a building, safety or health code or regulation.
3. The absence of a written agreement raises a disputable presumption that:
(a) There are no restrictions on occupancy by children or pets.
(b) Maintenance and waste removal services are provided without charge to the tenant.
(c) No charges for partial or late payments of rent or for dishonored checks are paid by the tenant.
(d) Other than normal wear, the premises will be returned in the same condition as when the tenancy began.
4. It is unlawful for a landlord or any person authorized to enter into a rental agreement on his behalf to use any written agreement which does not conform to the provisions of this section , and any provision in an agreement which contravenes the provisions of this section is void.
κ2001 Statutes of Nevada, Page 1353 (CHAPTER 295, AB 444)κ
Sec. 4. NRS 118A.260 is hereby amended to read as follows:
118A.260 1. The landlord, or any person authorized to enter into a rental agreement on his behalf, shall disclose to the tenant in writing at or before the commencement of the tenancy:
(a) The name and address of:
(1) The persons authorized to manage the premises;
(2) A person authorized to act for and on behalf of the landlord for the purpose of service of process and receiving notices and demands; and
(3) The principal or corporate owner.
(b) A telephone number at which a responsible person who resides in the county in which the premises are located may be called in case of emergency.
2. The information required to be furnished by this section must be kept current , and this section is enforceable against any successor landlord or manager of the premises.
3. A party who enters into a rental agreement on behalf of the landlord and fails to comply with this section is an agent of the landlord for purposes of:
(a) Service of process and receiving notices and demands; and
(b) Performing the obligations of the landlord under law and under the rental agreement.
4. In any action against a landlord which involves his rental property, service of process upon the manager of the property shall be deemed to be service upon the landlord. The obligations of the landlord devolve upon the persons authorized to enter into a rental agreement on his behalf.
5. This section does not limit or remove the liability of an undisclosed landlord.
Sec. 5. NRS 118B.040 is hereby amended to read as follows:
118B.040 1. A rental agreement or lease between a landlord and tenant to rent or lease any mobile home lot must be in writing. The landlord shall give the tenant a copy of the agreement or lease at the time the tenant signs it.
2. A rental agreement or lease must contain , but is not limited to , provisions relating to:
(a) The duration of the agreement.
(b) The amount of rent, the manner and time of its payment and the amount of any charges for late payment and dishonored checks.
(c) Restrictions on occupancy by children or pets.
(d) Services and utilities included with the rental of a lot and the responsibility of maintaining or paying for them, including the charge, if any, for cleaning the lots.
(e) Deposits which may be required and the conditions for their refund.
(f) Maintenance which the tenant is required to perform and any appurtenances he is required to provide.
(g) The name and address of the owner of the mobile home park and his authorized agent.
(h) Any restrictions on subletting.
(i) Any recreational facilities and other amenities provided to the tenant and any deposits or fees required for their use.
(j) Any restriction of the park to older persons pursuant to federal law.
(k) The dimensions of the mobile home lot of the tenant.
(l) A summary of the provisions of NRS 202.470.
κ2001 Statutes of Nevada, Page 1354 (CHAPTER 295, AB 444)κ
(m) Information regarding the procedure pursuant to which a tenant may report to the appropriate authorities:
(1) A nuisance.
(2) A violation of a building, safety or health code or regulation.
(n) The amount to be charged each month to the tenant to reimburse the landlord for the cost of a capital improvement to the mobile home park. Such an amount must be stated separately and include the length of time the charge will be collected and the total amount to be recovered by the landlord from all tenants in the mobile home park.
Sec. 6. NRS 432A.190 is hereby amended to read as follows:
432A.190 1. The bureau may deny an application for a license or may suspend or revoke any license issued under the provisions of this chapter upon any of the following grounds:
[1.] (a) Violation by the applicant or licensee or an employee of the applicant or licensee of any of the provisions of this chapter or of any other law of this state or of the standards and other regulations adopted thereunder.
[2.] (b) Aiding, abetting or permitting the commission of any illegal act.
[3.] (c) Conduct inimical to the public health, morals, welfare and safety of the people of the State of Nevada in the maintenance and operation of the child care facility for which a license is issued.
[4.] (d) Conduct or practice detrimental to the health or safety of the occupants or employees of the child care facility, or the clients of the outdoor youth program.
[5.] (e) Conviction of any crime listed in subsection 2 of NRS 432A.170 committed by the applicant or licensee or an employee of the applicant or licensee, or by a resident of the child care facility or participant in the outdoor youth program who is 18 years of age or older.
2. In addition to the provisions of subsection 1, the bureau may revoke a license to operate a child care facility if, with respect to that facility, the licensee that operates the facility, or an agent or employee of the licensee:
(a) Is convicted of violating any of the provisions of NRS 202.470;
(b) Is ordered to but fails to abate a nuisance pursuant to NRS 244.360, 244.3603 or 268.4124; or
(c) Is ordered by the appropriate governmental agency to correct a violation of a building, safety or health code or regulation but fails to correct the violation.
3. The bureau shall maintain a log of any complaints that it receives relating to activities for which the bureau may revoke the license to operate a child care facility pursuant to subsection 2.
4. On or before February 1 of each odd-numbered year, the bureau shall submit to the director of the legislative counsel bureau a written report setting forth, for the previous biennium:
(a) Any complaints included in the log maintained by the bureau pursuant to subsection 3; and
(b) Any disciplinary actions taken by the bureau pursuant to subsection 2.
Sec. 7. NRS 645.633 is hereby amended to read as follows:
645.633 1. The commission may take action pursuant to NRS 645.630 against any person subject to that section who is guilty of:
[1.] (a) Willfully using any trade name, service mark or insigne of membership in any real estate organization of which the licensee is not a member, without the legal right to do so.
κ2001 Statutes of Nevada, Page 1355 (CHAPTER 295, AB 444)κ
[2.] (b) Violating any order of the commission, any agreement with the division, any of the provisions of this chapter, chapter 116, 119, 119A, 119B, 645A or 645C of NRS or any regulation adopted thereunder.
[3.] (c) Paying a commission, compensation or a finders fee to any person for performing the services of a broker, broker-salesman or salesman who has not secured his license pursuant to this chapter. This subsection does not apply to payments to a broker who is licensed in his state of residence.
[4.] (d) A felony, or has entered a plea of guilty, guilty but mentally ill or nolo contendere to a charge of felony or any crime involving fraud, deceit, misrepresentation or moral turpitude.
[5.] (e) Guaranteeing, or having authorized or permitted any person to guarantee, future profits which may result from the resale of real property.
[6.] (f) Failure to include a fixed date of expiration in any written brokerage agreement or to leave a copy of the brokerage agreement with the client.
[7.] (g) Accepting, giving or charging any undisclosed commission, rebate or direct profit on expenditures made for a client.
[8.] (h) Gross negligence or incompetence in performing any act for which he is required to hold a license pursuant to this chapter, chapter 119, 119A or 119B of NRS.
[9.] (i) Any other conduct which constitutes deceitful, fraudulent or dishonest dealing.
[10.] (j) Any conduct which took place before he became licensed, which was in fact unknown to the division and which would have been grounds for denial of a license had the division been aware of the conduct.
[11.] (k) Knowingly permitting any person whose license has been revoked or suspended to act as a real estate broker, broker-salesman or salesman, with or on behalf of the licensee.
[12.] (l) Recording or causing to be recorded a claim pursuant to the provisions of NRS 645.8701 to 645.8811, inclusive, that is determined by a district court to be frivolous and made without reasonable cause pursuant to NRS 645.8791.
2. [Action may also be taken] The commission may take action pursuant to NRS 645.630 against a person who is subject to that section for the suspension or revocation of a real estate brokers, broker-salesmans or salesmans license issued to him by any other jurisdiction.
3. The commission may take action pursuant to NRS 645.630 against any person who:
(a) Holds a permit to engage in property management issued pursuant to NRS 645.6052; and
(b) In connection with any property for which the person has obtained a written brokerage agreement to manage the property pursuant to NRS 645.6056:
(1) Is convicted of violating any of the provisions of NRS 202.470;
(2) Has been notified in writing by the appropriate governmental agency of a potential violation of NRS 244.360, 244.3603 or 268.4124, and has failed to inform the owner of the property of such notification; or
(3) Has been directed in writing by the owner of the property to correct a potential violation of NRS 244.360, 244.3603 or 268.4124, and has failed to correct the potential violation, if such corrective action is within the scope of the persons duties pursuant to the written brokerage agreement.
κ2001 Statutes of Nevada, Page 1356 (CHAPTER 295, AB 444)κ
4. The commission shall maintain a log of any complaints that it receives relating to activities for which the commission may take action against a person holding a permit to engage in property management pursuant to subsection 3.
5. On or before February 1 of each odd-numbered year, the commission shall submit to the director of the legislative counsel bureau a written report setting forth, for the previous biennium:
(a) Any complaints included in the log maintained by the commission pursuant to subsection 4; and
(b) Any disciplinary actions taken by the commission pursuant to subsection 3.
Sec. 8. 1. This section and sections 2 to 7, inclusive, of this act become effective on July 1, 2001.
2. Section 1 of this act becomes effective at 12:01 a.m. on July 1, 2001.
________
Senate Bill No. 51Committee on Judiciary
CHAPTER 296
AN ACT relating to business associations; providing for the decrease of issued and outstanding shares of stock in certain circumstances; providing for the voting rights of fiduciaries and joint owners of stock; revising various provisions governing the filing of organizational and related documents; revising the fees for filing certain documents; revising provisions governing the forfeiture of stock by delinquent subscribers; providing for the registration and management of foreign limited-liability companies; revising provisions governing the merger, conversion and exchange of business entities; providing for the domestication of certain foreign business entities; providing that the secretary of state and his employees are not liable for actions or omissions with respect to the examination, acceptance or filing of inaccurate or defective documents received from a business association; making various other changes pertaining to business associations; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 78 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. A person holding stock in a fiduciary capacity is entitled to vote the shares so held.
2. A person whose stock is pledged is entitled to vote, unless in the pledge the pledgor has expressly empowered the pledgee to vote the stock, in which case only the pledgee or the proxy of the pledgee may vote the stock.
3. If shares or other securities having voting power stand of record in the names of two or more persons, whether fiduciaries, joint tenants, tenants in common or otherwise, or if two or more persons have the same fiduciary relationship respecting the shares or securities, unless the secretary of the corporation is given written notice to the contrary and is furnished with a copy of the instrument or order appointing them or creating the relationship, their acts with respect to voting have the following effect:
κ2001 Statutes of Nevada, Page 1357 (CHAPTER 296, SB 51)κ
creating the relationship, their acts with respect to voting have the following effect:
(a) If only one votes, that persons act binds all;
(b) If more than one votes, the act chosen by a majority of votes binds all; or
(c) If more than one votes, but the vote is evenly split on any particular matter, each faction may vote the shares or securities in question proportionally.
Sec. 3. 1. Unless otherwise provided in the articles of incorporation, a corporation that desires to decrease the number of issued and outstanding shares of a class or series held by each stockholder of record at the effective date and time of the change without correspondingly decreasing the number of authorized shares of the same class or series may do so if:
(a) The board of directors adopts a resolution setting forth the proposal to decrease the number of issued and outstanding shares of a class or series; and
(b) The proposal is approved by the vote of stockholders holding a majority of the voting power of the affected class or series, or such greater proportion as may be provided in the articles of incorporation, regardless of limitations or restrictions on the voting power of the affected class or series.
2. If the proposal required by subsection 1 is approved by the stockholders entitled to vote, the corporation may reissue its stock in accordance with the proposal after the effective date and time of the change.
3. If a proposed decrease in the number of issued and outstanding shares of any class or series would adversely alter or change any preference, or any relative or other right given to any other class or series of outstanding shares, then the decrease must be approved by the vote, in addition to any vote otherwise required, of the shares representing a majority of the voting power of each class or series whose preference or rights are adversely affected by the decrease, or such greater proportion as may be provided in the articles of incorporation, regardless of limitations or restrictions on the voting power of the adversely affected class or series.
4. Any proposal to decrease the number of issued and outstanding shares of any class or series, if any, that includes provisions pursuant to which only money will be paid or scrip will be issued to stockholders who:
(a) Before the decrease in the number of shares becomes effective, hold 1 percent or more of the outstanding shares of the affected class or series; and
(b) Would otherwise be entitled to receive fractions of shares in exchange for the cancellation of all their outstanding shares,
is subject to the provisions of NRS 92A.300 to 92A.500, inclusive. If the proposal is subject to those provisions, any stockholder who is obligated to accept money or scrip rather than receive a fraction of a share resulting from the action taken pursuant to this section may dissent in accordance with the provisions of NRS 92A.300 to 92A.500, inclusive, and obtain payment of the fair value of the fraction of a share to which the stockholder would otherwise be entitled.
κ2001 Statutes of Nevada, Page 1358 (CHAPTER 296, SB 51)κ
Sec. 4. 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, 78.1955, 78.209, 78.380, 78.385 and 78.390 and any articles of merger [or] , conversion, exchange or domestication filed pursuant to NRS 92A.200 to 92A.240, inclusive [.] , and sections 109 to 115, inclusive, of this act. 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.
(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, a digital signature as defined in NRS 720.060.
(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. 5. NRS 78.0295 is hereby amended to read as follows:
78.0295 1. A corporation may correct a document filed by the secretary of state with respect to the corporation if the document contains an [incorrect statement] inaccurate record of a corporate action described in the document or was defectively executed, attested, sealed, verified or acknowledged.
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] inaccuracy or defect;
(4) Sets forth the inaccurate or defective [execution;] portion of the document in an accurate or corrected form; and
(5) Is signed by an officer of the corporation . [; and]
(b) Deliver the certificate to the secretary of state for filing.
(c) Pay a filing fee of $75 to the secretary of state.
κ2001 Statutes of Nevada, Page 1359 (CHAPTER 296, SB 51)κ
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. 6. NRS 78.125 is hereby amended to read as follows:
78.125 1. Unless it is otherwise provided in the articles of incorporation, the board of directors may designate one or more committees which, to the extent provided in the resolution or resolutions or in the bylaws of the corporation, have and may exercise the powers of the board of directors in the management of the business and affairs of the corporation . [, and may have power to authorize the seal of the corporation to be affixed to all papers on which the corporation desires to place a seal.]
2. The committee or committees must have such name or names as may be stated in the bylaws of the corporation or as may be determined from time to time by resolution adopted by the board of directors.
3. Each committee must include at least one director. Unless the articles of incorporation or the bylaws provide otherwise, the board of directors may appoint natural persons who are not directors to serve on committees.
4. The board of directors may designate one or more directors as alternate members of a committee to replace any member who is disqualified or absent from a meeting of the committee. The bylaws of the corporation may provide that, unless the board of directors appoints alternate members pursuant to this subsection, the member or members of a committee present at a meeting and not disqualified from voting, whether or not the member or members constitute a quorum, may unanimously appoint another member of the board of directors to act at the meeting in the place of an absent or disqualified member of the committee.
Sec. 7. NRS 78.150 is hereby amended to read as follows:
78.150 1. A corporation organized [under] pursuant to 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 the president, secretary, treasurer and of all 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] annual list containing all of the information required in subsection 1.
3. Upon filing [a list of officers and directors,] the annual list required by subsection 2, 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.] the annual list required by subsection 2.
κ2001 Statutes of Nevada, Page 1360 (CHAPTER 296, SB 51)κ
directors.] the annual list required by subsection 2. 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 , 6 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 must be accompanied by a fee of $85 for filing. A payment submitted pursuant to this subsection does not satisfy the requirements of subsection 2 for the year to which the due date is applicable.
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 evidence of the payment of the fee required to be paid pursuant to NRS 116.31155 that is provided to the association pursuant to subsection 4 of that section.
Sec. 8. NRS 78.175 is hereby amended to read as follows:
78.175 1. The secretary of state shall notify, by letter addressed to its resident agent, each corporation deemed in default pursuant to NRS 78.170. 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] first anniversary of the month following the month in which the filing was required, the charter of the corporation 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 corporations whose right to do business has been forfeited. The secretary of state shall forthwith notify, by letter addressed to its resident agent, each such corporation of the forfeiture of its charter. The notice must be accompanied by a statement indicating the amount of the filing fee, penalties and costs remaining unpaid.
4. If the charter of a corporation is revoked and the right to transact business is forfeited as provided in subsection 2, all of the property and assets of the defaulting domestic corporation must be held in trust by the directors of the corporation as for insolvent corporations, and the same proceedings may be had with respect thereto as are applicable to insolvent corporations. Any person interested may institute proceedings at any time after a forfeiture has been declared, but if the secretary of state reinstates the charter the proceedings must at once be dismissed and all property restored to the officers of the corporation.
5. Where the assets are distributed they must be applied in the following manner:
(a) To the payment of the filing fee, penalties and costs due to the state;
(b) To the payment of the creditors of the corporation; and
(c) Any balance remaining to distribution among the stockholders.
Sec. 9. NRS 78.180 is hereby amended to read as follows:
78.180 1. Except as otherwise provided in subsections 3 and 4, the secretary of state shall reinstate a corporation which has forfeited its right to transact business [under] pursuant to the provisions of this chapter and restore to the corporation its right to carry on business in this state, and to exercise its corporate privileges and immunities, if it:
κ2001 Statutes of Nevada, Page 1361 (CHAPTER 296, SB 51)κ
(a) Files with the secretary of state the list required by NRS 78.150; and
(b) Pays to the secretary of state:
(1) The annual filing fee and penalty set forth in NRS 78.150 and 78.170 for each year or portion thereof during which [its charter was revoked;] it failed to file each required annual list in a timely manner; and
(2) A fee of $50 for reinstatement.
2. When the secretary of state reinstates the corporation, he shall:
(a) Immediately issue and deliver to the corporation a certificate of reinstatement authorizing it to transact business as if the filing fee or fees had been paid when due; and
(b) Upon demand, issue to the corporation 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 charter occurred only by reason of failure to pay the fees and penalties.
4. If a corporate charter has been revoked pursuant to the provisions of this chapter and has remained revoked for a period of 5 consecutive years, the charter must not be reinstated.
Sec. 10. 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.
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. As used in this subsection, fact or event includes, without limitation, the existence of a fact or occurrence of an event, including, without limitation, a determination or action by a person, government, governmental agency or political subdivision of a government.
5. 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 grant rights to stockholders or that deny rights, privileges, power or authority to a holder of a specified number of shares or percentage of share ownership or voting power.
κ2001 Statutes of Nevada, Page 1362 (CHAPTER 296, SB 51)κ
arrangements or instruments that grant rights to stockholders or 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. 11. NRS 78.1955 is hereby amended to read as follows:
78.1955 1. If the voting powers, designations, preferences, limitations, restrictions and relative rights of any class or series of stock have been established by a resolution of the board of directors pursuant to a provision in the articles of incorporation, a certificate of designation setting forth the resolution must be signed by an officer of the corporation and filed with the secretary of state . [setting forth the resolution. The certificate of designation must be executed by the president or vice president and secretary or assistant secretary and acknowledged by the president or vice president before a person authorized by the laws of Nevada to take acknowledgments of deeds. The] A certificate of designation [so executed and acknowledged must be filed] signed and filed pursuant to this section must become effective before the issuance of any shares of the class or series.
2. Unless otherwise provided in the articles of incorporation or the certificate of designation being amended, if no shares of a class or series of stock established by a resolution of the board of directors have been issued, the designation of the class or series, the number of the class or series and the voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series may be amended by a resolution of the board of directors pursuant to a certificate of amendment filed in the manner provided in subsection 4.
3. Unless otherwise provided in the articles of incorporation or the certificate of designation, if shares of a class or series of stock established by a resolution of the board of directors have been issued, the designation of the class or series, the number of the class or series and the voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series may be amended by a resolution of the board of directors only if the amendment is approved as provided in this subsection. Unless otherwise provided in the articles of incorporation or the certificate of designation, the proposed amendment adopted by the board of directors must be approved by the vote of stockholders holding shares in the corporation entitling them to exercise a majority of the voting power, or such greater proportion of the voting power as may be required by the articles of incorporation or the certificate of designation, of:
(a) The class or series of stock being amended; and
(b) Each class and each series of stock which, before amendment, is senior to the class or series being amended as to the payment of distributions upon dissolution of the corporation, regardless of any limitations or restrictions on the voting power of that class or series.
4. A certificate of amendment to a certificate of designation must be signed by an officer of the corporation and filed with the secretary of state and must:
(a) Set forth the original designation and the new designation, if the designation of the class or series is being amended;
(b) State that no shares of the class or series have been issued or state that the approval of the stockholders required pursuant to subsection 3 has been obtained; and
(c) Set forth the amendment to the class or series or set forth the designation of the class or series, the number of the class or series and the voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series, as amended.
κ2001 Statutes of Nevada, Page 1363 (CHAPTER 296, SB 51)κ
voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series, as amended.
[The certificate of amendment must be executed by the president or vice president and secretary or assistant secretary and acknowledged by the president or vice president before a person authorized by the laws of Nevada to take acknowledgments of deeds.]
5. A certificate filed pursuant to subsection 1 or 4 becomes effective upon filing with the secretary of state or upon a later date specified in the certificate, which must not be later than 90 days after the certificate is filed.
6. If shares of a class or series of stock established by a certificate of designation are not outstanding, the corporation may file a certificate which states that no shares of the class or series are outstanding and which contains the resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock. The certificate must be signed by an officer of the corporation and filed with the secretary of state. Upon filing the certificate and payment of the fee required pursuant to NRS 78.765, all matters contained in the certificate of designation regarding the class or series of stock are eliminated from the articles of incorporation.
7. NRS 78.380, 78.385 and 78.390 do not apply to certificates of amendment filed pursuant to this section.
Sec. 12. 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:
(a) Have special, conditional or limited voting powers, or no right to vote, except to the extent otherwise 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.
κ2001 Statutes of Nevada, Page 1364 (CHAPTER 296, SB 51)κ
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. Unless otherwise provided in the articles of incorporation or in a resolution of the board of directors establishing a class or series of stock, shares which are subject to redemption and which have been called for redemption are not deemed to be outstanding shares for purposes of voting or determining the total number of shares entitled to vote on a matter on and after the date on which:
(a) Written notice of redemption has been sent to the holders of such shares; and
(b) A sum sufficient to redeem the shares has been irrevocably deposited or set aside to pay the redemption price to the holders of the shares upon surrender of any certificates.
4. The description of voting powers, designations, preferences, limitations, restrictions and relative rights of the classes or series of shares contained in this section is not exclusive.
Sec. 13. NRS 78.205 is hereby amended to read as follows:
78.205 1. A corporation is not [obliged] obligated to but may execute and deliver a certificate for or including a fraction of a share.
2. In lieu of executing and delivering a certificate for a fraction of a share, a corporation may:
(a) Pay to any person otherwise entitled to become a holder of a fraction of a share:
(1) The appraised value of that share if the appraisal was properly demanded [;] pursuant to this chapter or chapter 92A of NRS; or
(2) If no appraisal was demanded or an appraisal was not properly demanded, an amount in cash specified for that purpose as the value of the fraction in the articles, plan of reorganization, plan of merger or exchange, resolution of the board of directors, or other instrument pursuant to which the fractional share would otherwise be issued, or, if not specified, then as may be determined for that purpose by the board of directors of the issuing corporation;
(b) Issue such additional fraction of a share as is necessary to increase the fractional share to a full share; or
(c) Execute and deliver registered or bearer scrip over the manual or facsimile signature of an officer of the corporation or of its agent for that purpose, exchangeable as provided on the scrip for full share certificates, but the scrip does not entitle the holder to any rights as a stockholder except as provided on the scrip. The scrip may provide that it becomes void unless the rights of the holders are exercised within a specified period and may contain any other provisions or conditions that the corporation deems advisable. Whenever any scrip ceases to be exchangeable for full share certificates, the shares that would otherwise have been issuable as provided on the scrip are deemed to be treasury shares unless the scrip contains other provisions for their disposition.
3. The provisions of this section do not prevent a person who holds a fractional share from disputing the appraised value of a share pursuant to NRS 92A.300 to 92A.500, inclusive, if the person is otherwise entitled to exercise such rights.
Sec. 14. NRS 78.207 is hereby amended to read as follows:
78.207 1. Unless otherwise provided in the articles of incorporation, a corporation [organized and existing under the laws of this state] that desires to change the number of shares of a class [and] or series, if any, of its authorized stock by increasing or decreasing the number of authorized shares of the class [and] or series and correspondingly increasing or decreasing the number of issued and outstanding shares of the same class [and] or series held by each stockholder of record at the effective date and time of the change, may, except as otherwise provided in subsections 2 and 3, do so by a resolution adopted by the board of directors, without obtaining the approval of the stockholders.
κ2001 Statutes of Nevada, Page 1365 (CHAPTER 296, SB 51)κ
to change the number of shares of a class [and] or series, if any, of its authorized stock by increasing or decreasing the number of authorized shares of the class [and] or series and correspondingly increasing or decreasing the number of issued and outstanding shares of the same class [and] or series held by each stockholder of record at the effective date and time of the change, may, except as otherwise provided in subsections 2 and 3, do so by a resolution adopted by the board of directors, without obtaining the approval of the stockholders. The resolution may also provide for a change of the par value, if any, of the same class [and] or series of the shares increased or decreased. After the effective date and time of the change, the corporation may issue its stock in accordance therewith.
2. A proposal to increase or decrease the number of authorized shares of any class [and] or series, if any, that includes provisions pursuant to which only money will be paid or scrip will be issued to stockholders who:
(a) Before the increase or decrease in the number of shares becomes effective, in the aggregate hold 10 percent or more of the outstanding shares of the affected class [and] or series; and
(b) Would otherwise be entitled to receive fractions of shares in exchange for the cancellation of all of their outstanding shares,
must be approved by the vote of stockholders holding a majority of the voting power of the affected class [and] or series, or such greater proportion as may be provided in the articles of incorporation, regardless of limitations or restrictions on the voting power thereof.
3. If a proposed increase or decrease in the number of authorized shares of any class or series would adversely alter or change any preference or any relative or other right given to any other class or series of outstanding shares, then the increase or decrease must be approved by the vote, in addition to any vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series whose preference or rights are adversely affected by the increase or decrease, regardless of limitations or restrictions on the voting power thereof.
4. Any proposal to increase or decrease the number of authorized shares of any class [and] or series, if any, that includes provisions pursuant to which only money will be paid or scrip will be issued to stockholders who:
(a) Before the increase or decrease in the number of shares becomes effective, hold 1 percent or more of the outstanding shares of the affected class [and] or series; and
(b) Would otherwise be entitled to receive a fraction of a share in exchange for the cancellation of all of their outstanding shares,
is subject to the provisions of NRS 92A.300 to 92A.500, inclusive. If the proposal is subject to those provisions, any stockholder who is obligated to accept money or scrip rather than receive a fraction of a share resulting from the action taken pursuant to this section may dissent in accordance with those provisions and obtain payment of the fair value of the fraction of a share to which the stockholder would otherwise be entitled.
Sec. 15. NRS 78.209 is hereby amended to read as follows:
78.209 1. A change pursuant to NRS 78.207 is not effective until after the filing in the office of the secretary of state of a certificate, signed by [the corporations president, or a vice president, and its secretary, or an assistant secretary, and acknowledged by the president or vice president before a person authorized by the laws of this state to take acknowledgments of deeds,] an officer of the corporation, setting forth:
κ2001 Statutes of Nevada, Page 1366 (CHAPTER 296, SB 51)κ
(a) The current number of authorized shares and the par value, if any, of each class [and] or series, if any, of shares before the change;
(b) The number of authorized shares and the par value, if any, of each class [and] or series, if any, of shares after the change;
(c) The number of shares of each affected class [and] or series, if any, to be issued after the change in exchange for each issued share of the same class or series;
(d) The provisions, if any, for the issuance of fractional shares, or for the payment of money or the issuance of scrip to stockholders otherwise entitled to a fraction of a share and the percentage of outstanding shares affected thereby; and
(e) That any required approval of the stockholders has been obtained . [; and
(f) Whether the change is effective on filing the certificate or, if not, the date and time at which the change will be effective, which must not be more than 90 days after the certificate is filed.]
The provisions in the articles of incorporation of the corporation regarding the authorized number and par value, if any, of the changed class [and] or series, if any, of shares shall be deemed amended as provided in the certificate at the effective date and time of the change.
2. Unless an increase or decrease of the number of authorized shares pursuant to NRS 78.207 is accomplished by an action that otherwise requires an amendment to the [corporations] articles of incorporation [,] of the corporation, such an amendment is not required by that section.
3. A certificate filed pursuant to subsection 1 becomes effective upon filing with the secretary of state or upon a later date specified in the certificate, which must not be later than 90 days after the certificate is filed.
4. If a certificate filed pursuant to subsection 1 specifies an effective date, the board of directors may terminate the effectiveness of the certificate by resolution. A certificate of termination must:
(a) Be filed with the secretary of state before the effective date specified in the certificate filed pursuant to subsection 1;
(b) Identify the certificate being terminated;
(c) State that the effectiveness of the certificate has been terminated;
(d) Be signed by an officer of the corporation; and
(e) Be accompanied by the fee required pursuant to NRS 78.765.
Sec. 16. NRS 78.211 is hereby amended to read as follows:
78.211 1. The board of directors may authorize shares to be issued for consideration consisting of any tangible or intangible property or benefit to the corporation, including, but not limited to, cash, promissory notes, services performed, contracts for services to be performed or other securities of the corporation.
[2. Before the corporation issues shares, the board of directors must determine that the consideration received or to be received for the shares to be issued is adequate.] The judgment of the board of directors as to [the adequacy of] the consideration received for the shares issued is conclusive in the absence of actual fraud in the transaction.
[3.] 2. When the corporation receives the consideration for which the board of directors authorized the issuance of shares, the shares issued therefor are fully paid.
κ2001 Statutes of Nevada, Page 1367 (CHAPTER 296, SB 51)κ
[4.] 3. The corporation may place in escrow shares issued for a contract for future services or benefits or a promissory note, or make any other arrangements to restrict the transfer of the shares. The corporation may credit distributions made for the shares against their purchase price, until the services are performed, the benefits are received or the promissory note is paid. If the services are not performed, the benefits are not received or the promissory note is not paid, the shares escrowed or restricted and the distributions credited may be canceled in whole or in part.
Sec. 17. NRS 78.220 is hereby amended to read as follows:
78.220 1. Subscriptions to the shares of a corporation, whether made before or after its organization, [shall] must be paid in full at such time or in such installments at such times as determined by the board of directors. Any call made by the board of directors for payment on subscriptions [shall] must be uniform as to all shares of the same class or series.
2. If default is made in the payment of any installment or call, the corporation may proceed to collect the amount due in the same manner as any debt due the corporation. In addition, the corporation may sell a sufficient number of the subscribers shares at public auction to pay for the installment or call and any incidental charges incurred as a result of the sale. No penalty causing a forfeiture of a subscription, of stock for which a subscription has been executed, or of amounts paid thereon, may be declared against any subscriber unless the amount due remains unpaid for 30 days after written demand. Such written demand shall be deemed made when it is mailed by registered or certified mail, return receipt requested, to the subscribers last known address. If any of the subscribers shares are sold at public auction, any excess of the proceeds over the total of the amount due plus any incidental charges of the sale [shall] must be paid to the subscriber or his legal representative. If an action is brought to recover the amount due on a subscription or call, any judgment in favor of the corporation [shall] must be reduced by the amount of the net proceeds of any sale by the corporation of the subscribers stock.
3. All stock subject to a delinquent installment or call and all amounts previously paid by a delinquent subscriber for the stock must be forfeited to the corporation if an amount due from a subscriber remains unpaid, the corporation has complied with the requirements of subsection 2 and:
(a) A bidder does not purchase the subscribers shares at public auction; or
(b) The corporation does not collect the defaulted amount by an action at law.
4. If a receiver of a corporation has been appointed, all unpaid subscriptions [shall] must be paid at such times and in such installments as the receiver or the court may direct, subject, however, to the provisions of the subscription contract.
[4.] 5. A subscription for shares of a corporation to be organized is irrevocable for 6 months unless otherwise provided by the subscription agreement or unless all of the subscribers consent to the revocation of the subscription.
Sec. 18. NRS 78.235 is hereby amended to read as follows:
78.235 1. Except as otherwise provided in subsection 4, every stockholder is entitled to have a certificate, signed by officers or agents designated by the corporation for the purpose, certifying the number of shares owned by him in the corporation.
κ2001 Statutes of Nevada, Page 1368 (CHAPTER 296, SB 51)κ
2. Whenever any certificate is countersigned or otherwise authenticated by a transfer agent or transfer clerk, and by a registrar, then a facsimile of the signatures of the officers or agents, the transfer agent or transfer clerk or the registrar of the corporation may be printed or lithographed upon the certificate in lieu of the actual signatures. If a corporation uses facsimile signatures of its officers and agents on its stock certificates, it cannot act as registrar of its own stock, but its transfer agent and registrar may be identical if the institution acting in those dual capacities countersigns or otherwise authenticates any stock certificates in both capacities.
3. If any officer or officers who have signed, or whose facsimile signature or signatures have been used on, any certificate or certificates for stock cease to be an officer or officers of the corporation, whether because of death, resignation or other reason, before the certificate or certificates have been delivered by the corporation, the certificate or certificates may nevertheless be adopted by the corporation and be issued and delivered as though the person or persons who signed the certificate or certificates, or whose facsimile signature or signatures have been used thereon, had not ceased to be an officer or officers of the corporation.
4. [A corporation may provide in its] Unless otherwise provided in the articles of incorporation or [in its bylaws for] bylaws, the board of directors may authorize the issuance of uncertificated shares of some or all of the shares of any or all of its classes or series. The issuance of uncertificated shares has no effect on existing certificates for shares until surrendered to the corporation, or on the respective rights and obligations of the stockholders. Unless otherwise provided by a specific statute, the rights and obligations of stockholders are identical whether or not their shares of stock are represented by certificates.
5. Within a reasonable time after the issuance or transfer of shares without certificates, the corporation shall send the stockholder a written statement containing the information required on the certificates pursuant to subsection 1. At least annually thereafter, the corporation shall provide to its stockholders of record, a written statement confirming the information contained in the informational statement previously sent pursuant to this subsection.
6. Unless otherwise provided in the articles of incorporation or bylaws, a corporation may issue a new certificate of stock or, if authorized by the board of directors pursuant to subsection 4, uncertificated shares in place of a certificate previously issued by it and alleged to have been lost, stolen or destroyed. A corporation may require an owner or legal representative of an owner of a lost, stolen or destroyed certificate to give the corporation a bond or other security sufficient to indemnify it against any claim that may be made against it for the alleged loss, theft or destruction of a certificate, or the issuance of a new certificate or uncertificated shares.
Sec. 19. NRS 78.257 is hereby amended to read as follows:
78.257 1. Any person who has been a stockholder of record of any corporation and owns not less than 15 percent of all of the issued and outstanding shares of the stock of such corporation or has been authorized in writing by the holders of at least 15 percent of all its issued and outstanding shares, upon at least 5 days written demand, is entitled to inspect in person or by agent or attorney, during normal business hours, the books of account and all financial records of the corporation, to make [extracts therefrom,] copies of records, and to conduct an audit of such records. Holders of voting trust certificates representing 15 percent of the issued and outstanding shares of the corporation shall be regarded as stockholders for the purpose of this subsection.
κ2001 Statutes of Nevada, Page 1369 (CHAPTER 296, SB 51)κ
trust certificates representing 15 percent of the issued and outstanding shares of the corporation shall be regarded as stockholders for the purpose of this subsection. The right of stockholders to inspect the corporate records may not be limited in the articles or bylaws of any corporation.
2. All costs for making [extracts] copies of records or conducting an audit must be borne by the person exercising his rights [under] set forth in subsection 1.
3. The rights authorized by subsection 1 may be denied to any stockholder upon his refusal to furnish the corporation an affidavit that such inspection, [extracts] copies or audit is not desired for any purpose not related to his interest in the corporation as a stockholder. Any stockholder or other person, exercising rights [under] set forth in subsection 1, who uses or attempts to use information, documents, records or other data obtained from the corporation, for any purpose not related to the stockholders interest in the corporation as a stockholder, is guilty of a gross misdemeanor.
4. If any officer or agent of any corporation keeping records in this state willfully neglects or refuses to permit an inspection of the books of account and financial records upon demand by a person entitled to inspect them, or refuses to permit an audit to be conducted, as provided in subsection 1, the corporation shall forfeit to the state the sum of $100 for every day of such neglect or refusal, and the corporation, officer or agent thereof is jointly and severally liable to the person injured for all damages resulting to him.
5. A stockholder who brings an action or proceeding to enforce any right [under] set forth in this section or to recover damages resulting from its denial:
(a) Is entitled to costs and reasonable attorneys fees, if he prevails; or
(b) Is liable for such costs and fees, if he does not prevail,
in the action or proceeding.
6. Except as otherwise provided in this subsection, the provisions of this section do not apply to any corporation listed and traded on any recognized stock exchange nor do they apply to any corporation that furnishes to its stockholders a detailed, annual financial statement. A person who owns, or is authorized in writing by the owners of, at least 15 percent of the issued and outstanding shares of the stock of a corporation that has elected to be governed by subchapter S of the Internal Revenue Code and whose shares are not listed or traded on any recognized stock exchange is entitled to inspect the books of the corporation pursuant to subsection 1 and has the rights, duties and liabilities provided in subsections 2 to 5, inclusive.
Sec. 20. NRS 78.288 is hereby amended to read as follows:
78.288 1. Except as otherwise provided in subsection 2 and the articles of incorporation, a board of directors may authorize and the corporation may make distributions to its stockholders [.] , including distributions on shares that are partially paid.
2. No distribution may be made if, after giving it effect:
(a) The corporation would not be able to pay its debts as they become due in the usual course of business; or
(b) Except as otherwise specifically allowed by the articles of incorporation, the corporations total assets would be less than the sum of its total liabilities plus the amount that would be needed, if the corporation were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders whose preferential rights are superior to those receiving the distribution.
κ2001 Statutes of Nevada, Page 1370 (CHAPTER 296, SB 51)κ
3. The board of directors may base a determination that a distribution is not prohibited [under] pursuant to subsection 2 on:
(a) Financial statements prepared on the basis of accounting practices that are reasonable in the circumstances;
(b) A fair valuation, including, but not limited to, unrealized appreciation and depreciation; or
(c) Any other method that is reasonable in the circumstances.
4. The effect of a distribution [under] pursuant to subsection 2 must be measured:
(a) In the case of a distribution by purchase, redemption or other acquisition of the corporations shares, as of the earlier of:
(1) The date money or other property is transferred or debt incurred by the corporation; or
(2) The date upon which the stockholder ceases to be a stockholder with respect to the acquired shares.
(b) In the case of any other distribution of indebtedness, as of the date the indebtedness is distributed.
(c) In all other cases, as of:
(1) The date the distribution is authorized if the payment occurs within 120 days after the date of authorization; or
(2) The date the payment is made if it occurs more than 120 days after the date of authorization.
5. A corporations indebtedness to a stockholder incurred by reason of a distribution made in accordance with this section is at parity with the corporations indebtedness to its general unsecured creditors except to the extent subordinated by agreement.
6. Indebtedness of a corporation, including indebtedness issued as a distribution, is not considered a liability for purposes of determinations [under] pursuant to subsection 2 if its terms provide that payment of principal and interest are made only if and to the extent that payment of a distribution to stockholders could then be made pursuant to this section. If the indebtedness is issued as a distribution, each payment of principal or interest must be treated as a distribution, the effect of which must be measured on the date the payment is actually made.
Sec. 21. NRS 78.310 is hereby amended to read as follows:
78.310 1. Meetings of stockholders and directors of any corporation organized [under] pursuant to the provisions of this chapter may be held within or without this state, in the manner provided by the bylaws of the corporation. The articles of incorporation may designate any place or places where such stockholders or directors meetings may be held, but in the absence of any provision therefor in the articles of incorporation, then the meetings must be held within or without this state, as directed from time to time by the bylaws of the corporation.
2. Unless otherwise provided in the articles of incorporation or bylaws, the entire board of directors, any two directors or the president may call annual and special meetings of the stockholders and directors.
Sec. 22. NRS 78.315 is hereby amended to read as follows:
78.315 1. Unless the articles of incorporation or the bylaws provide for a [different] greater or lesser proportion, a majority of the board of directors of the corporation then in office, at a meeting duly assembled, is necessary to constitute a quorum for the transaction of business, and the act of directors holding a majority of the voting power of the directors, present at a meeting at which a quorum is present, is the act of the board of directors.
κ2001 Statutes of Nevada, Page 1371 (CHAPTER 296, SB 51)κ
holding a majority of the voting power of the directors, present at a meeting at which a quorum is present, is the act of the board of directors.
2. Unless otherwise restricted by the articles of incorporation or bylaws, any action required or permitted to be taken at a meeting of the board of directors or of a committee thereof may be taken without a meeting if, before or after the action, a written consent thereto is signed by all the members of the board or of the committee.
3. Unless otherwise restricted by the articles of incorporation or bylaws, members of the board of directors or the governing body of any corporation, or of any committee designated by such board or body, may participate in a meeting of the board, body or committee by means of a telephone conference or similar [method] methods 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.
Sec. 23. 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] methods 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.
5. Unless otherwise provided in this chapter, the articles of incorporation or the bylaws, if voting by a class or series of stockholders is permitted or required, a majority of the voting power of the class or series 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. An act by the stockholders of each class or series is approved if a majority of the voting power of a quorum of the class or series votes for the action.
Sec. 24. 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 this chapter or in the bylaws, the board of directors [have] has the authority to set the date, time and place for the annual meeting of the stockholders.
κ2001 Statutes of Nevada, Page 1372 (CHAPTER 296, SB 51)κ
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. Unless otherwise provided in the articles of incorporation or bylaws, each director holds office after the expiration of his term until his successor is elected and qualified, or until he resigns or is removed.
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. 25. NRS 78.3783 is hereby amended to read as follows:
78.3783 1. Except as otherwise provided in subsection 2, acquisition means the direct or indirect acquisition of a controlling interest.
2. Acquisition does not include any acquisition of shares in good faith, and without an intent to avoid the requirements of NRS 78.378 to 78.3793, inclusive:
(a) By an acquiring person authorized pursuant to NRS 78.378 to 78.3793, inclusive, to exercise voting rights, to the extent that the new acquisition does not result in the acquiring person obtaining a controlling interest greater than that previously authorized; or
(b) Pursuant to:
(1) The laws of descent and distribution;
(2) The enforcement of a judgment;
(3) The satisfaction of a pledge or other security interest; or
(4) A merger , exchange, conversion, domestication or reorganization effected in compliance with the provisions of NRS 78.622 , [or] 92A.200 to 92A.240, inclusive, or sections 109 to 115, inclusive, of this act to which the issuing corporation is a party.
Sec. 26. 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
κ2001 Statutes of Nevada, Page 1373 (CHAPTER 296, SB 51)κ
2. If the acquisition will result in any change of the kind described in subsection [3] 2 of NRS 78.390, the holders of a majority of each class or series affected,
excluding those shares as to which any interested stockholder exercises voting rights.
Sec. 27. NRS 78.3793 is hereby amended to read as follows:
78.3793 [1.] Unless otherwise provided in the articles of incorporation or the bylaws of the issuing corporation in effect on the 10th day following the acquisition of a controlling interest by an acquiring person, if the control shares are accorded full voting rights pursuant to NRS 78.378 to 78.3793, inclusive, and the acquiring person has acquired control shares with a majority or more of all the voting power, any stockholder [of record,] , as that term is defined in NRS 92A.325, other than the acquiring person, [who has] whose shares are not voted in favor of authorizing voting rights for the control shares [is entitled to demand payment for] may dissent in accordance with the provisions of NRS 92A.300 to 92A.500, inclusive, and obtain payment of the fair value of his shares.
[2. The board of directors of the issuing corporation shall, within 20 days after the vote of the stockholders authorizing voting rights for the control shares, cause a notice to be sent to any stockholder, other than the acquiring person, who has not voted in favor of authorizing voting rights for the control shares, advising him of the fact and of his right to receive fair value for his shares as provided in subsection 3.
3. Within 20 days after the mailing of the notice described in subsection 2, any stockholder of the corporation, other than the acquiring person, who has not voted in favor of authorizing voting rights for the control shares, may deliver to the registered office of the corporation a written demand that the corporation purchase, for fair value, all or any portion of his shares. The corporation shall comply with the demand within 30 days after its delivery.]
Sec. 28. 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 or proving in the manner required for original articles of incorporation,] of the corporation by signing 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 state that:
(a) [Declare that the] The signers thereof are at least two-thirds of the incorporators or of the board of directors of the corporation, and state the [corporations name.] name of the corporation; and
(b) [State the date upon which the original articles thereof were filed with the secretary of state.
(c) Affirmatively declare that to] As of the date of the certificate, no stock of the corporation has been issued.
2. [The amendment] A certificate filed pursuant to this section is effective upon [the filing of] filing the certificate with the secretary of state or upon a later date specified in the certificate, which must not be later than 90 days after the certificate is filed.
3. If a certificate specifies an effective date and if no stock of the corporation has been issued, the board of directors may terminate the effectiveness of a certificate by filing a certificate of termination with the secretary of state that:
κ2001 Statutes of Nevada, Page 1374 (CHAPTER 296, SB 51)κ
(a) Identifies the certificate being terminated;
(b) States that no stock of the corporation has been issued;
(c) States that the effectiveness of the certificate has been terminated;
(d) Is signed by at least two-thirds of the board of directors of the corporation; and
(e) Is accompanied by the fee required pursuant to NRS 78.765.
4. This section does not permit the insertion of any matter not in conformity with this chapter.
Sec. 29. 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 either call a special meeting [, either annual or special,] of the stockholders entitled to vote on the amendment or direct that the proposed amendment be considered at the next annual meeting of the stockholders entitled to vote [for the consideration thereof.] on the amendment.
(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,] 2 and 4, 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] an officer of the corporation shall sign a certificate setting forth the amendment, or setting forth the articles of incorporation as amended, and the vote by which the amendment was adopted.
(c) The certificate so [executed] signed must be filed [in the office of] with the secretary of state.
2. [Upon filing the certificate the articles of incorporation are amended accordingly.
3.] If any proposed amendment would adversely 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 adversely affected by the amendment regardless of limitations or restrictions on the voting power thereof.
[4.] 3. 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.] 4. 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.
5. The resolution of the stockholders approving the proposed amendment may provide that at any time before the effective date of the amendment, notwithstanding approval of the proposed amendment by the stockholders, the board of directors may, by resolution, abandon the proposed amendment without further action by the stockholders.
κ2001 Statutes of Nevada, Page 1375 (CHAPTER 296, SB 51)κ
stockholders, the board of directors may, by resolution, abandon the proposed amendment without further action by the stockholders.
6. A certificate filed pursuant to subsection 1 becomes effective upon filing with the secretary of state or upon a later date specified in the certificate, which must not be later than 90 days after the certificate is filed.
7. If a certificate filed pursuant to subsection 1 specifies an effective date and if the resolution of the stockholders approving the proposed amendment provides that the board of directors may abandon the proposed amendment pursuant to subsection 5, the board of directors may terminate the effectiveness of the certificate by resolution and by filing a certificate of termination with the secretary of state that:
(a) Is filed before the effective date specified in the certificate filed pursuant to subsection 1;
(b) Identifies the certificate being terminated;
(c) States that, pursuant to the resolution of the stockholders, the board of directors is authorized to terminate the effectiveness of the certificate;
(d) States that the effectiveness of the certificate has been terminated;
(e) Is signed by an officer of the corporation; and
(f) Is accompanied by a filing fee of $75.
Sec. 30. NRS 78.403 is hereby amended to read as follows:
78.403 1. A corporation may restate, or amend and restate, in a single certificate the entire text of its articles of incorporation as amended by filing with the secretary of state a certificate [entitled Restated Articles of Incorporation of ................,] signed by an officer of the corporation which must set forth the articles as amended to the date of the certificate. If the certificate alters or amends the articles in any manner, it must comply with the provisions of [this chapter governing such amendments] NRS 78.380, 78.385 and 78.390, as applicable, and must be accompanied by:
(a) A resolution; or
(b) A form prescribed by the secretary of state,
setting forth which provisions of the articles of incorporation on file with the secretary of state are being altered or amended.
2. If the certificate does not alter or amend the articles, it must be signed by [the president or vice president and the secretary or assistant secretary] an officer of the corporation and state that [they have] he has been authorized to execute the certificate by resolution of the board of directors adopted on the date stated, and that the certificate correctly sets forth the text of the articles of incorporation as amended to the date of the certificate.
3. The following may be omitted from the restated articles:
(a) The names, addresses, signatures and acknowledgments of the incorporators;
(b) The names and addresses of the members of the past and present boards of directors; and
(c) The name and address of the resident agent.
4. Whenever a corporation is required to file a certified copy of its articles, in lieu thereof it may file a certified copy of the most recent certificate restating its articles as amended, subject to the provisions of subsection 2, together with certified copies of all certificates of amendment filed subsequent to the restated articles and certified copies of all certificates supplementary to the original articles.
κ2001 Statutes of Nevada, Page 1376 (CHAPTER 296, SB 51)κ
Sec. 31. NRS 78.565 is hereby amended to read as follows:
78.565 [Every]
1. Unless otherwise provided in the articles of incorporation, every corporation may, by action taken at any meeting of its board of directors, sell, lease or exchange all of its property and assets, including its good will and its corporate franchises, upon such terms and conditions as its board of directors may [deem expedient and for the best interests of the corporation,] approve, when and as authorized by the affirmative vote of stockholders holding stock in the corporation entitling them to exercise at least a majority of the voting power given at a stockholders meeting called for that purpose . [but:
1. The articles of incorporation may require the vote of a larger proportion of the stockholders and the separate vote or consent of any class of stockholders; and]
2. Unless otherwise provided in the articles of incorporation [provide otherwise, no] , a vote of stockholders is not necessary [for] :
(a) For a transfer of assets by way of mortgage, or in trust or in pledge to secure indebtedness of the corporation [.] ; or
(b) To abandon the sale, lease or exchange of assets.
Sec. 32. NRS 78.580 is hereby amended to read as follows:
78.580 1. If the board of directors of any corporation organized under this chapter, after the issuance of stock or the beginning of business, decides that the corporation should be dissolved, the board may adopt a resolution to that effect. If the corporation has issued no stock, only the directors need to approve the dissolution. If the corporation has issued stock, the directors must recommend the dissolution to the stockholders. The corporation shall notify each stockholder entitled to vote on dissolution and the stockholders entitled to vote must approve the dissolution.
2. If the dissolution is approved by the directors or both the directors and stockholders, as respectively provided in subsection 1, the corporation shall file a certificate setting forth that the dissolution has been approved by the directors, or by the directors and the stockholders, and a list of the names and post office box or street addresses, either residence or business, of the corporations president, secretary and treasurer and all of its directors, certified by the president, or a vice president, and the secretary, or an assistant secretary, in the office of the secretary of state. [The secretary of state, upon being satisfied that these requirements have been complied with and that the corporate charter has not been revoked, shall issue a certificate that the corporation is dissolved.]
Sec. 33. NRS 78.622 is hereby amended to read as follows:
78.622 1. If a corporation is under reorganization in a federal court pursuant to Title 11 of U.S.C., it may take any action necessary to carry out any proceeding and do any act directed by the court relating to reorganization, without further action by its directors or stockholders. This authority may be exercised by:
(a) The trustee in bankruptcy appointed by the court;
(b) Officers of the corporation designated by the court; or
(c) Any other representative appointed by the court,
with the same effect as if exercised by the directors and stockholders of the corporation.
κ2001 Statutes of Nevada, Page 1377 (CHAPTER 296, SB 51)κ
2. By filing a [certified copy of the] confirmed plan of reorganization , certified by the bankruptcy court, with the secretary of state, the corporation may:
(a) Alter, amend or repeal its bylaws;
(b) Constitute or reconstitute and classify or reclassify its board of directors;
(c) Name, constitute or appoint directors and officers in place of or in addition to all or some of the directors or officers then in office;
(d) Amend its articles of incorporation;
(e) Make any change in its authorized and issued stock;
(f) Make any other amendment, change, alteration or provision authorized by this chapter; and
(g) Be dissolved, transfer all or part of its assets or merge or consolidate or make any other change authorized by this chapter.
3. In any action taken pursuant to subsections 1 and 2, a stockholder has no right to demand payment for his stock.
4. Any amendment of the articles of incorporation made pursuant to subsection 2 must be signed under penalty of perjury by the person authorized by the court and filed with the secretary of state. If the amendment is filed in accordance with the order of reorganization, it becomes effective when it is filed unless otherwise ordered by the court.
5. Any filing with the secretary of state pursuant to this section must be accompanied by the appropriate fee, if any.
Sec. 34. NRS 78.750 is hereby amended to read as follows:
78.750 1. In any action commenced against any corporation in any court of this state, service of process may be made in the manner provided by law and rule of court for the service of civil process.
2. Service of process on a corporation whose charter has been revoked or which has been continued as a body corporate [under] pursuant to NRS 78.585 may be made by mailing copies of the process and any associated documents by certified mail, with return receipt requested, to:
(a) The resident agent of the corporation, if there is one; and
(b) Each officer and director of the corporation as named in the list last filed with the secretary of state before the dissolution or expiration of the corporation or the forfeiture of its charter.
The manner of serving process described in this subsection does not affect the validity of any other service authorized by law.
Sec. 35. NRS 78.751 is hereby amended to read as follows:
78.751 1. Any discretionary indemnification [under] pursuant to NRS 78.7502 , unless ordered by a court or advanced pursuant to subsection 2, may be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances. The determination must be made:
(a) By the stockholders;
(b) By the board of directors by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding;
(c) If a majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding so orders, by independent legal counsel in a written opinion; or
(d) If a quorum consisting of directors who were not parties to the action, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion.
κ2001 Statutes of Nevada, Page 1378 (CHAPTER 296, SB 51)κ
2. The articles of incorporation, the bylaws or an agreement made by the corporation may provide that the expenses of officers and directors incurred in defending a civil or criminal action, suit or proceeding must be paid by the corporation as they are incurred and in advance of the final disposition of the action, suit or proceeding, upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined by a court of competent jurisdiction that he is not entitled to be indemnified by the corporation. The provisions of this subsection do not affect any rights to advancement of expenses to which corporate personnel other than directors or officers may be entitled under any contract or otherwise by law.
3. The indemnification pursuant to NRS 78.7502 and advancement of expenses authorized in or ordered by a court pursuant to this section:
(a) Does not exclude any other rights to which a person seeking indemnification or advancement of expenses may be entitled under the articles of incorporation or any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, for either an action in his official capacity or an action in another capacity while holding his office, except that indemnification, unless ordered by a court pursuant to NRS 78.7502 or for the advancement of expenses made pursuant to subsection 2, may not be made to or on behalf of any director or officer if a final adjudication establishes that his acts or omissions involved intentional misconduct, fraud or a knowing violation of the law and was material to the cause of action.
(b) Continues for a person who has ceased to be a director, officer, employee or agent and inures to the benefit of the heirs, executors and administrators of such a person.
Sec. 36. NRS 78.760 is hereby amended to read as follows:
78.760 1. The fee for filing articles of incorporation is prescribed in the following schedule:
If the amount represented by the total number of shares provided for in the articles [or agreement] is:
$25,000 or less...................................................................................................... $125
Over $25,000 and not over $75,000................................................................... 175
Over $75,000 and not over $200,000................................................................ 225
Over $200,000 and not over $500,000.............................................................. 325
Over $500,000 and not over $1,000,000........................................................... 425
Over $1,000,000:
For the first $1,000,000.................................................................................. 425
For each additional $500,000 or fraction thereof..................................... 225
2. The maximum fee which may be charged [under] pursuant to this section is $25,000 for:
(a) The original filing of articles of incorporation.
(b) A subsequent filing of any instrument which authorizes an increase in stock.
3. For the purposes of computing the filing fees according to the schedule in subsection 1, the amount represented by the total number of shares provided for in the articles of incorporation is:
(a) The aggregate par value of the shares, if only shares with a par value are therein provided for;
(b) The product of the number of shares multiplied by $1, regardless of any lesser amount prescribed as the value or consideration for which shares may be issued and disposed of, if only shares without par value are therein provided for; or
κ2001 Statutes of Nevada, Page 1379 (CHAPTER 296, SB 51)κ
may be issued and disposed of, if only shares without par value are therein provided for; or
(c) The aggregate par value of the shares with a par value plus the product of the number of shares without par value multiplied by $1, regardless of any lesser amount prescribed as the value or consideration for which the shares without par value may be issued and disposed of, if shares with and without par value are therein provided for.
For the purposes of this subsection, shares with no prescribed par value shall be deemed shares without par value.
4. The secretary of state shall calculate filing fees pursuant to this section with respect to shares with a par value of less than one-tenth of a cent as if the par value were one-tenth of a cent.
Sec. 37. 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 corporations authorized stock or a certificate of correction that increases the corporations 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 corporations authorized stock or a certificate of correction that does not increase the corporations authorized stock is $75.
3. The fee for filing a certificate or an amended certificate pursuant to NRS 78.1955 is $75.
4. The fee for filing a certificate of termination pursuant to NRS 78.1955, 78.209 or 78.380 is $75.
Sec. 38. NRS 78.785 is hereby amended to read as follows:
78.785 1. The fee for filing a certificate of change of location of a corporations registered office and resident agent, or a new designation of resident agent, is $15.
2. The fee for certifying articles of incorporation where a copy is provided is $10.
3. The fee for certifying a copy of an amendment to articles of incorporation, or to a copy of the articles as amended, where a copy is furnished, is $10.
4. The fee for certifying an authorized printed copy of the general corporation law as compiled by the secretary of state is $10.
5. The fee for reserving a corporate name is $20.
6. The fee for executing a certificate of corporate existence which does not list the previous documents relating to the corporation, or a certificate of change in a corporate name, is [$15.] $20.
7. The fee for executing a certificate of corporate existence which lists the previous documents relating to the corporation is $20.
8. The fee for executing, certifying or filing any certificate or document not provided for in NRS 78.760 to 78.785, inclusive, is $20.
9. The fee for copies made at the office of the secretary of state is $1 per page.
κ2001 Statutes of Nevada, Page 1380 (CHAPTER 296, SB 51)κ
10. The fee for filing articles of incorporation, articles of merger, or certificates of amendment increasing the basic surplus of a mutual or reciprocal insurer must be computed pursuant to NRS 78.760, 78.765 and [78.770,] 92A.210, on the basis of the amount of basic surplus of the insurer.
11. The fee for examining and provisionally approving any document at any time before the document is presented for filing is $100.
Sec. 39. 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, 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 paragraph (a) 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 78.380 or 78.390.
3. [The] If an amendment is adopted in accordance with the requirements of NRS 78.390, it 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. 40. Chapter 80 of NRS is hereby amended by adding thereto a new section to read as follows:
Before the issuance of stock, an incorporator or, after the issuance of stock, an officer of a foreign 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.
Sec. 41. 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 accounts in banks or credit unions;
(d) Maintaining offices or agencies for the transfer, exchange and registration of the corporations 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;
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(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 80.280, inclusive,] this chapter, chapter 645A, 645B or 645E 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.
4. As used in this section and for the purposes of NRS 80.016, deposits means demand deposits, savings deposits and time deposits, as those terms are defined in chapter 657 of NRS.
Sec. 42. NRS 80.025 is hereby amended to read as follows:
80.025 1. If a foreign corporation cannot qualify to do business in this state because its name does not meet the requirements of subsection 2 or 3 of NRS 80.010, it may apply for a certificate to do business by having its board of directors adopt a resolution setting forth the name under which the corporation elects to do business in this state. The resolution may:
(a) Add to the existing corporate name a word, abbreviation or other distinctive element; or
(b) Adopt a name different from its existing corporate name that is available for use in this state.
2. In addition to the documents required by subsection 1 of NRS 80.010, the corporation shall file a [certified copy of the resolution adopting] resolution certifying the adoption of the modified name.
3. If the secretary of state determines that the modified corporate name complies with the provisions of subsection 2 or 3 of NRS 80.010, he shall issue the certificate in the foreign corporations modified name if the foreign corporation otherwise qualifies to do business in this state.
4. A foreign corporation doing business in this state under a modified corporate name approved by the secretary of state shall use the modified name in its dealings and communications with the secretary of state.
Sec. 43. 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] 90 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 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] 90 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.
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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. 44. NRS 80.090 is hereby amended to read as follows:
80.090 If a foreign corporation doing business in this state maintains and keeps in the state a resident agent as provided by NRS 80.060 and files or has microfilmed the papers, documents and instruments required by NRS 80.010 to 80.040, inclusive, [it shall be] and section 40 of this act, the foreign corporation is entitled to the benefit of the laws of this state limiting the time for the commencement of civil actions.
Sec. 45. NRS 81.650 is hereby amended to read as follows:
81.650 1. The board of directors or trustees of any private foundation which is a corporation organized under and governed by Nevada law may, by a majority vote of its directors or trustees, amend its governing instrument at any regular or special meeting of the board of directors or trustees, without a vote of the stockholders or members of the private foundation, if any, in order to avoid the penalties and liabilities described in Sections 4941(a), 4942(a), 4943(a), 4944(a) and 4945(a) or to comply with the provisions of Section 508(e).
2. Such an amendment must not be made until the board of directors or trustees has notified the members or stockholders, if any, at least 30 days before the meeting at which the governing instrument is to be amended. [Notice of the intention to amend the governing instrument must be served upon the attorney general at least 30 days before the meeting, together with a copy of the proposed amended governing instrument.]
3. If the private foundation is a corporation organized under and governed by Nevada law, after any such amendment has been approved by the directors or trustees, a copy of the amended governing instrument must be filed with the secretary of state.
Sec. 46. Chapter 82 of NRS is hereby amended by adding thereto a new section to read as follows:
An officer of a corporation or a director named in the original articles of incorporation 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.
Sec. 47. 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 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] state that:
(a) The signers thereof are a majority of the original incorporators of the corporation; and
(b) [State the date upon which the original articles were filed with the secretary of state; and
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(c) Affirmatively declare that to] As of 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. 48. NRS 82.371 is hereby amended to read as follows:
82.371 1. A corporation may restate, or amend and restate, in a single certificate the entire text of its articles as amended by filing with the secretary of state a certificate [entitled Restated Articles of Incorporation of .........................,] which must set forth the articles as amended to the date of the certificate. If the certificate alters or amends the articles in any manner, it must comply with the provisions of [this chapter governing such amendments] NRS 82.346, 82.351 and 82.356, as applicable, and must be accompanied by:
(a) A resolution; or
(b) A form prescribed by the secretary of state,
setting forth which provisions of the articles of incorporation on file with the secretary of state are being altered or amended.
2. If the certificate does not alter or amend the articles, it must be signed by the chairman of the board or the president or vice president, and the secretary or assistant secretary, of the corporation and must state that they have been authorized to execute the certificate by resolution of the board of directors adopted on the date stated, and that the certificate correctly sets forth the text of the articles as amended to the date of the certificate.
3. The following may be omitted from the restated articles:
(a) The names, addresses, signatures and acknowledgments of the incorporators;
(b) The names and addresses of the members of the past and present board of directors; and
(c) The name and address of the resident agent.
4. Whenever a corporation is required to file a certified copy of its articles, in lieu thereof it may file a certified copy of the most recent certificate restating its articles as amended, subject to the provisions of subsection 2, together with certified copies of all certificates of amendment filed after the restated articles and certified copies of all certificates supplementary to the original articles.
Sec. 49. NRS 82.446 is hereby amended to read as follows:
82.446 1. A corporation may be dissolved and its affairs wound up voluntarily by the written request of a majority of the members and any person or superior organization whose approval is required by a provision of the articles authorized by NRS 82.091. The request must:
(a) Be addressed to the directors.
(b) Specify reasons why the winding up of affairs of the corporation is deemed advisable.
(c) Name three persons who are members to act as trustees in liquidation and in winding up the affairs of the corporation. The act of a majority of the directors as trustees remaining in office is the act of the directors as trustees.
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2. Upon filing of the request with the directors and in the offices of the secretary of state, all powers of the directors cease. [The secretary of state shall issue a certificate that the corporation is dissolved.]
Sec. 50. NRS 82.451 is hereby amended to read as follows:
82.451 1. A corporation may be dissolved and its affairs wound up voluntarily if the board of directors adopts a resolution to that effect and calls a meeting of the members entitled to vote to take action upon the resolution. The resolution must also be approved by any person or superior organization whose approval is required by a provision of the articles authorized by NRS 82.091. The meeting of the members must be held with due notice. If at the meeting the members entitled to exercise a majority of all the voting power consent by resolution to the dissolution, a [copy of the resolution,] certificate setting forth that the dissolution has been approved in compliance with this section, together with a list of the names and residences of the directors and officers, [certified] executed by the chairman of the board, president or vice president, and the secretary or an assistant secretary , must be filed in the office of the secretary of state.
2. If a corporation has no members entitled to vote upon a resolution calling for the dissolution of the corporation, the corporation may be dissolved and its affairs wound up voluntarily by the board of directors if it adopts a resolution to that effect. The resolution must also be approved by any person or superior organization whose approval is required by a provision of the articles authorized by NRS 82.091. A [copy of the resolution] certificate setting forth that the dissolution has been approved in compliance with this section and a list of the officers and directors, [certified] executed as provided in subsection 1, must be filed in the office of the secretary of state.
3. [Upon filing of the resolution or request in the office of the secretary of state, the secretary of state shall issue a certificate that the corporation is dissolved.
4.] Upon the dissolution of any corporation under the provisions of this section or upon the expiration of its period of corporate existence, the directors are the trustees of the corporation in liquidation and in winding up the affairs of the corporation. The act of a majority of the directors as trustees remaining in office is the act of the directors as trustees.
Sec. 51. Chapter 86 of NRS is hereby amended by adding thereto the provisions set forth as sections 52 to 70, inclusive, of this act.
Sec. 52. Articles and articles of organization are synonymous terms and, unless the context otherwise requires, include certificates and restated articles of organization filed pursuant to NRS 86.221 and articles of merger, conversion, exchange or domestication filed pursuant to NRS 92A.200 to 92A.240, inclusive, and sections 109 to 115, inclusive, of this act.
Sec. 53. Noneconomic member means a member of a limited-liability company who:
1. Does not own a members interest in the company;
2. Does not have an obligation to contribute capital to the company;
3. Does not have a right to participate in or receive distributions of profits of the company or an obligation to contribute to the losses of the company; and
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4. May have voting rights and other rights and privileges given to noneconomic members of the company by the articles of organization or operating agreement.
Sec. 54. The provisions of this chapter may be amended or repealed at the pleasure of the legislature. A limited-liability company created pursuant to the provisions of this chapter or availing itself of any of the provisions of this chapter and all members and managers of the limited-liability company are bound by the amendment. An amendment or repeal does not take away or impair any remedy against a limited-liability company or its managers or members for a liability that has been previously incurred. The provisions of this chapter and all amendments thereof are a part of the articles of every limited-liability company.
Sec. 55. 1. A limited-liability company may correct a document filed by the secretary of state with respect to the limited-liability company if the document contains an inaccurate record of a company action described in the document or was defectively executed, attested, sealed, verified or acknowledged.
2. To correct a document, the limited-liability company must:
(a) Prepare a certificate of correction that:
(1) States the name of the limited-liability company;
(2) Describes the document, including, without limitation, its filing date;
(3) Specifies the inaccuracy or defect;
(4) Sets forth the inaccurate or defective portion of the document in an accurate or corrected form; and
(5) Is signed by a manager of the company, or if management is not vested in a manager, by a member of the company.
(b) Deliver the certificate to the secretary of state for filing.
(c) Pay a filing fee of $75 to the secretary of state.
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. 56. The articles of organization or operating agreement of a limited-liability company may create classes of members or managers, define their relative rights, powers and duties, and may authorize the creation, in the manner provided in the operating agreement, of additional classes of members or managers with the relative rights, powers and duties as may from time to time be established, including, without limitation, rights, powers and duties senior to existing classes of members or managers. The articles of organization or operating agreement may provide that any member, or class or group of members, has voting rights that differ from other classes or groups.
Sec. 57. Upon application by or for a member, the district court may decree dissolution of a limited-liability company whenever it is not reasonably practicable to carry on the business of the company in conformity with the articles of organization or operating agreement.
Sec. 58. A member who owns a members interest in a limited-liability company or a noneconomic member, when permitted by the terms of the articles of organization or operating agreement, may bring an action in the right of a limited-liability company to recover a judgment in its favor if managers or members with authority to do so have refused to bring the action or if an effort to cause those managers or members to bring the action is not likely to succeed.
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action or if an effort to cause those managers or members to bring the action is not likely to succeed.
Sec. 59. In a derivative action, the plaintiff must be a member who owns a members interest or a noneconomic member at the time of bringing the action and at the time of the transaction of which he complains.
Sec. 60. In a derivative action, the complaint must set forth with particularity:
1. The effort of the plaintiff to secure initiation of the action by a manager or member; or
2. The reasons for the plaintiff not making the effort to secure initiation of the action by a manager or member.
Sec. 61. If a derivative action is successful, in whole or in part, or if anything is received by the plaintiff as a result of a judgment, compromise or settlement of an action or claim, the court may award the plaintiff reasonable expenses, including reasonable attorneys fees, and shall direct him to remit to the limited-liability company the remainder of those proceeds received by him.
Sec. 62. Subject to the constitution of this state:
1. The laws of the state, pursuant to which a foreign limited-liability company is organized, govern its organization, internal affairs and the liability of its managers and members; and
2. A foreign limited-liability company may not be denied registration by reason of any difference between the laws of the state of organization and the laws of this state.
Sec. 63. Before transacting business in this state, a foreign limited-liability company must register with the secretary of state. In order to register, a foreign limited-liability company must submit to the secretary of state an application for registration as a foreign limited-liability company, signed by a manager of the company or, if management is not vested in a manager, a member of the company and a signed certificate of acceptance of a resident agent. The application for registration must set forth:
1. The name of the foreign limited-liability company 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-liability company elects to appoint;
4. A statement that the secretary of state is appointed the agent of the foreign limited-liability company for service of process if the authority of the resident agent has been revoked, or if the resident agent has resigned or 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-liability company;
6. The name and business address of each manager or, if management is not vested in a manager, each member; and
7. The address of the office at which is kept a list of the names and addresses of the members and their capital contributions, together with an undertaking by the foreign limited-liability company to keep those records until the registration in this state of the foreign limited-liability company is canceled or withdrawn.
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Sec. 64. 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. 65. A foreign limited-liability company 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 contains the words required by NRS 86.171 and which could be registered by a domestic limited-liability company.
Sec. 66. 1. A foreign limited-liability company may cancel its registration by filing with the secretary of state a certificate of cancellation signed by a manager of the company or, if management is not vested in a manager, a member of the company. The certificate, which must be accompanied by the required fees, must set forth:
(a) The name of the foreign limited-liability company;
(b) The date upon which its certificate of registration was filed;
(c) The effective date of the cancellation if other than the date of the filing of the certificate of cancellation; and
(d) Any other information deemed necessary by the manager of the company or, if management is not vested in a manager, a member of the company.
2. A cancellation pursuant to this section does not terminate the authority of the secretary of state to accept service of process on the foreign limited-liability company with respect to causes of action arising from the transaction of business in this state by the foreign limited-liability company.
Sec. 67. 1. A foreign limited-liability company 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 limited-liability company to register in this state does not impair the validity of any contract or act of the foreign limited-liability company, or prevent the foreign limited-liability company from defending any action, suit or proceeding in any court of this state.
3. A foreign limited-liability company, 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 by the foreign limited-liability company.
Sec. 68. The attorney general may bring an action to restrain a foreign limited-liability company from transacting business in this state in violation of this section and sections 62 to 67, inclusive, of this act.
Sec. 69. The articles of organization or operating agreement of a limited-liability company may provide for one or more noneconomic members or classes of noneconomic members.
Sec. 70. A manager or, if management of the company is not vested in a manager, a member 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.
κ2001 Statutes of Nevada, Page 1388 (CHAPTER 296, SB 51)κ
Sec. 71. 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] 86.031 to 86.128, inclusive, and sections 52 and 53 of this act have the meanings ascribed to them in those sections.
Sec. 72. NRS 86.081 is hereby amended to read as follows:
86.081 Member means the owner of [an] a members interest in a limited-liability company [.] or a noneconomic member.
Sec. 73. NRS 86.201 is hereby amended to read as follows:
86.201 1. [Upon filing the articles of organization and the certificate of acceptance of the resident agent, and the payment of filing fees, the] A limited-liability company is considered legally organized pursuant to this chapter [.] upon:
(a) Filing the articles of organization with the secretary of state or upon a later date specified in the articles of organization;
(b) Filing the certificate of acceptance of the resident agent with the secretary of state; and
(c) Paying the required filing fees to the secretary of state.
2. A limited-liability company must not transact business or incur indebtedness, except that which is incidental to its organization or to obtaining subscriptions for or payment of contributions, until the [secretary of state has filed the articles of organization and the certificate of acceptance.] company is considered legally organized pursuant to subsection 1.
Sec. 74. 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;] Whether the limited-liability company is managed by one or more managers or members; and
(c) The amendment to the articles of organization.
3. The certificate of amendment must be signed 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. If the certificate alters or amends the articles in any manner, it must be accompanied by:
(a) A resolution; or
(b) A form prescribed by the secretary of state,
setting forth which provisions of the articles of organization on file with the secretary of state are being altered or amended.
Sec. 75. NRS 86.226 is hereby amended to read as follows:
86.226 1. A signed 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.
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2. [Upon the filing of a] A certificate of amendment or judicial decree of amendment [in the office of] is effective upon filing with the secretary of state [, the articles of organization are amended as set forth therein.] or upon a later date specified in the certificate or judicial decree, which must not be more than 90 days after the certificate or judicial decree is filed.
3. If a certificate specifies an effective date and if the resolution of the members approving the proposed amendment provides that one or more managers or, if management is not vested in a manager, one or more members may abandon the proposed amendment, then those managers or members may terminate the effectiveness of the certificate by filing a certificate of termination with the secretary of state that:
(a) Is filed before the effective date specified in the certificate or judicial decree filed pursuant to subsection 1;
(b) Identifies the certificate being terminated;
(c) States that, pursuant to the resolution of the members, the manager of the company or, if management is not vested in a manager, a designated member is authorized to terminate the effectiveness of the certificate;
(d) States that the effectiveness of the certificate has been terminated;
(e) Is signed by a manager of the company or, if management is not vested in a manager, a designated member; and
(f) Is accompanied by a filing fee of $75.
Sec. 76. NRS 86.274 is hereby amended to read as follows:
86.274 1. The secretary of state shall notify, by letter addressed to its resident agent, each limited-liability company 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] anniversary of the month following the month in which the filing was required, the charter of the company 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 limited-liability companies whose right to do business has been forfeited. The secretary of state shall forthwith notify each limited-liability company by letter addressed to its resident agent of the forfeiture of its charter. The notice must be accompanied by a statement indicating the amount of the filing fee, penalties and costs remaining unpaid.
4. If the charter of a limited-liability company is revoked and the right to transact business is forfeited, all of the property and assets of the defaulting company must be held in trust by the managers or, if none, by the members of the company, and the same proceedings may be had with respect to its property and assets as apply to the dissolution of a limited-liability company [.] pursuant to NRS 86.505 and 86.521. Any person interested may institute proceedings at any time after a forfeiture has been declared, but if the secretary of state reinstates the charter the proceedings must be dismissed and all property restored to the company.
5. If the assets are distributed they must be applied in the following manner:
(a) To the payment of the filing fee, penalties and costs due to the state; and
(b) To the payment of the creditors of the company.
Any balance remaining must be distributed among the members as provided in subsection 1 of NRS 86.521.
κ2001 Statutes of Nevada, Page 1390 (CHAPTER 296, SB 51)κ
Sec. 77. NRS 86.276 is hereby amended to read as follows:
86.276 1. Except as otherwise provided in subsections 3 and 4, the secretary of state shall reinstate any limited-liability company which has forfeited its right to transact business [under] pursuant to the provisions of this chapter and restore to the company 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 required by NRS 86.263; and
(b) Pays to the secretary of state:
(1) The annual filing fee and penalty set forth in NRS 86.263 and 86.272 for each year or portion thereof during which [its charter has been revoked;] it failed to file in a timely manner each required annual list; and
(2) A fee of $50 for reinstatement.
2. When the secretary of state reinstates the limited-liability company, he shall:
(a) Immediately issue and deliver to the company 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 company 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 charter occurred only by reason of failure to pay the fees and penalties.
4. If a companys charter has been revoked pursuant to the provisions of this chapter and has remained revoked for a period of 5 consecutive years, the charter must not be reinstated.
Sec. 78. NRS 86.281 is hereby amended to read as follows:
86.281 A limited-liability company organized and existing [under] pursuant to this chapter may [:] exercise the powers and privileges granted by this chapter and may:
1. Sue and be sued, complain and defend, in its name;
2. Purchase, take, receive, lease or otherwise acquire, own, hold, improve, use and otherwise deal in and with real or personal property, or an interest in it, wherever situated;
3. Sell, convey, mortgage, pledge, lease, exchange, transfer and otherwise dispose of all or any part of its property and assets;
4. Lend money to and otherwise assist its members;
5. Purchase, take, receive, subscribe for or otherwise acquire, own, hold, vote, use, employ, sell, mortgage, lend, pledge or otherwise dispose of, and otherwise use and deal in and with shares, members interests or other interests in or obligations of domestic or foreign limited-liability companies, domestic or foreign corporations, joint ventures or similar associations, general or limited partnerships or natural persons, or direct or indirect obligations of the United States or of any government, state, territory, governmental district or municipality or of any instrumentality of it;
6. Make contracts and guarantees and incur liabilities, borrow money at such rates of interest as the company may determine, issue its notes, bonds and other obligations and secure any of its obligations by mortgage or pledge of all or any part of its property, franchises and income;
7. Lend, invest and reinvest its money and take and hold real property and personal property for the payment of money so loaned or invested;
κ2001 Statutes of Nevada, Page 1391 (CHAPTER 296, SB 51)κ
8. Conduct its business, carry on its operations and have and exercise the powers granted by this chapter in any state, territory, district or possession of the United States, or in any foreign country;
9. Appoint managers and agents, define their duties and fix their compensation;
10. Cease its activities and surrender its articles of organization;
11. Exercise all powers necessary or convenient to effect any of the purposes for which the company is organized; and
12. Hold a license issued pursuant to the provisions of chapter 463 of NRS.
Sec. 79. NRS 86.286 is hereby amended to read as follows:
86.286 1. A limited-liability company may, but is not required to, adopt an operating agreement. An operating agreement may be adopted only by the unanimous vote or unanimous written consent of the members, or by the sole member, and the operating agreement must be in writing. Unless otherwise provided in the operating agreement, amendments to the agreement may be adopted only by the unanimous vote or unanimous written consent of the persons who are members at the time of amendment.
2. An operating agreement may be adopted before, after or at the time of the filing of the articles of organization and, whether entered into before, after or at the time of the filing, may become effective at the formation of the limited-liability company or at a later date specified in the operating agreement. If an operating agreement is adopted before the filing of the articles of organization or before the effective date of formation specified in the articles of organization, the operating agreement is not effective until the effective date of formation of the limited-liability company.
3. An operating agreement may provide that a certificate of limited-liability company interest issued by the limited-liability company may evidence a members interest in a limited-liability company.
Sec. 80. NRS 86.291 is hereby amended to read as follows:
86.291 1. Except as otherwise provided in this section [,] or the articles of organization , [or the operating agreement,] management of a limited-liability company is vested in its members in proportion to their contribution to its capital, as adjusted from time to time to reflect properly any additional contributions or withdrawals by the members.
2. If provision is made in the articles of organization, management of the company may be vested in a manager or managers, who may but need not be members, in the manner prescribed by the operating agreement of the company. The manager or managers also hold the offices and have the responsibilities accorded to them by the members and set out in the operating agreement.
Sec. 81. 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 [,] or its operating agreement, 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 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.] by any member.
κ2001 Statutes of Nevada, Page 1392 (CHAPTER 296, SB 51)κ
Sec. 82. NRS 86.343 is hereby amended to read as follows:
86.343 1. A distribution of the profits and contributions of a limited-liability company must not be made if, after giving it effect:
(a) The company would not be able to pay its debts as they become due in the usual course of business; or
(b) Except as otherwise specifically permitted by the articles of organization, the total assets of the company would be less than the sum of its total liabilities.
2. The manager or, if management of the company is not vested in a manager or managers, the members may base a determination that a distribution is not prohibited [under] pursuant to this section on:
(a) Financial statements prepared on the basis of accounting practices that are reasonable in the circumstances;
(b) A fair valuation, including unrealized appreciation and depreciation; or
(c) Any other method that is reasonable in the circumstances.
3. The effect of a distribution [under] pursuant to this section must be measured:
(a) In the case of a distribution by purchase, redemption or other acquisition by the company of members interests, as of the earlier of:
(1) The date on which money or other property is transferred or debt incurred by the company; or
(2) The date on which the member ceases to be a member with respect to his acquired interest.
(b) In the case of any other distribution of indebtedness, as of the date on which the indebtedness is distributed.
(c) In all other cases, as of:
(1) The date on which the distribution is authorized if the payment occurs within 120 days after the date of authorization; or
(2) The date on which the payment is made if it occurs more than 120 days after the date of authorization.
4. Indebtedness of the company, including indebtedness issued as a distribution, is not considered a liability for purposes of determinations [under] pursuant to this section if its terms provide that payment of principal and interest are to be made only if and to the extent that payment of a distribution to the members could then be made pursuant to this section. If the indebtedness is issued as a distribution, each payment of principal or interest must be treated as a distribution, the effect of which must be measured as of the date of payment.
5. Except as otherwise provided in subsection 6, a member who receives a distribution in violation of this section is liable to the limited-liability company for the amount of the distribution. This subsection does not affect the validity of an obligation or liability of a member created by an agreement or other applicable law for the amount of a distribution.
6. Unless otherwise agreed, a member who receives a distribution from a limited-liability company is not liable for the amount of the distribution after the expiration of 3 years after the date of the distribution unless an action to recover the distribution from the member is commenced before the expiration of the 3-year period following the distribution.
Sec. 83. NRS 86.351 is hereby amended to read as follows:
86.351 1. The interest of each member of a limited-liability company is personal property. The articles of organization or operating agreement may prohibit or regulate the transfer of a members interest.
κ2001 Statutes of Nevada, Page 1393 (CHAPTER 296, SB 51)κ
prohibit or regulate the transfer of a members interest. Unless otherwise provided in the articles or operating agreement, a transferee of a members interest has no right to participate in the management of the business and affairs of the company or to become a member unless a majority in interest of the other members approve the transfer. If so approved, the transferee becomes a substituted member. The transferee is only entitled to receive the share of profits or other compensation by way of income, and the return of contributions, to which his transferor would otherwise be entitled.
2. A substituted member has all the rights and powers and is subject to all the restrictions and liabilities of his transferor, except that the substitution of the transferee does not release the transferor from any liability to the company.
Sec. 84. NRS 86.391 is hereby amended to read as follows:
86.391 1. A member is liable to a limited-liability company:
(a) For a difference between his contributions to capital as actually made and as stated in the articles of organization or operating agreement as having been made; and
(b) For any unpaid contribution to capital which he agreed in the articles of organization or operating agreement to make in the future at the time and on the conditions stated in the articles of organization or operating agreement.
2. A member holds as trustee for the company [:
(a) Specific] specific property stated in the articles of organization or operating agreement as contributed by him, but which was not so contributed . [or which has been wrongfully or erroneously returned; and
(b) Money or other property wrongfully paid or conveyed to him on account of his contribution or the contribution of a predecessor with respect to his members interest.]
3. The liabilities of a member as set out in this section can be waived or compromised only by the consent of all of the members, but a waiver or compromise does not affect the right of a creditor of the company to enforce the liabilities if he extended credit or his claim arose before the effective date of an amendment of the articles of organization or operating agreement effecting the waiver or compromise.
[4. When a contributor has rightfully received the return in whole or in part of his contribution to capital, the contributor is liable to the company for any sum, not in excess of the return with interest, necessary to discharge its liability to all of its creditors who extended credit or whose claims arose before the return.]
Sec. 85. NRS 86.401 is hereby amended to read as follows:
86.401 1. On application to a court of competent jurisdiction by a judgment creditor of a member, the court may charge the members interest with payment of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgment creditor has only the rights of an assignee of the members interest.
2. The court may appoint a receiver of the share of the distributions due or to become due to the judgment debtor in respect of the limited-liability company. The receiver has only the rights of an assignee. The court may make all other orders, directions, accounts and inquiries that the judgment debtor might have made or which the circumstances of the case may require.
κ2001 Statutes of Nevada, Page 1394 (CHAPTER 296, SB 51)κ
3. A charging order constitutes a lien on the members interest of the judgment debtor. The court may order a foreclosure of the members interest subject to the charging order at any time. The purchaser at the foreclosure sale has only the rights of an assignee.
4. Unless otherwise provided in the articles of organization or operating agreement, at any time before foreclosure, a members interest charged may be redeemed:
(a) By the judgment debtor;
(b) With property other than property of the limited-liability company, by one or more of the other members; or
(c) By the limited-liability company with the consent of all of the members whose interests are not so charged.
5. This section provides the exclusive remedy by which a judgment creditor of a member or an assignee of a member may satisfy a judgment out of the members interest of the judgment debtor.
6. No creditor of a member has any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the limited-liability company.
7. This section does not deprive any member of the benefit of any exemption applicable to his interest.
Sec. 86. NRS 86.491 is hereby amended to read as follows:
86.491 1. A limited-liability company organized [under] pursuant to this chapter must be dissolved and its affairs wound up:
[1.] (a) At the time, if any, specified in the articles of organization;
[2.] (b) Upon the occurrence of an event specified in an operating agreement; [or
3. By the unanimous written agreement of all members.]
(c) Unless otherwise provided in the articles of organization or operating agreement, upon the affirmative vote or written agreement of all the members; or
(d) Upon entry of a decree of judicial dissolution pursuant to section 57 of this act.
2. Except as otherwise provided in the articles of organization or operating agreement, the death, retirement, resignation, expulsion, bankruptcy, dissolution or dissociation of a member or any other event affecting a member, including, without limitation, a sole member, does not:
(a) Terminate the status of the person as a member; or
(b) Cause the limited-liability company to be dissolved or its affairs to be wound up.
3. Except as otherwise provided in the articles of organization or operating agreement, upon the death of a natural person who is the sole member of a limited-liability company, the status of the member, including the members interest, may pass to the heirs, successors and assigns of the member by will or applicable law. The heir, successor or assign of the members interest becomes a substituted member pursuant to NRS 86.351, subject to administration as provided by applicable law, without the permission or consent of the heirs, successors or assigns or those administering the estate of the deceased member.
Sec. 87. NRS 86.541 is hereby amended to read as follows:
86.541 1. The signed 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.]
κ2001 Statutes of Nevada, Page 1395 (CHAPTER 296, SB 51)κ
prescribed by law have been paid issue a certificate that the limited-liability company is dissolved.] Articles of dissolution become effective upon filing with the secretary of state.
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. 88. NRS 86.561 is hereby amended to read as follows:
86.561 1. The secretary of state shall charge and collect for:
(a) Filing the original articles of organization, or for registration of a foreign company, $125;
(b) Amending or restating the articles of organization, [or] amending the registration of a foreign company [,] or filing a certificate of correction, $75;
(c) Filing the articles of dissolution of a domestic or foreign company, $30;
(d) Filing a statement of change of address of a records or registered office, or change of the resident agent, $15;
(e) Certifying articles of organization or an amendment to the articles, in both cases where a copy is provided, $10;
(f) Certifying an authorized printed copy of this chapter, $10;
(g) Reserving a name for a limited-liability company, $20;
(h) Filing a certificate of cancellation, $30;
(i) Executing, filing or certifying any other document, $20; and
[(i)] (j) Copies made at the office of the secretary of state, $1 per page.
2. The secretary of state shall charge and collect at the time of any service of process on him as agent for service of process of a limited-liability company, $10 which may be recovered as taxable costs by the party to the action causing the service to be made if the party prevails in the action.
3. Except as otherwise provided in this section, the fees set forth in NRS 78.785 apply to this chapter.
Sec. 89. NRS 86.580 is hereby amended to read as follows:
86.580 1. A limited-liability company which did exist or is existing [under] pursuant to 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.
κ2001 Statutes of Nevada, Page 1396 (CHAPTER 296, SB 51)κ
(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.
(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.] in interest.
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] in interest 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. 90. Chapter 87 of NRS is hereby amended by adding thereto a new section to read as follows:
1. A limited-liability partnership may correct a document filed by the secretary of state with respect to the limited-liability partnership if the document contains an inaccurate record of a partnership action described in the document or was defectively executed, attested, sealed, verified or acknowledged.
2. To correct a document, the limited-liability partnership must:
(a) Prepare a certificate of correction that:
(1) States the name of the limited-liability partnership;
(2) Describes the document, including, without limitation, its filing date;
(3) Specifies the inaccuracy or defect;
(4) Sets forth the inaccurate or defective portion of the document in an accurate or corrected form; and
(5) Is signed by a managing partner of the limited-liability partnership.
(b) Deliver the certificate to the secretary of state for filing.
(c) Pay a filing fee of $75 to the secretary of state.
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.
κ2001 Statutes of Nevada, Page 1397 (CHAPTER 296, SB 51)κ
Sec. 91. 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.] $20.
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. 92. Chapter 88 of NRS is hereby amended by adding thereto the provisions set forth as sections 93 and 94 of this act.
Sec. 93. 1. A limited partnership may correct a document filed by the secretary of state with respect to the limited partnership if the document contains an inaccurate record of a partnership action described in the document or was defectively executed, attested, sealed, verified or acknowledged.
2. To correct a document, the limited partnership must:
(a) Prepare a certificate of correction that:
(1) States the name of the limited partnership;
(2) Describes the document, including, without limitation, its filing date;
(3) Specifies the inaccuracy or defect;
(4) Sets forth the inaccurate or defective portion of the document in an accurate or corrected form; and
(5) Is signed by a general partner of the limited partnership.
(b) Deliver the certificate to the secretary of state for filing.
(c) Pay a filing fee of $75 to the secretary of state.
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. 94. A general partner of a limited partnership 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.
Sec. 95. NRS 88.320 is hereby amended to read as follows:
88.320 1. The name proposed for a limited partnership as set forth in its certificate of limited partnership:
(a) Must contain [without abbreviation] the words limited partnership [;] , or the abbreviation LP or L.P.
(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
κ2001 Statutes of Nevada, Page 1398 (CHAPTER 296, SB 51)κ
(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, 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 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 from a 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 limited partnership whose right to transact business has been forfeited, which has merged and is not the surviving 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. 96. NRS 88.355 is hereby amended to read as follows:
88.355 1. A certificate of limited partnership is amended by filing a certificate of amendment thereto in the office of the secretary of state. The certificate must set forth:
(a) The name of the limited partnership; and
(b) [The date of filing of the certificate of limited partnership; and
(c)] The amendment.
2. Within 30 days after the happening of any of the following events an amendment to a certificate of limited partnership reflecting the occurrence of the event or events must be filed:
(a) The admission of a new general partner;
(b) The withdrawal of a general partner; or
(c) The continuation of the business under NRS 88.550 after an event of withdrawal of a general partner.
3. A general partner who becomes aware that any statement in a certificate of limited partnership was false when made or that any arrangements or other facts described, except the address of its office or the name or address of its resident agent, have changed, making the certificate inaccurate in any respect, shall promptly amend the certificate.
4. A certificate of limited partnership may be amended at any time for any other proper purpose the general partners determine.
5. No person has any liability because an amendment to a certificate of limited partnership has not been filed to reflect the occurrence of any event referred to in subsection 2 if the amendment is filed within the 30-day period specified in subsection 2.
6. A restated certificate of limited partnership may be executed and filed in the same manner as a certificate of amendment. If the certificate alters or amends the certificate of limited partnership in any manner, it must be accompanied by:
κ2001 Statutes of Nevada, Page 1399 (CHAPTER 296, SB 51)κ
(a) A resolution; or
(b) A form prescribed by the secretary of state,
setting forth which provisions of the certificate of limited partnership on file with the secretary of state are being altered or amended.
Sec. 97. 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. Upon filing the list of general partners, the limited partnership 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 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 2 and a reminder to file the annual list. Failure of any limited partnership to receive a notice or form does not excuse it from the penalty imposed by NRS 88.400.
4. If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 2 is not paid, the secretary of state may return the list for correction or payment.
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.
6. A filing made pursuant to this section does not satisfy the provisions of NRS 88.355 and may not be substituted for filings submitted pursuant to NRS 88.355.
Sec. 98. NRS 88.400 is hereby amended to read as follows:
88.400 1. If a [corporation] limited partnership has filed the list 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.
κ2001 Statutes of Nevada, Page 1400 (CHAPTER 296, SB 51)κ
Sec. 99. NRS 88.405 is hereby amended to read as follows:
88.405 1. The secretary of state shall notify, by letter addressed to its resident agent, each defaulting limited partnership. The notice must be accompanied by a statement indicating the amount of the filing fee, penalties and costs remaining unpaid.
2. Immediately after the first [day of the ninth month following] anniversary of the month following the month in which filing was required, the certificate of the limited partnership is revoked. The secretary of state shall compile a complete list containing the names of all limited partnerships whose right to do business has been forfeited. The secretary of state shall notify, by letter addressed to its resident agent, each limited partnership of the revocation of its certificate. The notice must be accompanied by a statement indicating the amount of the filing fee, penalties and costs remaining unpaid.
3. In case of revocation of the certificate and of the forfeiture of the right to transact business thereunder, all the property and assets of the defaulting domestic limited partnership are held in trust by the general partners, and the same proceedings may be had with respect thereto as for the judicial dissolution of a limited partnership. Any person interested may institute proceedings at any time after a forfeiture has been declared, but if the secretary of state reinstates the limited partnership the proceedings must at once be dismissed and all property restored to the general partners.
Sec. 100. NRS 88.535 is hereby amended to read as follows:
88.535 1. On application to a court of competent jurisdiction by any judgment creditor of a partner, the court may charge the partnership interest of the partner with payment of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgment creditor has only the rights of an assignee of the partnership interest.
2. The court may appoint a receiver of the share of the distributions due or to become due to the judgment debtor in respect of the partnership. The receiver has only the rights of an assignee. The court may make all other orders, directions, accounts and inquiries that the judgment debtor might have made or which the circumstances of the case may require.
3. A charging order constitutes a lien on the partnership interest of the judgment debtor. The court may order a foreclosure of the partnership interest subject to the charging order at any time. The purchaser at the foreclosure sale has only the rights of an assignee.
4. Unless otherwise provided in the articles of organization or operating agreement, at any time before foreclosure, a partnership interest charged may be redeemed:
(a) By the judgment debtor;
(b) With property other than property of the limited partnership, by one or more of the other partners; or
(c) By the limited partnership with the consent of all of the partners whose interests are not so charged.
5. This section provides the exclusive remedy by which a judgment creditor of a partner or an assignee of a partner may satisfy a judgment out of the partnership interest of the judgment debtor.
6. No creditor of a partner has any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the limited partnership.
κ2001 Statutes of Nevada, Page 1401 (CHAPTER 296, SB 51)κ
7. This [chapter] section does not deprive any partner of the benefit of any exemption laws applicable to his partnership interest.
Sec. 101. Chapter 88A of NRS is hereby amended by adding thereto the provisions set forth as sections 102 and 103 of this act.
Sec. 102. 1. A business trust may correct a document filed by the secretary of state with respect to the business trust if the document contains an inaccurate record of a trust action described in the document or was defectively executed, attested, sealed, verified or acknowledged.
2. To correct a document, the business trust must:
(a) Prepare a certificate of correction that:
(1) States the name of the business trust;
(2) Describes the document, including, without limitation, its filing date;
(3) Specifies the inaccuracy or defect;
(4) Sets forth the inaccurate or defective portion of the document in an accurate or corrected form; and
(5) Is signed by a trustee of the business trust.
(b) Deliver the certificate to the secretary of state for filing.
(c) Pay a filing fee of $75 to the secretary of state.
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. 103. A trustee of a business trust 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.
Sec. 104. NRS 88A.030 is hereby amended to read as follows:
88A.030 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 NRS 88A.210.
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. 105. NRS 88A.220 is hereby amended to read as follows:
88A.220 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; and
(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.
κ2001 Statutes of Nevada, Page 1402 (CHAPTER 296, SB 51)κ
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. 106. NRS 88A.640 is hereby amended to read as follows:
88A.640 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] Immediately after the first anniversary of the 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. 107. NRS 88A.900 is hereby amended to read as follows:
88A.900 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.] $20.
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.
κ2001 Statutes of Nevada, Page 1403 (CHAPTER 296, SB 51)κ
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. 108. Chapter 92A of NRS is hereby amended by adding thereto the provisions set forth as sections 109 to 115, inclusive, of this act.
Sec. 109. Domestic general partnership means a general partnership governed by the provisions of chapter 87 of NRS.
Sec. 110. Resulting entity means, with respect to a conversion, the entity that results from conversion of the constituent entity.
Sec. 111. 1. Except as limited by NRS 78.411 to 78.444, inclusive, one domestic general partnership or one domestic entity, except a domestic nonprofit corporation, may convert into a domestic entity or a foreign entity if the plan of conversion is approved pursuant to the provisions of this chapter.
2. The plan of conversion must be in writing and set forth the:
(a) Name of the constituent entity and the proposed name for the resulting entity;
(b) Address of the constituent entity and the resulting entity;
(c) Jurisdiction of the law that governs the constituent entity;
(d) Jurisdiction of the law that will govern the resulting entity;
(e) Terms and conditions of the conversion;
(f) Manner and basis of converting the owners interest or the interest of a partner in a general partnership of the constituent entity into owners interests, rights of purchase and other securities in the resulting entity; and
(g) Full text of the constituent documents of the resulting entity.
3. The plan of conversion may set forth other provisions relating to the conversion.
Sec. 112. Unless otherwise provided in the partnership agreement, all partners must approve a plan of conversion involving a domestic general partnership.
Sec. 113. 1. One foreign entity or foreign general partnership may convert into one domestic entity if:
(a) The conversion is permitted by the law of the jurisdiction governing the foreign entity or foreign general partnership and the foreign entity or foreign general partnership complies with that law in effecting the conversion;
(b) The foreign entity or foreign general partnership complies with the applicable provisions of section 114 of this act and, if it is the resulting entity in the conversion, with NRS 92A.210 to 92A.240, inclusive; and
(c) The domestic entity complies with the applicable provisions of NRS 92A.120, 92A.140 and 92A.165 and sections 111 and 112 of this act and, if it is the resulting entity in the conversion, with NRS 92A.210 to 92A.240, inclusive, and section 114 of this act.
2. When the conversion takes effect, the resulting foreign entity in a conversion shall be deemed to have appointed the secretary of state as its agent for service of process in a proceeding to enforce any obligation. Service of process must be made personally by 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 send one of the copies of the process by registered or certified mail to the resulting entity at its specified address, unless the resulting 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.
κ2001 Statutes of Nevada, Page 1404 (CHAPTER 296, SB 51)κ
mail to the resulting entity at its specified address, unless the resulting 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.
Sec. 114. 1. After a plan of conversion is approved as required by this chapter, if the resulting entity is a domestic entity, the constituent entity shall deliver to the secretary of state for filing:
(a) Articles of conversion setting forth:
(1) The name and jurisdiction of organization of the constituent entity and the resulting entity; and
(2) That a plan of conversion has been adopted by the constituent entity in compliance with the law of the jurisdiction governing the constituent entity.
(b) The following constituent document of the domestic resulting entity:
(1) If the resulting entity is a domestic corporation, the articles of incorporation filed in compliance with chapter 78 or 89 of NRS, as applicable;
(2) If the resulting entity is a domestic limited partnership, the certificate of limited partnership filed in compliance with chapter 88 of NRS;
(3) If the resulting entity is a domestic limited-liability company, the articles of organization filed in compliance with chapter 86 of NRS; or
(4) If the resulting entity is a domestic business trust, the certificate of trust filed in compliance with chapter 88A of NRS.
(c) A certificate of acceptance of appointment of a resident agent for the resulting entity which is executed by the resident agent.
2. After a plan of conversion is approved as required by this chapter, if the resulting entity is a foreign entity, the constituent entity shall deliver to the secretary of state for filing articles of conversion setting forth:
(a) The name and jurisdiction of organization of the constituent entity and the resulting entity;
(b) That a plan of conversion has been adopted by the constituent entity in compliance with the laws of this state; and
(c) The address of the resulting entity where copies of process may be sent by the secretary of state.
3. If the entire plan of conversion is not set forth in the articles of conversion, the filing party must include in the articles of conversion a statement that the complete executed plan of conversion is on file at the registered office or principal place of business of the resulting entity or, if the resulting entity is a domestic limited partnership, the office described in paragraph (a) of subsection 1 of NRS 88.330.
4. If the conversion takes effect on a later date specified in the articles of conversion pursuant to NRS 92A.240, the constituent document filed with the secretary of state pursuant to paragraph (b) of subsection 1 must state the name and the jurisdiction of the constituent entity and that the existence of the resulting entity does not begin until the later date.
5. Any documents filed with the secretary of state pursuant to this section must be accompanied by the fees required pursuant to this Title for filing the constituent document.
κ2001 Statutes of Nevada, Page 1405 (CHAPTER 296, SB 51)κ
Sec. 115. 1. Any undomesticated organization may become domesticated in this state as a domestic entity by:
(a) Paying to the secretary of state the fees required pursuant to this Title for filing the constituent document; and
(b) Filing with the secretary of state:
(1) Articles of domestication which must be executed by an authorized representative of the undomesticated organization approved in compliance with subsection 6;
(2) The appropriate constituent document for the type of domestic entity described in paragraph (b) of subsection 1 of section 114 of this act; and
(3) A certificate of acceptance of appointment of a resident agent for the domestic entity which is executed by the resident agent.
2. The articles of domestication must set forth the:
(a) Date when and the jurisdiction where the undomesticated organization was first formed, incorporated, organized or otherwise created;
(b) Name of the undomesticated organization immediately before filing the articles of domestication;
(c) Name and type of domestic entity as set forth in its constituent document pursuant to subsection 1; and
(d) Jurisdiction that constituted the principal place of business or central administration of the undomesticated organization, or any other equivalent thereto pursuant to applicable law,
immediately before filing the articles of domestication.
3. Upon filing the articles of domestication, the constituent document and the certificate of acceptance of appointment of a resident agent with the secretary of state, and the payment of the requisite fee for filing the constituent document of the domestic entity, the undomesticated organization is domesticated in this state as the domestic entity described in the constituent document filed pursuant to subsection 1. The existence of the domestic entity begins on the date the undomesticated organization began its existence in the jurisdiction in which the undomesticated organization was first formed, incorporated, organized or otherwise created.
4. The domestication of any undomesticated organization does not affect any obligations or liabilities of the undomesticated organization incurred before its domestication.
5. The filing of the constituent document of the domestic entity pursuant to subsection 1 does not affect the choice of law applicable to the undomesticated organization. From the date the constituent document of the domestic entity is filed, the law of this state applies to the domestic entity to the same extent as if the undomesticated organization was organized and created as a domestic entity on that date.
6. Before filing articles of domestication, the domestication must be approved in the manner required by:
(a) The document, instrument, agreement or other writing governing the internal affairs of the undomesticated organization and the conduct of its business; and
(b) Applicable foreign law.
7. When a domestication becomes effective, all rights, privileges and powers of the undomesticated organization, all property owned by the undomesticated organization, all debts due to the undomesticated organization, and all causes of action belonging to the undomesticated organization are vested in the domestic entity and become the property of the domestic entity to the same extent as vested in the undomesticated organization immediately before domestication.
κ2001 Statutes of Nevada, Page 1406 (CHAPTER 296, SB 51)κ
undomesticated organization, all debts due to the undomesticated organization, and all causes of action belonging to the undomesticated organization are vested in the domestic entity and become the property of the domestic entity to the same extent as vested in the undomesticated organization immediately before domestication. The title to any real property vested by deed or otherwise in the undomesticated organization is not reverted or impaired by the domestication. All rights of creditors and all liens upon any property of the undomesticated organization are preserved unimpaired and all debts, liabilities and duties of an undomesticated organization that has been domesticated attach to the domestic entity resulting from the domestication and may be enforced against it to the same extent as if the debts, liability and duties had been incurred or contracted by the domestic entity.
8. When an undomesticated organization is domesticated, the domestic entity resulting from the domestication is for all purposes deemed to be the same entity as the undomesticated organization. Unless otherwise agreed by the owners of the undomesticated organization or as required pursuant to applicable foreign law, the domestic entity resulting from the domestication is not required to wind up its affairs, pay its liabilities or distribute its assets. The domestication of an undomesticated organization does not constitute the dissolution of the undomesticated organization. The domestication constitutes a continuation of the existence of the undomesticated organization in the form of a domestic entity. If, following domestication, an undomesticated organization that has become domesticated pursuant to this section continues its existence in the foreign country or foreign jurisdiction in which it was existing immediately before the domestication, the domestic entity and the undomesticated organization are for all purposes a single entity formed, incorporated, organized or otherwise created and existing pursuant to the laws of this state and the laws of the foreign country or other foreign jurisdiction.
9. As used in this section, undomesticated organization means any incorporated organization, private law corporation, whether or not organized for business purposes, public law corporation, general partnership, registered limited-liability partnership, limited partnership or registered limited-liability limited partnership, proprietorship, joint venture, foundation, business trust, real estate investment trust, common law trust or any other unincorporated business formed, organized, created or the internal affairs of which are governed by the laws of any foreign country or jurisdiction other than the United States, the District of Columbia or another state, territory, possession, commonwealth or dependency of the United States.
Sec. 116. 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 109 and 110 of this act have the meanings ascribed to them in those sections.
Sec. 117. NRS 92A.010 is hereby amended to read as follows:
92A.010 Constituent document means the articles of incorporation or bylaws of a corporation, whether or not for profit, the articles of organization or operating agreement of a limited-liability company , [or] the certificate of limited partnership or partnership agreement of a limited partnership [.] , or the certificate of trust or governing instrument of a business trust.
κ2001 Statutes of Nevada, Page 1407 (CHAPTER 296, SB 51)κ
Sec. 118. NRS 92A.015 is hereby amended to read as follows:
92A.015 Constituent entity means [, with] :
1. With respect to a merger, each merging or surviving entity [and, with] ;
2. With respect to an exchange, each entity whose owners interests will be acquired or each entity acquiring those interests [.] ; and
3. With respect to the conversion of an entity or a general partnership, the entity or general partnership that will be converted into another entity.
Sec. 119. NRS 92A.070 is hereby amended to read as follows:
92A.070 Member means:
1. A [person who owns an interest in, and has the right to participate in the management of the business and affairs of a domestic limited-liability company;] member of a limited-liability company, as defined in NRS 86.081; or
2. A member of a nonprofit corporation which has members.
Sec. 120. NRS 92A.075 is hereby amended to read as follows:
92A.075 Owner means the holder of an interest described in NRS 92A.080 [.] or a noneconomic member of a limited-liability company described in section 53 of this act.
Sec. 121. NRS 92A.120 is hereby amended to read as follows:
92A.120 1. After adopting a plan of merger [or exchange,] , exchange or conversion, the board of directors of each domestic corporation that is a constituent entity in the merger [,] or conversion, or the board of directors of the domestic corporation whose shares will be acquired in the exchange, must submit the plan of merger, except as otherwise provided in NRS 92A.130, the plan of conversion or the plan of exchange for approval by its stockholders [.] who are entitled to vote on the plan.
2. For a plan of merger , conversion or exchange to be approved:
(a) The board of directors must recommend the plan of merger , conversion or exchange to the stockholders, unless the board of directors determines that because of a conflict of interest or other special circumstances it should make no recommendation and it communicates the basis for its determination to the stockholders with the plan; and
(b) The stockholders entitled to vote must approve the plan.
3. The board of directors may condition its submission of the proposed merger , conversion or exchange on any basis.
4. [The] Unless the plan of merger, conversion or exchange is approved by the written consent of stockholders pursuant to subsection 8, the domestic corporation must notify each stockholder, whether or not he is entitled to vote, of the proposed stockholders meeting in accordance with NRS 78.370. The notice must also state that the purpose, or one of the purposes, of the meeting is to consider the plan of merger , conversion or exchange and must contain or be accompanied by a copy or summary of the plan.
5. Unless this chapter, the articles of incorporation , the resolutions of the board of directors establishing the class or series of stock, subsection 6 or the board of directors acting pursuant to subsection 3 require a greater vote or a vote by classes of stockholders, the plan of merger or [exchange to be authorized] conversion must be approved by a majority of the voting power [unless stockholders of a class of shares are entitled to vote thereon as a class. If stockholders of a class of shares are so entitled, the plan must be approved by a majority of all votes entitled to be cast on the plan by each class and representing a majority of all votes entitled to be voted.
κ2001 Statutes of Nevada, Page 1408 (CHAPTER 296, SB 51)κ
approved by a majority of all votes entitled to be cast on the plan by each class and representing a majority of all votes entitled to be voted.
6. Separate voting by a class of stockholders is required:
(a) On a plan of merger if the plan contains a provision that, if contained in the proposed amendment to the articles of incorporation, would entitle particular stockholders to vote as a class on the proposed amendment; and
(b) On a plan of exchange by each class or series of shares included in the exchange, with each class or series constituting a separate voting class.
7.] of the stockholders.
6. Unless the articles of incorporation or the resolution of the board of directors establishing a class or series of stock provide otherwise, or unless the board of directors acting pursuant to subsection 3 requires a greater vote, the plan of exchange must be approved by a majority of the voting power of each class and each series to be exchanged pursuant to the plan of exchange.
7. In addition to any other vote required, if a plan of merger contains an amendment to the articles of incorporation of the surviving domestic corporation or if a plan of conversion provides for a resulting entity with constituent documents, that adversely alter or change any preference or other right given to any class or series of outstanding stock of the surviving domestic corporation, then the plan of merger or conversion must be approved by the vote of stockholders representing a majority of the voting power of each class or series adversely affected by the amendment or the constituent documents, regardless of limitations or restrictions on the voting power of that class or series of stock.
8. Unless otherwise provided in the articles of incorporation or the bylaws of the domestic corporation, the plan of merger , conversion or exchange may be approved by written consent as provided in NRS 78.320.
9. If an officer, director or stockholder of a domestic corporation, which will be the constituent entity in a conversion, will have any liability for the obligations of the resulting entity after the conversion because he will be the owner of an owners interest in the resulting entity, then that officer, director or stockholder must also approve the plan of conversion.
10. Unless otherwise provided in the articles of incorporation or bylaws of a domestic corporation, a plan of merger, conversion or exchange may contain a provision that permits amendment of the plan of merger, conversion or exchange at any time after the stockholders of the domestic corporation approve the plan of merger, conversion or exchange, but before the articles of merger, conversion or exchange become effective, without obtaining the approval of the stockholders of the domestic corporation for the amendment if the amendment does not:
(a) Alter or change the manner or basis of exchanging an owners interest to be acquired for owners interests, rights to purchase owners interests, or other securities of the acquiring entity or any other entity, or for cash or other property in whole or in part; or
(b) Alter or change any of the terms and conditions of the plan of merger, conversion or exchange in a manner that adversely affects the stockholders of the domestic corporation.
11. This section does not prevent or restrict a board of directors from canceling the proposed meeting or removing the plan of merger, conversion or exchange from consideration at the meeting if the board of directors determines that it is not advisable to submit the plan of merger, conversion or exchange to the stockholders for approval.
κ2001 Statutes of Nevada, Page 1409 (CHAPTER 296, SB 51)κ
directors determines that it is not advisable to submit the plan of merger, conversion or exchange to the stockholders for approval.
Sec. 122. NRS 92A.140 is hereby amended to read as follows:
92A.140 1. Unless otherwise provided in the partnership agreement or the certificate of limited partnership, a plan of merger , conversion or exchange involving a domestic limited partnership must be approved by all general partners and by limited partners who own a majority in interest of the partnership then owned by all the limited partners. If the partnership has more than one class of limited partners, the plan of merger , conversion or exchange must be approved by those limited partners who own a majority in interest of the partnership then owned by the limited partners in each class.
2. For the purposes of this section, majority in interest of the partnership means a majority of the interests in capital and profits of the limited partners of a domestic limited partnership which:
(a) In the case of capital, is determined as of the date of the approval of the plan of merger , conversion or exchange.
(b) In the case of profits, is based on any reasonable estimate of profits for the period beginning on the date of the approval of the plan of merger , conversion or exchange and ending on the anticipated date of the termination of the domestic limited partnership, including any present or future division of profits distributed pursuant to the partnership agreement.
3. If any partner of a domestic limited partnership, which will be the constituent entity in a conversion, will have any liability for the obligations of the resulting entity after the conversion because he will be the owner of an owners interest in the resulting entity, then that partner must also approve the plan of conversion.
Sec. 123. NRS 92A.150 is hereby amended to read as follows:
92A.150 1. Unless otherwise provided in the articles of organization or an operating agreement:
[1.] (a) A plan of merger , conversion 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.] (b) If the company has more than one class of members, the plan of merger , conversion or exchange 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.
2. If any manager or member of a domestic limited-liability company, which will be the constituent entity in a conversion, will have any liability for the obligations of the resulting entity after the conversion because he will be the owner of an owners interest in the resulting entity, then that manager or member must also approve the plan of conversion.
Sec. 124. NRS 92A.165 is hereby amended to read as follows:
92A.165 Unless otherwise provided in the certificate of trust or governing instrument of a business trust, a plan of merger , conversion or exchange must be approved by all the trustees and beneficial owners of each business trust that is a constituent entity in the merger.
Sec. 125. NRS 92A.170 is hereby amended to read as follows:
92A.170 After a merger , conversion or exchange is approved, and at any time before the articles of merger , conversion or exchange are filed, the planned merger , conversion 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 , conversion or exchange or, if none is set forth, in the case of:
κ2001 Statutes of Nevada, Page 1410 (CHAPTER 296, SB 51)κ
set forth in the plan of merger , conversion 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;
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 in the current profits 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 in the current profits 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 [.] ; and
5. A domestic general partnership, unless otherwise provided in the partnership agreement, by all the partners.
Sec. 126. NRS 92A.175 is hereby amended to read as follows:
92A.175 After a merger , conversion or exchange is approved, at any time after the articles of merger , conversion 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 , conversion or exchange may be terminated in accordance with a procedure set forth in the plan of merger , conversion or exchange by filing articles of termination pursuant to the provisions of NRS 92A.240.
Sec. 127. 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 , unless otherwise provided in the articles of organization or operating agreement, 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] limited-liability company then owned by [both the general and] each class of [limited partners] members or 90 percent of the percentage or other interest in the capital and profits of a subsidiary [limited-liability company then owned by each class of members] limited partnership then owned by both the general partners and each class of limited partners may merge the subsidiary into itself without approval of the owners of the owners interests of the parent domestic corporation, domestic limited-liability company or domestic limited partnership or the owners of the owners interests of a subsidiary domestic corporation, subsidiary domestic limited-liability company or subsidiary domestic limited partnership.
2. A parent domestic corporation, whether or not for profit, parent domestic limited-liability company, unless otherwise provided in the articles of organization, 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-liability company then owned by each class of members, or 90 percent of the percentage or other interest in the capital and profits of a subsidiary limited partnership then owned by both the general partners and each class of limited partners may merge with and into the subsidiary without approval of the owners of the owners interests of the subsidiary domestic corporation, subsidiary domestic limited-liability company or subsidiary domestic limited partnership.
κ2001 Statutes of Nevada, Page 1411 (CHAPTER 296, SB 51)κ
interests of the subsidiary domestic corporation, subsidiary domestic limited-liability company or subsidiary domestic limited partnership.
3. The board of directors of [the] a parent corporation, the managers of a parent limited-liability company with managers unless otherwise provided in the operating agreement, all [the] members of a parent limited-liability company without managers unless otherwise provided in the operating agreement, or all [the] general partners of [the] a parent 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 owners interests of the disappearing entity into the owners interests, obligations or other securities of the surviving or any other entity or into cash or other property in whole or in part.
[3.] 4. 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 surviving entity [.] except that the name of the surviving entity may be changed.
6. The articles of incorporation of a domestic corporation, the articles of organization of a domestic limited-liability company, the certificate of limited partnership of a domestic limited partnership or the certificate of trust of a domestic business trust may forbid that entity from entering into a merger pursuant to this section.
Sec. 128. 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 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] required 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 owners interests entitled to vote separately on the plan; and
(2) Either the total number of votes or percentage of owners 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 owners interests cast for the plan separately by the owners of each class, and the number of votes or percentage of owners interests cast for the plan by the owners of each class of interests was sufficient for approval by the owners of that class;
κ2001 Statutes of Nevada, Page 1412 (CHAPTER 296, SB 51)κ
and the number of votes or percentage of owners 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 , if any, to the articles of incorporation, articles of organization, certificate of limited partnership or certificate of trust of the surviving entity [; and] , which amendment may be set forth in the articles of merger as a specific amendment or in the form of:
(a) Amended and restated articles of incorporation;
(b) Amended and restated articles of organization;
(c) An amended and restated certificate of limited partnership; or
(d) An amended and restated certificate of trust,
or attached in that form as an exhibit; 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, limited-liability company or business trust, or office described in paragraph (a) of subsection 1 of NRS 88.330 if a limited partnership, or other place of business of the surviving entity or the acquiring entity, respectively.
Any of the terms of the plan of merger, conversion or exchange may be made dependent upon facts ascertainable outside of the plan of merger, conversion or exchange, provided that the plan of merger, conversion or exchange clearly and expressly sets forth the manner in which such facts shall operate upon the terms of the plan. As used in this section, the term facts includes, without limitation, the occurrence of an event, including a determination or action by a person or body, including a constituent entity.
Sec. 129. NRS 92A.210 is hereby amended to read as follows:
92A.210 [The]
1. Except as otherwise provided in this section, the fee for filing articles of merger, articles of conversion, articles of exchange , articles of domestication or articles of termination is $125. The fee for filing the constituent documents of a domestic resulting entity is the fee for filing the constituent documents determined by the chapter of NRS governing the particular domestic resulting entity.
2. 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 computed upon the aggregate amount of the total authorized stock of the constituent corporation.
3. 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 computed upon the aggregate amount of the total authorized stock of the constituent corporations which have paid the fees required by NRS 78.760 and 80.050.
4. The fee for filing articles of merger of two or more domestic or foreign corporations must not be less than $125. The amount paid pursuant to subsection 3 must not exceed $25,000.
κ2001 Statutes of Nevada, Page 1413 (CHAPTER 296, SB 51)κ
Sec. 130. NRS 92A.220 is hereby amended to read as follows:
92A.220 If the entire plan of merger , conversion or exchange is not set forth [,] in the articles of merger, conversion or exchange, a copy of the plan of merger , conversion or exchange must be furnished by the surviving , [or] acquiring or resulting entity, on request and without cost, to any owner of any entity which is a party to the merger , conversion or exchange.
Sec. 131. NRS 92A.230 is hereby amended to read as follows:
92A.230 1. Articles of merger , conversion or exchange must be signed by each domestic constituent entity as follows:
(a) By [the president or a vice president] an officer of a domestic corporation, whether or not for profit;
(b) By all the general partners of a domestic limited partnership;
(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.
3.] Articles of merger , conversion or exchange must be signed by each foreign constituent entity in the manner provided by the law governing it.
[4.] 3. As used in this section, signed means to have executed or adopted a name, word or mark, including, without limitation, a digital signature as defined in NRS 720.060, with the present intention to authenticate a document.
Sec. 132. NRS 92A.240 is hereby amended to read as follows:
92A.240 1. A merger , conversion or exchange takes effect upon filing the articles of merger , conversion or exchange or upon a later date as specified in the articles, which must not be more than 90 days after the articles are filed.
2. If the filed articles of merger , conversion or exchange specify such a later effective date, the constituent entity or entities may file articles of termination before the effective date, setting forth:
(a) The name of each constituent entity [;] and , for a conversion, the resulting entity; and
(b) That the merger , conversion or exchange has been terminated pursuant to the plan of merger , conversion or exchange.
3. The articles of termination must be executed in the manner provided in NRS 92A.230.
Sec. 133. 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;
κ2001 Statutes of Nevada, Page 1414 (CHAPTER 296, SB 51)κ
(e) The articles of incorporation, articles of organization, 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 owners interests of each constituent entity that are to be converted into owners 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 owners 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 owners interests of each acquired entity are exchanged as provided in the plan, and the former holders of the owners 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.
3. When a conversion takes effect:
(a) The constituent entity is converted into the resulting entity and is governed by and subject to the law of the jurisdiction of the resulting entity;
(b) The conversion is a continuation of the existence of the constituent entity;
(c) The title to all real estate and other property owned by the constituent entity is vested in the resulting entity without reversion or impairment;
(d) The resulting entity has all the liabilities of the constituent entity;
(e) A proceeding pending against the constituent entity may be continued as if the conversion had not occurred or the resulting entity may be substituted in the proceeding for the constituent entity;
(f) The owners interests of the constituent entity that are to be converted into the owners interests of the resulting entity are converted;
(g) An owner of the resulting entity remains liable for all the obligations of the constituent entity to the extent the owner was personally liable before the conversion; and
(h) The domestic constituent entity is not required to wind up its affairs, pay its liabilities, distribute its assets or dissolve, and the conversion is not deemed a dissolution of the domestic constituent entity.
Sec. 134. NRS 92A.260 is hereby amended to read as follows:
92A.260 An owner that is not personally liable for the debts, liabilities or obligations of the entity pursuant to the laws and constituent documents under which the entity was organized does not become personally liable for the debts, liabilities or obligations of the surviving entity or entities of the merger or exchange or the resulting entity of the conversion unless the owner consents to becoming personally liable by action taken in connection with the plan of merger , conversion or exchange.
Sec. 135. NRS 92A.380 is hereby amended to read as follows:
92A.380 1. Except as otherwise provided in NRS 92A.370 and 92A.390, a stockholder is entitled to dissent from, and obtain payment of the fair value of his shares in the event of any of the following corporate actions:
(a) Consummation of a plan of merger to which the domestic corporation is a [party:] constituent entity:
(1) If approval by the stockholders is required for the merger by NRS 92A.120 to 92A.160, inclusive, or the articles of incorporation [and he] , regardless of whether the stockholder is entitled to vote on the plan of merger; or
κ2001 Statutes of Nevada, Page 1415 (CHAPTER 296, SB 51)κ
regardless of whether the stockholder is entitled to vote on the plan of merger; or
(2) If the domestic corporation is a subsidiary and is merged with its parent [under] pursuant to NRS 92A.180.
(b) Consummation of a plan of exchange to which the domestic corporation is a [party] constituent entity as the corporation whose subject owners interests will be acquired, if [he is entitled to vote on the plan.] his shares are to be acquired in the plan of exchange.
(c) Any corporate action taken pursuant to a vote of the stockholders to the event that the articles of incorporation, bylaws or a resolution of the board of directors provides that voting or nonvoting stockholders are entitled to dissent and obtain payment for their shares.
2. A stockholder who is entitled to dissent and obtain payment [under] pursuant to NRS 92A.300 to 92A.500, inclusive, may not challenge the corporate action creating his entitlement unless the action is unlawful or fraudulent with respect to him or the domestic corporation.
Sec. 136. Chapter 225 of NRS is hereby amended by adding thereto a new section to read as follows:
The secretary of state and the deputies, employees and attorneys of the secretary of state are not liable for any action or omission made in good faith by the secretary of state, deputy, employee or attorney in the performance of his duties or exercise of authority with respect to the examination, acceptance or filing of any document which is received from any person or business association pursuant to Title 7 of NRS and which is inaccurate or defective in any way.
Sec. 137. NRS 78.295, 78.770, 81.460, 86.021 and 86.551 are hereby repealed.
________
Senate Bill No. 113Committee on Human Resources and Facilities
CHAPTER 297
AN ACT relating to the program for millennium scholarships; expanding the program to provide for the disbursement of scholarships to students of certain additional colleges and universities in this state; revising the eligibility requirements for certain pupils who did not graduate from high school at the time regularly scheduled for their graduation; increasing the amount of scholarships for upper division courses at community colleges; eliminating the requirement that the scholarship be repaid if a student drops out of school or fails to maintain a certain grade-point average; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 396 of NRS is hereby amended by adding thereto a new section to read as follows:
Eligible institution means:
1. A university, state college or community college within the system; or
κ2001 Statutes of Nevada, Page 1416 (CHAPTER 297, SB 113)κ
2. Any other nonsectarian college or university that:
(a) Was originally established in, and is organized under the laws of, this state;
(b) Is exempt from taxation pursuant to 26 U.S.C. § 501(c)(3); and
(c) Is accredited by a regional accrediting agency recognized by the United States Department of Education.
Sec. 2. NRS 396.911 is hereby amended to read as follows:
396.911 1. The legislature hereby declares that its priorities in expending the proceeds to the State of Nevada from settlement agreements with and civil actions against manufacturers of tobacco products are:
(a) To increase the number of Nevada students who attend and graduate from Nevada institutions of higher education; and
(b) To assist Nevada residents in obtaining and maintaining good health.
2. To further these priorities, the legislature hereby declares that it is in the best interest of the residents of the State of Nevada that all money received by the State of Nevada pursuant to any settlement entered into by the State of Nevada and a manufacturer of tobacco products and all money recovered by the State of Nevada from a judgment in a civil action against a manufacturer of tobacco products be dedicated solely toward the achievement of the following goals:
(a) Increasing the number of residents of the State of Nevada who enroll in and attend a university , college or community college [of the University and Community College System] in the State of Nevada;
(b) Reducing and preventing the use of tobacco products, alcohol and illegal drugs, especially by children;
(c) Expanding the availability of health insurance and health care for children and adults in this state, especially for children and for adults with disabilities;
(d) Assisting senior citizens who have modest incomes in purchasing prescription drugs and assisting those senior citizens in meeting their needs related to health care, home care, respite care and their ability to live independent of institutional care; and
(e) Promoting the general health of all residents of the State of Nevada.
Sec. 3. NRS 396.914 is hereby amended to read as follows:
396.914 As used in NRS 396.914 to 396.938, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 396.918 and 396.922 and section 1 of this act have the meanings ascribed to them in those sections.
Sec. 4. NRS 396.930 is hereby amended to read as follows:
396.930 1. Except as otherwise provided in subsections 2 and 3, a student may apply to the board of regents for a millennium scholarship if he:
(a) Has been a resident of this state for at least 2 years before he applies for the scholarship;
(b) [Graduated] Except as otherwise provided in paragraph (c), graduated from a public or private high school in this state:
(1) After May 1, 2000; and
(2) Not more than 8 years before he applies for the scholarship;
(c) Does not satisfy the requirements of paragraph (b) and:
(1) Was enrolled as a pupil in a public or private high school in this state with a class of pupils who were regularly scheduled to graduate after May 1, 2000;
κ2001 Statutes of Nevada, Page 1417 (CHAPTER 297, SB 113)κ
(2) Received his high school diploma within 5 years after he was regularly scheduled to graduate; and
(3) Applies for the scholarship not more than 8 years after he was regularly scheduled to graduate from high school;
(d) Maintained at least a 3.0 grade-point average on a 4.0 grading scale in high school in the core curriculum, as determined by the board of regents pursuant to subsection 2; and
[(d)] (e) Is enrolled in at least [12 semester credit hours in a university or at least 6] :
(1) Six semester credit hours in a community college [.] within the system; or
(2) Twelve semester credit hours in another eligible institution.
2. The board of regents shall:
(a) Define the core curriculum that a student must complete in high school to be eligible for a millennium scholarship.
(b) Develop a plan to ensure that needy students and students from families that otherwise could not afford to send their children to college receive millennium scholarships.
3. [For] Except as otherwise provided in paragraph (c) of subsection 1, for students who did not graduate from a public or private high school in this state and who have been residents of this state for at least 2 years, the board of regents shall establish:
(a) The minimum score on a standardized test that such students must receive; or
(b) Other criteria that students must meet,
to be eligible for millennium scholarships.
4. In awarding scholarships, the board of regents shall enhance its outreach to students who:
(a) Are pursuing a career in education or health care;
(b) Come from families who lack sufficient financial resources to pay for the costs of sending their children to [a university or community college;] an eligible institution; or
(c) Substantially participated in an anti-smoking, anti-drug or anti-alcohol program during high school.
Sec. 5. NRS 396.934 is hereby amended to read as follows:
396.934 1. Within the limits of money available in the trust fund, a student who is eligible for a millennium scholarship is entitled to receive:
(a) If he is enrolled in a community college [,] within the system, $40 per credit for each lower division course and $60 per credit for each upper division course in which the student is enrolled, or the amount of money that is necessary for the student to pay the costs of attending the community college that are not otherwise satisfied by other grants or scholarships, whichever is less. The board of regents shall provide for the designation of upper and lower division courses for the purposes of this paragraph.
(b) If he is enrolled in a state college within the system, $60 per credit for which the student is enrolled, or the amount of money that is necessary for the student to pay the costs of attending the state college that are not otherwise satisfied by other grants or scholarships, whichever is less.
(c) If he is enrolled in [a university,] another eligible institution, $80 per credit for which the student is enrolled, or the amount of money that is necessary for the student to pay the costs of attending the university that are not otherwise satisfied by other grants or scholarships, whichever is less.
κ2001 Statutes of Nevada, Page 1418 (CHAPTER 297, SB 113)κ
No student may be awarded a scholarship for a total amount in excess of $10,000.
2. A student who receives a millennium scholarship shall:
(a) Make satisfactory academic progress toward a recognized degree or certificate, as determined by the board of regents pursuant to subsection [6;] 5; and
(b) Maintain at least a 2.0 grade-point average on a 4.0 grading scale.
3. A millennium scholarship must be used only:
(a) For the payment of registration fees and laboratory fees and expenses;
(b) To purchase required textbooks and course materials; and
(c) For other costs related to the attendance of the student at the [university or community college.
4. Except as otherwise provided in this subsection, if a student drops out of school or fails to maintain at least a 2.0 grade-point average in any semester, the student shall repay the millennium scholarship before the student is eligible to receive an additional millennium scholarship or otherwise receive money pursuant to NRS 396.914 to 396.934, inclusive. The board of regents shall establish criteria for a waiver from the repayment required by this subsection, including, without limitation, service in the military and conditions of hardship such a medical necessity.
5.] eligible institution.
4. The board of regents shall certify a list of eligible students to the state treasurer. The state treasurer shall disburse a millennium scholarship for each semester on behalf of an eligible student directly to the [community college or university] eligible institution in which the student is enrolled, upon certification from the [community college or university] eligible institution of the number of credits for which the student is enrolled, which must meet or exceed the minimum number of credits required for eligibility and certification that the student is in good standing and making satisfactory academic progress toward a recognized degree or certificate, as determined by the board of regents pursuant to subsection [6.] 5. The scholarship must be administered by the [community college or university] eligible institution as other similar scholarships are administered and may be used only for the expenditures authorized pursuant to subsection 3.
[6.] 5. The board of regents shall establish criteria for determining whether a student is making satisfactory academic progress toward a recognized degree or certificate for purposes of subsection [5.] 4.
Sec. 6. NRS 439.600 is hereby amended to read as follows:
439.600 1. The legislature hereby declares that its priorities in expending the proceeds to the State of Nevada from settlement agreements with and civil actions against manufacturers of tobacco products are:
(a) To increase the number of Nevada students who attend and graduate from Nevada institutions of higher education; and
(b) To assist Nevada residents in obtaining and maintaining good health.
2. To further these priorities, the legislature hereby declares that it is in the best interest of the residents of this state that all money received by the State of Nevada pursuant to any settlement entered into by the State of Nevada and a manufacturer of tobacco products and all money recovered by the State of Nevada from a judgment in a civil action against a manufacturer of tobacco products be dedicated solely toward the achievement of the following goals:
κ2001 Statutes of Nevada, Page 1419 (CHAPTER 297, SB 113)κ
(a) Increasing the number of Nevada residents who enroll in and attend a university , college or community college [of the University and Community College System] in the State of Nevada;
(b) Reducing and preventing the use of tobacco products, alcohol and illegal drugs, especially by children;
(c) Expanding the availability of health insurance and health care for children and adults in this state, especially for children and for adults with disabilities;
(d) Assisting senior citizens who have modest incomes in purchasing prescription drugs and assisting those senior citizens in meeting their needs related to health care, home care, respite care and their ability to live independent of institutional care; and
(e) Promoting the general health of all residents of the State of Nevada.
Sec. 7. Section 10 of chapter 536, Statutes of Nevada 1999, at page 2753, is hereby amended to read as follows:
Sec. 10. On or before February 1, 2003, the board of regents of the University of Nevada shall submit a report to the director of the legislative counsel bureau for transmittal to the 72nd session of the Nevada legislature that includes:
1. An examination of the projected enrollment of students in [the University and Community College System of] Nevada who will be eligible for millennium scholarships;
2. An actuarial study to determine the approximate costs of continuing the millennium scholarship program; and
3. A report setting forth any enhanced outreach efforts carried out pursuant to subsection 4 of section 7 of this act.
Sec. 8. This act becomes effective on July 1, 2001.
________
κ2001 Statutes of Nevada, Page 1420κ
Senate Bill No. 125Committee on Government Affairs
CHAPTER 298
AN ACT relating to governmental administration; requiring a local government to submit electronically a fiscal report to the department of taxation and to publish a summary of the fiscal report in a newspaper; requiring the committee on local government finance to establish by regulation certain requirements for a fiscal report of a local government submitted to the department of taxation and for a summary of a fiscal report; authorizing the committee on local government finance to establish by regulation an exception to the requirement that the fiscal report be submitted electronically for certain local governments; authorizing the electronic submission of documents relating to the budgets of local governments to the legislative counsel bureau; repealing the requirement that local governments prepare certain quarterly reports; requiring the publication of certain regulations in the Nevada Administrative Code; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 354 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 3, the governing board of a local government shall:
(a) Submit electronically a fiscal report of the local government to the department of taxation in accordance with the requirements prescribed by the committee on local government finance pursuant to subsection 2; and
(b) Publish a summary of the fiscal report, which must contain the information required by the committee on local government finance pursuant to subsection 2, in a newspaper of general circulation in the county in which the local government is situated.
2. The committee on local government finance shall prescribe, by regulation:
(a) The dates and times for filing a fiscal report, which must require a local government to file at least one fiscal report per year;
(b) The content of a fiscal report, which must include, without limitation, revenues, expenditures, fund balances, cash balances, components of assessed value, debt schedules and any other information that the committee on local government finance determines to be appropriate for determining the financial status of a local government; (c) The content for a summary of a fiscal report that must be published pursuant to subsection 1; and
(d) A uniform method for creating and submitting a fiscal report electronically pursuant to this section. The method must facilitate the storage and reproduction of the fiscal report in electronic format by the department of taxation.
3. The committee on local government finance may establish, by regulation, an exception to the requirement that a fiscal report be submitted to the department of taxation in electronic format. The exception must be limited to local governments that the committee determines do not have the financial ability to comply with the method for submitting a fiscal report to the department of taxation prescribed by the committee.
κ2001 Statutes of Nevada, Page 1421 (CHAPTER 298, SB 125)κ
report to the department of taxation prescribed by the committee. If the committee on local government finance provides an exception pursuant to this subsection, the committee shall provide, by regulation, specific standards that it will use to determine whether a local government qualifies for an exemption pursuant to this subsection.
4. The committee on local government finance shall adopt regulations pursuant to this section in the manner prescribed for state agencies in chapter 233B of NRS.
Sec. 2. NRS 354.470 is hereby amended to read as follows:
354.470 NRS 354.470 to 354.626, inclusive, and section 1 of this act may be cited as the Local Government Budget Act.
Sec. 3. NRS 354.475 is hereby amended to read as follows:
354.475 1. All special districts subject to the provisions of the Local Government Budget Act with annual total expenditures of less than $100,000 may petition the department of taxation for exemption from the requirements of the Local Government Budget Act for the filing of certain budget documents and audit reports. Such districts may further petition to return to a cash method of accounting. The minimum required of such districts is the filing with the department of taxation of an annual budget on or before April 15 of each year and the filing of [quarterly] fiscal reports in accordance with [NRS 354.602.] section 1 of this act. Such petitions must be received by the department of taxation before December 31 to be effective for the succeeding fiscal year or, in a case of an annual audit exemption, to be effective for the current fiscal year. A board of county commissioners may request the department of taxation to audit the financial records of such an exempt district.
2. Such districts are exempt from all publication requirements of the Local Government Budget Act, except that the department of taxation by regulation shall require an annual publication of a notice of budget adoption and filing. The department of taxation shall adopt regulations pursuant to NRS 354.594 which are necessary to carry out the purposes of this section.
3. The revenue recorded in accounts that are kept on a cash basis must consist of cash items.
4. As used in this section, cash basis means the system of accounting under which revenues are recorded only when received and expenditures or expenses are recorded only when paid.
Sec. 4. NRS 354.595 is hereby amended to read as follows:
354.595 Whenever any document, supporting information or related schedule concerning the budget of a local government is filed with the department of taxation or the Nevada tax commission, the executive director shall immediately deliver or transmit electronically a copy to the legislative counsel bureau.
Sec. 5. NRS 354.665 is hereby amended to read as follows:
354.665 1. If a local government does not file a statement, report or other document as required by the provisions of NRS 350.0035, [354.602,] 354.6025, 354.624, 354.6245 , [or] 387.303 or section 1 of this act within 15 days after the day on which it was due, the executive director shall notify the governing body of the local government in writing that the report is delinquent. The notification must be noted in the minutes of the first meeting of the governing body following transmittal of the notification.
κ2001 Statutes of Nevada, Page 1422 (CHAPTER 298, SB 125)κ
2. If the required report is not received by the department within 45 days after the day on which the report was due, the executive director shall notify the governing body that the presence of a representative of the governing body is required at the next practicable scheduled meeting of the Nevada tax commission to explain the reason that the report has not been filed. The notice must be transmitted to the governing body at least 5 days before the date on which the meeting will be held.
3. If an explanation satisfactory to the Nevada tax commission is not provided at the meeting as requested in the notice and an arrangement is not made for the submission of the report, the commission may instruct the executive director to request that the state treasurer withhold from the local government the next distribution of the supplemental city-county relief tax if the local government is otherwise entitled to receive such a distribution or of the Local School Support Tax if the local government is a school district. Upon receipt of such a request, the state treasurer shall withhold the payment and all future payments until he is notified by the executive director that the report has been received by the department.
Sec. 6. NRS 233B.062 is hereby amended to read as follows:
233B.062 1. It is the policy of this state that every regulation of an agency be made easily accessible to the public and expressed in clear and concise language. To assist in carrying out this policy:
(a) The attorney general must develop guidelines for drafting regulations; and
(b) Every permanent regulation must be incorporated, excluding any forms used by the agency, any publication adopted by reference, the title, any signature and other formal parts, in the Nevada Administrative Code, and every emergency or temporary regulation must be distributed in the same manner as the Nevada Administrative Code.
2. The legislative counsel shall:
(a) Include each permanent regulation in the Nevada Administrative Code; and
(b) Distribute in the same manner as the Nevada Administrative Code each emergency or temporary regulation,
that is required to be adopted pursuant to the provisions of this chapter and which is adopted by an entity other than an agency.
3. The legislative commission may authorize inclusion in the Nevada Administrative Code of the regulations of an agency otherwise exempted from the requirements of this chapter.
Sec. 7. NRS 354.602 is hereby repealed.
Sec. 8. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 9. This act becomes effective on July 1, 2001.
________
κ2001 Statutes of Nevada, Page 1423κ
Senate Bill No. 236Senators Care, Neal, Carlton, Mathews, Schneider, Shaffer, Titus and Wiener
Joint Sponsors: Assemblymen Giunchigliani, Koivisto, Angle, Beers, Cegavske, Chowning, Collins, Manendo, McClain, Mortenson, Parks and Tiffany
CHAPTER 299
AN ACT relating to education; requiring certain entities that employ children in the entertainment industry to pay for those children to receive tutoring or other educational or instructional services upon the request of a parent or guardian; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 392 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in this subsection, if a child is exempt from compulsory attendance pursuant to NRS 392.070, 392.100 or 392.110, and the child is employed to work in the entertainment industry pursuant to a written contract for a period of more than 91 school days, including, without limitation, employment with a motion picture company or employment with a production company hired by a casino or resort hotel, the entity that employs the child shall, upon the request of the parent or legal guardian of the child, pay the costs for the child to receive at least 3 hours of tutoring per day for at least 5 days per week. In lieu of tutoring, the parent or legal guardian of such a child may agree with the entity that employs the child that the entity will pay the costs for the child to receive other educational or instructional services which are equivalent to tutoring. The provisions of this subsection apply during the period of a childs employment with an entity, regardless of whether the child has obtained the appropriate exemption from compulsory attendance at the time his contract with the entity is under negotiation.
2. If such a child is exempt from compulsory attendance pursuant to NRS 392.100 or 392.110, the tutoring or other educational or instructional services received by the child pursuant to subsection 1 must be approved by the board of trustees of the school district in which the child resides.
Sec. 2. This act becomes effective on July 1, 2001.
________
κ2001 Statutes of Nevada, Page 1424κ
Senate Bill No. 502Committee on Finance
CHAPTER 300
AN ACT relating to state job training office; eliminating the office; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 380A.041 is hereby amended to read as follows:
380A.041 1. The governor shall appoint to the council:
(a) A representative of public libraries;
(b) A trustee of a legally established library or library system;
(c) A representative of school libraries;
(d) A representative of academic libraries;
(e) A representative of special libraries or institutional libraries;
(f) A representative of persons with disabilities;
(g) A representative of the public who uses these libraries;
(h) A representative of recognized state labor organizations;
(i) A representative of private sector employers;
(j) A representative of private literacy organizations, voluntary literacy organizations or community-based literacy organizations; and
(k) A classroom teacher who has demonstrated outstanding results in teaching children or adults to read.
2. The director of the following state agencies or their designees shall serve as ex officio members of the council:
(a) The department of cultural affairs;
(b) The department of education;
(c) The [state job training office;] department of employment, training and rehabilitation;
(d) The department of human resources;
(e) The commission on economic development; and
(f) The department of prisons.
3. Officers of state government whose agencies provide funding for literacy services may be designated by the governor or the chairman of the council to serve whenever matters within the jurisdiction of the agency are considered by the council.
4. The governor shall ensure that there is appropriate representation on the council of urban and rural areas of the state, women, persons with disabilities , and racial and ethnic minorities.
5. A person may not serve as a member of the council for more than two consecutive terms.
Sec. 2. NRS 19.033 is hereby amended to read as follows:
19.033 1. In each county, on the commencement of any action for divorce in the district court, the county clerk shall charge and collect, in addition to other fees required by law, a fee of $20. The fee must be paid by the party commencing the action.
κ2001 Statutes of Nevada, Page 1425 (CHAPTER 300, SB 502)κ
2. On or before the first Monday of each month, the county clerk shall pay over to the county treasurer an amount equal to all fees collected by him pursuant to subsection 1, and the county treasurer shall place that amount to the credit of the state general fund. Quarterly, the county treasurer shall remit all money so collected to the state treasurer, who shall place the money in an account in the state general fund for use by [the director of the state job training office or, if the office is abolished by executive order,] the director of the department of employment, training and rehabilitation to administer the provisions of NRS 388.605 to 388.655, inclusive.
3. The board of county commissioners of any county may impose by ordinance an additional filing fee of not more than $6 to be paid by the defendant in an action for divorce, annulment or separate maintenance. In a county where this fee has been imposed:
(a) On the appearance of a defendant in the action in the district court, the county clerk, in addition to any other fees provided by law, shall charge and collect from the defendant the prescribed fee to be paid upon the filing of the first paper in the action by the defendant.
(b) On or before the fifth day of each month, the county clerk shall account for and pay to the county treasurer all fees collected during the preceding month pursuant to paragraph (a).
Sec. 3. NRS 388.605 is hereby amended to read as follows:
388.605 As used in NRS 388.605 to 388.655, inclusive, unless the context otherwise requires:
1. Board means the board for the education and counseling of displaced homemakers.
2. Director means [the director of the state job training office or, if the office is abolished by executive order,] the director of the department of employment, training and rehabilitation.
3. Displaced homemaker means any person who:
(a) Is not gainfully employed or has less than full-time or adequate employment;
(b) Has worked at home for a substantial number of years providing household services to members of his family without compensation;
(c) Has difficulty in securing employment adequate for economic independence; and
(d) Has been dependent:
(1) On the income of another member of his family , but is no longer supported by that income;
(2) Upon public assistance , but is no longer eligible; or
(3) On another member of his family for the management of his personal finances , but that person is no longer available to provide that assistance.
Sec. 4. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 1426κ
Assembly Bill No. 125Assemblymen Manendo, Anderson, Price, Williams, Chowning, Angle, Berman, Brower, Carpenter, Cegavske, Claborn, de Braga, Freeman, Gibbons, Gustavson, Koivisto, Leslie, McClain, Neighbors, Oceguera, Parks, Parnell and Von Tobel
CHAPTER 301
AN ACT relating to crimes; prohibiting a business from employing, using or allowing a person who is less than 18 years of age to distribute promotional materials that include an offer for alcoholic beverages; providing a penalty; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
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. Except as otherwise provided in subsection 2, it is unlawful for a person to employ, allow or use a person who is less than 18 years of age to distribute promotional materials that include an offer for alcoholic beverages for a business, including, without limitation, a gaming establishment, a saloon, a resort or a restaurant.
2. This section does not prohibit the employment of a person who is less than 18 years of age to distribute a publication that includes an advertisement for the sale of alcoholic beverages which is incident to the publication.
3. A person who violates subsection 1 is guilty of a misdemeanor.
Sec. 2. NRS 202.015 is hereby amended to read as follows:
202.015 For the purposes of NRS 202.020 to 202.065, inclusive, and section 1 of this act, alcoholic beverage means:
1. Beer, ale, porter, stout and other similar fermented beverages, including sake and similar products, of any name or description containing one-half of 1 percent or more alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute therefor.
2. Any beverage obtained by the fermentation of the natural content of fruits or other agricultural products containing sugar, of not less than one-half of 1 percent of alcohol by volume.
3. Any distilled spirits commonly referred to as ethyl alcohol, ethanol or spirits of wine in any form, including all dilutions and mixtures thereof from whatever process produced.
Sec. 3. The amendatory provisions of this act do not apply to offenses committed before October 1, 2001.
________
κ2001 Statutes of Nevada, Page 1427κ
Assembly Bill No. 177Committee on Natural Resources, Agriculture, and Mining
CHAPTER 302
AN ACT relating to the Lake Tahoe Basin; authorizing the issuance of general obligation bonds to carry out the Environmental Improvement Program; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
Whereas, In October 1997, Governor Bob Miller, on behalf of the State of Nevada, signed a Memorandum of Agreement between the Federal Interagency Partnership on the Lake Tahoe Ecosystem, the States of Nevada and California, the Washoe Tribe, the Tahoe Regional Planning Agency and interested local governments, in which the parties affirmed their commitment to the Tahoe Regional Planning Compact, to the sound management and protection of the resources within the Lake Tahoe Basin and the support of a healthy, sustainable economy and to achieve environmental thresholds for Lake Tahoe, and agreed to cooperate to carry out, including, without limitation, providing financial support for, the Environmental Improvement Program; and
Whereas, The costs of carrying out the Environmental Improvement Program have been apportioned among the Federal Government, the States of Nevada and California, local governments and owners of private property within both states; and
Whereas, The cost of carrying out the Environmental Improvement Program that is apportioned to the State of Nevada and its political subdivisions is $82,000,000 for the 10-year period that ends in fiscal year 2006-07; and
Whereas, The State of Nevada and its political subdivisions have already provided $28,800,000 to meet their apportioned commitment, which includes:
1. General obligation bonds issued in the face amount of $20,000,000 pursuant to chapter 361, Statutes of Nevada 1995, at page 907, and approved by the voters of this state at the general election held in 1996, to carry out projects for the control of erosion and the restoration of natural watercourses in the Lake Tahoe Basin; and
2. General obligation bonds issued in the face amount of $3,200,000 pursuant to chapter 514, Statutes of Nevada 1999, at page 2626; and
Whereas, Chapter 514, Statutes of Nevada 1999, created the fund to protect the Lake Tahoe Basin in the state general fund, directed the Administrator of the Division of State Lands of the State Department of Conservation and Natural Resources to administer that fund and directed the Administrator, in cooperation with other state agencies, to coordinate the development and carrying out of a program of environmental improvement projects, for the Lake Tahoe Basin; and
Whereas, Chapter 514, Statutes of Nevada 1999, provided that money in an amount not to exceed $53,200,000 would be made available to carry out the program of environmental improvement projects during the period between the fiscal year beginning on July 1, 2001, and the fiscal year ending on June 30, 2007, by the issuance of general obligation bonds and legislative appropriation; and
κ2001 Statutes of Nevada, Page 1428 (CHAPTER 302, AB 177)κ
on June 30, 2007, by the issuance of general obligation bonds and legislative appropriation; and
Whereas, The general obligation bonds authorized by chapter 514, Statutes of Nevada 1999, may only be issued with the prior approval of the Legislature or the Interim Finance Committee and pursuant to a schedule established by the Administrator of the Division of State Lands; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The Legislature hereby finds and declares that the issuance of securities and the incurrence of indebtedness pursuant to this act:
1. Are necessary for the protection and preservation of the natural resources of this state and for the purpose of obtaining the benefits thereof; and
2. Constitute an exercise of the authority conferred by the second paragraph of section 3 of article 9 of the Constitution of the State of Nevada.
Sec. 2. Money to carry out the program of environmental improvement projects for the Lake Tahoe Basin established pursuant to section 1 of chapter 514, Statutes of Nevada 1999, at page 2627, in an amount not to exceed $16,200,000 must be provided for the period between the fiscal year beginning on July 1, 2001, and the fiscal year ending on June 30, 2003, by the issuance by the State Board of Finance of general obligation bonds of the State of Nevada in a total face amount of not more than $16,200,000 pursuant to NRS 349.150 to 349.364, inclusive. The proceeds of the bonds issued pursuant to this section must be deposited in the fund to protect the Lake Tahoe Basin created pursuant to section 2 of chapter 514, Statutes of Nevada 1999, at page 2628, and, except as otherwise provided in this section, must be used as follows:
1. Projects of the Environmental Improvement Program to be carried out by the State Department of Conservation and Natural Resources:
(a) Forest Restoration Phase II.................................................................... $1,450,000
(b) East Shore Access Erosion Control............................................................ 150,000
(c) Riparian Wildlife Habitat Enhancement................................................... 168,000
(d) Water Diversion Survey to Maintain Stream Flows.................................. 25,000
(e) East Shore Fur Bearer Study.......................................................................... 40,000
(f) Van Sickle State Park Phase I...................................................................... 400,000
(g) Sand Harbor BMP Retrofit............................................................................ 80,000
(h) Spooner Lake Visitor Center (Planning/Design)....................................... 200,000
(i) Shorezone/Stream Restoration Project....................................................... 500,000
(j) Land Coverage Restoration...................................................................... 2,000,000
2. Water Quality, Erosion Control and Stream Restoration/Enhancement Projects of the Environmental Improvement Program to be carried out pursuant to grants and project agreements................................................................................................ $9,300,000
3. Contingency money to carry out projects set forth in subsections 1 and 2 $1,887,000
If an amount authorized pursuant to this section is insufficient to allow the completion of the project for which it is authorized, including, without limitation, any monitoring necessary to ensure the continued effectiveness of the project, the Interim Finance Committee, upon the request of the Division of State Lands of the State Department of Conservation and Natural Resources, may increase the amount authorized for the project and offset the increase by reducing the amount authorized for another project or projects pursuant to this section by the amount of the increase.
κ2001 Statutes of Nevada, Page 1429 (CHAPTER 302, AB 177)κ
of State Lands of the State Department of Conservation and Natural Resources, may increase the amount authorized for the project and offset the increase by reducing the amount authorized for another project or projects pursuant to this section by the amount of the increase. The Division of State Lands may use money authorized pursuant to this section for a project other than a project listed in this section if the Interim Finance Committee approves such a use in writing before the Division of State Lands engages in the project. The Division of State Lands may allocate the money for project contingencies pursuant to subsection 3 without the prior approval of the Interim Finance Committee.
Sec. 3. This act becomes effective on July 1, 2001.
________
Assembly Bill No. 227Committee on Elections, Procedures, and Ethics
CHAPTER 303
AN ACT relating to elections; revising the definition of a committee for political action; providing a civil penalty for failure to register as a committee for political action; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 294A.0055 is hereby amended to read as follows:
294A.0055 1. Committee for political action means [an organization which receives contributions, makes contributions to candidates or other persons or makes expenditures] any group of natural persons or entities that solicits or receives contributions from any other person, group or entity and:
(a) Makes or intends to make contributions to candidates or other persons; or
(b) Makes or intends to make expenditures,
designed to affect the outcome of any primary, general or special election or question on the ballot. [The term]
2. Committee for political action does not include [a] :
(a) An organization made up of legislative members of a political party whose primary purpose is to provide support for their political efforts.
(b) An entity solely because it provides goods or services to a candidate or committee in the regular course of its business at the same price that would be provided to the general public.
(c) An individual natural person.
(d) An individual corporation or other business entity who has filed articles of incorporation or other documentation of organization with the secretary of state pursuant to Title 7 of NRS.
(e) A labor union.
(f) A personal campaign committee or the personal representative of a candidate who receives contributions or makes expenditures that are reported as campaign contributions or expenditures by the candidate.
(g) A committee for the recall of a public officer.
κ2001 Statutes of Nevada, Page 1430 (CHAPTER 303, AB 227)κ
Sec. 2. NRS 294A.380 is hereby amended to read as follows:
294A.380 1. The secretary of state may adopt and promulgate regulations, prescribe forms in accordance with the provisions of this chapter and take such other actions as are necessary for the implementation and effective administration of the provisions of this chapter.
2. For the purposes of implementing and administering the provisions of this chapter regulating committees for political action:
(a) The secretary of state shall, in determining whether an entity or group is a committee for political action, consider a groups or entitys division or separation into units, sections or smaller groups only if it appears that such division or separation was for a purpose other than for avoiding the reporting requirements of this chapter.
(b) The secretary of state shall, in determining whether an entity or group is a committee for political action, disregard any action taken by a group or entity that would otherwise constitute a committee for political action if it appears such action is taken for the purpose of avoiding the reporting requirements of this chapter.
Sec. 3. NRS 294A.420 is hereby amended to read as follows:
294A.420 1. If the secretary of state receives information that a person or entity that is subject to the provisions of NRS 294A.120, 294A.140, 294A.150, 294A.180, 294A.200, 294A.210, 294A.220, 294A.230, 294A.270, 294A.280 or 294A.360 has not filed a report or form for registration pursuant to the applicable provisions of those sections, the secretary of state may, after giving notice to that person or entity, cause the appropriate proceedings to be instituted in the first judicial district court.
2. Except as otherwise provided in this section, a person or entity that violates an applicable provision of NRS 294A.112, 294A.120, 294A.130, 294A.140, 294A.150, 294A.160, 294A.170, 294A.180, 294A.200, 294A.210, 294A.220, 294A.230, 294A.270, 294A.280, 294A.300, 294A.310, 294A.320 or 294A.360 is subject to a civil penalty of not more than $5,000 for each violation and payment of court costs and attorneys fees. The civil penalty must be recovered in a civil action brought in the name of the State of Nevada by the secretary of state in the first judicial district court and deposited with the state treasurer for credit to the state general fund.
3. If a civil penalty is imposed because a person or entity has reported its contributions, expenses or expenditures after the date the report is due, the amount of the civil penalty is:
(a) If the report is not more than 7 days late, $25 for each day the report is late.
(b) If the report is more than 7 days late but not more than 15 days late, $50 for each day the report is late.
(c) If the report is more than 15 days late, $100 for each day the report is late.
4. For good cause shown, the secretary of state may waive a civil penalty that would otherwise be imposed pursuant to this section. If the secretary of state waives a civil penalty pursuant to this subsection, the secretary of state shall:
(a) Create a record which sets forth that the civil penalty has been waived and describes the circumstances that constitute the good cause shown; and
(b) Ensure that the record created pursuant to paragraph (a) is available for review by the general public.
________
κ2001 Statutes of Nevada, Page 1431κ
Assembly Bill No. 259Assemblymen McClain, Koivisto, Leslie, Smith, Oceguera, Anderson, Arberry, Bache, Berman, Brower, Buckley, Cegavske, Chowning, Claborn, Collins, Dini, Freeman, Gibbons, Giunchigliani, Hettrick, Humke, Lee, Manendo, Mortenson, Neighbors, Nolan, Parnell, Tiffany and Williams
CHAPTER 304
AN ACT relating to criminal procedure; revising certain provisions that limit the time of day that an arrest for a misdemeanor may be made to exclude arrests for certain misdemeanor offenses related to domestic violence; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 171.136 is hereby amended to read as follows:
171.136 1. If the offense charged is a felony or gross misdemeanor, the arrest may be made on any day, and at any time of day or night.
2. If it is a misdemeanor, the arrest cannot be made between the hours of 7 p.m. and 7 a.m., except:
(a) Upon the direction of a magistrate, endorsed upon the warrant;
(b) When the offense is committed in the presence of the arresting officer;
(c) When the person is found and the arrest is made in a public place or a place that is open to the public and:
(1) There is a warrant of arrest against the person; and
(2) The misdemeanor is discovered because there was probable cause for the arresting officer to stop, detain or arrest the person for another alleged violation or offense;
(d) When the offense is committed in the presence of a private person and he makes an arrest immediately after the offense is committed;
(e) When the offense charged is battery [committed by a person upon his spouse and any bodily harm has occurred;] that constitutes domestic violence pursuant to NRS 33.018 and the arrest is made in the manner provided in NRS 171.137;
(f) When the offense charged is a violation of a temporary or extended order for protection against domestic violence issued pursuant to NRS 33.017 to 33.100, inclusive;
(g) When the person is already in custody as a result of another lawful arrest; or
[(g)] (h) When the person voluntarily surrenders himself in response to an outstanding warrant of arrest.
________
κ2001 Statutes of Nevada, Page 1432κ
Assembly Bill No. 278Assemblymen Carpenter, McClain, Nolan, Neighbors, Marvel, Anderson, Arberry, Bache, Beers, Berman, Brower, Brown, Buckley, Cegavske, Chowning, Claborn, Collins, de Braga, Dini, Freeman, Gibbons, Giunchigliani, Goldwater, Humke, Koivisto, Lee, Leslie, Manendo, Mortenson, Oceguera, Ohrenschall, Parks, Parnell, Perkins, Price, Smith, Tiffany, Von Tobel and Williams
Joint Sponsors: Senators Amodei, Wiener, Rawson, Jacobsen, McGinness and Townsend
CHAPTER 305
AN ACT relating to veterans; authorizing the Executive Director of the Office of Veterans Services to accept gifts and grants for the support of the World War II Memorial Campaign to establish the national memorial for World War II veterans; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The Executive Director of the Office of Veterans Services may accept gifts and grants for the support of the World War II Memorial Campaign to establish the national memorial for World War II veterans. The Executive Director of the Office of Veterans Services shall transmit to the Campaign, on behalf of the State of Nevada, at appropriate intervals, any gifts and grants received for this purpose.
Sec. 2. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 1433κ
Assembly Bill No. 295Committee on Elections, Procedures, and Ethics
CHAPTER 306
AN ACT relating to elections; providing that eligible voters who are elderly or disabled must not be denied the right to participate in elections and to vote privately; requiring the secretary of state to provide certain materials to elderly or disabled persons in a format that can be used by those persons; encouraging each county and city clerk to provide certain information and materials, including ballots, in alternative formats that can be used by elderly or disabled persons; requiring all polling places to be accessible to and equipped for use by voters who are elderly or disabled; excepting disabled voters from certain requirements regarding the voting of absent ballots; requiring absent ballots to be printed in at least 12-point type under certain circumstances; requiring that instructions for registering to vote be posted at certain locations; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 293 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. Not later than 5 working days after the request of an elderly or disabled person, the secretary of state shall provide to the person, in a format that can be used by the person, any requested material that is:
1. Related to elections; and
2. Made available by the secretary of state to the public in printed form.
Sec. 3. Each county clerk is encouraged to:
1. Not later than the earlier date of the notice provided pursuant to NRS 293.203 or the first notice provided pursuant to subsection 3 of NRS 293.560, notify the public, through means designed to reach members of the public who are elderly or disabled, of the provisions of NRS 293.296, 293.313, subsection 1 of NRS 293.315, NRS 293.316 and 293.3165.
2. Provide in alternative audio and visual formats information concerning elections, information concerning how to register to vote and information concerning the manner of voting for use by a person who is elderly or disabled, including, without limitation, providing such information through a telecommunications device that is accessible to a person who is deaf.
3. Not later than 5 working days after receiving the request of an elderly or disabled person, provide to the person, in a format that can be used by the person, any requested material that is:
(a) Related to elections; and
(b) Made available by the county clerk to the public in printed form.
Sec. 4. 1. Except as otherwise provided in subsection 2, at all times during which a polling place is open, the polling place must:
(a) Be accessible to a voter who is elderly or disabled; and
(b) Have at least one voting booth that is:
(1) Designed to allow a voter in a wheelchair to vote;
(2) Designated for use by a voter who is elderly or disabled; and
κ2001 Statutes of Nevada, Page 1434 (CHAPTER 306, AB 295)κ
(3) Equipped to allow a voter who is elderly or disabled to vote with the same privacy as a voter who is not elderly or disabled.
2. A polling place that does not comply with the provisions of subsection 1 may be used if necessary because of a natural disaster, including, without limitation, an earthquake, flood, fire or storm.
3. At each polling place, the county clerk is encouraged to:
(a) Post in a conspicuous place, in at least 12-point type, instructions for voting;
(b) Provide ballots in alternative audio and visual formats for use by a voter who is elderly or disabled; and
(c) Provide, in alternative audio and visual formats for use by a voter who is elderly or disabled, all materials that are:
(1) Related to the election; and
(2) Made available to a voter in printed form at the polling place.
Sec. 5. NRS 293.127 is hereby amended to read as follows:
293.127 This Title [shall] must be liberally construed to the end that [all electors shall] :
1. All electors, including, without limitation, electors who are elderly or disabled, have an opportunity to participate in elections and [that the] to cast their votes privately;
2. An eligible voter with a physical or mental disability is not denied the right to vote solely because of the physical or mental disability; and
3. The real will of the electors [may not be] is not defeated by any informality or by failure substantially to comply with the provisions of this Title with respect to the giving of any notice or the conducting of an election or certifying the results thereof.
Sec. 6. NRS 293.272 is hereby amended to read as follows:
293.272 1. Except as otherwise provided in subsection 2, a person who registered to vote pursuant to the provisions of NRS 293.5235, shall, for the first election in which he votes at which that registration is valid, vote in person unless he has previously voted in the county in which he is registered to vote.
2. The provisions of subsection 1 do not apply to a person who:
(a) Is entitled to vote in the manner prescribed in NRS 293.343 to 293.355, inclusive;
(b) Is entitled to vote an absent ballot pursuant to federal law or NRS 293.316 or 293.3165;
(c) Is disabled;
(d) Submits or has previously submitted a written request for an absent ballot that is signed by the registered voter before a notary public or other person authorized to administer an oath; or
[(d)] (e) Requests an absent ballot in person at the office of the county clerk.
Sec. 7. NRS 293.309 is hereby amended to read as follows:
293.309 1. The county clerk of each county shall prepare an absent ballot for the use of registered voters who have requested absent ballots. The county clerk shall make reasonable accommodations for the use of the absent ballot by an elderly or disabled person, including, without limitation, by providing, upon request, the absent ballot in 12-point type to an elderly or disabled person.
2. The ballot must be prepared and ready for distribution to a registered voter who:
κ2001 Statutes of Nevada, Page 1435 (CHAPTER 306, AB 295)κ
(a) Resides within the state, not later than 20 days before the election in which it is to be used; or
(b) Resides outside the state, not later than 40 days before a primary or general election, if possible.
3. Any legal action which would prevent the ballot from being issued pursuant to subsection 2 is moot and of no effect.
Sec. 8. NRS 293.504 is hereby amended to read as follows:
293.504 1. The following offices shall serve as voter registration agencies:
(a) Such offices that provide public assistance as are designated by the secretary of state;
(b) Each office that receives money from the State of Nevada to provide services to persons in this state who are disabled;
(c) The offices of the motor vehicles branch of the department of motor vehicles and public safety;
(d) The offices of the city and county clerks; and
(e) Such other offices as the secretary of state deems appropriate.
2. Each voter registration agency shall:
(a) Post in a conspicuous place, in at least 12-point type, instructions for registering to vote;
(b) Make applications to register to vote which may be returned by mail available to each person who applies for or receives services or assistance from the agency;
[(b)] (c) Provide the same amount of assistance to an applicant in completing an application to register to vote as the agency provides to a person completing any other forms for the agency; and
[(c)] (d) Accept completed applications to register to vote.
3. Except as otherwise provided in this subsection and NRS 293.524, any application to register to vote accepted by a voter registration agency must be transmitted to the county clerk not later than 10 days after the application is accepted. During the 2 weeks immediately preceding the close of registration for an election, the applications must be forwarded daily. The county clerk shall accept any application to register to vote which is completed by the last day to register if he receives the application not later than 5 days after the close of registration.
4. The secretary of state shall cooperate with the Secretary of Defense to develop and carry out procedures to enable persons in this state to apply to register to vote at recruitment offices of the United States Armed Forces.
Sec. 9. NRS 293.520 is hereby amended to read as follows:
293.520 [The] Except as otherwise provided in this section, the registration or reregistration of electors who are unable to sign their names must be made upon personal application of those electors at the office of the county clerk where they may be identified or in the presence of a field registrar. If such an elector is unable to appear in person at the office of the county clerk, the county clerk shall send a field registrar or an employee of the office of the county clerk to the elector to identify the elector and register or reregister the elector as appropriate. The electors described in this section may use a mark or cross in place of a signature.
Sec. 10. NRS 293.565 is hereby amended to read as follows:
293.565 1. Except as otherwise provided in subsection 2, sample ballots must include:
κ2001 Statutes of Nevada, Page 1436 (CHAPTER 306, AB 295)κ
(a) The fiscal note, as provided pursuant to NRS 218.443 or 293.250, for each proposed constitutional amendment or statewide measure;
(b) An explanation, as provided pursuant to NRS 218.443, of each proposed constitutional amendment or statewide measure, including arguments for and against it; and
(c) The full text of each proposed constitutional amendment.
2. Sample ballots that are mailed to registered voters may be printed without the full text of each proposed constitutional amendment if:
(a) The cost of printing the sample ballots would be significantly reduced if the full text of each proposed constitutional amendment were not included;
(b) The county clerk ensures that a sample ballot that includes the full text of each proposed constitutional amendment is provided at no charge to each registered voter who requests such a sample ballot; and
(c) The sample ballots provided to each polling place include the full text of each proposed constitutional amendment.
3. At least 10 days before any election, the county clerk shall cause to be mailed to each registered voter in the county a sample ballot for his precinct with a notice informing the voter of the location of his polling place. If the location of the polling place has changed since the last election:
(a) The county clerk shall mail a notice of the change to each registered voter in the county not sooner than 10 days before mailing the sample ballots; or
(b) The sample ballot must also include a notice in at least 10-point bold type immediately above the location which states:
NOTICE: THE LOCATION OF YOUR POLLING PLACE
HAS CHANGED SINCE THE LAST ELECTION
4. The county clerk shall include in each sample ballot a statement indicating that the county clerk will, upon request of a voter who is elderly or disabled, make reasonable accommodations to allow the voter to vote at his polling place and provide reasonable assistance to the voter in casting his vote, including, without limitation, providing appropriate materials to assist the voter.
5. The county clerk shall include in each sample ballot for a primary election, a separate page on which is printed a list of the offices and candidates for those offices for which there is no opposition.
[5.] 6. The cost of mailing sample ballots for any election other than a primary or general election must be borne by the political subdivision holding the election.
Sec. 11. Chapter 293C of NRS is hereby amended by adding thereto the provisions set forth as sections 12 and 13 of this act.
Sec. 12. Each city clerk is encouraged to:
1. Not later than the earlier date of the first notice provided pursuant to subsection 3 of NRS 293.560 or NRS 293C.187, notify the public, through means designed to reach members of the public who are elderly or disabled, of the provisions of NRS 293C.282, 293C.310, subsection 1 of NRS 293C.312, NRS 293C.317 and 293C.318.
2. Provide in alternative audio and visual formats information concerning elections, information concerning how to register to vote and information concerning the manner of voting for use by a person who is elderly or disabled, including, without limitation, providing such information through a telecommunications device that is accessible to a person who is deaf.
κ2001 Statutes of Nevada, Page 1437 (CHAPTER 306, AB 295)κ
information through a telecommunications device that is accessible to a person who is deaf.
3. Not later than 5 working days after receiving the request of an elderly or disabled person, provide to the person, in a format that can be used by the person, any requested material that is:
(a) Related to elections; and
(b) Made available by the city clerk to the public in printed form.
Sec. 13. 1. Except as otherwise provided in subsection 2, at all times during which a polling place is open, the polling place must:
(a) Be accessible to a voter who is elderly or disabled; and
(b) Have at least one voting booth that is:
(1) Designed to allow a voter in a sheelchair to vote;
(2) Designated for use by a voter who is elderly or disabled; and
(3) Equipped to allow a voter who is elderly or disabled to vote with the same privacy as a voter who is not elderly or disabled.
2. A polling place that does not comply with the provisions of subsection 1 may be used if necessary because of a natural disaster, including, without limitation, an earthquake, flood, fire or storm.
3. At each polling place, the city clerk is encouraged to:
(a) Post in a conspicuous place, in at least 12-point type, instructions for voting;
(b) Provide ballots in alternative audio and visual formats for use by a voter who is elderly or disabled; and
(c) Provide, in alternative audio and visual formats for use by a voter who is elderly or disabled, all materials that are:
(1) Related to the election; and
(2) Made available to a voter in printed form at the polling place.
Sec. 14. NRS 293C.265 is hereby amended to read as follows:
293C.265 1. Except as otherwise provided in subsection 2, a person who registered to vote pursuant to the provisions of NRS 293.5235, shall, for the first city election in which he votes at which that registration is valid, vote in person unless he has previously voted in the county in which he is registered to vote.
2. The provisions of subsection 1 do not apply to a person who:
(a) Is entitled to vote in the manner prescribed in NRS 293C.342 to 293C.352, inclusive;
(b) Is entitled to vote an absent ballot pursuant to federal law or NRS 293C.317 or 293C.318;
(c) Is disabled;
(d) Submits or has previously submitted a written request for an absent ballot that is signed by the registered voter before a notary public or other person authorized to administer an oath; or
[(d)] (e) Requests an absent ballot in person at the office of the city clerk.
Sec. 15. NRS 293C.305 is hereby amended to read as follows:
293C.305 1. The city clerk shall prepare an absent ballot for the use of registered voters who have requested absent ballots. The city clerk shall make reasonable accommodations for the use of the absent ballot by an elderly or disabled person, including, without limitation, by providing, upon request, the absent ballot in 12-point type to an elderly or disabled person.
2. The ballot must be prepared and ready for distribution to a registered voter who resides within or outside this state, not later than 20 days before the election in which it will be used.
κ2001 Statutes of Nevada, Page 1438 (CHAPTER 306, AB 295)κ
3. Any legal action that would prevent the ballot from being issued pursuant to subsection 2 is moot and of no effect.
Sec. 16. NRS 293C.530 is hereby amended to read as follows:
293C.530 1. At least 10 days before an election, the city clerk shall cause to be mailed to each registered voter in the city a sample ballot for his precinct with a notice informing the voter of the location of his polling place. If the location of the polling place has changed since the last election:
(a) The city clerk shall mail a notice of the change to each registered voter in the city not sooner than 10 days before mailing the sample ballots; or
(b) The sample ballot must also include a notice in at least 10-point bold type immediately above the location which states:
NOTICE: THE LOCATION OF YOUR POLLING PLACE
HAS CHANGED SINCE THE LAST ELECTION
2. The city clerk shall include in each sample ballot a statement indicating that the city clerk will, upon request of a voter who is elderly or disabled, make reasonable accommodations to allow the voter to vote at his polling place and provide reasonable assistance to the voter in casting his vote, including, without limitation, providing appropriate materials to assist the voter.
3. The city clerk shall include in each sample ballot for a primary city election, a separate page on which is printed a list of the offices and candidates for those offices for which there is no opposition.
[3.] 4. The cost of mailing sample ballots for a city election must be borne by the city holding the election.
Sec. 17. For the purposes of subsection 2 of section 3 of this act, the legislature encourages each county by July 1, 2003, to provide at least one telecommunications device that is accessible to a person who is deaf.
________
Assembly Bill No. 386Committee on Government Affairs
CHAPTER 307
AN ACT relating to public employees; authorizing a leave of absence for certain public officers or employees to assist the division of emergency management of the department of motor vehicles and public safety or a local organization for emergency management during a disaster or emergency; revising certain provisions relating to the classified and unclassified services of the state; repealing certain provisions relating to cooperation with the public employees retirement board and the requirement of a bond for appointment to certain positions; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 281 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Any public officer or employee of the state or any agency thereof, or of a political subdivision or an agency of a political subdivision, who is an emergency communications technician must be relieved from his duties, upon the request of the division of emergency management of the department of motor vehicles and public safety or a local organization for emergency management and the approval of his employer, to assist the division or local organization for emergency management during a disaster or emergency that occurs in this state, California, Oregon, Idaho, Utah or Arizona, without loss of his regular compensation for a period of not more than 15 working days in any calendar year.
κ2001 Statutes of Nevada, Page 1439 (CHAPTER 307, AB 386)κ
upon the request of the division of emergency management of the department of motor vehicles and public safety or a local organization for emergency management and the approval of his employer, to assist the division or local organization for emergency management during a disaster or emergency that occurs in this state, California, Oregon, Idaho, Utah or Arizona, without loss of his regular compensation for a period of not more than 15 working days in any calendar year. No such absence may be a part of the annual vacation of the public officer or employee which is provided for by law.
2. As used in this section:
(a) Disaster has the meaning ascribed to it in NRS 414.0335.
(b) Emergency has the meaning ascribed to it in NRS 414.0345.
(c) Emergency communications technician means a person who is:
(1) Licensed by the Federal Communications Commission as an amateur radio operator; and
(2) A member of:
(I) The Radio Amateur Civil Emergency Service or a successor organization sponsored by the agency of the Federal Government for emergency management; or
(II) The Amateur Radio Emergency Service or a successor organization sponsored by the American Radio Relay League or its successor.
(d) Local organization for emergency management has the meaning ascribed to it in NRS 414.036.
Sec. 2. NRS 284.140 is hereby amended to read as follows:
284.140 The unclassified service of the state consists of [positions held by] the following state officers or employees in the executive department of the state government [as follows:
1. Persons chosen by election or appointment to fill an elective office.
2.] who receive annual salaries for their service:
1. Members of boards and commissions, and heads of departments, agencies and institutions required by law to be appointed.
[3. At the discretion of the elective officer or head of each department, agency or institution, one deputy and one chief assistant in each department, agency or institution.
4.] 2. Except as otherwise provided in NRS 223.085 and 223.570, all persons required by law to be appointed by the governor or heads of departments or agencies appointed by the governor or by boards.
[5.] 3. All employees other than clerical in the office of the attorney general and the state public defender required by law to be appointed by the attorney general or the state public defender.
[6.] 4. Except as otherwise provided by the board of regents of the University of Nevada pursuant to NRS 396.251, officers and members of the teaching staff and the staffs of the agricultural extension department and experiment station of the University and Community College System of Nevada, or any other state institution of learning, and student employees of these institutions. Custodial, clerical or maintenance employees of these institutions are in the classified service. The board of regents of the University of Nevada shall assist the director in carrying out the provisions of this chapter applicable to the University and Community College System of Nevada.
[7. Officers and members of the Nevada National Guard.
κ2001 Statutes of Nevada, Page 1440 (CHAPTER 307, AB 386)κ
8. Persons engaged in public work for the state but employed by contractors when the performance of the contract is authorized by the legislature or another competent authority.
9. Patient and inmate help in state charitable, penal, mental and correctional institutions.
10. Part-time professional personnel who are paid for any form of medical, nursing or other professional service and who are not engaged in the performance of administrative or substantially recurring duties.
11.] 5. All other officers and employees authorized by law to be employed in the unclassified service.
Sec. 3. NRS 284.171 is hereby amended to read as follows:
284.171 For the purposes of NRS 353.205 and 353.224, the director shall prepare and maintain an index which categorizes all positions in the classified [and unclassified services] service of the state into the following broad occupational [classes:] groups:
1. Occupations in the fields of agriculture and conservation.
2. Clerical and related occupations.
3. Occupations relating to custodial and domestic services.
4. Occupations relating to library services.
5. Occupations in the field of education.
6. Engineering and allied occupations.
7. Occupations in fiscal management and related staff services.
8. Occupations relating to legal services.
9. Occupations in the mechanical and construction trades.
10. Occupations in the fields of medicine and health and related services.
11. Occupations in regulatory fields and in public safety.
12. Occupations in social services and rehabilitation.
13. Other occupations.
Sec. 4. NRS 284.337 is hereby amended to read as follows:
284.337 An employee whose duties include the supervision of an employee who holds a position in the classified service shall:
1. For filing at the times specified in NRS 284.340, prepare reports on the performance of that employee. In preparing a report, he shall meet with the employee to discuss goals and objectives, to evaluate the employees improvement in performance and personal development, and to discuss the report.
2. Provide the employee with a copy of the report . [, if requested.]
3. Transmit the report to the appointing authority.
Sec. 5. NRS 284.375 is hereby amended to read as follows:
284.375 1. In accordance with regulations established by the director, transfers in the classified service may be made from a position in one grade or class to a position in another grade or class when the duties and compensation are similar and when such action is specifically approved by the director.
2. Each appointing authority shall report to the director in writing, from time to time, upon the date of the official action in, or knowledge of, any transfer, separation, suspension or reinstatement of a person in the public service [.] , or any reduction or other change to a position in the public service.
Sec. 6. NRS 284.384 is hereby amended to read as follows:
284.384 1. The director shall propose, and the commission shall adopt, regulations which provide for the adjustment of grievances for which a hearing is not provided by NRS 284.165, 284.245, 284.376 or 284.390.
κ2001 Statutes of Nevada, Page 1441 (CHAPTER 307, AB 386)κ
hearing is not provided by NRS 284.165, 284.245, 284.376 or 284.390. Any grievance for which a hearing is not provided by NRS 284.165, 284.245, 284.376 or 284.390 is subject to adjustment pursuant to this section.
2. The regulations must provide procedures for:
(a) Consideration and adjustment of the grievance within the agency in which it arose.
(b) Submission to the employee-management committee for a final decision if the employee is still dissatisfied with the resolution of the dispute.
3. The regulations must include provisions for:
(a) Submitting each proposed resolution of a dispute which has a fiscal effect to the budget division of the department of administration for a determination by that division whether the resolution is feasible on the basis of its fiscal effects; and
(b) Making the resolution binding.
4. Any grievance which is subject to adjustment pursuant to this section may be appealed to the employee-management committee for a final decision.
5. The employee may represent himself at any hearing regarding a grievance which is subject to adjustment pursuant to this section or be represented by an attorney or other person of the employees own choosing.
6. As used in this section, grievance means an act, omission or occurrence which an employee who has attained permanent status feels constitutes an injustice relating to any condition arising out of the relationship between an employer and an employee, including, but not limited to, compensation, working hours, working conditions, membership in an organization of employees or the interpretation of any law, regulation or disagreement.
Sec. 7. NRS 284.4061 is hereby amended to read as follows:
284.4061 As used in NRS 284.406 to 284.407, inclusive, unless the context otherwise requires:
1. Employee means a person in the classified or unclassified service of the state . [, except:
(a) Officers and members of the Nevada National Guard;
(b) Persons engaged in public work for the state but employed by contractors when the performance of the contract is authorized by the legislature or another competent authority; and
(c) Patient and inmate help in state charitable, penal, mental and correctional institutions.]
2. Screening test means a test of a persons:
(a) Breath or blood to detect the general presence of alcohol; or
(b) Urine to detect the general presence of a controlled substance or any other drug,
which could impair that persons ability to perform the duties of employment safely and efficiently.
Sec. 8. NRS 225.170 is hereby amended to read as follows:
225.170 1. There is hereby created within the office of the secretary of state a securities division. The secretary of state shall appoint a deputy as administrator of the division. The position of the deputy is unclassified . [and is in addition to the two unclassified positions in the office of the secretary of state authorized by subsection 3 of NRS 284.140.]
2. The secretary of state may, alternatively:
κ2001 Statutes of Nevada, Page 1442 (CHAPTER 307, AB 386)κ
(a) Use the services of an assigned deputy attorney general as legal counsel for the division.
(b) Appoint an attorney as legal counsel for the division. If appointed, he is in the unclassified service of the state.
(c) Contract for services to be rendered by such other legal counsel as are needed for assistance in administering chapter 90 of NRS.
3. Each of the legal counsel must be an attorney admitted to practice law in Nevada.
Sec. 9. NRS 232.080 is hereby amended to read as follows:
232.080 The attorney general is the counsel and attorney for the department. The attorney general shall designate one of his deputies to be counsel and attorney for the department in all actions, proceedings and hearings. The deputy so designated:
1. Is the legal adviser of the department in all matters relating to the department and to the powers and duties of its officers.
2. Shall maintain his office in Carson City, Nevada, in an office provided by the department.
3. Is in the unclassified service of the state pursuant to subsection [5] 3 of NRS 284.140.
Sec. 10. NRS 353.224 is hereby amended to read as follows:
353.224 1. A state agency other than the University and Community College System of Nevada and vocational licensing boards may not change a position for which money has been appropriated or authorized from one occupational [class] group to another, as defined by the index developed pursuant to NRS 284.171, without the approval of the legislature or of the interim finance committee.
2. All proposed changes of positions from one occupational [class] group to another must be submitted to the interim finance committee. The interim finance committee has 45 days after a proposal is submitted to its secretary within which to consider it. Any proposed change of a position from one occupational [class] group to another which is not considered within the 45-day period shall be deemed approved.
3. The secretary shall place each request submitted to him pursuant to subsection 2 on the agenda of the next meeting of the interim finance committee.
4. In acting upon a proposed change of position, the interim finance committee shall consider, among other things:
(a) The need for the proposed change; and
(b) The intent of the legislature in approving the existing classification of positions.
Sec. 11. NRS 284.120, 284.225, 284.280 and 284.400 are hereby repealed.
Sec. 12. This act becomes effective on July 1, 2001.
________
κ2001 Statutes of Nevada, Page 1443κ
Assembly Bill No. 414Assemblymen Perkins, Parks, Beers, Ohrenschall, Gibbons, Anderson, Arberry, Bache, Brown, Buckley, Carpenter, Cegavske, Chowning, Claborn, Collins, Dini, Freeman, Giunchigliani, Goldwater, Koivisto, Lee, Leslie, Manendo, McClain, Mortenson, Neighbors, Oceguera, Parnell, Price, Smith, Tiffany and Williams
CHAPTER 308
AN ACT relating to the state public works board; authorizing the removal of the manager of the board under certain circumstances; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 341.100 is hereby amended to read as follows:
341.100 1. The board may appoint a manager [.] who serves at the pleasure of the board and the governor. The board or the governor may remove the manager for inefficiency, neglect of duty, malfeasance or for other just cause.
2. The manager, with the approval of the board, may appoint a deputy for professional services and a deputy for administrative, fiscal and constructional services. In addition, the manager may appoint such other technical and clerical assistants as may be necessary to carry into effect the provisions of this chapter.
[2.] 3. The manager and his deputies are in the unclassified service of the state. Except as otherwise provided in NRS 284.143, the manager and each deputy shall devote his entire time and attention to the business of his office and shall not pursue any other business or occupation or hold any other office of profit.
[3.] 4. The manager and his deputy for professional services must each be a licensed professional engineer pursuant to the provisions of chapter 625 of NRS or an architect registered pursuant to the provisions of chapter 623 of NRS. The deputy manager for administrative, fiscal and constructional services must have a comprehensive knowledge of principles of administration and a working knowledge of principles of engineering or architecture as determined by the board.
[4.] 5. The manager shall:
(a) Serve as the secretary of the board.
(b) Manage the daily affairs of the board.
(c) Represent the board before the legislature.
(d) Prepare and submit to the board, for its approval, the recommended priority for proposed capital improvement projects and provide the board with an estimate of the cost of each project.
(e) Make recommendations to the board for the selection of architects, engineers and contractors.
(f) Make recommendations to the board concerning the acceptance of completed projects.
κ2001 Statutes of Nevada, Page 1444 (CHAPTER 308, AB 414)κ
(g) Advise the board and the legislature, or the interim finance committee if the legislature is not in session, on a monthly basis of the progress of all public works projects which are a part of the approved capital improvement program.
Sec. 2. This act becomes effective upon passage and approval.
________
Assembly Bill No. 553Committee on Government Affairs
CHAPTER 309
AN ACT relating to property; revising the procedures for notification for an application for certain conditional use permits, variances, special use permits or other special exceptions; revising the procedure for the vacation or abandonment of certain easements and rights of way; and providing other matters properly relating thereto.
[Approved: May 31, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section. 1. NRS 278.147 is hereby amended to read as follows:
278.147 1. No person may commence operation in this state of a facility where an explosive, or a substance listed in NRS 459.3816, the regulations adopted pursuant thereto or the regulations adopted pursuant to NRS 459.3833, will be used, manufactured, processed, transferred or stored without first obtaining a conditional use permit therefor from the governing body of the city or county in which the facility is to be located. Each governing body shall establish by local ordinance, in accordance with the provisions of this section, the procedures for obtaining such a permit.
2. An application for a conditional use permit must be filed with the planning commission of the city, county or region in which the facility is to be located. The planning commission shall, within 90 days after the filing of an application, hold a public hearing to consider the application. The planning commission shall, at least 30 days before the date of the hearing, cause notice of the time, date, place and purpose of the hearing to be:
(a) Sent by mail to or, if requested by a party to whom notice must be provided pursuant to this paragraph, by electronic means if receipt of such an electronic notice can be verified, to:
(1) The applicant;
(2) Each owner or tenant of real property located within 1,000 feet of the property in question;
(3) The owner, as listed on the county assessors records, of each of the 30 separately owned parcels nearest the property in question, to the extent this notice does not duplicate the notice given pursuant to subparagraph (2);
(4) If a mobile home park or multiple-unit residence is located within 1,000 feet of the property in question, each tenant of that mobile home park or multiple-unit residence;
[(4)] (5) Any advisory board that has been established for the affected area by the governing body;
[(5)] (6) The administrator of the division of environmental protection of the state department of conservation and natural resources;
κ2001 Statutes of Nevada, Page 1445 (CHAPTER 309, AB 553)κ
[(6)] (7) The state fire marshal; and
[(7)] (8) The administrator of the division of industrial relations of the department of business and industry; and
(b) Published in a newspaper of general circulation within the city or county in which the property in question is located.
3. The notice required by subsection 2 must:
(a) Be written in language that is easy to understand; and
(b) Include a physical description or map of the property in question and a description of all explosives, and all substances described in subsection 1, that will be located at the facility.
4. In considering the application, the planning commission shall:
(a) Consult with:
(1) Local emergency planning committees;
(2) The administrator of the division of environmental protection of the state department of conservation and natural resources;
(3) The state fire marshal;
(4) The administrator of the division of industrial relations of the department of business and industry; and
(5) The governing body of any other city or county that may be affected by the operation of the facility; and
(b) Consider fully the effect the facility will have on the health and safety of the residents of the city, county or region.
5. The planning commission shall, within a reasonable time after the public hearing, submit to the governing body its recommendations for any actions to be taken on the application. If the planning commission recommends that a conditional use permit be granted to the applicant, it shall include in its recommendations such terms and conditions for the operation of the facility as it deems necessary for the protection of the health and safety of the residents of the city, county or region.
6. The governing body shall, within 30 days after the receipt of the recommendations of the planning commission, hold a public hearing to consider the application. The governing body shall:
(a) Cause notice of the hearing to be given in the manner prescribed by subsection 2; and
(b) Grant or deny the conditional use permit within 30 days after the public hearing.
7. Notwithstanding any provision of this section to the contrary, the provisions of this section do not apply to the mining industry.
8. Except as otherwise provided in subsection 9, as used in this section, explosive means gunpowders, powders used for blasting, all forms of high explosives, blasting materials, fuses other than electric circuit breakers, detonators and other detonating agents, smokeless powders, other explosive or incendiary devices and any chemical compound, mechanical mixture or device that contains any oxidizing or combustible units, or other ingredients, in such proportions, quantities or packing that ignition by fire, friction, concussion, percussion or detonation of the compound, mixture, device or any part thereof may cause an explosion.
9. For the purposes of this section, an explosive does not include:
(a) Ammunition for small arms, or any component thereof;
(b) Black powder commercially manufactured in quantities that do not exceed 50 pounds, percussion caps, safety and pyrotechnic fuses, quills, quick and slow matches, and friction primers that are intended to be used solely for sporting, recreation or cultural purposes:
κ2001 Statutes of Nevada, Page 1446 (CHAPTER 309, AB 553)κ
quick and slow matches, and friction primers that are intended to be used solely for sporting, recreation or cultural purposes:
(1) In an antique firearm, as that term is defined in 18 U.S.C. § 921(a)(16), as that section existed on January 1, 1999; or
(2) In an antique device which is exempted from the definition of destructive device pursuant to 18 U.S.C. § 921(a)(4), as that section existed on January 1, 1999; or
(c) Any explosive that is manufactured under the regulation of a military department of the United States, or that is distributed to, or possessed or stored by, the military or naval service or any other agency of the United States, or an arsenal, a navy yard, a depot or any other establishment owned by or operated on behalf of the United States.
Sec. 2. NRS 278.260 is hereby amended to read as follows:
278.260 1. The governing body shall provide for the manner in which zoning regulations and restrictions and the boundaries of zoning districts are determined, established, enforced and amended.
2. A zoning regulation, restriction or boundary must not become effective until after a public hearing at which parties in interest and other persons have an opportunity to be heard. The governing body shall cause notice of the time and place of the hearing to be:
(a) Published in an official newspaper, or a newspaper of general circulation, in the city, county or region; and
(b) Mailed to each tenant of a mobile home park if that park is located within 300 feet of the property in question,
at least 10 days before the hearing.
3. If the proposed amendment involves a change in the boundary of a zoning district in a county whose population is less than 400,000, the governing body shall, to the extent this notice does not duplicate the notice required by subsection 2, cause a notice to be sent at least 10 days before the hearing to:
(a) The applicant;
(b) Each owner, as listed on the county assessors records, of real property located within 300 feet of the portion of the boundary being changed;
(c) [Each] The owner, as listed on the county assessors records, of [at least] each of the 30 separately owned parcels nearest to the portion of the boundary being changed, to the extent this notice does not duplicate the notice given pursuant to paragraph (b); and
(d) Any advisory board which has been established for the affected area by the governing body.
The notice must be sent by mail or, if requested by a party to whom notice must be provided pursuant to paragraphs (a) to (d), inclusive, by electronic means if receipt of such an electronic notice can be verified, and be written in language which is easy to understand. The notice must set forth the time, place and purpose of the hearing and a physical description of, or a map detailing, the proposed change, must indicate the existing zoning designation, and the proposed zoning designation, of the property in question, and must contain a brief summary of the intent of the proposed change. If the proposed amendment involves a change in the boundary of the zoning district that would reduce the density or intensity with which a parcel of land may be used, the notice must include a section that an owner of property may complete and return to the governing body to indicate his approval of or opposition to the proposed amendment.
κ2001 Statutes of Nevada, Page 1447 (CHAPTER 309, AB 553)κ
4. If the proposed amendment involves a change in the boundary of a zoning district in a county whose population is 400,000 or more, the governing body shall, to the extent this notice does not duplicate the notice required by subsection 2, cause a notice to be sent at least 10 days before the hearing to:
(a) The applicant;
(b) Each owner, as listed on the county assessors records, of real property located within 500 feet from the portion of the boundary being changed;
(c) [Each] The owner, as listed on the county assessors records, of [at least] each of the 30 separately owned parcels nearest to the portion of the boundary being changed, to the extent this notice does not duplicate the notice given pursuant to paragraph (b); and
(d) Any advisory board which has been established for the affected area by the governing body.
The notice must be sent by mail or, if requested by a party to whom notice must be provided pursuant to paragraphs (a) to (d), inclusive, by electronic means if receipt of such an electronic notice can be verified, and be written in language which is easy to understand. The notice must set forth the time, place and purpose of the hearing and a physical description of, or a map detailing, the proposed change, must indicate the existing zoning designation, and the proposed zoning designation, of the property in question, and must contain a brief summary of the intent of the proposed change. If the proposed amendment involves a change in the boundary of the zoning district that would reduce the density or intensity with which a parcel of land may be used, the notice must include a section that an owner of property may complete and return to the governing body to indicate his approval of or opposition to the proposed amendment.
5. If a notice is required to be sent pursuant to subsection 4:
(a) The exterior of a notice sent by mail; or
(b) The cover sheet, heading or subject line of a notice sent by electronic means,
must bear a statement in at least 10-point bold type or font in substantially the following form:
OFFICIAL NOTICE OF PUBLIC HEARING
6. In addition to sending the notice required pursuant to subsection 4, in a county whose population is 400,000 or more, the governing body shall, not later than 10 days before the hearing, erect or cause to be erected on the property, at least one sign not less than 2 feet high and 2 feet wide. The sign must be made of material reasonably calculated to withstand the elements for 40 days. The governing body must be consistent in its use of colors for the background and lettering of the sign. The sign must include the following information:
(a) The existing zoning designation of the property in question;
(b) The proposed zoning designation of the property in question;
(c) The date, time and place of the public hearing;
(d) A telephone number which may be used by interested persons to obtain additional information; and
(e) A statement which indicates whether the proposed zoning designation of the property in question complies with the requirements of the master plan of the city or county in which the property is located.
κ2001 Statutes of Nevada, Page 1448 (CHAPTER 309, AB 553)κ
7. A sign required pursuant to subsection 6 is for informational purposes only, and must be erected regardless of any local ordinance regarding the size, placement or composition of signs to the contrary.
8. A governing body may charge an additional fee for each application to amend an existing zoning regulation, restriction or boundary to cover the actual costs resulting from the mailed notice required by this section and the erection of not more than one of the signs required by subsection 6, if any. The additional fee is not subject to the limitation imposed by NRS 354.5989.
9. The governing body shall remove or cause to be removed any sign required by subsection 6 within 5 days after the final hearing for the application for which the sign was erected. There must be no additional charge to the applicant for such removal.
10. If a proposed amendment involves a change in the boundary of a zoning district in a county whose population is 400,000 or more that would reduce the density or intensity with which a parcel of land may be used and at least 20 percent of the property owners to whom notices were sent pursuant to [subsections 3 and] subsection 4 indicate in their responses opposition to the proposed amendment, the governing body shall not approve the proposed amendment unless the governing body:
(a) Considers separately the merits of each aspect of the proposed amendment to which the owners expressed opposition; and
(b) Makes a written finding that the public interest and necessity will be promoted by approval of the proposed amendment.
11. The governing body of a county whose population is 400,000 or more shall not approve a zoning regulation, restriction or boundary, or [the] an amendment thereof, that affects any unincorporated area of the county that is surrounded completely by the territory of an incorporated city without sending a notice to the governing body of the city. The governing body of the city, or its designee, must submit any recommendations to the governing body of the county within 15 days after receiving the notice. The governing body of the county shall consider any such recommendations. If the governing body of the county does not accept a recommendation, the governing body of the county, or its authorized agent, shall specify for the record the reasons for its action.
Sec. 3. NRS 278.315 is hereby amended to read as follows:
278.315 1. The governing body may provide by ordinance for the granting of variances, special use permits, conditional use permits or other special exceptions by the board of adjustment, the planning commission or a hearing examiner appointed pursuant to NRS 278.262. The governing body may impose this duty entirely on the board, commission or examiner, respectively, or provide for the granting of enumerated categories of variances, special use permits, conditional use permits or special exceptions by the board, commission or examiner.
2. A hearing to consider an application for the granting of a variance, special use permit, conditional use permit or special exception must be held before the board of adjustment, planning commission or hearing examiner within 65 days after the filing of the application, unless a longer time or a different process of review is provided in an agreement entered into pursuant to NRS 278.0201. [A]
3. In a county whose population is less than 100,000, notice setting forth the time, place and purpose of the hearing must be sent [by mail] at least 10 days before the hearing to:
κ2001 Statutes of Nevada, Page 1449 (CHAPTER 309, AB 553)κ
(a) The applicant;
(b) Each owner of real property , as listed on the county assessors records, located within 300 feet of the property in question;
(c) If a mobile home park is located within 300 feet of the property in question, each tenant of that mobile home park; and
(d) Any advisory board which has been established for the affected area by the governing body.
[The notice must be sent by mail or, if requested by a party to whom notice must be provided pursuant to paragraphs (a) to (d), inclusive, by electronic means if receipt of such an electronic notice can be verified, and be written in language which is easy to understand. The notice must set forth the time, place and purpose of the hearing and a physical description or map of the property in question.
3. If the application is for the issuance of a special use permit in a county whose population is 100,000 or more, the governing body shall, to the extent this notice does not duplicate the notice required by subsection 2, cause a notice to be sent at least 10 days before the hearing to each owner, as listed on the county assessors records, of at least 30 parcels nearest to the property in question. The notice must be sent by mail or, if requested by an owner to whom notice must be provided, by electronic means if receipt of such an electronic notice can be verified, and be written in language which is easy to understand. The notice must set forth the time, place and purpose of the hearing and a physical description or map of the property in question.]
4. Except as otherwise provided in subsection 6, in a county whose population is 100,000 or more, a notice setting forth the time, place and purpose of the hearing must be sent at least 10 days before the hearing to:
(a) The applicant;
(b) If the application is for a deviation of at least 10 percent but not more than 30 percent from a standard for development:
(1) Each owner, as listed on the county assessors records, of real property located within 100 feet of the property in question; and
(2) Each tenant of a mobile home park located within 100 feet of the property in question;
(c) If the application is for a special use permit or a deviation of more than 30 percent from a standard for development:
(1) Each owner, as listed on the county assessors records, of real property located within 500 feet of the property in question;
(2) The owner, as listed on the county assessors records, of each of the 30 separately owned parcels nearest the property in question, to the extent this notice does not duplicate the notice given pursuant to subparagraph (1); and
(3) Each tenant of a mobile home park located within 500 feet of the property in question;
(d) If the application is for a change in zoning or a project of regional significance, as that term is described in NRS 278.02542:
(1) Each owner, as listed on the county assessors records, of real property located within 750 feet of the property in question;
(2) The owner, as listed on the county assessors records, of each of the 30 separately owned parcels nearest the property in question, to the extent this notice does not duplicate the notice given pursuant to subparagraph (1); and
κ2001 Statutes of Nevada, Page 1450 (CHAPTER 309, AB 553)κ
(3) Each tenant of a mobile home park located within 750 feet of the property in question; and
(e) Any advisory board which has been established for the affected area by the governing body.
5. An ordinance adopted pursuant to this section must provide an opportunity for the applicant or a protestant to appeal from a decision of the board of adjustment, planning commission or hearing examiner to the governing body.
[5.] 6. In a county whose population is 400,000 or more, if the application is for the issuance of a special use permit for an establishment which serves alcoholic beverages for consumption on or off of the premises as its primary business in a district which is not a gaming enterprise district as defined in NRS 463.0158, the governing body shall, [in addition to sending the notice required pursuant to subsection 3, not later than] at least 10 days before the hearing [, erect] :
(a) Send a notice setting forth the time, place, and purpose of the hearing to:
(1) The applicant;
(2) Each owner, as listed on the county assessors records, of real property located within 1,500 feet of the property in question;
(3) The owner, as listed on the county assessors records, of each of the 30 separately owned parcels nearest the property in question, to the extent this notice does not duplicate the notice given pursuant to subparagraph (2);
(4) Each tenant of a mobile home park located within 1,500 feet of the property in question; and
(5) Any advisory board which has been established for the affected area by the governing body; and
(b) Erect or cause to be erected on the property, at least one sign not less than 2 feet high and 2 feet wide. The sign must be made of material reasonably calculated to withstand the elements for 40 days. The governing body must be consistent in its use of colors for the background and lettering of the sign. The sign must include the following information:
[(a)] (1) The existing permitted use and zoning designation of the property in question;
[(b)] (2) The proposed permitted use of the property in question;
[(c)] (3) The date, time and place of the public hearing; and
[(d)] (4) A telephone number which may be used by interested persons to obtain additional information.
[6.] 7. A sign required pursuant to subsection [5] 6 is for informational purposes only, and must be erected regardless of any local ordinance regarding the size, placement or composition of signs to the contrary.
[7.] 8. A governing body may charge an additional fee for each application for a special use permit to cover the actual costs resulting from the erection of not more than one sign required by subsection [5,] 6, if any. The additional fee is not subject to the limitation imposed by NRS 354.5989.
[8.] 9. The governing body shall remove or cause to be removed any sign required by subsection [5] 6 within 5 days after the final hearing for the application for which the sign was erected. There must be no additional charge to the applicant for such removal.
κ2001 Statutes of Nevada, Page 1451 (CHAPTER 309, AB 553)κ
[9.] 10. The notice required to be provided pursuant to subsections 3, 4 and 6 must be sent by mail or, if requested by a party to whom notice must be provided pursuant to those subsections, by electronic means if receipt of such an electronic notice can be verified, and be written in language which is easy to understand. The notice must set forth the time, place and purpose of the hearing and a physical description or map of the property in question.
11. The provisions of this section do not apply to an application for a conditional use permit filed pursuant to NRS 278.147.
Sec. 4. NRS 278.319 is hereby amended to read as follows:
278.319 1. The governing body may adopt an ordinance that authorizes the director of planning or another person or agency to grant [minor deviations] a deviation of less than 10 percent from requirements for land use established within a zoning district without conducting a hearing. The ordinance must require an applicant for such a [minor] deviation to obtain the written consent of the owner of any real property that would be affected by the [minor] deviation.
2. If the director of planning or other authorized person or agency grants a deviation in accordance with its authority delegated pursuant to subsection 1, the director of planning or other authorized person or agency shall ensure that the deviation will not impair the purpose of the zoning district or any regulations adopted by the governing body pursuant to NRS 278.250.
3. An ordinance adopted pursuant to this section must provide an opportunity for an applicant or other aggrieved person to appeal the decision of the director of planning or other authorized person or agency to the governing body.
Sec. 5. NRS 278.480 is hereby amended to read as follows:
278.480 1. Except as otherwise provided in subsection [10,] 11, any abutting owner or local government desiring the vacation or abandonment of any street or easement owned by a city or a county, or any portion thereof, shall file a petition in writing with the planning commission or the governing body having jurisdiction.
2. The governing body may establish by ordinance a procedure by which, after compliance with the requirements for notification of public hearing set forth in this section, a vacation or abandonment of a street or an easement may be approved in conjunction with the approval of a tentative map pursuant to NRS 278.349.
3. [Whenever any street] A government patent easement which is no longer required for a public purpose may be vacated by:
(a) The governing body; or
(b) The planning commission, hearing examiner or other designee, if authorized to take final action by the governing body,
without conducting a hearing on the vacation if the applicant for the vacation obtains the written consent of each owner of property abutting the proposed vacation and any utility that is affected by the proposed vacation.
4. Except as otherwise provided in subsection 3, if any right of way or easement required for a public purpose that is owned by a city or a county is proposed to be vacated, the governing body, or the planning commission , [or] hearing examiner or other designee, if authorized to take final action by the governing body, shall notify by certified mail each owner of property abutting the proposed abandonment and cause a notice to be published at least once in a newspaper of general circulation in the city or county, setting forth the extent of the proposed abandonment and setting a date for public hearing, which must be not less than 10 days and not more than 40 days after the date the notice is first published.
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forth the extent of the proposed abandonment and setting a date for public hearing, which must be not less than 10 days and not more than 40 days after the date the notice is first published.
[4.] 5. Except as provided in subsection [5,] 6, if, upon public hearing, the governing body, or the planning commission , [or] hearing examiner or other designee, if authorized to take final action by the governing body, is satisfied that the public will not be materially injured by the proposed vacation, it shall order the street or easement vacated. The governing body, or the planning commission , [or] hearing examiner or other designee, if authorized to take final action by the governing body, may make the order conditional, and the order becomes effective only upon the fulfillment of the conditions prescribed. An applicant or other person aggrieved by the decision of the planning commission , [or] hearing examiner or other designee may appeal to the governing body within a reasonable period to be determined, by ordinance, by the governing body.
[5.] 6. If a utility has an easement over the property, the governing body, or the planning commission , [or] hearing examiner or other designee, if authorized to take final action by the governing body, shall provide in its order for the continuation of that easement.
[6.] 7. The order must be recorded in the office of the county recorder, if all the conditions of the order have been fulfilled, and upon the recordation title to the street or easement reverts to the abutting property owners in the approximate proportion that the property was dedicated by the abutting property owners or their predecessors in interest. In the event of a partial vacation of a street where the vacated portion is separated from the property from which it was acquired by the unvacated portion of it, the governing body may sell the vacated portion upon such terms and conditions as it deems desirable and in the best interests of the city or county. If the governing body sells the vacated portion, it shall afford the right of first refusal to each abutting property owner as to that part of the vacated portion which abuts his property, but no action may be taken by the governing body to force the owner to purchase that portion and that portion may not be sold to any person other than the owner if the sale would result in a complete loss of access to a street from the abutting property.
[7.] 8. If the street was acquired by dedication from the abutting property owners or their predecessors in interest, no payment is required for title to the proportionate part of the street reverted to each abutting property owner. If the street was not acquired by dedication, the governing body may make its order conditional upon payment by the abutting property owners for their proportionate part of the street of such consideration as the governing body determines to be reasonable. If the governing body determines that the vacation has a public benefit, it may apply the benefit as an offset against a determination of reasonable consideration which did not take into account the public benefit.
[8.] 9. If an easement for light and air owned by a city or a county is adjacent to a street vacated pursuant to the provisions of this section, the easement is vacated upon the vacation of the street.
[9.] 10. In any vacation or abandonment of any street owned by a city or a county, or any portion thereof, the governing body, or the planning commission , [or] hearing examiner or other designee, if authorized to take final action by the governing body, may reserve and except therefrom all easements, rights or interests therein which the governing body, or the planning commission , [or] hearing examiner or other designee, if authorized to take final action by the governing body, deems desirable for the use of the city, the county or any public utility.
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planning commission , [or] hearing examiner or other designee, if authorized to take final action by the governing body, deems desirable for the use of the city, the county or any public utility.
[10.] 11. The governing body may establish by local ordinance a simplified procedure for the vacation or abandonment of an easement for a public utility owned or controlled by the governing body.
12. As used in this section, government patent easement means an easement for a public purpose owned by the governing body over land which was conveyed by a patent.
Sec. 6. NRS 463.3086 is hereby amended to read as follows:
463.3086 1. If the location of a proposed establishment:
(a) Is not within the Las Vegas Boulevard gaming corridor or the rural Clark County gaming zone; and
(b) Is not within a gaming enterprise district,
the commission shall not approve a nonrestricted license for the establishment unless the location of the establishment is designated a gaming enterprise district pursuant to this section.
2. If a person is proposing to operate an establishment with a nonrestricted license and the location of the proposed establishment:
(a) Is not within the Las Vegas Boulevard gaming corridor or the rural Clark County gaming zone; and
(b) Is not within a gaming enterprise district,
the person may petition the county, city or town having jurisdiction over the location of the proposed establishment to designate the location of the proposed establishment a gaming enterprise district pursuant to this section.
3. If a person files a petition pursuant to subsection 2, the county, city or town shall, at least 10 days before the date of the hearing on the petition, mail a notice of the hearing to:
(a) Each owner of real property whose property line is less than 2,500 feet from the property line of the proposed establishment;
(b) The owner, as listed on the county assessors records, of each of the 30 separately owned parcels nearest the proposed establishment, to the extent this notice does not duplicate the notice given pursuant to paragraph (a);
(c) Each tenant of a mobile home park whose property line is less than 2,500 feet from the property line of the proposed establishment; and
[(c)] (d) Any advisory board that represents one or more owners of real property or tenants of a mobile home park whose property line is less than 2,500 feet from the property line of the proposed establishment.
The notice must be written in language that is easy to understand and must set forth the date, time, place and purpose of the hearing and contain a physical description or map of the location of the proposed establishment. The petitioner shall pay the costs of providing the notice that is required by this subsection.
4. Any interested person is entitled to be heard at the hearing on the petition.
5. The county, city or town shall cause the hearing on the petition to be reported by a court reporter who is certified pursuant to chapter 656 of NRS. The petitioner shall pay the costs of having the hearing reported.
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6. At the hearing, the petitioner must prove by clear and convincing evidence that:
(a) The roads, water, sanitation, utilities and related services to the location are adequate;
(b) The proposed establishment will not unduly impact public services, consumption of natural resources and the quality of life enjoyed by residents of the surrounding neighborhoods;
(c) The proposed establishment will enhance, expand and stabilize employment and the local economy;
(d) The proposed establishment will be located in an area planned or zoned for that purpose pursuant to NRS 278.010 to 278.630, inclusive;
(e) The proposed establishment will not be detrimental to the health, safety or general welfare of the community or be incompatible with the surrounding area;
(f) On the date that the petition was filed, the property line of the proposed establishment was not less than:
(1) Five hundred feet from the property line of a developed residential district; and
(2) Fifteen hundred feet from the property line of a public school, private school or structure used primarily for religious services or worship; and
(g) The proposed establishment will not adversely affect:
(1) A developed residential district; or
(2) A public school, private school or structure used primarily for religious services,
whose property line is within 2,500 feet from the property line of the proposed establishment.
7. A three-fourths vote of the governing body of the county, city or town is required to grant the petition to designate the location of the proposed establishment a gaming enterprise district pursuant to this section.
8. A county, city or town that denies a petition submitted pursuant to this section shall not consider another petition concerning the same location or any portion thereof for 1 year after the date of the denial.
9. As used in this section:
(a) Developed residential district means a parcel of land zoned primarily for residential use in which at least one completed residential unit has been constructed on the date that the petitioner files a petition pursuant to this section.
(b) Private school has the meaning ascribed to it in NRS 394.103.
(c) Public school has the meaning ascribed to it in NRS 385.007.
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