[Rev. 2/8/2019 9:28:51 AM]
κ2005 Statutes of Nevada, Page 1839 (CHAPTER 426, SB 411)κ
(1) The owners of additional assessable property also consent in writing to inclusion of their property in the district and to the amount of the assessment against their property; and
(2) The redistribution of the assessments is not prohibited by any covenants made for the benefit of the owners of any bonds or interim warrants issued for the district.
(b) The governing body may amend the ordinance creating the district, change the assessment roll and redistribute the assessments required by NRS 271.390 in the same manner in which these actions were originally taken to remove assessable property from the district. The assessments may be redistributed among the assessable property remaining in the district if:
(1) The owners of the remaining assessable property consent in writing to the amount of the revised assessment on their property; and
(2) The redistribution of the assessments is not prohibited by any covenants made for the benefit of the owners of any bonds or interim warrants issued for the district.
(c) The governing body may adopt any ordinance pertaining to the district including the ordinance creating the district required by NRS 271.325, the ordinance authorizing interim warrants required by NRS 271.355, the ordinance levying assessments required by NRS 271.390, the ordinance authorizing bonds required by NRS 271.475 or any ordinance amending those ordinances after a single reading and without holding a hearing thereon, as if an emergency exists, upon an affirmative vote of not less than two-thirds of all voting members of the governing body, excluding from any computation any vacancy on the governing body and any members thereon who may vote to break a tie vote, and provide that the ordinances become effective at the time an emergency ordinance would have become effective. The provisions of NRS 271.308 do not apply to any such ordinance.
(d) The governing body may provide for a reserve fund, letter of credit, surety bond or other collateral for payment of any interim warrants or bonds issued for the district and include all or any portion of the costs thereof in the amounts assessed against the property in the district and in the amount of bonds issued for the district. The governing body may provide for the disposition of interest earned on the reserve fund and other bond proceeds, for the disposition of unexpended bond proceeds after completion of the project and for the disposition of the unexpended balance in the reserve fund after payment in full of the bonds for the district.
3. If the governing body of a municipality forms a district pursuant to the provisions of this section, the governing body:
(a) Is not required to adopt the resolutions required pursuant to the provisions of NRS 271.280, 271.310, 271.360 and 271.390.
(b) Shall be deemed to have adopted the resolution required pursuant to the provisions of NRS 271.325 if the plans and specifications are sufficiently specific to allow a competent contractor with the assistance of a competent engineer to estimate the cost of constructing the project and to construct the project.
Sec. 22. NRS 361.450 is hereby amended to read as follows:
361.450 1. Except as otherwise provided in subsection 3, every tax levied under the provisions of or authority of this chapter is a perpetual lien against the property assessed until the tax and any penalty charges and interest which may accrue thereon are paid. Notwithstanding the provisions of any other specific statute, such a lien and a lien for unpaid assessments imposed pursuant to chapter 271 of NRS is superior to all other liens, claims, encumbrances and titles on the property, including, without limitation, interests secured pursuant to the provisions of chapter 104 of NRS, whether or not the lien was filed or perfected first in time.
κ2005 Statutes of Nevada, Page 1840 (CHAPTER 426, SB 411)κ
of any other specific statute, such a lien and a lien for unpaid assessments imposed pursuant to chapter 271 of NRS is superior to all other liens, claims, encumbrances and titles on the property, including, without limitation, interests secured pursuant to the provisions of chapter 104 of NRS, whether or not the lien was filed or perfected first in time.
2. Except as otherwise provided in this subsection and NRS 361.739, the lien attaches on July 1 of the year for which the taxes are levied, upon all property then within the county. The lien attaches upon all migratory property, as described in NRS 361.505, on the day it is moved into the county. If real and personal property are assessed against the same owner, a lien attaches upon such real property also for the tax levied upon the personal property within the county. A lien for taxes on personal property also attaches upon real property assessed against the same owner in any other county of the State from the date on which a certified copy of any unpaid property assessment is filed for record with the county recorder in the county in which the real property is situated.
3. All liens for taxes levied under this chapter which have already attached to a mobile or manufactured home expire on the date when the mobile or manufactured home is sold, except the liens for personal property taxes due in the county in which the mobile or manufactured home was situate at the time of sale, for any part of the 12 months immediately preceding the date of sale.
4. All special taxes levied for city, town, school, road or other purposes throughout the different counties of this State are a lien on the property so assessed, and must be assessed and collected by the same officer at the same time and in the same manner as the state and county taxes are assessed and collected.
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Senate Bill No. 431Committee on Commerce and Labor
CHAPTER 427
AN ACT relating to financial institutions; establishing requirements relating to applications for certain licenses; establishing additional grounds for refusing to issue or for suspending or revoking certain licenses; authorizing the Commissioner of Financial Institutions to conduct certain activities to investigate violations of certain regulated activities; revising the provisions governing the use of business names by financial institutions; increasing the maximum amount of various fees and fines imposed on financial institutions; authorizing the Commissioner of Financial Institutions to establish the amount of certain fees by regulation; revising the provisions governing the licensure of agents involved in the transmission of money and financial instruments; revising the provisions governing liability for nonpayment of certain financial obligations; revising the provisions governing certain interest rates; revising the provisions governing check-cashing services and deferred deposit services; authorizing a person to recover in a civil action compensation against a person who operates a deferred deposit service or check-cashing service without a license; revising the provisions governing collection agencies; increasing the amount of certain required surety bonds; revising the provisions governing examination of credit unions; providing for certain administrative fines and penalties; and providing other matters properly relating thereto.
κ2005 Statutes of Nevada, Page 1841 (CHAPTER 427, SB 431)κ
provisions governing examination of credit unions; providing for certain administrative fines and penalties; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 657 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 7.5, inclusive, of this act.
Sec. 2. As used in sections 2 to 7.5, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 and 4 of this act have the meanings ascribed to them in those sections.
Sec. 3. Financial institution means a depository institution or any other institution regulated pursuant to this title. The term includes, without limitation, a holding company, affiliate or subsidiary of such an institution.
Sec. 4. License means any license, certificate, registration, permit or similar type of authorization.
Sec. 5. 1. In addition to any other requirements set forth by specific statute, each person who applies for a license to operate a financial institution and each person who will serve as a director, officer, manager or member acting in a managerial capacity for such a financial institution must submit:
(a) Proof satisfactory to the Commissioner that the person:
(1) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business of the financial institution in a manner which protects the interests of the general public.
(2) Has not made a false statement of material fact on the application.
(3) Has not committed any of the acts specified in subsection 2.
(4) Has not had a license to operate a financial institution suspended or revoked within the 10 years immediately preceding the date of the application.
(5) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(b) A complete set of his fingerprints and written permission authorizing the Division of Financial Institutions to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may refuse to issue a license to operate a financial institution if the person who applies for the license or any person who will serve as a director, officer, manager or member acting in a managerial capacity for the financial institution:
(a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.
(b) Has previously been refused a license to operate a financial institution or has had such a license suspended or revoked.
κ2005 Statutes of Nevada, Page 1842 (CHAPTER 427, SB 431)κ
(c) Has participated in any act which was a basis for the refusal or revocation of a license to operate a financial institution.
(d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.
Sec. 6. In addition to any other lawful reasons, the Commissioner may suspend or revoke a license to operate a financial institution if the person who holds the license or any person who serves as a director, officer, manager or member acting in a managerial capacity for the financial institution has engaged in any act that would be grounds for denying a license pursuant to section 5 of this act.
Sec. 7. 1. A financial institution must obtain the approval of the Commissioner before using or changing a business name.
2. A financial institution shall not:
(a) Use any business name which is identical or similar to a business name used by another financial institution or which may mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
Sec. 7.5. 1. For the purpose of discovering violations of this title or of securing information lawfully required under this title, the Commissioner or his duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:
(a) Any licensee;
(b) Any other person engaged in an activity for which a license is required pursuant to the provisions of this title; and
(c) Any person whom the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this title, whether or not the person claims to be within the authority or beyond the scope of this title.
2. For the purpose of examination, the Commissioner or his authorized representatives must have and be given free access to the offices and places of business, files, safes and vaults of such persons.
3. The Commissioner may require the attendance of any person and examine him under oath regarding:
(a) Any transaction or business regulated pursuant to the provisions of this title; or
(b) The subject matter of any audit, examination, investigation or hearing.
Sec. 8. NRS 658.096 is hereby amended to read as follows:
658.096 1. The Commissioner shall charge and collect the following fees in connection with his official duties:
(a) For licensing of state banks:
(1) A fee of [$200] not more than $400 for each parent bank, payable on June 30 of each year.
(2) A fee of [$100] not more than $200 for each branch bank or trust office, payable on June 30 of each year.
Κ The fees must accompany the application for renewal of the license. A penalty of 10 percent of the fee must be charged for each month or part of a month that the fees are not paid after June 30 of each year.
(b) For applications for new branch banks or trust offices, a nonrefundable fee of [$200] not more than $400 for the application and survey, to be paid by the applicant at the time of making the application. The applicant must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary.
κ2005 Statutes of Nevada, Page 1843 (CHAPTER 427, SB 431)κ
applicant must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account for Financial Institutions created by NRS 232.545.
(c) For examinations and the examination of trust departments of state banks or trust offices, a fee for conducting the examination and for preparing and typing the report of the examination at the rate established pursuant to NRS 658.101.
2. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
3. Except as otherwise provided in paragraph (b) of subsection 1, all money collected pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
[3.] 4. As used in this section, trust office has the meaning ascribed to it in subsection 4 of NRS 662.239.
Sec. 9. NRS 659.045 is hereby amended to read as follows:
659.045 1. Upon receipt of a copy of the articles of incorporation or organization or the certificate of amendment of the articles of incorporation or organization of the proposed bank, the Commissioner shall at once examine all of the facts connected with the formation of the proposed banking corporation or company, including its location and proposed stockholders or members. If it appears that the bank, if formed, will be lawfully entitled to commence the business of banking, the Commissioner shall so certify to the Secretary of State, unless upon examination and investigation he finds that:
(a) The proposed bank is formed for any other than legitimate banking business;
(b) The character, general fitness and responsibility of the persons proposed as stockholders, directors, officers, members or managers of the bank are not such as to command the confidence of the community in which the bank is proposed to be located;
(c) The probable volume of business and reasonable public demand in such community is not sufficient to assure and maintain the solvency of the new bank and of the bank or banks existing in the community at that time;
(d) The name of the proposed banking corporation or company [is likely to mislead the public as to its character or purpose; or
(e) The proposed name is the same as the one already adopted or appropriated by an existing bank in this State, or so similar thereto as to be likely to mislead the public.] does not comply with the provisions of section 7 of this act.
2. The Commissioner shall not make the certification to the Secretary of State until he has ascertained that the establishment of the bank will meet the needs and promote the convenience of the community to be served by the bank.
3. A nonrefundable fee of [$3,000] not more than $6,000 for the application and survey must be submitted to the Commissioner upon filing the articles or certificate of amendment with the Secretary of State. The proposed banking corporation or company shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.
κ2005 Statutes of Nevada, Page 1844 (CHAPTER 427, SB 431)κ
4. The Commissioner shall adopt regulations establishing the amount of the application fee required pursuant to this section.
Sec. 10. NRS 660.075 is hereby amended to read as follows:
660.075 1. An application for authority to establish and operate one or more offices for mechanical tellers must be made to the Commissioner on the form prescribed by him and accompanied by a fee of [$100] not more than $200 per teller. If the Commissioner approves the application, the financial institution must pay an annual fee of [$50] not more than $100 for each mechanical teller that it operates.
2. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
Sec. 11. NRS 662.245 is hereby amended to read as follows:
662.245 1. An organization that does not maintain an office in this State to conduct the business of a trust company may be appointed to act as fiduciary by any court or by authority of any law of this State if, in addition to any other requirements of law, the organization:
(a) Associates as cofiduciary a bank authorized to do business in this State or a trust company licensed pursuant to chapter 669 of NRS; or
(b) Is a trust corporation or trust company which:
(1) Is organized under the laws of and has its principal place of business in another state which allows trust corporations or trust companies licensed pursuant to chapter 669 of NRS to act as fiduciary in that state;
(2) Is authorized by its charter to act as fiduciary; and
(3) Before the appointment as fiduciary, files with the Secretary of State a document, acknowledged before a notarial officer, which:
(I) Appoints the Secretary of State as its agent upon whom all process in any action or proceeding against it may be served;
(II) Contains its agreement that the appointment continues in force as long as any liability remains outstanding against it in this State, and that any process against it which is served on the Secretary of State is of the same legal validity as if served on it personally;
(III) Contains an address to which the Secretary of State may mail the process when received; and
(IV) Is accompanied by a fee of [$10.] not more than $20.
Κ A copy of the document required by this subparagraph, certified by the Secretary of State, is sufficient evidence of the appointment and agreement.
2. A court which has jurisdiction over the accounts of a fiduciary that is a trust corporation or trust company described in paragraph (b) of subsection 1 may require the fiduciary to provide a bond to ensure the performance of its duties as fiduciary, in the same manner and to the same extent as the court may require such a bond from a fiduciary that is a bank or trust company described in paragraph (a) of subsection 1.
3. Service of process authorized by subparagraph (3) of paragraph (b) of subsection 1 must be made by filing with the Secretary of State:
(a) Two copies of the legal process. The copies must include a specific citation to the provisions of this section. The Secretary of State may refuse to accept such service if the proper citation is not included in each copy.
(b) A fee of [$10.] not more than $20.
Κ The Secretary of State shall forthwith forward one copy of the legal process to the organization, by registered or certified mail prepaid to the address provided in the document filed pursuant to subparagraph (3) of paragraph (b) of subsection 1.
κ2005 Statutes of Nevada, Page 1845 (CHAPTER 427, SB 431)κ
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
5. As used in this section:
(a) Fiduciary means an executor, commissioner, guardian of minors or estates, receiver, depositary or trustee.
(b) Notarial officer has the meaning ascribed to it in NRS 240.005.
(c) State means any state or territory of the United States [,] or the District of Columbia.
Sec. 12. NRS 666.015 is hereby amended to read as follows:
666.015 1. With the approval of the Commissioner, a Nevada depository institution may merge or consolidate with, or transfer its assets and liabilities to, another Nevada depository institution, an out-of-state depository institution or an out-of-state holding company.
2. An application filed with the Commissioner for approval of the merger, consolidation or transfer must be on a form prescribed by the Commissioner and must include:
(a) A nonrefundable fee of [$3,000] not more than $6,000 for the application. The depository institution must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.
(b) Certified copies of the resolutions adopted by the directors and stockholders or the managers and members of the depository institution or the stockholders of the holding company regarding the merger, consolidation or transfer. The minutes of the proceedings conducted by the stockholders or members of each depository institution or the stockholders of each holding company and the resolutions adopted by them, if any, must set forth that holders of at least a majority of the stock or members interests voted in the affirmative on the proposition of merger, consolidation or transfer. The resolutions must also contain or have attached thereto a complete copy of the plan of merger.
(c) Information which the Commissioner requires to make the findings specified in subsection 7.
3. When a completed application has been filed, the Commissioner shall conduct an investigation of each depository institution to determine:
(a) Whether the interests of the depositors, creditors and stockholders or members of each depository institution are protected.
(b) That the merger, consolidation or transfer is in the public interest.
(c) That the merger, consolidation or transfer is made for legitimate purposes.
(d) Whether each depository institution has a good record of compliance with the Community Reinvestment Act of 1977, 12 U.S.C. §§ 2901 to 2905, inclusive.
4. The Commissioners approval or rejection of the merger, consolidation or transfer must be based upon his investigation. The expense of the investigation must be paid by the depository institutions.
5. Notice of the merger, consolidation or transfer must be published once each week for 4 consecutive weeks, before or after the merger, consolidation or transfer is effective at the discretion of the Commissioner, in a newspaper published in a city, town or county in which each of the depository institutions is located, and a certified copy of the notice must be filed with the Commissioner.
κ2005 Statutes of Nevada, Page 1846 (CHAPTER 427, SB 431)κ
6. The Commissioner shall issue his written decision within 60 days after receiving a completed application. The Commissioner may approve the application subject to any terms and conditions which he considers necessary to protect the public interest.
7. The Commissioner shall disapprove an application if he finds that:
(a) The proposed transaction would be detrimental to the safety and soundness of the applicant, to any institution which is a party to the transaction or to a subsidiary or affiliate of any such institution;
(b) The applicant or its executive officers, directors, managers, principal stockholders or members have not established a record of sound performance, efficient management, financial responsibility and integrity so that it would be against the interest of the depositors, other customers, creditors, stockholders or members of an institution, or the general public to authorize the proposed transaction;
(c) The financial condition of the applicant or any other institution which is a participant in the proposed transactions might jeopardize the financial stability of the applicant or other institution, or prejudice the interests of depositors or other customers of the applicant or other institutions;
(d) The consummation of the proposed transaction will tend to lessen competition substantially, unless the Commissioner finds that the anticompetitive effects of the proposed transaction are clearly outweighed by the benefit of accommodating the convenience and needs of the relevant market to be served; or
(e) The applicant has not established a record of meeting the needs for credit of the communities which it or its subsidiary depository institution serves.
8. If a merger, consolidation or transfer is approved pursuant to this section, the property and liabilities of the constituent depository institutions must be treated in the manner prescribed in NRS 92A.250.
9. A Nevada depository institution authorized pursuant to this section to merge or consolidate with, or transfer its assets and liabilities to, an out-of-state depository institution or an out-of-state holding company shall comply with the laws of all states in which it is authorized to operate.
10. The Commissioner shall adopt regulations establishing the amount of the application fee required pursuant to this section.
Sec. 13. NRS 666.315 is hereby amended to read as follows:
666.315 1. An application filed with the Commissioner for approval must be on a form prescribed by the Commissioner and must include:
(a) A nonrefundable fee of [$3,000] not more than $6,000 for the application. The depository institution or holding company must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.
(b) Information which the Commissioner requires to make the findings specified in subsection 4.
(c) Unless the applicant is a resident of Nevada, a corporation organized in this State or a foreign corporation admitted to do business in this State, a written consent to service of process on a resident of this State in any action arising out of the applicants activities in this State.
2. In reviewing the application, the Commissioner shall consider the applicants record of compliance with the Community Reinvestment Act of 1977, 12 U.S.C. §§ 2901 to 2905, inclusive, and whether the proposed transaction will meet the needs of those counties whose populations are less than 100,000 and whose residents are not being adequately served by existing financial institutions.
κ2005 Statutes of Nevada, Page 1847 (CHAPTER 427, SB 431)κ
1977, 12 U.S.C. §§ 2901 to 2905, inclusive, and whether the proposed transaction will meet the needs of those counties whose populations are less than 100,000 and whose residents are not being adequately served by existing financial institutions.
3. The Commissioner shall issue his written decision within 60 days after receiving a completed application. The Commissioner may approve the application subject to any terms and conditions which he considers necessary to protect the public interest.
4. The Commissioner shall disapprove an application if he finds:
(a) That the proposed transaction would be detrimental to the safety and soundness of the applicant, to any institution which is a party to the transaction, or to a subsidiary or affiliate of that institution;
(b) The applicant or its executive officers, directors or principal stockholders have not established a record of sound performance, efficient management, financial responsibility and integrity so that it would be against the interest of the depositors, other customers, creditors or stockholders of an institution, or the public to authorize the proposed transaction;
(c) The financial condition of the applicant or any other institution which is a participant in the proposed transaction might jeopardize the financial stability of the applicant or other institution, or prejudice the interests of depositors or other customers of the applicant or other institutions;
(d) The consummation of the proposed transaction will tend to lessen competition substantially, unless the Commissioner finds that the anticompetitive effects of the proposed transaction are clearly outweighed by the benefit of meeting the convenience and needs of the relevant market to be served; or
(e) The applicant has not established a record of meeting the needs for credit of the communities which it or its subsidiary depository institution serves.
5. The Commissioner shall adopt regulations establishing the amount of the application fee required pursuant to this section.
Sec. 14. NRS 666A.090 is hereby amended to read as follows:
666A.090 1. A foreign bank which desires to obtain a license under this chapter to establish and maintain a state branch or agency shall submit an application to the Commissioner pursuant to NRS 666.315. The application must contain:
(a) The same information as required by the Board of Governors of the Federal Reserve System for an application to establish a branch or agency, as the case may be, in the United States; and
(b) The information required pursuant to NRS 666.315,
Κ and must be accompanied by the fee required by that section.
2. A foreign bank which is licensed under this chapter to establish and maintain a state branch or agency may not concurrently maintain a federal branch or agency in this State. A foreign bank which maintains a federal branch or agency in this State may not concurrently be licensed under this chapter to maintain a state branch or agency.
3. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
κ2005 Statutes of Nevada, Page 1848 (CHAPTER 427, SB 431)κ
to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 15. NRS 666A.120 is hereby amended to read as follows:
666A.120 1. The application for a license to establish and maintain a state representative office must be made in writing under oath and be in such form and contain such information as the Commissioner may require. The application must be accompanied by a fee [in the amount of $200.] of not more than $400. A fee of [$100] not more than $200 must be paid annually to renew the license.
2. The Commissioner shall require a foreign bank to include as part of its application to establish and maintain a state representative office an instrument irrevocably appointing the Commissioner and his successors in office to be the foreign banks agent to receive service of any lawful process in any proceeding against the foreign bank or any of its successors which arises out of a transaction with its state representative office, with the same force and validity as if served on the foreign bank or its successor, as the case may be. The appointment must be in such form and contain such information as the Commissioner may require.
3. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
4. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 16. NRS 666A.160 is hereby amended to read as follows:
666A.160 1. No foreign bank which is licensed to establish and maintain a state branch or agency may engage in fiduciary activities at that office unless the foreign bank first obtains a certificate of authority from the Commissioner to engage in fiduciary activities there.
2. An application to obtain a certificate of authority to engage in fiduciary activities must be in such form and contain such information as the Commissioner may require and must be accompanied by a fee [in the amount of $500.] of not more than $1,000. The Commissioner shall issue a certificate of authority to engage in fiduciary activities to a foreign bank making an application under this section if he finds that the foreign bank will exercise fiduciary powers in accordance with the laws and regulations of this State.
3. A foreign bank which holds a certificate of authority issued pursuant to this section may engage at its state branch or agency in fiduciary activities to the same extent and in the same manner as if the foreign bank were a Nevada bank.
4. A foreign bank which holds a certificate of authority issued pursuant to this section shall file reports and be subject to examination and supervision to the same extent and in the same manner as if the foreign bank were a Nevada bank.
κ2005 Statutes of Nevada, Page 1849 (CHAPTER 427, SB 431)κ
5. The Commissioner may suspend or revoke a certificate to engage in fiduciary activities issued pursuant to this section if he finds that:
(a) Conditions exist which would authorize him to revoke or suspend the foreign banks license to establish and maintain a state branch or agency; or
(b) Any fact or condition exists which, if it had existed at the time of the foreign banks original application to obtain a certificate of authority to engage in fiduciary activities, would have resulted in his refusing to issue the certificate of authority.
6. The Commissioner shall adopt regulations establishing the amount of the application fee required pursuant to this section.
Sec. 17. Chapter 668 of NRS is hereby amended by adding thereto a new section to read as follows:
1. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:
(a) Without a license, conducts any business or activity for which a license is required pursuant to the provisions of chapters 657 to 668, inclusive, of NRS; or
(b) Violates any provision of chapters 657 to 668, inclusive, of NRS or any regulation adopted pursuant thereto.
2. As used in this section, license means any license, certificate, registration, permit or similar type of authorization.
Sec. 17.5. Chapter 669 of NRS is hereby amended by adding thereto the provisions set forth as sections 18 and 18.5 of this act.
Sec. 18. 1. If a trust company fails to submit any report required pursuant to this chapter or any regulation adopted pursuant thereto within the prescribed period, the Commissioner may impose and collect a fee of not more than $10 for each day the report is overdue.
2. The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this section.
Sec. 18.5. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:
1. Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or
2. Violates any provision of this chapter or any regulation adopted pursuant thereto.
Sec. 19. NRS 669.150 is hereby amended to read as follows:
669.150 1. An applicant must file an application for a license to transact trust company business with the Commissioner on forms prescribed by the Commissioner, which must contain or be accompanied by such information as the Commissioner requires.
2. A nonrefundable fee of [$1,000] not more than $2,000 must accompany the application. The applicant must also pay such reasonable additional expenses incurred in the process of investigation as the Commissioner deems necessary. In addition, a fee of not less than [$100 nor] $200 or more than [$250,] $500, prorated on the basis of the licensing year as provided by the Commissioner, must be paid at the time of making the application.
3. A trust company may maintain offices in this and other states. For every branch location of a trust company organized under the laws of this State, and every branch location in this State of a foreign trust company authorized to do business in this State, a request for approval and licensing must be filed with the Commissioner on such forms as he prescribes.
κ2005 Statutes of Nevada, Page 1850 (CHAPTER 427, SB 431)κ
authorized to do business in this State, a request for approval and licensing must be filed with the Commissioner on such forms as he prescribes. A nonrefundable fee of [$250] not more than $500 must accompany each request. In addition, a fee of not more than [$100,] $200, prorated on the basis of the licensing year as provided by the Commissioner, must be paid at the time of making the request.
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.
5. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 20. NRS 669.160 is hereby amended to read as follows:
669.160 1. Within 60 days after the application for a license is filed, the Commissioner shall investigate the facts of the application and the other requirements of this chapter to determine:
(a) That the persons who will serve as directors or officers of the corporation, or the managers or members acting in a managerial capacity of the limited-liability company, as applicable:
(1) Have a good reputation for honesty, trustworthiness and integrity and display competence to transact the business of a trust company in a manner which safeguards the interests of the general public. The applicant must submit satisfactory proof of these qualifications to the Commissioner.
(2) Have not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(3) Have not made a false statement of material fact on the application.
(4) Have not had a license that was issued pursuant to the provisions of this chapter suspended or revoked within the 10 years immediately preceding the date of the application.
(5) Have not had a license as a trust company which was issued in any other state, district or territory of the United States or any foreign country suspended or revoked within the 10 years immediately preceding the date of the application.
(6) Have not violated any of the provisions of this chapter or any regulation adopted pursuant to the provisions of this chapter.
(b) That the financial status of the directors and officers of the corporation or the managers or members acting in a managerial capacity of the limited-liability company is consistent with their responsibilities and duties.
(c) That the name of the proposed company [is not deceptively similar to the name of another trust company licensed in this State or is not otherwise misleading.] complies with the provisions of section 7 of this act.
κ2005 Statutes of Nevada, Page 1851 (CHAPTER 427, SB 431)κ
(d) That the initial stockholders equity is not less than the required minimum.
2. Notice of the entry of an order refusing a license to a trust company must be given in writing, served personally or sent by certified mail or by telegram to the company affected. The company, upon application, is entitled to a hearing before a hearing officer appointed by the Director of the Department of Business and Industry, but if no such application is made within 30 days after the entry of an order refusing a license to any company, the Commissioner shall enter a final order.
3. If the hearing officer affirms the order of the Commissioner refusing the license, the applicant may file a petition for judicial review pursuant to NRS 233B.130.
Sec. 21. NRS 669.190 is hereby amended to read as follows:
669.190 1. The initial fee to be paid for a trust company license must be in proportion to the initial stockholders equity of the trust company as follows:
(a) A trust company with an initial stockholders equity of not less than $300,000 but not more than $500,000 must pay a license fee of [$500.] not more than $1,000.
(b) A trust company with an initial stockholders equity of more than $500,000 but not more than $1,000,000 must pay a license fee of [$750.] not more than $1,500.
(c) A trust company with an initial stockholders equity of more than $1,000,000 must pay a license fee of [$1,000.] not more than $2,000.
2. In addition, every trust company must pay an initial license fee of [$100] not more than $200 for each branch office that is authorized by the Commissioner.
3. Thereafter, every trust company must pay annually on or before April 1 of each year a license fee which must be in proportion to its existing stockholders equity as follows:
(a) A trust company with an existing stockholders equity of not less than $300,000 but not more than $500,000 must pay a license fee of [$500.] not more than $1,000.
(b) A trust company with an existing stockholders equity of more than $500,000 but not more than $1,000,000 must pay a license fee of [$750.] not more than $1,500.
(c) A trust company with an existing stockholders equity of more than $1,000,000 must pay a license fee of [$1,000.] not more than $2,000.
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money collected under the provisions of this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
Sec. 21.5. Chapter 670 of NRS is hereby amended by adding thereto the provisions set forth as sections 22 and 22.5 of this act.
Sec. 22. 1. If a corporation fails to submit any report required pursuant to this chapter or any regulation adopted pursuant thereto within the prescribed period, the Commissioner may impose and collect a fee of not more than $10 for each day the report is overdue.
2. The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this section.
κ2005 Statutes of Nevada, Page 1852 (CHAPTER 427, SB 431)κ
Sec. 22.5. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:
1. Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or
2. Violates any provision of this chapter or any regulation adopted pursuant thereto.
Sec. 23. NRS 670.115 is hereby amended to read as follows:
670.115 1. A development corporation shall obtain a license from the Commissioner before conducting any business. The application for the license must be on a form prescribed by the Commissioner.
2. A nonrefundable fee of [$1,000] not more than $2,000 for the application and survey must accompany the application. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. In addition, a fee of not less than [$100 nor] $200 or more than [$250,] $500, prorated on the basis of the licensing year as provided by the Commissioner, must be paid at the time the application is submitted.
3. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.
4. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 24. NRS 670.240 is hereby amended to read as follows:
670.240 1. A license issued pursuant to this chapter expires on December 31 of each year unless renewed by the corporation through the payment, on or before that date, of an annual fee of [$250.] not more than $500. The Commissioner may reinstate an expired license upon receipt of the annual fee and a fee of [$200] not more than $400 for reinstatement. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this subsection.
2. The county and city wherein the corporation maintains a place of business may also levy a licensing fee which does not exceed $50.
Sec. 25. NRS 670.250 is hereby amended to read as follows:
670.250 1. The Commissioner shall examine the corporation as often as he deems necessary.
2. The corporation shall report upon its condition annually to the Commissioner:
(a) Within 60 days after the close of its fiscal year, unless the Commissioner determines that there is good cause to extend that period; and
(b) At any other time ordered by the Commissioner.
Κ The Commissioner may impose and collect a [penalty of $5] fee of not more than $10 for each day the annual report is overdue . [, up to a maximum of $500.] The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this subsection.
κ2005 Statutes of Nevada, Page 1853 (CHAPTER 427, SB 431)κ
the amount of the fee that may be imposed pursuant to this subsection. The Commissioner shall furnish copies of these reports to the Commissioner of Insurance and the Governor. The corporation shall also furnish any other information required by the Commissioner or the Secretary of State.
3. The corporation shall pay a fee for conducting the examination and preparing the report of the examination at the rate established pursuant to NRS 658.101.
4. The Commissioner shall exercise the same supervisory authority over corporations organized under this chapter as he exercises over banks and trust companies chartered by the State.
Sec. 25.5. Chapter 670A of NRS is hereby amended by adding thereto the provisions set forth as sections 26 and 26.5 of this act.
Sec. 26. 1. If a corporation fails to submit any report required pursuant to this chapter or any regulation adopted pursuant thereto within the prescribed period, the Commissioner may impose and collect a fee of not more than $10 for each day the report is overdue.
2. The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this section.
Sec. 26.5. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:
1. Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or
2. Violates any provision of this chapter or any regulation adopted pursuant thereto.
Sec. 27. NRS 670A.130 is hereby amended to read as follows:
670A.130 1. A corporation for economic revitalization and diversification shall obtain a license from the Commissioner before conducting any business. The application for the license must be on a form and be accompanied by a nonrefundable application fee of not more than [$1,000 prescribed by the Commissioner.] $2,000.
2. The Commissioner shall adopt regulations establishing the amount of the application fee required pursuant to this section.
3. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 28. NRS 670A.250 is hereby amended to read as follows:
670A.250 1. Every corporation organized and engaged in business under the provisions of this chapter shall pay an annual state license fee of [$100.] not more than $200. The Commissioner shall adopt regulations establishing the amount of the fee required pursuant to this subsection.
2. The county and city in which the corporation maintains a place of business may also levy a license fee which does not exceed $50.
κ2005 Statutes of Nevada, Page 1854 (CHAPTER 427, SB 431)κ
Sec. 28.5. Chapter 671 of NRS is hereby amended by adding thereto the provisions set forth as sections 29, 29.5 and 29.7 of this act.
Sec. 29. 1. If a licensee fails to submit any report required pursuant to this chapter or any regulation adopted pursuant thereto within the prescribed period, the Commissioner may impose and collect a fee of not more than $10 for each day the report is overdue.
2. The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this section.
Sec. 29.5. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:
1. Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or
2. Violates any provision of this chapter or any regulation adopted pursuant thereto.
Sec. 29.7. In addition to any other requirements set forth by specific statute, each person who applies for a license to engage in the business of selling or issuing checks or of receiving for transmission or transmitting money or credits must submit proof satisfactory to the Commissioner that the person:
1. Is at least 21 years of age; and
2. Is a citizen of the United States or lawfully entitled to remain and work in the United States.
Sec. 30. NRS 671.050 is hereby amended to read as follows:
671.050 1. Every application for a license required pursuant to this chapter must be in writing, signed by the applicant, and in the form prescribed by the Commissioner.
2. The application must contain:
(a) The name and principal business address of the applicant and, if incorporated, the date and place of its incorporation;
(b) The name and address of each of the applicants branch offices, subsidiaries or affiliates, if any, which will be operated under the license;
(c) The name and addresses, business and residential, of the proprietor or partners of the applicant or, if the applicant is a corporation or association, of each of the directors, trustees and principal officers, and of any stockholder who owns 20 percent or more of the applicants stock; and
(d) Such other pertinent information as the Commissioner requires.
3. The application must be accompanied by:
(a) A surety bond or securities as required by this chapter.
(b) A certified financial statement, satisfactory to the Commissioner, showing that the applicants net worth exceeds $100,000, unless the applicants surety bond or the securities deposited pursuant to NRS 671.110 are in at least twice the minimum principal sum required by NRS 671.100.
(c) A nonrefundable fee of [$250] not more than $500 for the application and survey. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary.
(d) A fee of not less than [$100 nor] $200 or more than [$200,] $400, prorated on the basis of the licensing year as provided by the Commissioner.
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.
κ2005 Statutes of Nevada, Page 1855 (CHAPTER 427, SB 431)κ
Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.
5. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 31. NRS 671.070 is hereby amended to read as follows:
671.070 1. A license issued pursuant to this chapter expires on June 30 of the year following its issuance and thereafter expires on June 30 of each year, unless it is earlier surrendered, suspended or revoked.
2. The license may be renewed from year to year upon the approval of the Commissioner if the licensee files an application conforming to the requirements for an initial application at least 60 days before the expiration of his current license.
3. An application for the renewal of the license must be accompanied by a fee of [$200.] not more than $400. No investigation fee may be charged for the renewal of the license. If the application or fee for renewal is not filed within the required time, the Commissioner may renew the expired license upon receipt of the application and fee for renewal, and a fee of [$200] not more than $400 for late renewal.
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All fees collected pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
Sec. 32. NRS 671.090 is hereby amended to read as follows:
671.090 1. A separate license is not required for an agent of a licensee unless the agent directly sells or delivers the licensees checks over the counter to the public and, in the ordinary course of such business, receives or has access to:
[1.] (a) The licensees checks which, after payment, are returned through banking channels or otherwise for verification, reconciliation or accounting with respect thereto; or
[2.] (b) Bank statements relating to checks so returned.
2. Each agent of a licensee who must be licensed pursuant to subsection 1 must:
(a) Submit an application to the Commissioner which is in writing, signed by the applicant and on a form prescribed by the Commissioner;
(b) Pay an application fee of not less than $200 and not more than $500; and
(c) Pay a license fee of not less than $200 and not more than $500.
3. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
4. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners.
κ2005 Statutes of Nevada, Page 1856 (CHAPTER 427, SB 431)κ
regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 33. NRS 41.620 is hereby amended to read as follows:
41.620 1. [Any] Except as otherwise provided in subsection 2, any person who:
(a) Makes, utters, draws or delivers a check or draft for the payment of money drawn upon any financial institution or other person, when he has no account with the drawee of the instrument or has insufficient money, property or credit with the drawee to pay; or
(b) Uses a credit card or debit card to obtain money, goods, property, services or anything of value, when he knows or should have known the credit card or debit card is no longer valid,
Κ and who fails to pay the amount in cash to the payee, issuer or other creditor within 30 days after a demand therefor in writing is mailed to him by certified mail, is liable to the payee, issuer or other creditor for the amount of the check, draft or extension of credit, and damages equal to three times the amount of the check, draft or extension of credit, but not less than $100 nor more than $500.
2. A person who receives check-cashing services or deferred deposit services pursuant to chapter 604 of NRS is not liable for damages pursuant to this section unless the person acted fraudulently.
3. As used in this section, unless the context otherwise requires:
(a) Credit card has the meaning ascribed to it in NRS 205.630;
(b) Debit card has the meaning ascribed to it in NRS 205.635; and
(c) Issuer has the meaning ascribed to it in NRS 205.650.
Sec. 34. NRS 99.040 is hereby amended to read as follows:
99.040 1. When there is no express contract in writing fixing a different rate of interest, interest must be allowed at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the transaction, plus 2 percent, upon all money from the time it becomes due, in the following cases:
(a) Upon contracts, express or implied, other than book accounts.
(b) Upon the settlement of book or store accounts from the day on which the balance is ascertained.
(c) Upon money received to the use and benefit of another and detained without his consent.
(d) Upon wages or salary, if it is unpaid when due, after demand therefor has been made.
Κ The rate must be adjusted accordingly on each January 1 and July 1 thereafter until the judgment is satisfied.
2. The provisions of this section do not apply to money owed:
(a) For the construction of a work of improvement pursuant to NRS 624.620; or
(b) By a contractor to his subcontractor pursuant to NRS 624.630.
3. As used in this section, book account means a detailed statement which:
(a) Constitutes the principal record of one or more transactions between a debtor and a creditor arising out of a contract or some fiduciary relationship;
κ2005 Statutes of Nevada, Page 1857 (CHAPTER 427, SB 431)κ
(b) Shows the debits and credits in connection with that contract or fiduciary relationship and shows against whom and in favor of whom entries are made;
(c) Is entered in the regular course of business as conducted by such creditor or fiduciary; and
(d) Is kept in a reasonably permanent form and manner:
(1) In a bound book;
(2) On a sheet or sheets fastened in a book or to backing but detachable therefrom;
(3) On a card or cards of a permanent character; or
(4) In any other reasonably permanent form and manner.
Sec. 35. Chapter 604 of NRS is hereby amended by adding thereto the provisions set forth as sections 36 to 40.5, inclusive, of this act.
Sec. 36. 1. In addition to any other requirements set forth in this chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.
(2) Has not made a false statement of material fact on the application for the license.
(3) Has not committed any of the acts specified in subsection 2.
(4) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.
(5) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(6) If the applicant is a natural person:
(I) Is at least 21 years of age; and
(II) Is a citizen of the United States or lawfully entitled to remain and work in the United States.
(b) A complete set of his fingerprints and written permission authorizing the Division of Financial Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.
(b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.
Sec. 37. In addition to any other lawful reasons, the Commissioner may suspend or revoke a license if the licensee has engaged in any act that would be grounds for denying a license pursuant this chapter.
κ2005 Statutes of Nevada, Page 1858 (CHAPTER 427, SB 431)κ
Sec. 37.1. 1. For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the Commissioner or his duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:
(a) Any licensee;
(b) Any other person engaged in the business described in subsection 1 of NRS 604.090 or participating in such business as principal, agent, broker or otherwise; and
(c) Any person who the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter.
2. For the purpose of examination, the Commissioner or his authorized representatives shall have and be given free access to the offices and places of business, files, safes and vaults of such persons.
3. For the purposes of this section, any person who advertises for, solicits or holds himself out as willing to offer or provide a check-cashing or deferred deposit service or a check-cashing machine or kiosk is presumed to be engaged in the business described in subsection 1 of NRS 604.090.
Sec. 37.2. 1. The Commissioner may require the attendance of any person and examine him under oath regarding:
(a) Any loan, transaction or business regulated pursuant to the provisions of this chapter; or
(b) The subject matter of any audit, examination, investigation or hearing.
2. The Commissioner may require the production of books, accounts, papers and records for any audit, examination, investigation or hearing.
Sec. 37.3. If the Commissioner finds that probable cause for revocation of any license exists and that enforcement of the provisions of this chapter requires immediate suspension of a license pending investigation, he may, upon 5 days written notice and a hearing, enter an order suspending a license for a period not exceeding 20 days, pending a hearing upon the revocation.
Sec. 37.4. A licensee may surrender any license issued pursuant to the provisions of this chapter by delivering it to the Commissioner with written notice of its surrender, but a surrender does not affect his civil or criminal liability for acts committed prior thereto.
Sec. 37.5. 1. Whenever the Commissioner has reasonable cause to believe that any person is violating or is threatening to or intends to violate any provision of this chapter, he may, in addition to all actions provided for in this chapter and without prejudice thereto, enter an order requiring the person to desist or to refrain from such violation.
2. The Attorney General or the Commissioner may bring an action to enjoin a person from engaging in or continuing a violation or from doing any act or acts in furtherance thereof. In any such action, an order or judgment may be entered awarding a preliminary or final injunction as may be deemed proper.
3. In addition to all other means provided by law for the enforcement of a restraining order or injunction, the court in which an action is brought may impound, and appoint a receiver for, the property and business of the defendant, including books, papers, documents and records pertaining thereto, or so much thereof as the court may deem reasonably necessary to prevent violations of this chapter through or by means of the use of property and business.
κ2005 Statutes of Nevada, Page 1859 (CHAPTER 427, SB 431)κ
business of the defendant, including books, papers, documents and records pertaining thereto, or so much thereof as the court may deem reasonably necessary to prevent violations of this chapter through or by means of the use of property and business. A receiver, when appointed and qualified, has such powers and duties as to custody, collection, administration, winding up and liquidation of such property and business as may from time to time be conferred upon him by the court.
Sec. 37.6. 1. If the Commissioner has reason to believe that grounds for revocation or suspension of a license exist, he shall give 20 days written notice to the licensee stating the contemplated action and, in general, the grounds therefor and set a date for a hearing.
2. At the conclusion of a hearing, the Commissioner shall:
(a) Enter a written order either dismissing the charges, revoking the license, or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. The Commissioner shall send a copy of the order to the licensee by registered or certified mail.
(b) Impose upon the licensee an administrative fine of $10,000 for each violation by the licensee of any provision of this chapter or any regulation adopted pursuant thereto.
(c) If a fine is imposed pursuant to this section, enter such order as is necessary to recover the costs of the proceeding, including his investigative costs and attorneys fees.
3. The grounds for revocation or suspension of a license are that:
(a) The licensee has failed to pay the annual license fee;
(b) The licensee, either knowingly or without any exercise of due care to prevent it, has violated any provision of this chapter or any lawful regulation adopted pursuant thereto;
(c) The licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS;
(d) Any fact or condition exists which would have justified the Commissioner in denying the licensees original application for a license pursuant to the provisions of this chapter; or
(e) The licensee failed to open an office for the conduct of the business authorized by his license within 120 days after the date his license was issued, or has failed to remain open for the conduct of the business for a period of 120 days without good cause therefor.
4. Any revocation or suspension applies only to the license granted to a person for the particular office for which grounds for revocation or suspension exist.
5. An order suspending or revoking a license becomes effective 5 days after being entered unless the order specifies otherwise or a stay is granted.
Sec. 37.7. A revocation, suspension, expiration or surrender of any license does not impair or affect the obligation of any preexisting lawful loan agreement between the licensee and any customer. Such a loan agreement and all lawful charges thereon may be collected by the licensee, its successors or assigns.
Sec. 37.8. Any person and the several members, officers, directors, agents and employees thereof who violate or participate in the violation of any provision of subsection 1 of NRS 604.090 are guilty of a misdemeanor.
Sec. 38. 1. A licensee must obtain the approval of the Commissioner before using or changing a business name.
κ2005 Statutes of Nevada, Page 1860 (CHAPTER 427, SB 431)κ
2. A licensee shall not:
(a) Use any business name which is identical or similar to a business name used by another licensee under this chapter or which may mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
Sec. 39. 1. If a licensee fails to submit any report required pursuant to this chapter or any regulation adopted pursuant thereto within the prescribed period, the Commissioner may impose and collect a fee of not more than $10 for each day the report is overdue.
2. The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this section.
Sec. 40. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $50,000 upon a person who, without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter.
Sec. 40.5. If a person operates a deferred deposit service or check-cashing service without obtaining a license pursuant to NRS 604.130:
1. Any contracts entered into by that person for a deferred deposit or the cashing of a check are voidable by the other party to the contract; and
2. In addition to any other remedy provided by law, a person who enters into a contract for a deferred deposit or the cashing of a check with the person who is operating a deferred deposit service or a check-cashing service without obtaining a license pursuant to NRS 604.130 may recover in a civil action an amount not to exceed $1,000 for each such contract.
Sec. 41. NRS 604.080 is hereby amended to read as follows:
604.080 [Registrant] Licensee means a person who has been issued a [certificate of registration] license to operate a check-cashing or deferred deposit service pursuant to this chapter.
Sec. 42. NRS 604.090 is hereby amended to read as follows:
604.090 1. Except as otherwise provided in subsection 2, it is unlawful to operate a check-cashing or deferred deposit service or a check-cashing machine or kiosk without being [registered with] licensed by the Commissioner.
2. The provisions of this chapter do not apply to:
(a) A person doing business pursuant to the authority of any law of this State or of the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions, development corporations, mortgage brokers, mortgage bankers, thrift companies, pawnbrokers or insurance companies.
(b) A person [licensed to make installment loans pursuant to chapter 675 of NRS.
(c) A person] who is primarily engaged in the retail sale of goods or services who:
(1) As an incident to or independently of a retail sale or service from time to time cashes checks for a fee or other consideration of not more than $2; and
(2) Does not hold himself out as a check-cashing service.
[(d)] (c) A person while performing any act authorized by a license issued pursuant to chapter 671 of NRS.
[(e)] (d) A person who holds a nonrestricted gaming license issued pursuant to chapter 463 of NRS while performing any act in the course of that licensed operation.
κ2005 Statutes of Nevada, Page 1861 (CHAPTER 427, SB 431)κ
[(f)] (e) A person who is exclusively engaged in a check-cashing service relating to out-of-state checks.
[(g)] (f) A corporation organized pursuant to the laws of this State that has been continuously and exclusively engaged in a check-cashing service in this State since July 1, 1973.
Sec. 43. NRS 604.100 is hereby amended to read as follows:
604.100 1. An application for [registration] a license pursuant to this chapter must be made in writing, under oath and on a form prescribed by the Commissioner. The application must include:
(a) If the applicant is a natural person, the name and address of the applicant.
(b) If the applicant is a business entity, the name and address of each:
(1) Partner;
(2) Officer;
(3) Director;
(4) Manager or member who acts in a managerial capacity; and
(5) Registered agent,
Κ of the business entity.
(c) Such other information concerning the financial responsibility, background, experience and activities of the applicant and its:
(1) Partners;
(2) Officers;
(3) Directors; and
(4) Managers or members who act in a managerial capacity,
Κ as the Commissioner determines is necessary.
(d) The address of each location at which the applicant proposes to do business.
(e) If the applicant intends to provide deferred deposit services in addition to check-cashing services, a statement of that intent.
2. Each application for [registration] a license must be accompanied by a nonrefundable [registration] licensing fee of [$250.] not more than $500.
3. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
4. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 44. NRS 604.110 is hereby amended to read as follows:
604.110 1. Except as otherwise provided in NRS 604.120, [each application for registration must be accompanied by] before an applicant may be issued a license, the applicant shall deposit a surety bond payable to the State of Nevada in the amount of $50,000 plus an additional $5,000 for each branch location at which the applicant proposes to do business. Each licensee shall maintain the surety bond so that the amount of the surety bond is $50,000 plus an additional $5,000 for each branch location at which the licensee does business. The surety bond required by this section is for the use and benefit of any customer receiving the [registrants] licensees check-cashing or deferred deposit service [.
κ2005 Statutes of Nevada, Page 1862 (CHAPTER 427, SB 431)κ
is for the use and benefit of any customer receiving the [registrants] licensees check-cashing or deferred deposit service [.
2. The] at any location at which the licensee does business.
2. Each bond must be in a form satisfactory to the Commissioner, issued by a bonding company authorized to do business in this State and must secure the faithful performance of the obligations of the [registrant] licensee respecting the provision of the check-cashing or deferred deposit service.
3. A [registrant] licensee shall, within 10 days after the commencement of any action or notice of entry of any judgment against him by any creditor or claimant arising out of business regulated by this chapter, give notice thereof to the Commissioner by certified mail with details sufficient to identify the action or judgment. The surety shall, within 10 days after it pays any claim or judgment to a creditor or claimant, give notice thereof to the Commissioner by certified mail with details sufficient to identify the creditor or claimant and the claim or judgment so paid.
4. Whenever the principal sum of [the] any bond is reduced by recoveries or payments thereon, the [registrant] licensee shall furnish:
(a) A new or additional bond so that the total or aggregate principal sum of the bonds equals the sum required pursuant to subsection 1; or
(b) An endorsement, duly executed by the surety, reinstating the bond to the required principal sum.
5. The liability of the surety on [the] a bond to a creditor or claimant is not affected by any misrepresentation, breach of warranty, failure to pay a premium or other act or omission of the [registrant,] licensee, or by any insolvency or bankruptcy of the [registrant.] licensee.
6. The liability of the surety continues as to all transactions entered into in good faith by the creditors and claimants with the [registrants] licensees agents within 30 days after:
(a) The [registrants] licensees death or the dissolution or liquidation of his business; or
(b) The termination of the bond,
Κ whichever event occurs first.
7. A [registrant] licensee or his surety shall not cancel or alter a bond except after notice to the Commissioner by certified mail. The cancellation or alteration is not effective until 10 days after receipt of the notice by the Commissioner. A cancellation or alteration does not affect any liability incurred or accrued on the bond before the expiration of the 30-day period designated in subsection 6.
Sec. 45. NRS 604.120 is hereby amended to read as follows:
604.120 1. In lieu of any surety bond, or any portion of the principal sum thereof as required by this chapter, a [registrant] licensee may deposit with the State Treasurer or with any bank, credit union or trust company authorized to do business in this State as the [registrant] licensee may select, with the approval of the Commissioner:
(a) Interest-bearing stocks;
(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,
κ2005 Statutes of Nevada, Page 1863 (CHAPTER 427, SB 431)κ
Κ in an aggregate amount of, based upon principal amount or market value, whichever is lower, of not less than the amount of [the] any required surety bond or portion thereof.
2. The securities must be held to secure the same obligation as would [the] any surety bond, but the depositor may receive any interest or dividends and, with the approval of the Commissioner, substitute other suitable securities for those deposited.
Sec. 46. NRS 604.130 is hereby amended to read as follows:
604.130 1. The Commissioner shall issue to each [registrant a certificate of registration] licensee a license in such form and size as is prescribed by the Commissioner for each location at which the [registrant] licensee proposes to do business. Each [certificate of registration] license must show the name and address of the [registrant.
2. Each registrant] licensee.
2. Each licensee shall prominently display his [certificate of registration] license at the location where he does business.
Sec. 47. NRS 604.140 is hereby amended to read as follows:
604.140 1. A [certificate of registration] license issued pursuant to this chapter expires annually on the anniversary of the issuance of the [certificate. A registrant] license. A licensee must renew his [certificate of registration] license on or before the date on which the [certificate] license expires by paying a renewal fee of [$250] not more than $500 and an additional fee of [$50] not more than $100 for each branch location at which the [registrant] licensee is authorized to operate under the [certificate of registration.] license.
2. For the purposes of NRS 604.090, a [registrant] licensee who fails to renew his [certificate of registration] license within the time required by this section is not [registered] licensed pursuant to this chapter.
3. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
Sec. 48. NRS 604.150 is hereby amended to read as follows:
604.150 1. A [registrant] licensee shall immediately notify the Commissioner of any change of control of the [registrant.] licensee.
2. A person who acquires stock, partnership or member interests resulting in a change of control of the [registrant] licensee shall apply to the Commissioner for approval of the transfer. The application must contain information which shows that the requirements of this chapter for obtaining a [certificate of registration] license will be satisfied after the change of control. If the Commissioner determines that those requirements will not be satisfied, he may deny the application and forbid the applicant from participating in the business of the [registrant.] licensee.
3. As used in this section, change of control means:
(a) A transfer of voting stock, partnership or member interests which results in giving a person, directly or indirectly, the power to direct the management and policy of a [registrant;] licensee; or
(b) A transfer of at least 25 percent of the outstanding voting stock, partnership or member interests of the licensee.
Sec. 49. NRS 604.160 is hereby amended to read as follows:
604.160 A [registrant] licensee shall:
1. Post in a conspicuous place in every location at which he conducts business under his [certificate of registration] license a notice that states the fees charged for cashing checks or entering into a deferred deposit transaction.
κ2005 Statutes of Nevada, Page 1864 (CHAPTER 427, SB 431)κ
fees charged for cashing checks or entering into a deferred deposit transaction.
2. Give written notice to each customer of the fees charged for cashing checks. The notice must be signed by the customer before the service is provided.
Sec. 50. NRS 604.162 is hereby amended to read as follows:
604.162 If a check is not paid upon presentment because of insufficient funds, the [registrant] licensee may collect a fee of not more than $25. Only two such fees may be charged regardless of the number of times the check is presented for payment.
Sec. 51. NRS 604.164 is hereby amended to read as follows:
604.164 A [registrant,] licensee, before deferring a deposit, shall provide each borrower with a written agreement, approved by the Commissioner, which the borrower may keep and which contains the following information, in English:
1. The identity of the [registrant] licensee deferring the deposit and the name of the [registrant] licensee and the name and title of the employee who signs the agreement;
2. An itemization of the fees and interest to be paid by the borrower;
3. Disclosures required for a similar transaction by the federal Truth in Lending Act;
4. Disclosures required under any applicable state statute or regulation; and
5. A clear description of the borrowers obligations under the deferred deposit.
Sec. 52. NRS 604.166 is hereby amended to read as follows:
604.166 If the borrower defaults on the original loan made in the form of a deferred deposit, or on any extension thereof, whichever is later, the [registrant] licensee may immediately pursue any available collection proceedings on the amount of the loan made in the form of a deferred deposit and all accrued charges and interest that are then due. The interest charged from the date of the default on the loan made in the form of a deferred deposit, or on any extension thereof, must not exceed a rate equal to or less than the prime rate at the largest bank in the State of Nevada, as ascertained by the Commissioner on January 1 or July 1, as the case may be, immediately preceding the date of default, plus 10 percent.
Sec. 52.5. NRS 604.170 is hereby amended to read as follows:
604.170 1. The Commissioner may establish by regulation [:
(a) The] the fees that may be imposed by a check-cashing service for cashing checks . [; and
(b) The penalties that may be imposed by the Commissioner for a violation of the provisions of this chapter or the regulations adopted pursuant thereto.]
2. The Commissioner shall adopt such other regulations as are necessary to carry out the provisions of this chapter.
Sec. 53. NRS 604.180 is hereby amended to read as follows:
604.180 It is unlawful for a [registrant] licensee to:
1. Use or threaten to use the criminal process in this or any other state, or any civil process not available to creditors generally, to collect on a deferred deposit.
2. Make a loan made in the form of a deferred deposit that exceeds one-third of the borrowers expected monthly net income during the term of the deferred deposit unless justified by particular circumstances.
κ2005 Statutes of Nevada, Page 1865 (CHAPTER 427, SB 431)κ
deferred deposit unless justified by particular circumstances. A [registrant] licensee is not in violation of the provisions of this subsection if the borrower presents evidence of monthly net income to the [registrant] licensee and represents to the [registrant] licensee in writing that the deferred deposit does not exceed one-third of the borrowers expected monthly net income during the term of the deferred deposit.
3. Charge to cash a check representing the proceeds of a deferred deposit.
4. Make more than one loan in the form of a deferred deposit to the same borrower at one time unless the borrower is seeking multiple loans in the form of a deferred deposit that do not exceed the limit set forth in subsection 2.
5. Establish or extend the period for the repayment, renewal, refinancing or consolidation of an outstanding loan made in the form of a deferred deposit to the same borrower beyond 10 weeks after the expiration of the initial loan period.
6. Accept any collateral for a loan made in the form of a deferred deposit.
7. Include in the written agreement required by NRS 604.164 for a loan made in the form of a deferred deposit:
(a) A promise by the borrower to hold the lender harmless;
(b) A confession of judgment by the borrower;
(c) An assignment or order for payment of wages or other compensation due the borrower; or
(d) A waiver of any claim or defense arising out of the agreement or a waiver of any provision of this chapter.
Sec. 54. NRS 604.190 is hereby amended to read as follows:
604.190 1. The Commissioner shall charge and collect from each [registrant] licensee a fee of [$40] not more than $80 per hour for any supervision, examination, audit, investigation or hearing conducted pursuant to this chapter or any regulations adopted pursuant to this chapter.
2. The Commissioner shall bill each [registrant] licensee upon the completion of the activity for the fee [established] required pursuant to subsection 1. The fee must be paid within 30 days after the date the bill is received. Except as otherwise provided in this subsection, any payment received after the date due must include a penalty of 10 percent of the fee plus an additional 1 percent of the fee for each month, or portion of a month, that the fee is not paid. The Commissioner may waive the penalty for good cause.
3. The failure of a [registrant] licensee to pay the fee required pursuant to subsection 1 as provided in this section constitutes grounds for revocation of the [certificate of registration] license of the [registrant.] licensee.
4. The Commissioner shall adopt regulations establishing the amount of the fee required pursuant to this section.
Sec. 55. Chapter 649 of NRS is hereby amended by adding thereto the provisions set forth as sections 56 to 58, inclusive, of this act.
Sec. 56. (Deleted by amendment.)
Sec. 56.5. 1. A person who is not licensed in this State as a collection agency may apply to the Commissioner for a certificate of registration as a foreign collection agency.
2. To be issued and to hold a certificate of registration as a foreign collection agency, a person:
κ2005 Statutes of Nevada, Page 1866 (CHAPTER 427, SB 431)κ
(a) Must hold a license or permit to do business as a collection agency in another state;
(b) Must meet the qualifications to do business as a collection agency in this State;
(c) Must not have any employees or agents present in this State who engage in the collection of claims and must not maintain any business locations in this State as a collection agency;
(d) Must submit proof to the Commissioner, upon application and upon each annual renewal of the certification of registration, that the person and his employees and agents will not, in this State:
(1) Engage in the business of soliciting the right to collect or receive payment for another of any claim; or
(2) Advertise or solicit, either in print, by letter, in person or otherwise, the right to collect or receive payment for another of any claim;
(e) When collecting claims against debtors who are present in this State, must:
(1) Limit his activities and those of his employees and agents to interstate communications by telephone, mail or facsimile; and
(2) Comply with the requirements of NRS 649.305 to 649.375, inclusive, with regard to his activities and those of his employees and agents;
(f) Must pay:
(1) A fee to apply for a certificate of registration of not less than $200 and not more than $600, prorated on the basis of the registration year as determined by the Commissioner; and
(2) An annual renewal fee of not more than $200;
(g) Must deposit and maintain a bond or an appropriate substitute for the bond in the same manner as an applicant or licensee pursuant to NRS 649.105, 649.115 and 649.119;
(h) Must maintain his accounts, books and records in accordance with generally accepted accounting principles and in accordance with the requirements of subsection 1 of NRS 649.335; and
(i) Must pay any fees related to any examination of his accounts, books and records conducted by the Commissioner pursuant to subsection 3.
3. The Commissioner may conduct an annual examination and any additional examinations pursuant to NRS 649.335 of the accounts, books and records of each person who holds a certificate of registration as a foreign collection agency.
4. The Commissioner may take disciplinary action pursuant to NRS 649.385, 649.390 and 649.395 against a person who holds a certificate of registration as a foreign collection agency for any act or omission that would be grounds for taking such disciplinary action under those sections.
5. The Commissioner shall adopt:
(a) Regulations establishing the amount of the fees required pursuant to this section; and
(b) Any other regulations as may be necessary to carry out the provisions of this section.
Sec. 57. 1. If a holder of a license or managers certificate fails to submit any report required pursuant to this chapter or any regulation adopted pursuant thereto within the prescribed period, the Commissioner may impose and collect a fee of not more than $10 for each day the report is overdue.
κ2005 Statutes of Nevada, Page 1867 (CHAPTER 427, SB 431)κ
2. The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this section.
Sec. 58. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:
1. Without a license or certificate, conducts any business or activity for which a license or certificate is required pursuant to the provisions of this chapter; or
2. Violates any provision of this chapter or any regulation adopted pursuant thereto.
Sec. 59. NRS 649.020 is hereby amended to read as follows:
649.020 1. Collection agency means and includes all persons engaging, directly or indirectly, and as a primary or a secondary object, business or pursuit, in the collection of or in soliciting or obtaining in any manner the payment of a claim owed or due or asserted to be owed or due to another.
2. Collection agency does not include any of the following unless they are conducting collection agencies:
(a) Individuals regularly employed on a regular wage or salary, in the capacity of credit men or in other similar capacity upon the staff of employees of any person not engaged in the business of a collection agency or making or attempting to make collections as an incident to the usual practices of their primary business or profession.
(b) Banks.
(c) Nonprofit cooperative associations.
(d) Abstract companies doing an escrow business.
(e) Duly licensed real estate [agents.] brokers.
(f) Attorneys and counselors at law licensed to practice in this State, so long as they are retained by their clients to collect or to solicit or obtain payment of such clients claims in the usual course of the practice of their profession [.] and the collection, solicitation or obtainment is incidental to the usual course of the practice of their profession.
Sec. 59.5. NRS 649.075 is hereby amended to read as follows:
649.075 1. Except as otherwise provided in [subsection 2,] this section, a person shall not conduct within this State a collection agency or engage within this State in the business of collecting claims for others, or of soliciting the right to collect or receive payment for another of any claim, or advertise, or solicit, either in print, by letter, in person or otherwise, the right to collect or receive payment for another of any claim, or seek to make collection or obtain payment of any claim on behalf of another without having first applied for and obtained a license from the Commissioner.
2. A person is not required to obtain a license if:
(a) The collection agency he works for is located outside of this State;
(b) His activities in this State are limited to the collection of claims from residents of this State on behalf of residents of another state; and
(c) His contact with persons in this State is limited to interstate communications by telephone, mail or facsimile.
3. A person is not required to obtain a license if the person holds a certificate of registration as a foreign collection agency issued by the Commissioner pursuant to section 56.5 of this act.
κ2005 Statutes of Nevada, Page 1868 (CHAPTER 427, SB 431)κ
Sec. 60. NRS 649.095 is hereby amended to read as follows:
649.095 1. An application for a license must be in writing and filed with the Commissioner on a form provided for that purpose.
2. The application must state:
(a) The name of the applicant and the name under which the applicant does business or expects to do business.
(b) The address of the applicants business and residence, including street and number.
(c) The character of the business sought to be carried on.
(d) The locations by street and number where the business will be transacted.
(e) If the applicant is a natural person, the social security number of the applicant.
(f) In the case of a firm or partnership, the full names and residential addresses of all members or partners and the name and residential address of the manager.
(g) In the case of a corporation or voluntary association, the name and residential address of each of the directors and officers and the name and residential address of the manager.
(h) Any other information reasonably related to the applicants qualifications for the license which the Commissioner determines to be necessary.
3. In addition to any other requirements, each applicant or member, partner, director, officer or manager of an applicant shall submit to the Commissioner a complete set of his fingerprints and written permission authorizing the Division of Financial Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
4. The application must be subscribed by the applicant and acknowledged.
[4.] 5. Every applicant may be examined concerning his competency, experience, character and qualifications by the Commissioner or his authorized agent, and if the examination reveals that the applicant lacks any of the required qualifications, issuance of the license must be denied. Every application must have attached to it a financial statement showing the assets, liabilities and net worth of the applicant.
6. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 61. NRS 649.095 is hereby amended to read as follows:
649.095 1. An application for a license must be in writing and filed with the Commissioner on a form provided for that purpose.
2. The application must state:
(a) The name of the applicant and the name under which the applicant does business or expects to do business.
κ2005 Statutes of Nevada, Page 1869 (CHAPTER 427, SB 431)κ
(b) The address of the applicants business and residence, including street and number.
(c) The character of the business sought to be carried on.
(d) The locations by street and number where the business will be transacted.
(e) In the case of a firm or partnership, the full names and residential addresses of all members or partners and the name and residential address of the manager.
(f) In the case of a corporation or voluntary association, the name and residential address of each of the directors and officers and the name and residential address of the manager.
(g) Any other information reasonably related to the applicants qualifications for the license which the Commissioner determines to be necessary.
3. The application must be subscribed by the applicant and acknowledged.
4. Every applicant may be examined concerning his competency, experience, character and qualifications by the Commissioner or his authorized agent, and if the examination reveals that the applicant lacks any of the required qualifications, issuance of the license must be denied. Every application must have attached to it a financial statement showing the assets, liabilities and net worth of the applicant.
5. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 62. NRS 649.105 is hereby amended to read as follows:
649.105 1. An applicant for a license must file with the Commissioner, concurrently with the application, a bond in the sum of [$25,000,] $35,000, or an appropriate substitute pursuant to NRS 649.119, which must run to the State of Nevada. The bond must be made and executed by the principal and a surety company authorized to write bonds in the State of Nevada.
2. The bonds must be conditioned:
(a) That the principal, who must be the applicant, must, upon demand in writing, pay any customer from whom any claim for collection is received, the proceeds of the collection, in accordance with the terms of the agreement made between the principal and the customer; and
(b) That the principal must comply with all requirements of this or any other statute with respect to the duties, obligations and liabilities of collection agencies.
3. Not later than 3 months after the issuance of the license and semiannually thereafter, the Commissioner shall determine the appropriate amount of bond or appropriate substitute which must be maintained by the licensee in accordance with the licensees average monthly balance in the trust account maintained pursuant to NRS 649.355:
κ2005 Statutes of Nevada, Page 1870 (CHAPTER 427, SB 431)κ
AMOUNT OF
AVERAGE MONTHLY BALANCE BOND REQUIRED
Less than $100,000....................................................... [$25,000] $35,000
$100,000 or more but less than $150,000..................... [30,000] 40,000
$150,000 or more but less than $200,000..................... [40,000] 50,000
$200,000 or more............................................................... [50,000] 60,000
Sec. 63. NRS 649.119 is hereby amended to read as follows:
649.119 1. An applicant for a license may deposit with any bank or trust company authorized to do business in this State, with the permission of the Commissioner, as a substitute for the surety bond required by NRS 649.105:
(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, 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.
Κ The deposit must be in a form approved by the Commissioner.
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. With the approval of the Commissioner, the depositor may substitute other suitable obligations for those deposited which must be assigned to the State of Nevada and are negotiable only upon approval by the Commissioner.
3. Any interest or dividends earned on the deposit accrue to the account of the depositor.
4. The deposit must be an amount at least equal to the required surety bond and must state that the amount may not be withdrawn except by direct and sole order of the Commissioner.
5. An applicant is not relieved of the obligation to file the required surety bond until the Commissioner has had a reasonable amount of time to verify whether a deposit made pursuant to this section qualifies as a substitute for the required surety bond.
Sec. 64. NRS 649.196 is hereby amended to read as follows:
649.196 1. Each applicant for a managers certificate must submit proof satisfactory to the Commissioner that he:
(a) Is a citizen of the United States or lawfully entitled to remain and work in the United States.
(b) Is at least 21 years of age.
(c) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business of a collection agency in a manner which protects the interests of the general public.
(d) Has not committed any of the acts specified in NRS 649.215.
(e) Has not had a collection agency license or managers certificate suspended or revoked within the 10 years immediately preceding the date of filing the application.
(f) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
κ2005 Statutes of Nevada, Page 1871 (CHAPTER 427, SB 431)κ
(g) Has had not less than 2 years full-time experience with a collection agency in the collection of accounts assigned by creditors who were not affiliated with the collection agency except as assignors of accounts. At least 1 year of the 2 years of experience must have been within the 18-month period preceding the date of filing the application.
2. Each applicant must:
(a) Pass the examination or reexamination provided for in NRS 649.205.
(b) Pay the required fees.
(c) Submit, in such form as the Commissioner prescribes:
(1) Three recent photographs; and
(2) Three complete sets of his fingerprints which the Commissioner may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
(d) Submit such other information reasonably related to his qualifications for the managers certificate as the Commissioner determines to be necessary.
3. The Commissioner may refuse to issue a managers certificate if the applicant does not meet the requirements of subsections 1 and 2.
4. If the Commissioner refuses to issue a managers certificate pursuant to this section, he shall notify the applicant in writing by certified mail stating the reasons for the refusal. The applicant may submit a written request for a hearing within 20 days after he receives the notice. If the applicant fails to submit a written request within the prescribed period, the Commissioner shall enter a final order.
5. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 65. NRS 649.205 is hereby amended to read as follows:
649.205 1. The Commissioner shall provide for managers examinations at such times and places as he may direct, at least twice each year.
2. The examinations must be of a length, scope and character which the Commissioner deems reasonably necessary to determine the fitness of the applicants to act as managers of collection agencies.
3. If an applicant does not pass the examination, the applicant must reapply to take the examination and pay a reexamination fee of not more than $100 for each subsequent examination. The Commissioner shall adopt regulations establishing the amount of the reexamination fee required pursuant to this subsection.
4. The Commissioner may make such rules and regulations as may be necessary to carry out the purposes of this section.
Sec. 66. NRS 649.295 is hereby amended to read as follows:
649.295 1. A nonrefundable fee of [$250] not more than $500 for the application and survey must accompany each new application for a license as a collection agency. [The] Each applicant shall also pay [such] any additional expenses incurred in the process of investigation .
κ2005 Statutes of Nevada, Page 1872 (CHAPTER 427, SB 431)κ
additional expenses incurred in the process of investigation . [as the Commissioner deems necessary.] All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.
2. A fee of not less than [$100 nor] $200 or more than [$300,] $600, prorated on the basis of the licensing year as provided by the Commissioner, must be charged for each original license issued. A fee of [$200] not more than $500 must be charged for each annual renewal of a license.
3. A fee of [$10] not more than $20 must be charged for each duplicate license or license for a transfer of location issued.
4. A nonrefundable application fee of not more than $500 and a nonrefundable investigation fee of [$75] not more than $150 must accompany each application for a managers certificate . [unless the applicant is the holder of or an applicant for a license as a collection agency.]
5. A fee of [$20] not more than $40 must be charged for each managers certificate issued and for each annual renewal of such a certificate.
6. A fee of [$30] not more than $60 must be charged for the reinstatement of a managers certificate.
7. A fee of [$5] not more than $10 must be charged for each day an application for the renewal of a license or certificate, or a required report, is filed late, unless the fee or portion thereof is excused by the Commissioner for good cause shown.
8. A nonrefundable fee of [$125] not more than $250 for the application and an examination must accompany each application for a permit to operate a branch office of a licensed collection agency. A fee of [$100] not more than $500 must be charged for each annual renewal of such a permit.
9. For each examination the Commissioner shall charge and collect from the licensee a fee for conducting the examination and preparing and typing the report of the examination at the rate established pursuant to NRS 658.101. Failure to pay the fee within 30 days after receipt of the bill is a ground for revoking the collection agencys license.
10. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
11. Except as otherwise provided in subsection 1, all money received by the Commissioner pursuant to this chapter must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
Sec. 67. NRS 649.365 is hereby amended to read as follows:
649.365 1. A collection agency licensed under this chapter must obtain the approval of the Commissioner before using or changing a business name.
2. A collection agency licensed under this chapter shall not:
[1. Operate under a]
(a) Use any business name which is identical or similar to [that of] a business name used by another collection agency licensed under this chapter [.
2.] or which may mislead or confuse the public.
(b) Use any [name or] printed forms which may mislead or confuse the public.
[3.] (c) Use the term credit bureau in its name unless it operates a bona fide credit bureau in conjunction with its collection agency business.
κ2005 Statutes of Nevada, Page 1873 (CHAPTER 427, SB 431)κ
For purposes of this [subsection] paragraph, credit bureau means any person engaged in gathering, recording and disseminating information relative to the creditworthiness, financial responsibility, paying habits or character of persons being considered for credit extension [,] for prospective creditors.
Sec. 68. Chapter 673 of NRS is hereby amended by adding thereto the provisions set forth as sections 69 to 71.5, inclusive, of this act.
Sec. 69. 1. In addition to any other requirements set forth in this chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.
(2) Has not made a false statement of material fact on the application for the license.
(3) Has not committed any of the acts specified in subsection 2.
(4) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.
(5) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(b) A complete set of his fingerprints and written permission authorizing the Division of Financial Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.
(b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.
Sec. 70. In addition to any other lawful reasons, the Commissioner may suspend or revoke a license if the licensee has engaged in any act that would be grounds for denying a license pursuant this chapter.
Sec. 71. 1. A licensee must obtain the approval of the Commissioner before using or changing a business name.
2. A licensee shall not:
(a) Use any business name which is identical or similar to a business name used by another licensee under this chapter or which may mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
Sec. 71.5. 1. For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the Commissioner or his duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:
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investigate the business and examine the books, accounts, papers and records used therein of:
(a) Any association;
(b) Any other person engaged in an activity regulated pursuant to the provisions of this chapter; and
(c) Any person whom the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter.
2. For the purpose of examination, the Commissioner or his authorized representatives must have and be given free access to the offices and places of business, files, safes and vaults of such persons.
3. The Commissioner may require the attendance of any person and examine him under oath regarding:
(a) Any transaction or business regulated pursuant to the provisions of this chapter; or
(b) The subject matter of any audit, examination, investigation or hearing.
Sec. 72. NRS 673.080 is hereby amended to read as follows:
673.080 1. The Secretary of State shall not issue any certificate to an association or company authorizing it to do business until the articles of association, agreement or incorporation are approved by the Commissioner.
2. No amendment to the articles of the organization may be filed by the Secretary of State without the written approval of the articles by the Commissioner.
3. No association may sell, offer for sale, negotiate for the sale of, take subscriptions for, or issue any of its common or preferred stock until it has first applied for and secured from the Commissioner approval of an application for permission to organize as provided for in this section.
4. Persons who desire to organize an association in accordance with this chapter shall first execute in triplicate an application, in the form prescribed by the Commissioner, for permission to organize an association before taking any other action in connection with the organization. Upon execution of an application for permission to organize by seven responsible citizens, referred to in this section as applicants, the original and two copies of the application must be submitted to the Commissioner. The applicants shall submit with their application the names and addresses of the applicants, the location of the proposed office, an itemized account of the financial condition of the proposed association and of the applicants, the amount and character of the proposed stock, statements, exhibits, maps and such additional information as the Commissioner requires, together with an affidavit that the representations made thereby are consistent with the facts to the best of the applicants information and belief. This data must be sufficiently detailed and comprehensive to enable the Commissioner to pass upon the application as to:
(a) The character and responsibility of the applicants;
(b) The need for the association in the community to be served;
(c) The reasonable probability of its usefulness and success; and
(d) Whether such an association can be established without undue injury to any properly conducted existing savings and loan institutions.
5. If the Commissioner approves the application he shall, within 30 days, notify all associations within 100 miles of the community where the applicant intends to establish an association.
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applicant intends to establish an association. Any association so notified may, within 20 days, protest in writing the granting of the application. Within 30 days after receipt by the Commissioner of a written protest, the Commissioner shall fix a date for a hearing upon the protest, and the hearing must be held not earlier than 30 days nor more than 60 days after the date of receipt of written notice by registered or certified mail by the parties. The Commissioner shall approve or deny the application within 90 days after the date of the conclusion of the hearing and give all parties written notice of his decision on or before that date.
6. If the Commissioner approves the application, he shall establish as conditions to be met before the issuance of a charter requirements as to:
(a) The minimum number of shares of common or preferred stock to be subscribed to the associations permanent capital;
(b) The minimum amount of paid‑in surplus;
(c) The minimum amount of investment certificates to be paid into the associations savings accounts upon issuance of a charter to it; and
(d) Such other requirements as he deems necessary or desirable.
Κ At least 75 percent of the capital must be subscribed by bona fide residents of this State or a depository institution or holding company qualified pursuant to the provisions of chapter 666 of NRS or NRS 666A.010 to 666A.400, inclusive. Approval of an application for permission to organize an association does not in any manner obligate the Commissioner to issue a charter, except that when all requirements of this chapter and of the Commissioner have been fulfilled, he shall issue a charter.
7. The charter expires 180 days after issuance, unless, within that time, the association has obtained insurance of accounts from the Federal Deposit Insurance Corporation. The Commissioner may, for good cause, extend the time of the conditional expiration of the charter for an additional period or periods not exceeding 360 days in the aggregate.
8. An association shall not sell or issue any of its permanent stock until it has first applied for and secured from the Commissioner a license authorizing it to operate as a savings and loan association pursuant to the laws of this State and until it has applied for and secured insurance of accounts in accordance with the regulations of the Federal Deposit Insurance Corporation. This insurance of accounts must be maintained at all times.
9. The Commissioner may extend the time for any hearing provided for in this section, to the time agreed upon by the parties.
10. The filing fees are:
(a) For filing an original application, [$2,000] not more than $4,000 for the principal office. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.
(b) If the license is approved for issuance, [$1,000] not more than $2,000 for the principal office before issuance.
11. The Commissioner may impose conditions requiring the impoundment of proceeds from the sale of any stock, limiting the expense in connection with the sale of stock, and such other conditions as are reasonable and necessary or advisable to insure the disposition of the proceeds from the sale of the stock in the manner and for the purposes provided in the permission to organize.
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12. Every permission to organize issued by the Commissioner must recite in bold type that its issuance is permissive only and does not constitute a recommendation or endorsement of the organization or of the stock permitted to be issued.
13. Any corporation applying pursuant to this section or authorized to organize or authorized to establish a savings and loan association shall provide for a minimum par value of its permanent capital stock of at least $1 in its articles of incorporation. Par value of permanent capital stock may not be reduced below $1 without written permission of the Commissioner.
14. The removal of the home office or of any branch office of an association to any other location from its then existing location requires prior approval of the Commissioner. An application seeking approval must be delivered to the Commissioner, together with a fee to cover expenses attendant upon the investigation required for the approval, which must be [in an amount,] not less than [$100, to be determined by the Commissioner.] $200. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.
15. An association shall not pay any commissions or other compensation for the subscription to or sale of the original issue of its stock.
16. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
17. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 73. NRS 673.112 is hereby amended to read as follows:
673.112 1. A branch office is a legally established place of business of an association, other than the home office, which is authorized by the board of directors and approved by the Commissioner and at which any of the associations business may be conducted.
2. All branch offices are subject to direction from the home office.
3. No association may establish or maintain a branch office without prior written approval of the Commissioner. Each application for approval of the establishment and maintenance of a branch office must:
(a) State the proposed location thereof, the need therefor, the functions to be performed therein, the estimated annual expense thereof and the mode of payment therefor.
(b) Be accompanied by a budget of the association for the current semiannual period and for the next succeeding semiannual period, which reflects the estimated additional expense of the maintenance of the branch office.
4. After receipt of an application the Commissioner shall determine:
(a) Whether the establishment and maintenance of the branch office will unduly injure any properly conducted existing association in the community where the branch office is proposed to be established or in any neighboring community; and
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(b) Whether or not the establishment and maintenance of the branch office will serve the public interest.
5. Before issuance of a charter for a branch office, the Commissioner shall notify all associations doing business within a radius of 100 miles of the principal place of business of the applicant, and within a radius of 100 miles of the proposed branch office. Any association so notified may, within 20 days, protest in writing the granting of the application. Within 30 days after receipt by the Commissioner of a written protest, the Commissioner shall fix a date for a hearing upon the protest. The hearing must be held not earlier than 60 days nor more than 90 days after the date of receipt of written notice by registered or certified mail by the parties.
6. If the Commissioner finds that no undue injury is likely to result, that the establishment and maintenance of the branch office is advisable and will serve the public interest, he may approve the application.
7. Approval of an associations application for a branch office charter permits the association to establish an operating office in a temporary or a permanent building, if the building is placed on or erected at the approved location within 12 months after the approval.
8. For good cause and after notice to the association, the Commissioner may revoke his approval for the maintenance of a branch office. Failure to establish a branch office in the manner and within the time permitted under this section constitutes a good cause for revocation, unless a prior, written request for a waiver of the time limitation is sought by the association and an extension, in writing, is granted by the Commissioner.
9. An association which maintains one or more branch offices shall give each branch office a specific designation by name and include in the designation the word branch and shall prominently display the designation at the place of business of the branch. When an association is operating a branch office, all advertising of or by the branch office must state clearly the location of the principal office of the association.
10. The filing fees are:
(a) For filing an original application, [$200] not more than $400 for each branch office. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.
(b) If the license is approved for issuance, [$100] not more than $200 for each branch office before issuance.
11. The Commissioner shall adopt regulations establishing the amount of the filing fees required pursuant to this section.
Sec. 74. NRS 673.260 is hereby amended to read as follows:
673.260 1. The license [mentioned] specified in NRS 673.250 authorizes the company, association or corporation to whom it is issued to sell its approved securities and contracts within this State for the remainder of the fiscal year ending on June 30 next succeeding. Each license is renewable, under like restrictions, annually thereafter.
2. For the issuing of any license provided for in NRS 673.250 and for any renewal thereof, the fee of the Commissioner is:
(a) For each home office, [$200.] not more than $400; and
(b) For each branch office, [$100.] not more than $200.
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3. The fees must accompany the license renewal application. A penalty of 10 percent of the fee payable must be charged for each month or part thereof that the fees are not paid after June 30 of each year.
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All sums [so] received by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
Sec. 75. NRS 673.270 is hereby amended to read as follows:
673.270 1. No person may, as a soliciting agent, soliciting representative or employee of any foreign or domestic company, association or corporation, or in any other capacity, sell or solicit sales for any securities such as investment certificates or savings accounts or contract for the sale of securities until he is first licensed as a salesman or solicitor for sales of those securities by the Commissioner.
2. No person may be licensed for a period of more than 1 year, and he may not be licensed until he has [first] satisfied the [Commissioner as to his personal integrity.] requirements set forth in section 69 of this act.
3. For the issuing of any license provided for in this section and for any renewal thereof, the fee of the Commissioner [is $5.] must not be more than $10.
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All sums [so] received by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
[4.] 5. Tellers or other employees of an insured savings and loan association are exempt from the licensing requirements unless their employment entails soliciting sales outside their respective offices as commission salesmen.
6. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 76. NRS 673.430 is hereby amended to read as follows:
673.430 1. Each association doing business in this State shall file annually with the Commissioner on or before March 1, a sworn statement in two sections.
2. One section of the annual report must contain, in such form and detail as the Commissioner may prescribe, the following:
(a) The amount of authorized capital by classes and the par value of each class of stock.
(b) A statement of its assets, liabilities and capital accounts as of the immediately preceding December 31.
(c) Any other facts which the Commissioner requires.
Κ This section must be furnished in duplicate, one certified copy to be returned for publication at least two times in a newspaper having a general circulation in each county in which the association maintains an office.
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Publication must be completed on or before May 1, and proof of publication must be filed in the Office of the Commissioner.
3. One section of the annual report must contain such other information as the Commissioner may require to be furnished. This section need not be published and must be treated as confidential by the Commissioner.
4. The Commissioner may impose and collect a [penalty of $5] fee of not more than $10 for each day the annual report is overdue . [, up to a maximum of $500.] The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this subsection. Every association shall pay to the Commissioner for supervision and examination a fee based on the rate established pursuant to NRS 658.101.
5. All sums [so] received by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
Sec. 77. NRS 673.460 is hereby amended to read as follows:
673.460 1. Whenever in connection with an examination it is necessary or expedient that the Commissioner or his deputy, or both, leave this State, there must be assessed against the organization under examination a fee of [$25] not more than $50 per day for each person while without the State in connection with an examination, together with all actual and necessary expenses.
2. The fee charged must be remitted to the Commissioner, who shall deposit the fees in the State Treasury pursuant to the provisions of NRS 658.091.
3. The Commissioner shall adopt regulations establishing the amount of the fee required pursuant to this section.
Sec. 78. NRS 673.4845 is hereby amended to read as follows:
673.4845 1. An association may reorganize, merge or consolidate with another state or federal association, if the reorganization, merger or consolidation is based upon a plan which has been adopted by the board of directors and approved at a regular or special stockholders meeting which has been called to consider the action. The approval must rest on a favorable vote of a majority of the voting power of the association as established by its articles.
2. Any such plan for reorganization, merger or consolidation must be approved by the Commissioner, who shall satisfy himself that the plan, if approved, would be equitable for the stockholders of the affected association or associations and would not impair the usefulness or success of other properly conducted associations in the community. In submitting an application for approval of any such plan, each association proposing to reorganize, merge or consolidate must provide a comprehensive review of its present financial statement and a projected view of the financial statement of the reorganized, merged or consolidated association.
3. Unless its action is specifically authorized by or taken in conformity with this chapter, no association may, directly or indirectly:
(a) Reorganize, merge or consolidate.
(b) Assume liability to pay savings accounts or other liabilities of any financial institution or any other organization, person or entity.
(c) Transfer assets to any financial institution or any other organization, person or entity in consideration of the transferees assumption of liability for any portion of the transferors savings accounts, deposits or other liability.
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(d) Acquire the assets of any financial institution or any other organization, person or entity.
4. Each application which is made under this section must be accompanied by a fee payment of [$150.] not more than $300. The responsibility for payment of the fee must be shared equally by the associations participating in each proposed plan.
5. The Commissioner shall adopt regulations establishing the amount of the fee required pursuant to this section.
Sec. 79. NRS 673.630 is hereby amended to read as follows:
673.630 1. After the holding of the meeting of stockholders, the state company, association or corporation shall take such action, in the manner prescribed or authorized by the laws of the United States or the rules and regulations promulgated pursuant thereto, as shall make it a federal savings and loan association, and there shall thereupon be filed in the Office of the Commissioner a copy of the charter of authorization issued to the association by the [Federal Home Loan Bank Board] supervising federal regulatory body or a certificate showing the organization of the association as a federal savings and loan association, certified by the [Federal Home Loan Bank Board.] supervising federal regulatory body. Upon filing with the Commissioner, the association ceases to be a state savings and loan association, but retains all rights, privileges and exemptions of a domestic association of the same kind and character.
2. A fee of [$20] not more than $40 must accompany the copy of the charter of authorization.
3. Federal associations so converted and their members are subject to the same form of taxation and on the same basis as state associations and their stockholders.
4. The Commissioner shall adopt regulations establishing the amount of the fee required pursuant to this section.
Sec. 80. NRS 673.820 is hereby amended to read as follows:
673.820 In addition to any other remedy or penalty:
1. Any association which violates any provisions of this chapter or fraudulently misrepresents the terms of any contract or of any securities, and thereby secures a sale therefor, shall be punished by [a] an administrative fine of not [exceeding $1,000] more than $10,000 and forfeiture and revocation of all licenses issued to it under the provisions of this chapter.
2. The Commissioner may impose an administrative fine of not more than $10,000 upon a person who:
(a) Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or
(b) Violates any provision of this chapter or any regulation adopted pursuant thereto.
Sec. 81. Chapter 675 of NRS is hereby amended by adding thereto the provisions set forth as sections 82 to 85, inclusive, of this act.
Sec. 82. 1. In addition to any other requirements set forth in this chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.
(2) Has not made a false statement of material fact on the application for the license.
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(3) Has not committed any of the acts specified in subsection 2.
(4) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.
(5) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(6) If the applicant is a natural person:
(I) Is at least 21 years of age; and
(II) Is a citizen of the United States or lawfully entitled to remain and work in the United States.
(b) A complete set of his fingerprints and written permission authorizing the Division of Financial Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.
(b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.
Sec. 83. In addition to any other lawful reasons, the Commissioner may suspend or revoke a license if the licensee has engaged in any act that would be grounds for denying a license pursuant this chapter.
Sec. 84. 1. A licensee must obtain the approval of the Commissioner before using or changing a business name.
2. A licensee shall not:
(a) Use any business name which is identical or similar to a business name used by another licensee under this chapter or which may mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
Sec. 85. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who, without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter.
Sec. 86. NRS 675.090 is hereby amended to read as follows:
675.090 1. Application for a license must be in writing, under oath, and in the form prescribed by the Commissioner.
2. The application must:
(a) Provide the address of the office or other place of business for which the application is submitted.
(b) Contain such further relevant information as the Commissioner may require, including the names and addresses of the partners, officers, directors or trustees, and of such of the principal owners or members as will provide the basis for the investigations and findings contemplated by NRS 675.110 and 675.120.
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3. A person may apply for a license for an office or other place of business located outside this State from which the applicant will conduct business in this State if the applicant or a subsidiary or affiliate of the applicant has a license issued pursuant to this chapter for an office or other place of business located in this State and if the applicant submits with the application for a license a statement signed by the applicant which states that the applicant agrees to:
(a) Make available at a location within this State the books, accounts, papers, records and files of the office or place of business located outside this State to the Commissioner or a representative of the Commissioner; or
(b) Pay the reasonable expenses for travel, meals and lodging of the Commissioner or a representative of the Commissioner incurred during any investigation or examination made at the office or place of business located outside this State.
Κ The person must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.
4. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 87. NRS 675.100 is hereby amended to read as follows:
675.100 1. At the time of making the application, the applicant shall pay to the Commissioner [a] :
(a) A nonrefundable fee of [$500] not more than $1,000 for the application and survey [. The applicant shall also pay such] ;
(b) Any additional expenses incurred in the process of investigation as the Commissioner deems necessary [. In addition, a] ; and
(c) A fee of not less than [$100 nor] $200 or more than [$500,] $1,000, prorated on the basis of the licensing year as provided by the Commissioner . [, must be paid at the time of making the application.]
2. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.
Sec. 88. NRS 675.140 is hereby amended to read as follows:
675.140 1. A license expires on December 31 of each year unless renewed by the licensee through the payment, on or before that date, of an annual fee of [$500] not more than $1,000 for each license held by him. The Commissioner may reinstate an expired license upon receipt of the annual fee and a fee of [$200] not more than $400 for reinstatement.
2. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
Sec. 89. NRS 675.440 is hereby amended to read as follows:
675.440 1. If the Commissioner has reason to believe that grounds for revocation or suspension of a license exist, he shall give 20 days written notice to the licensee stating the contemplated action and, in general, the grounds therefor and set a date for a hearing.
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2. At the conclusion of a hearing, the Commissioner shall:
(a) Enter a written order either dismissing the charges, revoking the license, or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. A copy of the order must be sent by registered or certified mail to the licensee.
(b) Impose upon the licensee [a] an administrative fine of [$500] not more than $10,000 for each violation by the licensee of any provision of this chapter or any lawful regulation adopted under it.
(c) If a fine is imposed pursuant to this section, enter such order as is necessary to recover the costs of the proceeding, including his investigative costs and attorneys fees.
3. The grounds for revocation or suspension of a license are that:
(a) The licensee has failed to pay the annual license fee;
(b) The licensee, either knowingly or without any exercise of due care to prevent it, has violated any provision of this chapter or any lawful regulation adopted under it;
(c) The licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS;
(d) Any fact or condition exists which would have justified the Commissioner in denying the licensees original application for a license hereunder; or
(e) The applicant failed to open an office for the conduct of the business authorized under this chapter within 120 days [from] after the date the license was issued, or has failed to remain open for the conduct of the business for a period of 120 days without good cause therefor.
4. Any revocation or suspension applies only to the license granted to a person for the particular office for which grounds for revocation or suspension exist.
5. An order suspending or revoking a license becomes effective 5 days after being entered unless the order specifies otherwise or a stay is granted.
Sec. 90. Chapter 676 of NRS is hereby amended by adding thereto the provisions set forth as sections 91 to 94.5, inclusive, of this act.
Sec. 91. 1. In addition to any other requirements set forth in this chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.
(2) Has not made a false statement of material fact on the application for the license.
(3) Has not committed any of the acts specified in subsection 2.
(4) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.
(5) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(6) If the applicant is a natural person:
(I) Is at least 21 years of age; and
(II) Is a citizen of the United States or lawfully entitled to remain and work in the United States.
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(b) A complete set of his fingerprints and written permission authorizing the Division of Financial Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.
(b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.
Sec. 92. In addition to any other lawful reasons, the Commissioner may suspend or revoke a license if the licensee has engaged in any act that would be grounds for denying a license pursuant this chapter.
Sec. 93. 1. A licensee must obtain the approval of the Commissioner before using or changing a business name.
2. A licensee shall not:
(a) Use any business name which is identical or similar to a business name used by another licensee under this chapter or which may mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
Sec. 94. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who, without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter.
Sec. 94.5. 1. For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the Commissioner or his duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:
(a) A licensee;
(b) Any other person engaged in an activity for which a license is required pursuant to the provisions of this chapter; and
(c) Any person whom the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter.
2. For the purpose of examination, the Commissioner or his authorized representatives shall have and be given free access to the offices and places of business, files, safes and vaults of such persons.
3. The Commissioner may require the attendance of any person and examine him under oath regarding:
(a) Any transaction or business regulated pursuant to the provisions of this chapter; or
(b) The subject matter of any audit, examination, investigation or hearing.
κ2005 Statutes of Nevada, Page 1885 (CHAPTER 427, SB 431)κ
Sec. 95. NRS 676.120 is hereby amended to read as follows:
676.120 1. [Application] An application for a license must be in writing, under oath and in the form prescribed by the Commissioner.
2. The application [shall:] must:
(a) Give the business name, location of the office, names and addresses of all officers and directors, if a corporation or association, and names and addresses of partners, if a copartnership.
(b) Be accompanied by a copy of the fictitious name certificate or the articles of incorporation, where applicable.
(c) Contain such further relevant information as the Commissioner may require.
3. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 96. NRS 676.130 is hereby amended to read as follows:
676.130 1. At the time of making the application, the applicant shall:
(a) Pay to the Commissioner a nonrefundable fee of [$250] not more than $500 for the application and survey. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. In addition, a fee of not less than [$100 nor] $200 or more than [$200,] $400, prorated on the basis of the licensing year as provided by the Commissioner, must be paid at the time of making the application. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this paragraph. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.
(b) Furnish a satisfactory bond to the State of Nevada, executed by an admitted surety company approved by the Commissioner, in the amount of $10,000, or an appropriate substitute pursuant to NRS 676.135, conditioned upon the faithful accounting of all money collected upon accounts and entrusted to the licensee, or its employees or agents.
(c) Provide a blank copy of the debt-adjustment contract which will be used by the licensee in its business.
2. Not later than 3 months after the issuance of the license and thereafter semiannually the Commissioner shall determine the appropriate amount of bond or appropriate substitute which must be maintained by the licensee in accordance with the licensees average monthly balance in the trust account maintained pursuant to NRS 676.220:
AMOUNT OF
AVERAGE MONTHLY BALANCE BOND REQUIRED
Less than $50,000............................................................................ $10,000
$50,000 or more but less than $100,000........................................ 25,000
$100,000 or more but less than $150,000...................................... 30,000
$150,000 or more but less than $200,000...................................... 40,000
$200,000 or more................................................................................ 50,000
κ2005 Statutes of Nevada, Page 1886 (CHAPTER 427, SB 431)κ
Sec. 97. NRS 676.160 is hereby amended to read as follows:
676.160 1. A license expires on December 31 of each year. On or before that date, each licensee may apply to the Commissioner for a renewal of [its] his license.
2. The application must be on the form prescribed by the Commissioner and must be accompanied by a fee of [$200] not less than $400 and a bond, as in the case of the original application.
3. If the application, fee for renewal or bond is filed after December 31, the Commissioner may renew the expired license upon receipt of the application, fee for renewal and bond, and a fee of [$200] not more than $400 for reinstatement.
4. Each license, as renewed, remains in force until surrendered, suspended or revoked as provided in this chapter.
5. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
Sec. 98. NRS 676.290 is hereby amended to read as follows:
676.290 1. The Commissioner may, pursuant to the procedure provided in this chapter, deny, suspend or revoke any license for which application has been made or which has been issued under the provisions of this chapter if he finds, as to the licensee, its associates, directors or officers, grounds for action.
2. Any one of the following grounds may provide the requisite grounds for denial, suspension or revocation:
(a) Conviction of a felony relating to the practice of debt adjusters or of a misdemeanor involving moral turpitude.
(b) Violation of any of the provisions of this chapter or regulations of the Commissioner.
(c) Fraud or deceit in procuring the issuance of the license.
(d) Continuous course of unfair conduct.
(e) Insolvency, filing in bankruptcy, receivership or assigning for the benefit of creditors by any licensee or applicant for a license under this chapter.
(f) Failure to pay a tax as required pursuant to the provisions of chapter 363A of NRS.
(g) Failure to pay the fee for renewal or reinstatement of a license.
3. The Commissioner shall, after notice and hearing, impose upon the licensee [a] an administrative fine of [$500] not more than $10,000 for each violation by the licensee of any of the provisions of this chapter or regulations of the Commissioner. If a fine is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorneys fees, may be recovered by the Commissioner.
Sec. 99. Chapter 677 of NRS is hereby amended by adding thereto the provisions set forth as sections 100 to 103.5, inclusive, of this act.
Sec. 100. 1. In addition to any other requirements set forth in this chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.
(2) Has not made a false statement of material fact on the application for the license.
(3) Has not committed any of the acts specified in subsection 2.
κ2005 Statutes of Nevada, Page 1887 (CHAPTER 427, SB 431)κ
(4) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.
(5) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(b) A complete set of his fingerprints and written permission authorizing the Division of Financial Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.
(b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.
Sec. 101. In addition to any other lawful reasons, the Commissioner may suspend or revoke a license if the licensee has engaged in any act that would be grounds for denying a license pursuant this chapter.
Sec. 102. 1. A licensee must obtain the approval of the Commissioner before using or changing a business name.
2. A licensee shall not:
(a) Use any business name which is identical or similar to a business name used by another licensee under this chapter or which may mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
Sec. 103. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who, without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter.
Sec. 103.5. 1. For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the Commissioner or his duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:
(a) A licensee;
(b) Any other person engaged in an activity for which a license is required pursuant to the provisions of this chapter; and
(c) Any person whom the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter.
2. For the purpose of examination, the Commissioner or his authorized representatives shall have and be given free access to the offices and places of business, files, safes and vaults of such persons.
κ2005 Statutes of Nevada, Page 1888 (CHAPTER 427, SB 431)κ
3. The Commissioner may require the attendance of any person and examine him under oath regarding:
(a) Any transaction or business regulated pursuant to the provisions of this chapter; or
(b) The subject matter of any audit, examination, investigation or hearing.
Sec. 104. NRS 677.160 is hereby amended to read as follows:
677.160 1. The request for authority to engage in business pursuant to this chapter must be set forth in an application in such form and containing such information as the Commissioner requires.
2. The filing fees are:
(a) For filing an original application, [$1,000] not more than $2,000 for the principal office and [$150] not more than $300 for each branch office. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.
(b) If the license is approved for issuance, [$500] not more than $1,000 for the principal office and [$100] not more than $200 for each branch office before issuance.
3. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
4. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 105. NRS 677.360 is hereby amended to read as follows:
677.360 1. A license expires on December 31 of each year. On or before that date, each licensee must pay to the Commissioner [the sum of $500] a fee not more than $1,000 for the renewal of each license held by him. The Commissioner may reinstate an expired license upon receipt of the fee for renewal and a fee of [$200] not more than $400 for reinstatement.
2. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
Sec. 106. NRS 677.510 is hereby amended to read as follows:
677.510 1. If the Commissioner has reason to believe that grounds for revocation or suspension of a license exist, he shall give 20 days written notice to the licensee stating the contemplated action and, in general, the grounds therefor and set a date for a hearing.
2. At the conclusion of a hearing, the Commissioner shall:
(a) Enter a written order either dismissing the charges, or revoking the license, or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. A copy of the order must be sent by registered or certified mail to the licensee.
(b) Impose upon the licensee [a] an administrative fine of [$500] not more than $10,000 for each violation by the licensee of any provision of this chapter or any lawful regulation adopted pursuant thereto.
κ2005 Statutes of Nevada, Page 1889 (CHAPTER 427, SB 431)κ
(c) If a fine is imposed pursuant to this section, enter such order as is necessary to recover the costs of the proceeding, including his investigative costs and attorneys fees.
3. The grounds for revocation or suspension of a license are that:
(a) The licensee has failed to pay the annual license fee;
(b) The licensee, either knowingly or without any exercise of due care to prevent it, has violated any provision of this chapter, or any lawful regulation adopted pursuant thereto;
(c) The licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS;
(d) Any fact or condition exists which would have justified the Commissioner in denying the licensees original application for a license hereunder; or
(e) The applicant failed to open an office for the conduct of the business authorized under this chapter within 120 days [from] after the date the license was issued, or has failed to remain open for the conduct of the business for a period of 120 days without good cause therefor.
4. Any revocation or suspension applies only to the license granted to a person for the particular office for which grounds for revocation or suspension exist.
5. An order suspending or revoking a license becomes effective 5 days after being entered unless the order specifies otherwise or a stay is granted.
Sec. 107. Chapter 678 of NRS is hereby amended by adding thereto the provisions set forth as sections 108 to 111.5, inclusive, of this act.
Sec. 108. 1. In addition to any other requirements set forth in this chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.
(2) Has not made a false statement of material fact on the application for the license.
(3) Has not committed any of the acts specified in subsection 2.
(4) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.
(5) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(b) A complete set of his fingerprints and written permission authorizing the Division of Financial Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.
(b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.
κ2005 Statutes of Nevada, Page 1890 (CHAPTER 427, SB 431)κ
(c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.
Sec. 109. In addition to any other lawful reasons, the Commissioner may suspend or revoke a license if the licensee has engaged in any act that would be grounds for denying a license pursuant this chapter.
Sec. 110. 1. A licensee must obtain the approval of the Commissioner before using or changing a business name.
2. A licensee shall not:
(a) Use any business name which is identical or similar to a business name used by another licensee under this chapter or which may mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
Sec. 111. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:
1. Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or
2. Violates any provision of this chapter or any regulation adopted pursuant thereto.
Sec. 111.5. 1. For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the Commissioner or his duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:
(a) Any credit union;
(b) Any other person engaged in an activity for which a license is required pursuant to the provisions of this chapter; and
(c) Any person whom the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter.
2. For the purpose of examination, the Commissioner or his authorized representatives shall have and be given free access to the offices and places of business, files, safes and vaults of such persons.
3. The Commissioner may require the attendance of any person and examine him under oath regarding:
(a) Any transaction or business regulated pursuant to the provisions of this chapter; or
(b) The subject matter of any audit, examination, investigation or hearing.
Sec. 112. NRS 678.343 is hereby amended to read as follows:
678.343 Each application for an initial certificate of authority submitted by a foreign credit union must be filed with the Commissioner on a form prescribed by him and must include:
1. A copy of the instrument or authority by which the credit union was created and a copy of its bylaws.
2. A statement of its membership, if not contained in its bylaws.
3. A copy of the most recent report submitted by the credit union to the authorized officer of the state in which it was organized.
4. Any other information required by the Commissioner.
κ2005 Statutes of Nevada, Page 1891 (CHAPTER 427, SB 431)κ
5. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 113. NRS 678.3435 is hereby amended to read as follows:
678.3435 1. The Commissioner shall charge and collect a fee of [$500] not more than $1,000 for an initial investigation from each foreign credit union which applies for certification. The fee is not refundable. An annual fee of [$500] not more than $1,000 must be paid by each foreign credit union for its initial office and [$100] not more than $200 for each branch office. Costs for additional examinations and investigations must be paid by the credit union at an hourly rate deemed reasonable by the Commissioner.
2. The Commissioner shall by regulation determine the amount of the fees required pursuant to this section.
Sec. 114. NRS 678.790 is hereby amended to read as follows:
678.790 1. The [Division shall annually conduct or cause to be conducted an] Commissioner shall make a thorough examination of and into the affairs of each credit union organized under the provisions of this chapter [.] , as often as the Commissioner may deem necessary, but at least once within each 18-month period. In lieu thereof, the Commissioner may accept any or all of a report of an examination of a credit union made by a federal regulatory agency. If the Commissioner accepts any part of such a report in one 18-month period, he shall examine the credit union to which the report pertains in the succeeding 18-month period. For the purpose of performing the examination, the [personnel of the Division] Commissioner may:
(a) Subpoena witnesses and documents;
(b) Administer oaths; and
(c) Compel the giving of testimony.
2. The report of the examination must contain comments to the members relative to the management of the affairs of the credit union and the general condition of the assets. Within 30 days following the receipt of the report, the directors shall call a general meeting of key personnel to consider matters contained in the report.
3. The [Division] Commissioner shall forward a copy of the report to the chairman of each credit union within 30 days after it is completed. The board of directors shall inform the members of the credit union of its general condition at the next annual meeting.
4. For each examination the credit union shall pay a fee based on the rate established pursuant to NRS 658.101.
5. The board of directors may engage a certified public accountant to perform such an examination in lieu of the [Division staff.] Commissioner. In such cases, the examination must be equivalent to the type of examination made by the [Division] Commissioner and the expense must be borne by the credit union being inspected.
κ2005 Statutes of Nevada, Page 1892 (CHAPTER 427, SB 431)κ
6. The Commissioner shall determine whether an examination performed by an accountant pursuant to subsection 5 is equivalent to an examination conducted by the [Division.] Commissioner. The Commissioner may examine any area of the operation of a credit union if the Commissioner determines that the examination of that area is not equivalent to an examination conducted by the [Division.] Commissioner.
Sec. 115. 1. If, on October 1, 2005, a person holds a valid certificate of registration that was issued by the Commissioner of Financial Institutions pursuant to chapter 604 of NRS before October 1, 2005, the persons certificate of registration shall be deemed to be a license issued pursuant to chapter 604 of NRS, as amended by the provisions of this act, until the date of its renewal.
2. The amendatory provisions of section 62 of this act shall apply:
(a) On October 1, 2008, to any person who has been issued a license pursuant to NRS 649.095 on or before September 30, 2005.
(b) On October 1, 2005, to any person to whom a license is issued pursuant to NRS 649.095 on or after October 1, 2005.
Sec. 116. 1. This section and sections 1 to 60, inclusive, and 62 to 115, inclusive, of this act become effective on October 1, 2005.
2. The provisions of section 60 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:
(a) Have failed to comply with a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or
(b) Are in arrears in the payment for the support of one or more children,
Κ are repealed by the Congress of the United States.
3. Section 61 of this act becomes effective on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:
(a) Have failed to comply with a subpoena or warrant relating to a procedure to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or
(b) Are in arrears in the payment for the support of one or more children,
Κ are repealed by the Congress of the United States.
________
Senate Bill No. 343Senator Hardy
CHAPTER 428
AN ACT relating to liens; making various changes to the provisions related to mechanicsand materialmens liens; requiring a lessee to record a notice of posted security under certain circumstances; requiring certain lessees to establish a construction disbursement account and obtain the services of a construction control; establishing requirements for administering a construction disbursement account; providing that a lien claimant has a lien against a construction disbursement account under certain circumstances; changing the form for a notice of lien; prohibiting a stay of a district courts ruling on a motion related to a frivolous or excessive notice of lien under certain circumstances; revising the requirements of a notice of nonresponsibility; revising the calculation of interest related to an award of a lienable amount; changing the form of a surety bond posted to release a notice of lien; revising the requirements for bringing an action against a principal and surety; and providing other matters properly relating thereto.
κ2005 Statutes of Nevada, Page 1893 (CHAPTER 428, SB 343)κ
for a notice of lien; prohibiting a stay of a district courts ruling on a motion related to a frivolous or excessive notice of lien under certain circumstances; revising the requirements of a notice of nonresponsibility; revising the calculation of interest related to an award of a lienable amount; changing the form of a surety bond posted to release a notice of lien; revising the requirements for bringing an action against a principal and surety; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 108 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.
Sec. 2. (Deleted by amendment.)
Sec. 3. Construction control has the meaning ascribed to it in NRS 627.050.
Sec. 4. 1. Except as otherwise provided in section 4.5 of this act, before a lessee may cause a work of improvement to be constructed, altered or repaired upon property that he is leasing, the lessee shall:
(a) Record a notice of posted security with the county recorder of the county where the property is located upon which the improvement is or will be constructed, altered or repaired; and
(b) Either:
(1) Establish a construction disbursement account and:
(I) Fund the account in an amount equal to the total cost of the work of improvement, but in no event less than the total amount of the prime contract;
(II) Obtain the services of a construction control to administer the construction disbursement account; and
(III) Notify each person who gives the lessee a notice of right to lien of the establishment of the construction disbursement account as provided in paragraph (f) of subsection 2; or
(2) Record a surety bond for the prime contract that meets the requirements of subsection 2 of NRS 108.2415 and notify each person who gives the lessee a notice of right to lien of the recording of the surety bond as provided in paragraph (f) of subsection 2.
2. The notice of posted security required pursuant to subsection 1 must:
(a) Identify the name and address of the lessee;
(b) Identify the location of the improvement and the address, legal description and assessors parcel number of the property upon which the improvement is or will be constructed, altered or repaired;
(c) Describe the nature of the lessees interest in:
(1) The property upon which the improvement is or will be constructed, altered or repaired; and
(2) The improvement on such property;
(d) If the lessee establishes a construction disbursement account pursuant to subsection 1, include:
(1) The name and address of the construction control;
κ2005 Statutes of Nevada, Page 1894 (CHAPTER 428, SB 343)κ
(2) The date that the lessee obtained the services of the construction control and the total amount of funds in the construction disbursement account; and
(3) The number of the construction disbursement account, if any;
(e) If the lessee records a surety bond pursuant to subsection 1, include:
(1) The name and address of the surety;
(2) The surety bond number;
(3) The date that the surety bond was recorded in the office of the county recorder of the county where the property is located upon which the improvement is or will be constructed, altered or repaired;
(4) The book and the instrument or document number of the recorded surety bond; and
(5) A copy of the recorded surety bond with the notice of posted security; and
(f) Be served upon each person who gives a notice of right to lien within 10 days after receipt of the notice of right to lien, in one of the following ways:
(1) By personally delivering a copy of the notice of posted security to the person who gives a notice of right to lien at the address identified in the notice of right to lien; or
(2) By mailing a copy of the notice of posted security by certified mail, return receipt requested, to the person who gives a notice of right to lien at the address identified in the notice of right to lien.
3. If a lessee fails to satisfy the requirements of subsection 1 of this section or subsection 2 of section 5 of this act, the prime contractor has furnished or will furnish materials or equipment for the work of improvement may stop work. If the lessee:
(a) Satisfies the requirements of subsection 1 of this section or subsection 2 of section 5 of this act within 25 days after any work stoppage, the prime contractor who stopped work shall resume work and the prime contractor and his lower-tiered subcontractors and suppliers are entitled to compensation for any reasonable costs and expenses that any of them have incurred because of the delay and remobilization; or
(b) Does not satisfy the requirements of subsection 1 of this section or subsection 2 of section 5 of this act within 25 days after the work stoppage, the prime contractor who stopped work may terminate his contract relating to the work of improvement and the prime contractor and his lower-tiered subcontractors and suppliers are entitled to recover:
(1) The cost of all work, materials and equipment, including any overhead the prime contractor and his lower-tiered subcontractors and suppliers incurred and profit the prime contractor and his lower-tiered subcontractors and suppliers earned through the date of termination;
(2) The balance of the profit the prime contractor and his lower-tiered subcontractors and suppliers would have earned if the contract had not been terminated;
(3) Any interest, costs and attorneys fees that the prime contractor and his lower-tiered subcontractors and suppliers are entitled to pursuant to NRS 108.237; and
(4) Any other amount awarded by a court or other trier of fact.
4. The rights and remedies provided pursuant to this section are in addition to any other rights and remedies that may exist at law or in equity, including, without limitation, the rights and remedies provided pursuant to NRS 624.606 to 624.630, inclusive.
κ2005 Statutes of Nevada, Page 1895 (CHAPTER 428, SB 343)κ
including, without limitation, the rights and remedies provided pursuant to NRS 624.606 to 624.630, inclusive.
Sec. 4.5. 1. The provisions of sections 4 and 5 of this act do not apply:
(a) In a county with a population of 400,000 or more with respect to a ground lessee who enters into a ground lease for real property which is designated for use or development by the county for commercial purposes which are compatible with the operation of the international airport for the county.
(b) If all owners of the property, individually or collectively, record a written notice of waiver of the owners rights set forth in NRS 108.234 with the county recorder of the county where the property is located before the commencement of construction of the work of improvement.
2. Each owner who records a notice of waiver pursuant to paragraph (b) of subsection 1 must serve such notice by certified mail, return receipt requested, upon the prime contractor of the work of improvement and all other lien claimants who may give the owner a notice of right to lien pursuant to NRS 108.245, within 10 days after the owners receipt of a notice of right to lien or 10 days after the date on which the notice of waiver is recorded pursuant to this subsection.
3. As used in this section:
(a) Ground lease means a written agreement:
(1) To lease real property which, on the date on which the agreement is signed, does not include any existing buildings or improvements that may be occupied on the land; and
(2) That is entered into for a period of not less than 10 years, excluding any options to renew that may be included in any such lease.
(b) Ground lessee means a person who enters into a ground lease as a lessee with the county as record owner of the real property as the lessor.
Sec. 5. 1. If a construction disbursement account is established and funded pursuant to subsection 2 of this section or subsection 1 of section 4 of this act, each lien claimant has a lien upon the funds in the account for an amount equal to the lienable amount owed to him.
2. Upon the disbursement of any funds from the construction disbursement account for a given pay period:
(a) The lessee shall deposit into the account such additional funds as may be necessary to pay for the completion of the work of improvement, including, without limitation, the costs attributable to additional and changed work, material or equipment;
(b) The construction control described in subsection 1 of section 4 of this act shall certify in writing the amount necessary to pay for the completion of the work of improvement; and
(c) If the amount necessary to pay for the completion of the work of improvement exceeds the amount remaining in the construction disbursement account:
(1) The construction control shall give written notice of the deficiency by certified mail, return receipt requested, to the prime contractor and each person who has given the construction control a notice of right to lien; and
(2) The provisions of subsection 3 of section 4 of this act shall be deemed to apply.
κ2005 Statutes of Nevada, Page 1896 (CHAPTER 428, SB 343)κ
3. The construction control shall disburse money to lien claimants from the construction disbursement account for the lienable amount owed such lien claimants.
4. A lien claimant may notify the construction control of a claim of lien by:
(a) Recording a notice of lien pursuant to NRS 108.226; or
(b) Personally delivering or mailing by certified mail, return receipt requested, a written notice of a claim of lien to the construction control within 90 days after the completion of the work of improvement.
5. Except as otherwise provided in subsection 6, the construction control shall pay a legitimate claim of lien upon receipt of the written notice described in subsection 4 from the funds available in the construction disbursement account.
6. The construction control may bring an action for interpleader in the district court for the county where the property or some part thereof is located if:
(a) The construction control reasonably believes that all or a portion of a claim of lien is not legitimate; or
(b) The construction disbursement account does not have sufficient funds to pay all claims of liens for which the construction control has received notice.
7. If the construction control brings an action for interpleader pursuant to paragraph (a) of subsection 6, the construction control shall pay to the lien claimant any portion of the claim of lien that the construction control reasonably believes is legitimate.
8. If an action for interpleader is brought pursuant to subsection 6, the construction control shall:
(a) Deposit with the court an amount equal to one and one-half times the amount of the lien claims to the extent that there are funds available in the construction disbursement account;
(b) Provide notice of the action for interpleader by certified mail, return receipt requested, to each person:
(1) Who gives the construction control a notice of right to lien;
(2) Who serves the construction control with a claim of lien;
(3) Who has performed work or furnished materials or equipment for the work of improvement; or
(4) Of whom the construction control is aware may perform work or furnish materials or equipment for the work of improvement; and
(c) Publish a notice of the action for interpleader once each week, for 3 successive weeks, in a newspaper of general circulation in the county in which the work of improvement is located.
9. A construction control who brings an action for interpleader pursuant to subsection 6 is entitled to be reimbursed from the construction disbursement account for the reasonable costs that he incurred in bringing such action.
10. If a construction control for a construction disbursement account established by a lessee does not provide a proper certification as required pursuant to paragraph (b) of subsection 2 or does not comply with any other requirement of this section, the construction control and its bond are liable for any resulting damages to any lien claimants.
κ2005 Statutes of Nevada, Page 1897 (CHAPTER 428, SB 343)κ
Sec. 6. NRS 108.221 is hereby amended to read as follows:
108.221 As used in NRS 108.221 to 108.246, inclusive, and sections 2 to 5, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 108.22104 to 108.22188, inclusive, and sections 2 and 3 of this act have the meanings ascribed to them in those sections.
Sec. 7. NRS 108.22132 is hereby amended to read as follows:
108.22132 Lien means the statutory rights and security interest in a construction disbursement account established pursuant to section 4 of this act, or property or any improvements thereon provided to a lien claimant by NRS 108.221 to 108.246, inclusive [.] , and sections 2 to 5, inclusive, of this act.
Sec. 8. NRS 108.22144 is hereby amended to read as follows:
108.22144 Material means appliances, equipment, machinery and substances affixed, used or to be used, consumed or incorporated in the improvement of property or the construction, alteration or repair of any improvement, property or work of improvement.
Sec. 8.5. NRS 108.22148 is hereby amended to read as follows:
108.22148 1. Owner includes:
(a) The record owner or owners of the property or an improvement to the property as evidenced by a conveyance or other instrument which transfers that interest to him and is recorded in the office of the county recorder in which the improvement or the property is located;
(b) The reputed owner or owners of the property or an improvement to the property;
(c) The owner or owners of the property or an improvement to the property, as shown on the records of the county assessor for the county where the property or improvement is located;
(d) The person or persons whose name appears as owner of the property or an improvement to the property on the building permit; [or]
(e) A person who claims an interest in or possesses less than a fee simple estate in the property [.] ;
(f) This State or a political subdivision of this State, including, without limitation, an incorporated city or town, that owns the property or an improvement to the property if the property or improvement is used for a private or nongovernmental use or purpose; or
(g) A person described in paragraph (a), (b), (c), (d) or (e) who leases the property or an improvement to the property to this State or a political subdivision of this State, including, without limitation, an incorporated city or town, if the property or improvement is privately owned.
2. The term does not include:
(a) A mortgagee;
(b) A trustee or beneficiary of a deed of trust; [or]
(c) The owner or holder of a lien encumbering the property or an improvement to the property [.] ; or
(d) Except as otherwise provided in paragraph (f) of subsection 1, this State or a political subdivision of this State, including, without limitation, an incorporated city or town.
Sec. 9. NRS 108.2216 is hereby amended to read as follows:
108.2216 Prime contract means a contract between a prime contractor and the owner or lessee of property about which the contract relates.
κ2005 Statutes of Nevada, Page 1898 (CHAPTER 428, SB 343)κ
Sec. 10. NRS 108.22164 is hereby amended to read as follows:
108.22164 Prime contractor means:
1. A person who contracts with an owner or a lessee of property to provide work, materials or equipment to be used for the improvement of the property or in the construction, alteration or repair of a work of improvement; or
2. A person who is an owner of the property, is licensed as a general contractor pursuant to chapter 624 of NRS and provides work, materials or equipment to be used for the improvement of the property or in the construction, alteration or repair of a work of improvement.
Sec. 11. NRS 108.2218 is hereby amended to read as follows:
108.2218 Surety bond means a bond issued by a surety for the release of a [notice of] prospective or existing lien pursuant to NRS 108.2413 to 108.2425, inclusive.
Sec. 12. NRS 108.222 is hereby amended to read as follows:
108.222 1. Except as otherwise provided in subsection 2, a lien claimant has a lien upon the property , [and] any improvements for which the work, materials and equipment were furnished or to be furnished, and any construction disbursement account established pursuant to section 4 of this act, for:
(a) If the parties agreed , by contract or otherwise, upon a specific price or method for determining a specific price for some or all of the work, material and equipment furnished or to be furnished by or through the lien claimant, the unpaid balance of the price agreed upon for such work, material or equipment, as the case may be, whether performed , [or] furnished or to be performed or furnished at the instance of the owner or his agent; and
(b) If the parties did not agree , by contract or otherwise, upon a specific price or method for determining a specific price for some or all of the work, material and equipment furnished or to be furnished by or through the lien claimant, including, without limitation, any additional or changed work, material or equipment, an amount equal to the fair market value of such work, material or equipment, as the case may be, including a reasonable allowance for overhead and a profit, whether performed , [or] furnished or to be performed or furnished at the instance of the owner or at the instance of his agent.
2. If a contractor or professional is required to be licensed pursuant to the provisions of NRS to perform his work, the contractor or professional will only have a lien pursuant to subsection 1 if he is licensed to perform the work.
Sec. 13. NRS 108.226 is hereby amended to read as follows:
108.226 1. To perfect his lien, a lien claimant must record his notice of lien in the office of the county recorder of the county where the property or some part thereof is located in the form provided in subsection 5:
(a) Within 90 days after the date on which the latest of the following occurs:
(1) The completion of the work of improvement;
(2) The last delivery of material or furnishing of equipment by the lien claimant for the work of improvement; or
(3) The last performance of work by the lien claimant for the work of improvement; or
κ2005 Statutes of Nevada, Page 1899 (CHAPTER 428, SB 343)κ
(b) Within 40 days after the recording of a valid notice of completion, if the notice of completion is recorded and served in the manner required pursuant to NRS 108.228.
2. The notice of lien must contain:
(a) A statement of the lienable amount after deducting all just credits and offsets.
(b) The name of the owner if known.
(c) The name of the person by whom he was employed or to whom he furnished the material [.] or equipment.
(d) A brief statement of the terms of payment of his contract.
(e) A description of the property to be charged with the notice of lien sufficient for identification.
3. The notice of lien must be verified by the oath of the lien claimant or some other person. The notice of lien need not be acknowledged to be recorded.
4. It is unlawful for a person knowingly to make a false statement in or relating to the recording of a notice of lien pursuant to the provisions of this section. A person who violates this subsection is guilty of a gross misdemeanor and shall be punished by a fine of not less than $5,000 nor more than $10,000.
5. A notice of lien must be substantially in the following form:
Assessors Parcel Numbers
NOTICE OF LIEN
The undersigned claims a lien upon the property described in this notice for work, materials or equipment furnished or to be furnished for the improvement of the property:
1. The amount of the original contract is: $.........................................................
2. The total amount of all [changes and additions,] additional or changed work, materials and equipment, if any, is: $
3. The total amount of all payments received to date is: $..............................
4. The amount of the lien, after deducting all just credits and offsets, is: $..
5. The name of the owner, if known, of the property is: ..................................
6. The name of the person by whom the lien claimant was employed or to whom the lien claimant furnished or agreed to furnish work, materials or equipment is: ..........................................................................................
7. A brief statement of the terms of payment of the lien claimants contract is:
8. A description of the property to be charged with the lien is: ........................
.................................................................
(Print Name of Lien Claimant)
By:...........................................................
(Authorized Signature)
κ2005 Statutes of Nevada, Page 1900 (CHAPTER 428, SB 343)κ
State of Nevada )
) ss.
County of ........................................... )
.................................... (print name), being first duly sworn on oath according to law, deposes and says:
I have read the foregoing Notice of Lien, know the contents thereof and state that the same is true of my own personal knowledge, except those matters stated upon information and belief, and, as to those matters, I believe them to be true.
.........................................................................
(Authorized Signature of Lien Claimant)
Subscribed and sworn to before me
this ...... day of the month of ............... of the year
...............................................................................
Notary Public in and for
the County and State
6. [If] Except as otherwise provided in subsection 7, if a work of improvement involves the construction, alteration or repair of multifamily or single-family residences, including, without limitation, apartment houses, a lien claimant, except laborers, must serve a 15-day notice of intent to lien incorporating substantially the same information required in a notice of lien upon both the owner and the reputed prime contractor before recording a notice of lien. Service of the notice of intent to lien must be by personal delivery or certified mail and will extend the time for recording the notice of lien described in subsection 1 by 15 days. A notice of lien for materials or equipment furnished or to be furnished for work or services performed or to be performed, except labor, for a work of improvement involving the construction, alteration or repair of multifamily or single-family residences may not be perfected or enforced pursuant to NRS 108.221 to 108.246, inclusive, and sections 2 to 5, inclusive, of this act, unless the 15-day notice of intent to lien has been given [.] to the owner.
7. The provisions of subsection 6 do not apply to the construction of any nonresidential construction project.
Sec. 14. NRS 108.2275 is hereby amended to read as follows:
108.2275 1. The debtor of the lien claimant or a party in interest in the property subject to the notice of lien who believes the notice of lien is frivolous and was made without reasonable cause, or that the amount of the notice of lien is excessive, may apply by motion to the district court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court to show cause why the relief requested should not be granted.
2. The motion must:
(a) Set forth in detail the legal and factual grounds upon which relief is requested; and
(b) Be supported by:
(1) A notarized affidavit signed by the applicant setting forth a concise statement of the facts upon which the motion is based; and
κ2005 Statutes of Nevada, Page 1901 (CHAPTER 428, SB 343)κ
(2) Documentary evidence in support of the affidavit, if any.
3. If the court issues an order for a hearing, the applicant shall serve notice of the application and order of the court on the lien claimant within 3 days after the court issues the order. The court shall conduct the hearing within not less than 15 days or more than 30 days after the court issues the order for a hearing.
4. The order for a hearing must include a statement that if the lien claimant fails to appear at the time and place noted, the notice of lien will be released with prejudice and the lien claimant will be ordered to pay the reasonable costs the applicant incurs in bringing the motion, including reasonable attorneys fees.
5. If, at the time the application is filed, an action to foreclose the notice of lien has not been filed, the clerk of the court shall assign a number to the application and obtain from the applicant a filing fee of $85. If an action has been filed to foreclose the notice of lien before the application was filed pursuant to this section, the application must be made a part of the action to foreclose the notice of lien.
6. If, after a hearing on the matter, the court determines that:
(a) The notice of lien is frivolous and was made without reasonable cause, the court shall make an order releasing the lien and awarding costs and reasonable attorneys fees to the applicant for bringing the motion.
(b) The amount of the notice of lien is excessive, the court may make an order reducing the notice of lien to an amount deemed appropriate by the court and awarding costs and reasonable attorneys fees to the applicant for bringing the motion.
(c) The notice of lien is not frivolous and was made with reasonable cause or that the amount of the notice of lien is not excessive, the court shall make an order awarding costs and reasonable attorneys fees to the lien claimant for defending the motion.
7. Proceedings conducted pursuant to this section do not affect any other rights and remedies otherwise available to the parties.
8. An appeal may be taken from an order made pursuant to subsection 6. A stay may not be granted if the district court does not release the lien pursuant to subsection 6.
9. If an order releasing or reducing a notice of lien is entered by the court, and the order is not stayed, the applicant may, within 5 days after the order is entered, record a certified copy of the order in the office of the county recorder of the county where the property or some part thereof is located. The recording of a certified copy of the order releasing or reducing a notice of lien is notice to any interested party that the notice of lien has been released or reduced.
Sec. 15. NRS 108.234 is hereby amended to read as follows:
108.234 1. Except as otherwise provided in subsection 2, every improvement constructed, altered or repaired upon property shall be deemed to have been constructed, altered or repaired at the instance of each owner having or claiming any interest therein, and the interest owned or claimed must be subject to each notice of lien recorded in accordance with the provisions of NRS 108.221 to 108.246, inclusive [.] , and sections 2 to 5, inclusive, of this act.
2. The interest of a disinterested owner in any improvement and the property upon which an improvement is constructed, altered or repaired is not subject to a notice of lien if the disinterested owner, within 3 days after he first obtains knowledge of the construction, alteration or repair, or the intended construction, alteration or repair, gives notice that he will not be responsible for the improvement by recording a notice in writing to that effect with the county recorder of the county where the property is located and, in the instance of a disinterested owner who is:
κ2005 Statutes of Nevada, Page 1902 (CHAPTER 428, SB 343)κ
he first obtains knowledge of the construction, alteration or repair, or the intended construction, alteration or repair, gives notice that he will not be responsible for the improvement by recording a notice in writing to that effect with the county recorder of the county where the property is located and, in the instance of a disinterested owner who is:
(a) A lessor, the notice of nonresponsibility shall be deemed timely recorded if the notice is recorded within 3 days immediately following the effective date of the lease or by the time of the execution of the lease by all parties, whichever occurs first; or
(b) An optionor, the notice of nonresponsibility shall be deemed timely recorded if the notice is recorded within 3 days immediately following the date on which the option is exercised in writing.
3. [Each] To be effective and valid, each notice of nonresponsibility recorded pursuant to this section must identify:
(a) The [name and address] names and addresses of the disinterested owner [;] and the person who is causing the work of improvement to be constructed, altered or repaired;
(b) The location of the improvement and the address and legal description of the property upon which the improvement is or will be constructed, altered or repaired;
(c) The nature and extent of the disinterested owners interest in the improvement and the property upon which the improvement is or will be constructed, altered or repaired; [and]
(d) The date on which the disinterested owner first learned of the construction, alteration or repair of the improvement that is the subject of the notice of nonresponsibility [.
4. Any lessee who causes a work of improvement to be constructed, altered or repaired upon property that is leased, shall provide a payment and completion bond from a surety licensed to do business in this State in an amount equal to not less than 1.5 times the total amount of the construction contract. The surety bond must be recorded in accordance with NRS 108.2415 to 108.2425, inclusive, before commencement of the construction, alteration or repair of the work of improvement and must be payable upon default by the lessee of any undisputed amount pursuant to the construction contract that is due and payable to the prime contractor for more than 30 days. If a lessee fails to record a surety bond as required pursuant to this section, the prime contractor may invalidate the construction contract and may recover damages including, without limitation, consequential damages, reasonable attorneys fees and costs.] ; and
(e) Whether the disinterested owner has notified the lessee in writing that the lessee must comply with the requirements of section 4 of this act.
4. To be effective and valid, each notice of nonresponsibility that is recorded by a lessor pursuant to this section must be served by personal delivery or by certified mail, return receipt requested:
(a) Upon the lessee within 10 days after the date on which the notice of nonresponsibility is recorded pursuant to subsection 2; and
(b) Upon the prime contractor for the work of improvement within 10 days after the date on which the lessee contracts with the prime contractor for the construction, alteration or repair of the work of improvement.
5. If the prime contractor for the work of improvement receives a notice of nonresponsibility pursuant to paragraph (b) of subsection 4, the prime contractor shall:
κ2005 Statutes of Nevada, Page 1903 (CHAPTER 428, SB 343)κ
(a) Post a copy of the notice of nonresponsibility in an open and conspicuous place on the property within 3 days after his receipt of the notice of nonresponsibility; and
(b) Serve a copy of the notice of nonresponsibility by personal delivery, facsimile or by certified mail, return receipt requested, upon each lien claimant from whom he received a notice of right to lien, within 10 days after his receipt of the notice of nonresponsibility or a notice of right to lien, whichever occurs later.
6. An owner who does not comply with the provisions of this section may not assert any claim that his interest in any improvement and the property upon which an improvement is constructed, altered or repaired is not subject to or is immune from the attachment of a lien pursuant to NRS 108.221 to 108.246, inclusive, and sections 2 to 5, inclusive, of this act.
7. As used in this section, disinterested owner means an owner who [did not personally or through his agent or representative, directly or indirectly, request, require, authorize, consent to or cause a work of improvement, or any portion thereof, to be constructed, altered or repaired upon the property of the owner. The term must not be interpreted to invalidate a notice of nonresponsibility recorded pursuant to this section or to deny the rights granted pursuant to this section upon the recording of a notice of nonresponsibility because:
(a) The disinterested owner is a lessor or an optionor under a lease that requests, requires, authorizes or consents to his lessee causing the work of improvement to be constructed, altered or repaired upon the property;
(b) The lessee personally or through his agent or representative enters into a contract and causes the work of improvement to be constructed, altered or repaired upon the property; and
(c) The lessor or optionor notifies the lessee in writing that pursuant to subsection 4, the lessee must record a surety bond before causing a work of improvement to be constructed, altered or repaired upon the property.] :
(a) Does not record a notice of waiver as provided in section 4.5 of this act; and
(b) Does not personally or through his agent or representative, directly or indirectly, contract for or cause a work of improvement, or any portion thereof, to be constructed, altered or repaired upon the property or an improvement of the owner.
Κ The term does not include an owner who is a lessor if the lessee fails to satisfy the requirements set forth in sections 4 and 5 of this act.
Sec. 16. NRS 108.235 is hereby amended to read as follows:
108.235 1. A prime contractor:
(a) Upon a notice of lien, may recover the lienable amount as may be due to him, plus all amounts that may be awarded to him by the court pursuant to NRS 108.237; and
(b) Upon receipt of the amount described in paragraph (a), shall pay all liens for the work, equipment or materials which were furnished or to be furnished to him as provided in NRS 108.221 to 108.246, inclusive [.] , and sections 2 to 5, inclusive, of this act.
2. In all cases where a prime contractor has been paid for the work, materials or equipment which are the subject of a notice of lien recorded under NRS 108.221 to 108.246, inclusive, and sections 2 to 5, inclusive, of this act, the prime contractor shall defend the owner in any action brought thereupon at his own expense.
κ2005 Statutes of Nevada, Page 1904 (CHAPTER 428, SB 343)κ
3. Except as otherwise provided in this subsection, if a lien claimant records a notice of lien for the work, equipment or materials furnished or to be furnished to the prime contractor, the owner may withhold from the prime contractor the amount of money for which the lien claimants notice of lien is recorded. If the lien claimants notice of lien resulted from the owners failure to pay the prime contractor for the lien claimants work, materials or equipment, the owner shall not withhold the amount set forth in the notice of lien from the prime contractor if the prime contractor or lien claimant tenders a release of the lien claimants lien to the owner. In case of judgment against the owner or his property which is the subject of the lien, the owner may deduct, from any amount due or to become due by him to the prime contractor, the amount paid by the owner to the lien claimant for which the prime contractor was liable and recover back from the prime contractor any amount so paid by the owner in excess of the amount the court has found that the owner owes to the prime contractor.
Sec. 17. NRS 108.237 is hereby amended to read as follows:
108.237 1. The court shall award to a prevailing lien claimant, whether on its lien or on a surety bond, the lienable amount found due to the lien claimant by the court and the cost of preparing and [filing the lien claim,] recording the notice of lien, including, without limitation, attorneys fees, if any, and interest. The court shall also award to the prevailing lien claimant, whether on its lien or on a surety bond, the costs of the proceedings, including, without limitation, reasonable attorneys fees, the costs for representation of the lien claimant in the proceedings, and any other amounts as the court may find to be justly due and owing to the lien claimant.
2. The court shall calculate interest for purposes of subsection 1 based upon:
(a) The rate of interest agreed upon in the lien claimants contract; or
(b) If a rate of interest is not provided in the lien claimants contract, interest at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date of judgment, plus [2] 4 percent, on the amount of the lien found payable. The rate of interest must be adjusted accordingly on each January 1 and July 1 thereafter until the amount of the lien is paid. Interest is payable from the date on which the payment is found to have been due, as determined by the court.
3. If the lien claim is not upheld, the court may award costs and reasonable attorneys fees to the owner or other person defending against the lien claim if the court finds that the notice of lien was pursued by the lien claimant without a reasonable basis in law or fact.
Sec. 18. NRS 108.239 is hereby amended to read as follows:
108.239 1. A notice of lien may be enforced by an action in any court of competent jurisdiction [,] that is located within the county where the property upon which the work of improvement is located, on setting out in the complaint the particulars of the demand, with a description of the property to be charged with the lien.
2. At the time of filing the complaint and issuing the summons, the lien claimant shall:
(a) File a notice of pendency of the action in the manner provided in NRS 14.010; and
κ2005 Statutes of Nevada, Page 1905 (CHAPTER 428, SB 343)κ
(b) Cause a notice of foreclosure to be published at least once a week for 3 successive weeks, in one newspaper published in the county, and if there is no newspaper published in the county, then in such mode as the court may determine, notifying all persons holding or claiming a notice of lien pursuant to the provisions of NRS 108.221 to 108.246, inclusive, and sections 2 to 5, inclusive, of this act on the property to file with the clerk and serve on the lien claimant and also on the defendant, if the defendant is within the State or is represented by counsel, written statements of the facts constituting their liens, together with the dates and amounts thereof.
3. All persons holding or claiming a notice of lien may join a lien claimants action by filing a statement of facts within [10 days after the last] a reasonable time after publication of the notice of foreclosure [.] or receiving notice of the foreclosure, whichever occurs later. Any number of persons claiming liens may join in the same action if they timely file a statement of facts in the lien claimants action. The lien claimant and other parties adversely interested must be allowed 20 days to answer the statements.
4. If it appears from the records of the county recorder that there are other notices of lien recorded against the same property at the time of the commencement of the action, the lien claimant shall, in addition to and after the initial publication of the notice of foreclosure as provided in paragraph (b) of subsection 2, mail to those other lien claimants, by registered or certified mail, or deliver in person a copy of the notice of foreclosure as published.
5. At the time of any change in the venue of the action, the lien claimant shall file a notice of pendency of the action, in the manner provided in NRS 14.010, and include in the notice the court and county to which the action is changed.
6. When separate actions are commenced by lien claimants to foreclose on their respective notices of lien, the court may consolidate all the actions. The consolidation does not affect or change the priority of lien claims.
7. The court shall enter judgment according to the right of the parties, and shall, by decree, proceed to hear and determine the claims in a summary way, or may, if it be the district court, refer the claims to a special master to ascertain and report upon the liens and the amount justly due thereon. No consequential damages may be recovered in an action pursuant to this section. All liens not so exhibited shall be deemed to be waived in favor of those which are so exhibited.
8. Upon petition by a lien claimant for a preferential trial setting:
(a) The court shall give preference in setting a date for the trial of an action brought pursuant to this section; and
(b) If a lien action is designated as complex by the court, the court may take into account the rights and claims of all lien claimants in setting a date for the preferential trial.
9. If the lienable amount of a lien claimants lien is the subject of binding arbitration:
(a) The court may, at the request of a party to the arbitration, stay the lien claimants action to foreclose the lien pending the outcome of the binding arbitration. If the foreclosure on the lien involves the rights of other lien claimants or persons whose claims are not the subject of the binding arbitration, the court may stay the lien claimants foreclosure proceeding only upon terms which are just and which afford the lien claimant a fair opportunity to protect his lien rights and priorities with respect to other lien claimants and persons.
κ2005 Statutes of Nevada, Page 1906 (CHAPTER 428, SB 343)κ
opportunity to protect his lien rights and priorities with respect to other lien claimants and persons.
(b) Upon the granting of an award by the arbitrator, any party to the arbitration may seek an order from the court in the action to foreclose on the lien confirming or adopting the award and determining the lienable amount of the lien claimants lien in accordance with the order, if any. Upon determining the lienable amount, the court shall enter a judgment or decree for the lienable amount, plus all amounts that may be awarded by the court to the lien claimant pursuant to NRS 108.237, and the court may include as part of the lien all costs and attorneys fees awarded to the lien claimant by the arbitrator and all costs and attorneys fees incurred by the lien claimant pertaining to any application or motion to confirm, adopt, modify or correct the award of the arbitrator. A judgment or decree entered by the court pursuant to this subsection may be enforced against the property as provided in subsections 10, 11 and 12.
10. On ascertaining the whole amount of the liens with which the property is justly chargeable, as provided in NRS 108.221 to 108.246, inclusive, and sections 2 to 5, inclusive, of this act, the court shall cause the property to be sold in satisfaction of all liens and the costs of sale, including all amounts awarded to all lien claimants pursuant to NRS 108.237, and any party in whose favor judgment may be rendered may cause the property to be sold within the time and in the manner provided for sales on execution, issued out of any district court, for the sale of real property.
11. If the proceeds of sale, after payment of the costs of sale, are not sufficient to satisfy all liens to be included in the decree of sale, including all amounts awarded to all lien claimants pursuant to NRS 108.237, the proceeds must be apportioned according to the right of the various lien claimants. If the proceeds of the sale amount to more than the sum of all liens and the cost of sale, the remainder must be paid over to the owner of the property.
12. Each party whose claim is not satisfied in the manner provided in this section is entitled to personal judgment for the residue against the party legally liable for it if that person has been personally summoned or has appeared in the action.
Sec. 19. NRS 108.2415 is hereby amended to read as follows:
108.2415 1. To obtain the release of a lien for which a notice of lien [, a] has been recorded against the property, the principal and a surety must execute a surety bond in an amount equal to 1.5 times the lienable amount in the notice of lien, which must be in the following form:
(Assessors Parcel Numbers)
(Title of court and cause, if action has been commenced)
WHEREAS, ........................ (name of principal), located at ........................................ (address of principal), desires to give a bond for releasing the following described property owned by ......................................... (name of owners) from that certain notice of lien in the sum of $................ recorded ..... (month) ....., (day) ....., (year) in the office of the recorder in ................................ (name of county where the property is located):
κ2005 Statutes of Nevada, Page 1907 (CHAPTER 428, SB 343)κ
(Legal Description)
NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves to the lien claimant named in the notice of lien, ................................, (name of lien claimant) under the conditions prescribed by NRS 108.2413 to 108.2425, inclusive, in the sum of $................ (1 1/2 x lienable amount), from which sum they will pay the lien claimant that amount as a court of competent jurisdiction may adjudge to have been secured by his lien, including the total amount awarded pursuant to NRS 108.237 [.] , but the liability of the surety may not exceed the penal sum of the surety bond.
IN TESTIMONY WHEREOF, the principal and surety have executed this bond at ................................, Nevada, on the ....... day of the month of ....... of the year .......
...............................................
(Signature of Principal)
(Surety Corporation)
By..........................................
(Its Attorney in Fact)
State of Nevada }
} ss.
County of ........................................... }
On ..... (month) ....., (day) ....., (year) before me, the undersigned, a notary public of this county and state, personally appeared ................................. who acknowledged that he executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared ................................ known (or satisfactorily proved) to me to be the attorney in fact of the surety that executed the foregoing instrument, known to me to be the person who executed that instrument on behalf of the surety therein named, and he acknowledged to me that the surety executed the foregoing instrument.
...............................................
(Notary Public in and for
the County and State)
2. To obtain the release of all prospective and existing lien rights of lien claimants related to a work of improvement, the principal and a surety must execute and cause to be recorded a surety bond in an amount equal to 1.5 times the amount of the prime contract, which must be in the following form:
(Assessors Parcel Numbers)
(Title of court and cause, if action has been commenced)
WHEREAS, ......................... (name of principal), located at ......................... (address of principal), desires to give a bond for releasing the following described property owned by .........................
κ2005 Statutes of Nevada, Page 1908 (CHAPTER 428, SB 343)κ
described property owned by ......................... (name of owners) from all prospective and existing lien rights and notices of liens arising from materials, equipment or work provided or to be provided under the prime contract described as follows:
(Parties to the Prime Contract)
(Amount of the Prime Contract)
(Date of the Prime Contract)
(Summary of Terms of the Prime Contract)
WHEREAS, the property that is the subject of the surety bond is described as follows:
(Legal Description)
NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves in the sum of $......................... (1 1/2 x amount of prime contract) to all prospective and existing lien claimants who have provided or hereafter provide materials, equipment or work under the prime contract, from which sum the principal and surety will pay the lien claimants the lienable amount that a court of competent jurisdiction may determine is owed to each lien claimant, and such additional amounts as may be awarded pursuant to NRS 108.237, but the liability of the surety may not exceed the penal sum of the surety bond.
IN TESTIMONY WHEREOF, the principal and surety have executed this bond at ........................, Nevada, on the ...... day of the month of .......... of the year ..........
...............................................
(Signature of Principal)
(Surety Corporation)
By..........................................
(Its Attorney in Fact)
State of Nevada }
} ss.
County of ............................................ }
On ....... (month) ....... (day), ....... (year), before me, the undersigned, a notary public of this county and state, personally appeared ......................... who acknowledged that he executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared ......................... known (or satisfactorily proved) to me to be the attorney in fact of the surety that executed the foregoing instrument, known to me to be the person who executed that instrument on behalf of the surety therein named, and he acknowledged to me that the surety executed the foregoing instrument.
κ2005 Statutes of Nevada, Page 1909 (CHAPTER 428, SB 343)κ
...............................................
(Notary Public in and for
the County and State)
3. The principal must record the surety bond in the office of the county recorder in the county in which the [notice of lien was recorded,] property upon which the improvement is located, either before or after the commencement of an action to enforce the lien. A certified copy of the recorded surety bond shall be deemed an original for purposes of this section.
[3.] 4. Upon the recording of the surety bond, the principal must serve a file-stamped copy of the recorded surety bond in the following manner:
(a) If a lien claimant has appeared in an action that is pending to enforce the notice of lien, service must be made by certified or registered mail, return receipt requested, upon the lien claimant at the address set forth in the lien and the lien claimants counsel of record at his place of business; [or]
(b) If a notice of lien is recorded at the time the surety bond is recorded and no action is pending to enforce the notice of lien, personal service must be made upon [the] each lien claimant pursuant to Rule 4 of the Nevada Rules of Civil Procedure [.
4.] ; or
(c) If no notice of lien is recorded at the time the surety bond is recorded, service must be made by personal service or certified mail, return receipt requested, upon each lien claimant and prospective lien claimant that has provided or thereafter provides the owner or lessee with a notice of a right to lien. Such service must be within 10 days after the recording of the surety bond, or the service of notice of the right to lien upon the owner by a lien claimant, whichever is later.
5. Failure to serve the surety bond as provided in subsection [3] 4 does not affect the validity of the surety bond, but the statute of limitations on any action on the surety bond, including a motion excepting to the sufficiency of the surety pursuant to NRS 108.2425, is tolled until notice is given.
[5.] 6. Subject to the provisions of NRS 108.2425, the recording and service of the surety bond pursuant to [this section] :
(a) Subsection 1 releases the property described in the surety bond from the lien and the surety bond shall be deemed to replace the property as security for the lien.
(b) Subsection 2 releases the property described in the surety bond from any liens and prospective liens for work, materials or equipment related to the prime contract and the surety bond shall be deemed to replace the property as security for the lien.
Sec. 20. NRS 108.2421 is hereby amended to read as follows:
108.2421 1. The lien claimant is entitled to [:
(a) Bring] bring an action against [; or
(b) If an action has been commenced, join in the pending action against,
Κ] the principal and surety on the surety bond and the lien claimants debtor [.] in any court of competent jurisdiction that is located within the county where the property upon which the work of improvement is located.
2. If an action by a lien claimant to foreclose upon a lien has been brought:
(a) Before the surety bond is recorded:
κ2005 Statutes of Nevada, Page 1910 (CHAPTER 428, SB 343)κ
(1) The lien claimant may amend his complaint to state a claim against the principal and the surety on the surety bond; or
(2) The liability of the principal and surety on the surety bond may be enforced pursuant to NRS 108.2423; or
(b) After the surety bond is recorded:
(1) If the surety bond is recorded pursuant to subsection 1 of NRS 108.2415, the lien claimant may bring an action against the principal and the surety not later than 9 months after the date that the lien claimant was served with notice of the recording of the surety bond.
(2) If the surety bond is recorded pursuant to subsection 2 of NRS 108.2415, the lien claimant may bring an action against the principal and the surety within the later of:
(I) Nine months after the date that the lien claimant was served with notice of the recording of the surety bond; or
(II) Nine months after the date of the completion of the work of improvement.
3. At any time after the filing of a joint case conference report pursuant to Rule 16.1 of the Nevada Rules of Civil Procedure or, if the case is designated by the court as complex litigation, after the approval of the initial case management order by the court, each lien claimant in the action may serve upon the adverse party a demand for preferential trial setting and file the demand with the clerk of the court. Upon filing, the clerk of the court shall, before the Friday after the demand is filed, vacate a case or cases in a department of the court and set the lien claimants case for hearing, on a day or days certain, to be heard within 60 days after the filing of the demand for preferential trial setting. Only one such preferential trial setting need be given by the court, unless the hearing date is vacated without stipulation of counsel for the lien claimant in writing. If the hearing date is vacated without that stipulation, upon service and filing, a new preferential trial setting must be given.
[3.] 4. A lien claimant shall, at the time of making his demand for a preferential trial setting, and each other party to the preferential trial shall, within 20 days after the lien claimants service of the demand, serve upon all parties to the preferential trial the following documents and information:
(a) A copy of all documents that the party intends to rely upon at the time of the trial;
(b) A list of witnesses whom the party intends to call at the time of the trial, which must include for each witness:
(1) The name of the witness;
(2) The company for whom the witness works and title of the witness; and
(3) A brief summary of the expected testimony of the witness;
(c) Any supplemental discovery responses as required by the Nevada Rules of Civil Procedure;
(d) The identity of each person whom the party expects to call as an expert witness at the trial, together with a statement of the substance of the facts and opinions to which the expert witness is expected to testify and a summary of the grounds for each opinion;
(e) Any expert reports not previously disclosed; and
(f) A detailed summary of all claims, offsets and defenses that the party intends to rely upon at the trial.
κ2005 Statutes of Nevada, Page 1911 (CHAPTER 428, SB 343)κ
[4.] 5. Within 20 days after receipt of an opposing partys identification of an expert witness, a party who desires to call a rebuttal expert witness at the trial must identify each person whom the party expects to call as a rebuttal expert witness, and must provide a statement of the substance of the facts and opinions to which the rebuttal expert witness is expected to testify and a summary of the grounds for each opinion.
[5.] 6. A prevailing lien claimant on a claim against a surety bond must be awarded the lienable amount plus the total amount that may be awarded by the court pursuant to NRS 108.237 [.] , so long as the liability of the surety is limited to the penal sum of the surety bond. Such a judgment is immediately enforceable and may be appealed regardless of whether any other claims asserted or consolidated actions or suits have been resolved by a final judgment.
Sec. 21. NRS 108.2425 is hereby amended to read as follows:
108.2425 1. The lien claimant may, within 15 days after the service of a copy of the surety bond pursuant to subsection [3] 4 of NRS 108.2415, file a motion with the clerk of the court in a pending action, or if no action has been commenced, file a petition with the court, excepting to the sufficiency of the surety or the surety bond, and shall, at the same time and together with that motion or petition, file an affidavit setting forth the grounds and basis of the exceptions to the surety or the surety bond, and shall serve a copy of the motion or petition and a copy of the affidavit upon the principal at the address set forth in the surety bond within 5 business days after the date of filing. A hearing must be had upon the justification of the surety or the surety bond not less than 10 days and not more than 20 days after the filing of the motion or petition. If the court determines that the surety or surety bond is insufficient, the lien claimants lien will remain against the property or the court may allow the substitution of a sufficient surety and surety bond.
2. If, at any time after the recording of a surety bond pursuant to NRS 108.2415, the surety becomes unauthorized to transact surety business in this State pursuant to NRS 679A.030 or is dropped from the United States Department of the Treasurys Listing of Approved Sureties or there exists any other good cause, a lien claimant or other person having an interest in the surety bond may apply to the district court in a pending action, or commence an action if none is pending, for an order to require the principal to provide additional security or to change, substitute or add securities, or to enforce or change any other matter affecting the security provided by the surety bond.
3. If a court finds that the amount of a surety bond recorded pursuant to NRS 108.2415 is insufficient to pay the total amount that may be awarded by the court pursuant to NRS 108.237, the court shall [increase] order the principal to obtain additional security or to change or substitute securities so that the amount of the [surety bond to] security provided is 1.5 times the total amount that may be awarded.
4. Any surety that records or consents to the recording of a surety bond pursuant to NRS 108.2415 will [:
(a) Remain] remain fully liable [on] to any lien claimant for up to the penal sum of the surety bond regardless of the payment or nonpayment of any surety bond premium . [; and
(b) Be liable for any increase in the amount of the surety bond as ordered by the court pursuant to this subsection.]
κ2005 Statutes of Nevada, Page 1912 (CHAPTER 428, SB 343)κ
Sec. 22. NRS 108.243 is hereby amended to read as follows:
108.243 1. Any [notice of] lien may be assigned in the same manner as any other chose in action after it has been perfected by recording.
2. An assignment of a lien before recording will not be effective until written notice of the assignment has been given to the owner by the assignee. The notice will be sufficient if delivered in person or mailed by certified mail to the owner. After such notice the assignee may perfect the lien in his own name.
3. One or more lien claimants of any class may assign their notices of lien by written assignment, signed by each assignor, to any other person or lien claimant of any class, and the assignee may commence and prosecute the action upon all of the notices of lien in his own name or in the name of the original lien claimant.
4. In the event that a claim for which a lien may be filed is assigned before it is perfected, such assignment does not discharge or defeat the right to perfect the lien, if the lien is reassigned to the lien claimant, and thereafter the lien is timely perfected.
Sec. 23. NRS 108.244 is hereby amended to read as follows:
108.244 A lien claimant or assignee of a lien claimant or claimants may not file a complaint for foreclosure of his notice of lien or the assigned notice of lien or notices of lien until 30 days have expired immediately following the [filing] recording of his notice of lien or following the [filing] recording of the assigned notice of lien or the last of the assigned notices of liens. This provision does not apply to or prohibit the filing of any statement of fact constituting a lien or statements of fact constituting a lien:
1. In an action already filed for foreclosure of a notice of lien; or
2. In order to comply with the provisions of NRS 108.239.
Sec. 24. NRS 108.245 is hereby amended to read as follows:
108.245 1. Except as otherwise provided in subsection 5, every lien claimant, other than one who performs only labor, who claims the benefit of NRS 108.221 to 108.246, inclusive, and sections 2 to 5, inclusive, of this act shall, at any time after the first delivery of material or performance of work or services under his contract, deliver in person or by certified mail to the owner of the property a [preliminary] notice of right to lien in substantially the following form:
Notice of Right to Lien
To: ........................................................
(Owners name and address)
The undersigned notifies you that he has supplied materials or equipment or performed work or services as follows:
(General description of materials, equipment, work or services)
for improvement of property identified as (property description or street address) under contract with (general contractor or subcontractor). This is not a notice that the undersigned has not been or does not expect to be paid, but a notice required by law that the undersigned may, at a future date, record a notice of lien as provided by law against the property if the undersigned is not paid.
κ2005 Statutes of Nevada, Page 1913 (CHAPTER 428, SB 343)κ
.........................................................
(Claimant)
A subcontractor or equipment or material supplier who gives such a notice must also deliver in person or send by certified mail a copy of the notice to the prime contractor for information only. The failure by a subcontractor to deliver the notice to the prime contractor is a ground for disciplinary proceedings against the subcontractor under chapter 624 of NRS but does not invalidate the notice to the owner.
2. Such a notice does not constitute a lien or give actual or constructive notice of a lien for any purpose.
3. No lien for materials or equipment furnished or for work or services performed, except labor, may be perfected or enforced pursuant to NRS 108.221 to 108.246, inclusive, and sections 2 to 5, inclusive, of this act unless the notice has been given.
4. The notice need not be verified, sworn to or acknowledged.
5. A prime contractor or other person who contracts directly with an owner or sells materials directly to an owner is not required to give notice pursuant to this section.
6. A lien claimant who is required by this section to give a notice of right to lien to an owner and who gives such a notice has a right to lien for materials or equipment furnished or for work or services performed in the 31 days before the date the notice of right to lien is given and for the materials or equipment furnished or for work or services performed anytime thereafter until the completion of the work of improvement.
Sec. 25. NRS 108.2453 is hereby amended to read as follows:
108.2453 1. Except as otherwise provided in NRS 108.221 to 108.246, inclusive, and sections 2 to 5, inclusive, of this act, a person may not waive or modify a right, obligation or liability set forth in the provisions of NRS 108.221 to 108.246, inclusive [.] , and sections 2 to 5, inclusive, of this act.
2. A condition, stipulation or provision in a contract or other agreement for the improvement of property or for the construction, alteration or repair of a work of improvement in this State that attempts to do any of the following is contrary to public policy and is void [:] and unenforceable:
(a) Require a lien claimant to waive rights provided by law to lien claimants or to limit the rights provided to lien claimants, other than as expressly provided in NRS 108.221 to 108.246, inclusive [;] , and sections 2 to 5, inclusive, of this act;
(b) Relieve a person of an obligation or liability imposed by the provisions of NRS 108.221 to 108.246, inclusive [;] , and sections 2 to 5, inclusive, of this act;
(c) Make the contract or other agreement subject to the laws of a state other than this State;
(d) Require any litigation, arbitration or other process for dispute resolution on disputes arising out of the contract or other agreement to occur in a state other than this State; or
(e) Require a prime contractor or subcontractor to waive , release or extinguish a claim or right that the prime contractor or subcontractor may otherwise possess or acquire for delay , acceleration, disruption or impact damages or an extension of time for delays incurred, for any delay , acceleration, disruption or impact event which was unreasonable under the circumstances, not within the contemplation of the parties at the time the contract was entered into, [and] or for which the prime contractor or subcontractor is not responsible.
κ2005 Statutes of Nevada, Page 1914 (CHAPTER 428, SB 343)κ
circumstances, not within the contemplation of the parties at the time the contract was entered into, [and] or for which the prime contractor or subcontractor is not responsible.
Sec. 26. NRS 108.2457 is hereby amended to read as follows:
108.2457 1. Any term of a contract that attempts to waive or impair the lien rights of a contractor, subcontractor or supplier is void. An owner, contractor or subcontractor by any term of a contract, or otherwise, may not obtain the waiver of, or impair the lien rights of, a contractor, subcontractor or supplier, except as provided in this section. Any written consent given by a lien claimant that waives or limits his lien rights is unenforceable unless the lien claimant:
(a) Executes and delivers a waiver and release that is signed by the lien claimant or his authorized agent in the form set forth in this section; and
(b) In the case of a conditional waiver and release, receives payment of the amount identified in the conditional waiver and release.
2. An oral or written statement purporting to waive, release or otherwise adversely affect the rights of a lien claimant is not enforceable and does not create any estoppel or impairment of a lien unless:
(a) There is a written waiver and release in the form set forth in this section; and
(b) The lien claimant received payment for the lien [claim] and then only to the extent of the payment [; or
(c) Payment has been] received.
3. Payment in the form of a two-party joint check made payable to [the] a lien claimant and another joint payee [by way of a two-party joint check which,] who are in privity with each other shall, upon endorsement by the lien claimant and the joint check clearing the bank upon which it is drawn, [shall] be deemed to be payment to the lien claimant [of:
(1)] for only:
(a) The amount of the joint check;
[(2)] (b) The amount the [owner] payor intended to pay the lien claimant out of the joint check; or
[(3)] (c) The balance owed to the lien claimant for the work , [and] materials or equipment covered by the joint check, whichever is less.
[3.] 4. This section does not affect the enforceability of either an accord and satisfaction regarding a bona fide dispute or any agreement made in settlement of an action pending in any court or arbitration, provided the accord and satisfaction or settlement make specific reference to the lien rights waived or impaired and is in a writing signed by the lien claimant.
[4.] 5. The waiver and release given by any lien claimant is unenforceable unless it is in the following forms in the following circumstances:
(a) Where the lien claimant is required to execute a waiver and release in exchange for or to induce the payment of a progress billing and the lien claimant is not in fact paid in exchange for the waiver and release or a single payee check or joint payee check is given in exchange for the waiver and release, the waiver and release must be in the following form:
CONDITIONAL WAIVER AND RELEASE
UPON PROGRESS PAYMENT
Property Name:.............................................................................................................
κ2005 Statutes of Nevada, Page 1915 (CHAPTER 428, SB 343)κ
Property Location:.......................................................................................................
Undersigneds Customer:............................................................................................
Invoice/Payment Application Number:...................................................................
Payment Amount:........................................................................................................
[Payment Period:].........................................................................................................
Upon receipt by the undersigned of a check in the above referenced Payment Amount payable to the undersigned, and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release and the undersigned shall be deemed to waive any notice of lien, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to payment rights that the undersigned has on the above described Property to the following extent:
This release covers a progress payment for the work, materials or equipment furnished by the undersigned to the Property or to the Undersigneds Customer which are the subject of the Invoice or Payment Application, but only to the extent of the Payment Amount or such portion of the Payment Amount as the undersigned is actually paid, and does not cover any retention withheld, any items, modifications or changes pending approval, disputed items and claims, or items furnished [or invoiced after the Payment Period.] that are not paid. Before any recipient of this document relies on it, he should verify evidence of payment to the undersigned. The undersigned warrants that he either has already paid or will use the money he receives from this progress payment promptly to pay in full all his laborers, subcontractors, materialmen and suppliers for all work, materials or equipment that are the subject of this waiver and release.
Dated:...................................................
.........................................................
(Company Name)
By:...................................................
Its:...................................................
(b) Where the lien claimant has been paid in full or a part of the amount provided for in the progress billing, the waiver and release of the amount paid must be in the following form:
UNCONDITIONAL WAIVER AND RELEASE
UPON PROGRESS PAYMENT
Property Name:.............................................................................................................
Property Location:.......................................................................................................
Undersigneds Customer:............................................................................................
Invoice/Payment Application Number:...................................................................
Payment Amount:........................................................................................................
[Payment Period:].........................................................................................................
The undersigned has been paid and has received a progress payment in the above referenced Payment Amount for all work, materials and equipment the undersigned furnished to his Customer for the above described Property and does hereby waive and release any notice of lien, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to payment rights that the undersigned has on the above described Property to the following extent:
κ2005 Statutes of Nevada, Page 1916 (CHAPTER 428, SB 343)κ
the undersigned furnished to his Customer for the above described Property and does hereby waive and release any notice of lien, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to payment rights that the undersigned has on the above described Property to the following extent:
This release covers a progress payment for the work, materials and equipment furnished by the undersigned to the Property or to the Undersigneds Customer which are the subject of the Invoice or Payment Application, but only to the extent of the Payment Amount or such portion of the Payment Amount as the undersigned is actually paid, and does not cover any retention withheld, any items, modifications or changes pending approval, disputed items and claims, or items furnished [or invoiced after the Payment Period.] that are not paid. The undersigned warrants that he either has already paid or will use the money he receives from this progress payment promptly to pay in full all his laborers, subcontractors, materialmen and suppliers for all work, materials or equipment that are the subject of this waiver and release.
Dated:...................................................
.........................................................
(Company Name)
By:...................................................
Its:...................................................
(Each unconditional waiver and release must contain the following language, in type at least as large as the largest type otherwise on the document:)
Notice: This document waives rights unconditionally and states that you have been paid for giving up those rights. This document is enforceable against you if you sign it to the extent of the Payment Amount or the amount received. If you have not been paid, use a conditional release form.
(c) Where the lien claimant is required to execute a waiver and release in exchange for or to induce payment of a final billing and the lien claimant is not paid in exchange for the waiver and release or a single payee check or joint payee check is given in exchange for the waiver and release, the waiver and release must be in the following form:
CONDITIONAL WAIVER AND RELEASE
UPON FINAL PAYMENT
Property Name:.............................................................................................................
Property Location:.......................................................................................................
Undersigneds Customer:............................................................................................
Invoice/Payment Application Number:...................................................................
Payment Amount:........................................................................................................
Payment Period:...........................................................................................................
Amount of Disputed Claims:.....................................................................................
κ2005 Statutes of Nevada, Page 1917 (CHAPTER 428, SB 343)κ
Upon receipt by the undersigned of a check in the above referenced Payment Amount payable to the undersigned, and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release and the undersigned shall be deemed to waive any notice of lien, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to payment rights that the undersigned has on the above described Property to the following extent:
This release covers the final payment to the undersigned for all work, materials or equipment furnished by the undersigned to the Property or to the Undersigneds Customer and does not cover payment for Disputed Claims, if any. Before any recipient of this document relies on it, he should verify evidence of payment to the undersigned. The undersigned warrants that he either has already paid or will use the money he receives from the final payment promptly to pay in full all his laborers, subcontractors, materialmen and suppliers for all work, materials or equipment that are the subject of this waiver and release.
Dated:...................................................
.........................................................
(Company Name)
By:...................................................
Its:...................................................
(d) Where the lien claimant has been paid the final billing, the waiver and release must be in the following form:
UNCONDITIONAL WAIVER AND RELEASE
UPON FINAL PAYMENT
Property Name:.............................................................................................................
Property Location:.......................................................................................................
Undersigneds Customer:............................................................................................
Invoice/Payment Application Number:...................................................................
Payment Amount:........................................................................................................
Amount of Disputed Claims:.....................................................................................
The undersigned has been paid in full for all work, materials and equipment furnished to his Customer for the above described Property and does hereby waive and release any notice of lien, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to payment rights that the undersigned has on the above described Property, except for the payment of Disputed Claims, if any, noted above. The undersigned warrants that he either has already paid or will use the money he receives from this final payment promptly to pay in full all his laborers, subcontractors, materialmen and suppliers for all work, materials and equipment that are the subject of this waiver and release.
κ2005 Statutes of Nevada, Page 1918 (CHAPTER 428, SB 343)κ
Dated:...................................................
.........................................................
(Company Name)
By:...................................................
Its:...................................................
(Each unconditional waiver and release must contain the following language, in type at least as large as the largest type otherwise on the document:)
Notice: This document waives rights unconditionally and states that you have been paid for giving up those rights. This document is enforceable against you if you sign it, even if you have not been paid. If you have not been paid, use a conditional release form.
(e) Notwithstanding any language in any waiver and release form set forth in this section, if the payment given in exchange for any waiver and release of lien is made by check, draft or other such negotiable instrument, and the same fails to clear the bank on which it is drawn for any reason, then the waiver and release shall be deemed null, void and of no legal effect whatsoever and all liens, lien rights, bond rights, contract rights or any other right to recover payment afforded to the lien claimant in law or equity will not be affected by the lien claimants execution of the waiver and release.
________
Senate Bill No. 238Senator Washington
CHAPTER 429
AN ACT relating to public utilities; authorizing a public utility which purchases natural gas for resale to submit information with a general rate application regarding the effect that certain expected changes in circumstances will have on its operations; authorizing the Public Utilities Commission of Nevada to permit a public utility which purchases natural gas for resale to make quarterly adjustments in its rates based on changes in the costs of natural gas without complying with certain procedural requirements; requiring the Commission to conduct a study and prepare a report for the Legislature regarding the possible use of alternative ratemaking methodologies in general rate cases; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 703.320 is hereby amended to read as follows:
703.320 Except as otherwise provided in subsection 8 of NRS 704.110:
1. In any matter pending before the Commission, if a hearing is required by a specific statute or is otherwise required by the Commission, the Commission shall give notice of the pendency of the matter to all persons entitled to notice of the hearing.
κ2005 Statutes of Nevada, Page 1919 (CHAPTER 429, SB 238)κ
Commission shall give notice of the pendency of the matter to all persons entitled to notice of the hearing. The Commission shall by regulation specify:
(a) The manner of giving notice in each type of proceeding; and
(b) The persons entitled to notice in each type of proceeding.
2. The Commission shall not dispense with a hearing:
(a) In any matter pending before the Commission pursuant to NRS 704.7561 to 704.7595, inclusive; or
(b) Except as otherwise provided in subsection [4] 5 of NRS 704.100, in any matter pending before the Commission pursuant to NRS 704.061 to 704.110, inclusive, in which an electric utility has filed a general rate application or an application to clear its deferred accounts.
3. In any other matter pending before the Commission, the Commission may dispense with a hearing and act upon the matter pending unless, within 10 days after the date of the notice of pendency, a person entitled to notice of the hearing files with the Commission a request that the hearing be held. If such a request for a hearing is filed, the Commission shall give at least 10 days notice of the hearing.
4. As used in this section, electric utility has the meaning ascribed to it in NRS 704.187.
Sec. 2. NRS 704.069 is hereby amended to read as follows:
704.069 1. [The] Except as otherwise provided in subsection 8 of NRS 704.110, the Commission shall conduct a consumer session to solicit comments from the public in any matter pending before the Commission pursuant to NRS 704.061 to 704.110, inclusive, in which:
(a) A public utility has filed a general rate application, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale or an application to clear its deferred accounts; and
(b) The changes proposed in the application will result in an increase in annual gross operating revenue, as certified by the applicant, in an amount that will exceed $50,000 or 10 percent of the applicants annual gross operating revenue, whichever is less.
2. In addition to the case-specific consumer sessions required by subsection 1, the Commission shall, during each calendar year, conduct at least one general consumer session in the county with the largest population in this State and at least one general consumer session in the county with the second largest population in this State. At each general consumer session, the Commission shall solicit comments from the public on issues concerning public utilities. Not later than 60 days after each general consumer session, the Commission shall submit the record from the general consumer session to the Legislative Commission.
Sec. 3. NRS 704.100 is hereby amended to read as follows:
704.100 Except as otherwise provided in NRS 704.075 and 704.68904 to 704.68984, inclusive, or as may otherwise be provided by the Commission pursuant to NRS 704.095 or 704.097 or pursuant to the regulations adopted by the Commission in accordance with subsection 4 of NRS 704.040:
1. A public utility shall not make changes in any schedule, unless the public utility:
(a) Files with the Commission an application to make the proposed changes and the Commission approves the proposed changes pursuant to NRS 704.110; or
(b) Files the proposed changes with the Commission using a letter of advice in accordance with the provisions of subsection [4.] 5.
κ2005 Statutes of Nevada, Page 1920 (CHAPTER 429, SB 238)κ
2. A public utility shall adjust its rates on a quarterly basis between annual rate adjustment applications pursuant to subsection 8 of NRS 704.110 based on changes in the public utilitys recorded costs of natural gas purchased for resale.
3. A public utility shall post copies of all proposed schedules and all new or amended schedules in the same offices and in substantially the same form, manner and places as required by NRS 704.070 for the posting of copies of schedules that are currently in force.
[3.] 4. A public utility may not set forth as justification for a rate increase any items of expense or rate base that previously have been considered and disallowed by the Commission, unless those items are clearly identified in the application and new facts or considerations of policy for each item are advanced in the application to justify a reversal of the prior decision of the Commission.
[4.] 5. Except as otherwise provided in subsection [5,] 6, if the proposed change in any schedule does not change any rate or will result in an increase in annual gross operating revenue, as certified by the public utility, in an amount that does not exceed $2,500:
(a) The public utility may file the proposed change with the Commission using a letter of advice in lieu of filing an application; and
(b) The Commission shall determine whether it should dispense with a hearing regarding the proposed change.
[5.] 6. If the applicant is a public utility furnishing telephone service and the proposed change in any schedule will result in an increase in annual gross operating revenue, as certified by the applicant, in an amount that does not exceed $50,000 or 10 percent of the applicants annual gross operating revenue, whichever is less, the Commission shall determine whether it should dispense with a hearing regarding the proposed change.
[6.] 7. In making the determination pursuant to subsection [4 or 5,] 5 or 6, the Commission shall first consider all timely written protests, any presentation that the Regulatory Operations Staff of the Commission may desire to present, the application of the public utility and any other matters deemed relevant by the Commission.
Sec. 4. NRS 704.110 is hereby amended to read as follows:
704.110 Except as otherwise provided in NRS 704.075 and 704.68904 to 704.68984, inclusive, or as may otherwise be provided by the Commission pursuant to NRS 704.095 or 704.097 or pursuant to the regulations adopted by the Commission in accordance with subsection 4 of NRS 704.040:
1. If a public utility files with the Commission an application to make changes in any schedule, including, without limitation, changes that will result in a discontinuance, modification or restriction of service, the Commission shall investigate the propriety of the proposed changes to determine whether to approve or disapprove the proposed changes. If an electric utility files such an application and the application is a general rate application or an application to clear its deferred accounts, the Consumers Advocate shall be deemed a party of record.
2. Except as otherwise provided in subsections 3 and [11,] 13, if a public utility files with the Commission an application to make changes in any schedule, not later than 180 days after the date on which the application is filed, the Commission shall issue a written order approving or disapproving, in whole or in part, the proposed changes.
κ2005 Statutes of Nevada, Page 1921 (CHAPTER 429, SB 238)κ
3. If a public utility files with the Commission a general rate application, the public utility shall submit with its application a statement showing the recorded results of revenues, expenses, investments and costs of capital for its most recent 12 months for which data were available when the application was prepared. [In] Except as otherwise provided in subsection 4, in determining whether to approve or disapprove any increased rates, the Commission shall consider evidence in support of the increased rates based upon actual recorded results of operations for the same 12 months, adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation, certain other operating expenses as approved by the Commission and changes in the costs of securities which are known and are measurable with reasonable accuracy at the time of filing and which will become effective within 6 months after the last month of those 12 months, but the public utility shall not place into effect any increased rates until the changes have been experienced and certified by the public utility to the Commission and the Commission has approved the increased rates. The Commission shall also consider evidence supporting expenses for depreciation, calculated on an annual basis, applicable to major components of the public utilitys plant placed into service during the recorded test period or the period for certification as set forth in the application. Adjustments to revenues, operating expenses and costs of securities must be calculated on an annual basis. Within 90 days after the date on which the certification required by this subsection is filed with the Commission, or within 180 days after the date on which the general rate application is filed with the Commission, whichever time is longer, the Commission shall make such order in reference to the increased rates as is required by this chapter. An electric utility shall file a general rate application pursuant to this subsection at least once every 24 months.
4. In addition to submitting the statement required pursuant to subsection 3, a public utility which purchases natural gas for resale may submit with its general rate application a statement showing the effects, on an annualized basis, of all expected changes in circumstances. If such a statement is filed, it must include all increases and decreases in revenue and expenses which may occur within 210 days after the date on which its general rate application is filed with the Commission if such expected changes in circumstances are reasonably known and are measurable with reasonable accuracy. If a public utility submits such a statement, the public utility has the burden of proving that the expected changes in circumstances set forth in the statement are reasonably known and are measurable with reasonable accuracy. If the Commission determines that the public utility has met its burden of proof:
(a) The Commission shall consider the statement submitted pursuant to this subsection and evidence relevant to the statement in addition to the statement required pursuant to subsection 3 as evidence in establishing just and reasonable rates for the public utility; and
(b) The public utility is not required to file with the Commission the certification that would otherwise be required pursuant to subsection 3.
5. If a public utility files with the Commission an application to make changes in any schedule and the Commission does not issue a final written order regarding the proposed changes within the time required by this section, the proposed changes shall be deemed to be approved by the Commission.
κ2005 Statutes of Nevada, Page 1922 (CHAPTER 429, SB 238)κ
[5.] 6. If a public utility files with the Commission a general rate application, the public utility shall not file with the Commission another general rate application until all pending general rate applications filed by that public utility have been decided by the Commission unless, after application and hearing, the Commission determines that a substantial financial emergency would exist if the public utility is not permitted to file another general rate application sooner. The provisions of this subsection do not prohibit the public utility from filing with the Commission, while a general rate application is pending, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale pursuant to subsection [6] 7 or an application to clear its deferred accounts pursuant to subsection [7,] 9, if the public utility is otherwise authorized by those provisions to file such an application.
[6.] 7. A public utility may file an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale once every 30 days. The provisions of this subsection do not apply to [an] :
(a) An electric utility using deferred accounting pursuant to NRS 704.187 [.
7.] ; or
(b) A public utility which purchases natural gas for resale and which adjusts its rates on a quarterly basis between annual rate adjustment applications pursuant to subsection 8.
8. A public utility which purchases natural gas for resale must request approval from the Commission to adjust its rates on a quarterly basis between annual rate adjustment applications based on changes in the public utilitys recorded costs of natural gas purchased for resale. If the Commission approves such a request:
(a) The public utility shall file written notice with the Commission before the public utility makes a quarterly rate adjustment between annual rate adjustment applications. A quarterly rate adjustment is not subject to the requirements for notice and a hearing pursuant to NRS 703.320 or the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.
(b) The public utility shall provide written notice of each quarterly rate adjustment to its customers by including the written notice with a customers regular monthly bill. The public utility shall begin providing such written notice to its customers not later than 30 days after the date on which the public utility files its written notice with the Commission pursuant to paragraph (a). The written notice that is included with a customers regular monthly bill:
(1) Must be printed separately on fluorescent-colored paper and must not be attached to the pages of the bill; and
(2) Must include the following:
(I) The total amount of the increase or decrease in the public utilitys revenues from the rate adjustment, stated in dollars and as a percentage;
(II) The amount of the monthly increase or decrease in charges for each class of customer or class of service, stated in dollars and as a percentage;
(III) A statement that customers may send written comments or protests regarding the rate adjustment to the Commission; and
(IV) Any other information required by the Commission.
κ2005 Statutes of Nevada, Page 1923 (CHAPTER 429, SB 238)κ
(c) The public utility shall file an annual rate adjustment application with the Commission. The annual rate adjustment application is subject to the requirements for notice and a hearing pursuant to NRS 703.320 and the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.
(d) The proceeding regarding the annual rate adjustment application must include a review of each quarterly rate adjustment and a review of the transactions and recorded costs of natural gas included in each quarterly rate adjustment and the annual rate adjustment application. There is no presumption of reasonableness or prudence for any quarterly rate adjustment or for any transactions or recorded costs of natural gas included in any quarterly rate adjustment or the annual rate adjustment application, and the public utility has the burden of proving reasonableness and prudence in the proceeding.
(e) The Commission shall not allow the public utility to recover any recorded costs of natural gas which were the result of any practice or transaction that was unreasonable or was undertaken, managed or performed imprudently by the public utility, and the Commission shall order the public utility to adjust its rates if the Commission determines that any recorded costs of natural gas included in any quarterly rate adjustment or the annual rate adjustment application were not reasonable or prudent.
9. Except as otherwise provided in subsection [8] 10 and subsection [4] 5 of NRS 704.100, if an electric utility using deferred accounting pursuant to NRS 704.187 files an application to clear its deferred accounts and to change one or more of its rates based upon changes in the costs for purchased fuel or purchased power, the Commission, after a public hearing and by an appropriate order:
(a) Shall allow the electric utility to clear its deferred accounts by refunding any credit balance or recovering any debit balance over a period not to exceed 3 years, as determined by the Commission.
(b) Shall not allow the electric utility to recover any debit balance, or portion thereof, in an amount that would result in a rate of return during the period of recovery that exceeds the rate of return authorized by the Commission in the most recently completed rate proceeding for the electric utility.
[8.] 10. Before allowing an electric utility to clear its deferred accounts pursuant to subsection [7,] 9, the Commission shall determine whether the costs for purchased fuel and purchased power that the electric utility recorded in its deferred accounts are recoverable and whether the revenues that the electric utility collected from customers in this State for purchased fuel and purchased power are properly recorded and credited in its deferred accounts. The Commission shall not allow the electric utility to recover any costs for purchased fuel and purchased power that were the result of any practice or transaction that was undertaken, managed or performed imprudently by the electric utility.
[9.] 11. If an electric utility files an application to clear its deferred accounts pursuant to subsection [7] 9 while a general rate application is pending, the electric utility shall:
(a) Submit with its application to clear its deferred accounts information relating to the cost of service and rate design; and
(b) Supplement its general rate application with the same information, if such information was not submitted with the general rate application.
κ2005 Statutes of Nevada, Page 1924 (CHAPTER 429, SB 238)κ
[10.] 12. A utility facility identified in a 3-year plan submitted pursuant to NRS 704.741 and accepted by the Commission for acquisition or construction pursuant to NRS 704.751 and the regulations adopted pursuant thereto shall be deemed to be a prudent investment. The utility may recover all just and reasonable costs of planning and constructing such a facility.
[11.] 13. A PAR carrier may, in accordance with this section and NRS 704.100, file with the Commission a request to approve or change any schedule to provide volume or duration discounts to rates for telecommunication service for an offering made to all or any class of business customers. The Commission may conduct a hearing relating to the request, which must occur within 45 days after the date the request is filed with the Commission. The request and schedule shall be deemed approved if the request and schedule are not disapproved by the Commission within 60 days after the date the Commission receives the request.
[12.] 14. As used in this section:
(a) Electric utility has the meaning ascribed to it in NRS 704.187.
(b) PAR carrier has the meaning ascribed to it in NRS 704.68942.
Sec. 5. NRS 704.185 is hereby amended to read as follows:
704.185 1. [A] Except as otherwise provided in subsection 8 of NRS 704.110, a public utility which purchases natural gas for resale may record upon its books and records in deferred accounts all cost increases or decreases in the natural gas purchased for resale. Any public utility which uses deferred accounting to reflect changes in costs of natural gas purchased for resale shall include in its annual report to the Commission a statement showing the allocated rate of return for each of its operating departments in Nevada which uses deferred accounting.
2. If the rate of return for any department using deferred accounting pursuant to subsection 1 is greater than the rate of return allowed by the Commission in the last rate proceeding, the Commission shall order the utility which recovered any costs of natural gas purchased for resale through rates during the reported period to transfer to the next energy adjustment period that portion of such recovered amounts which exceeds the authorized rate of return.
3. A public utility which purchases natural gas for resale may request approval from the Commission to record upon its books and records in deferred accounts any other cost or revenue which the Commission deems appropriate for deferred accounting and which is not otherwise subject to the provisions of subsections 1 and 2. If the Commission approves such a request, the Commission shall determine the appropriate requirements for reporting and recovery that the public utility must follow with regard to each such deferred account.
Sec. 6. NRS 704.187 is hereby amended to read as follows:
704.187 1. Except as otherwise provided in section 36 of chapter 16, Statutes of Nevada 2001, beginning on March 1, 2001, an electric utility that purchases fuel or power shall use deferred accounting by recording upon its books and records in deferred accounts all increases and decreases in costs for purchased fuel and purchased power that are prudently incurred by the electric utility.
2. An electric utility using deferred accounting shall include in its annual report to the Commission a statement showing, for the period of recovery, the allocated rate of return for each of its operating departments in this State using deferred accounting. If, during the period of recovery, the rate of return for any operating department using deferred accounting is greater than the rate of return authorized by the Commission in the most recently completed rate proceeding for the electric utility, the Commission shall order the electric utility that recovered costs for purchased fuel or purchased power through its rates during the reported period to transfer to the next energy adjustment period that portion of the amount recovered by the electric utility that exceeds the authorized rate of return.
κ2005 Statutes of Nevada, Page 1925 (CHAPTER 429, SB 238)κ
rate of return for any operating department using deferred accounting is greater than the rate of return authorized by the Commission in the most recently completed rate proceeding for the electric utility, the Commission shall order the electric utility that recovered costs for purchased fuel or purchased power through its rates during the reported period to transfer to the next energy adjustment period that portion of the amount recovered by the electric utility that exceeds the authorized rate of return.
3. Except as otherwise provided in subsection 4, an electric utility using deferred accounting shall file an application to clear its deferred accounts after the end of each 12-month period of deferred accounting.
4. An electric utility using deferred accounting may file an application to clear its deferred accounts after the end of a 6-month period of deferred accounting if the net increase or decrease in revenues necessary to clear its deferred accounts for the 6-month period is more than 5 percent of the total revenues generated by the electric utility during that period from its rates for purchased fuel and purchased power most recently authorized by the Commission.
5. The Commission shall adopt regulations prescribing the period within which an electric utility must file an application to clear its deferred accounts after the end of a period of deferred accounting.
6. As used in this section:
(a) Application to clear its deferred accounts means an application filed by an electric utility pursuant to this section and subsection [7] 9 of NRS 704.110.
(b) Costs for purchased fuel and purchased power means all costs which are prudently incurred by an electric utility and which are required to purchase fuel, to purchase capacity and to purchase energy. The term does not include any costs that the Commission determines are not recoverable pursuant to subsection [8] 10 of NRS 704.110.
(c) Electric utility means any public utility or successor in interest that:
(1) Is in the business of providing electric service to customers;
(2) Holds a certificate of public convenience and necessity issued or transferred pursuant to this chapter; and
(3) In the most recently completed calendar year or in any other calendar year within the 7 calendar years immediately preceding the most recently completed calendar year, had a gross operating revenue of $250,000,000 or more in this State.
Κ The term does not include a cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its members.
Sec. 7. 1. As soon as practicable after the effective date of this act, the Public Utilities Commission of Nevada shall open an investigatory docket to study, examine and review the various processes, theories and methodologies that may be used to establish just and reasonable rates in cases involving general rate applications filed by public utilities.
2. The investigatory docket must include, without limitation:
(a) Consideration of the use of different ratemaking methodologies as an alternative to the historical test year methodologies currently used in Nevada, such as:
(1) Projected test year methodologies;
κ2005 Statutes of Nevada, Page 1926 (CHAPTER 429, SB 238)κ
(2) Hybrid methodologies that use a combination of projected data and historical data; and
(3) Any other ratemaking methodologies that are reasonable alternatives to historical test year methodologies.
(b) With regard to each alternative ratemaking methodology, consideration of:
(1) The rate impact on customers and whether the methodology would result in rates that more accurately reflect the costs of providing service to those customers;
(2) The cost effectiveness of using the methodology;
(3) The fiscal impact on state and local agencies;
(4) The procedures and mechanisms necessary to implement the methodology; and
(5) Any other related matters that the Commission deems appropriate.
3. The following parties may participate in the investigatory docket:
(a) Each public utility operating in this State;
(b) The Regulatory Operations Staff of the Commission;
(c) The Consumers Advocate and the Bureau of Consumer Protection in the Office of the Attorney General; and
(d) Any other interested parties.
4. On or before October 1, 2006, the Commission shall submit a written report of its findings and recommendations from the investigatory docket to the Director of the Legislative Counsel Bureau for transmittal to the 74th Session of the Nevada Legislature.
5. If the Commissions report contains any recommendations for modification or replacement of the historical test year methodologies currently used in Nevada with alterative ratemaking methodologies, the report must include, without limitation, recommendations regarding:
(a) The legislation that would be necessary to authorize the alternative ratemaking methodologies; and
(b) The procedures and mechanisms that would be necessary to implement the alternative ratemaking methodologies.
Sec. 8. 1. This section and section 7 of this act become effective upon passage and approval.
2. Sections 1 to 6, inclusive, of this act become effective on October 1, 2005.
________
Assembly Bill No. 498Committee on Elections, Procedures, Ethics, and Constitutional Amendments
CHAPTER 430
AN ACT relating to the State Legislature; extending the date for expiration of the Legislative Committee on Taxation, Public Revenue and Tax Policy; directing the Committee to study the franchise fees, business license fees and all other fees and taxes imposed upon providers of telecommunication, video, data, electric and natural gas services; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
κ2005 Statutes of Nevada, Page 1927 (CHAPTER 430, AB 498)κ
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 218.53745 is hereby amended to read as follows:
218.53745 The Committee [may:
1. Review] :
1. Shall:
(a) Analyze the effect of changes in technology on the fees administered and imposed by the state and local governments on providers of telecommunications, video, data, electric or natural gas services.
(b) Monitor the effect of any changes proposed by the Federal Communications Commission and the Congress of the United States to the categorization of different types of telecommunication and video services and the jurisdiction, or lack thereof, of the state and local governments over those services.
(c) Analyze and compare the procedures and methods used by local governments to administer, tax and limit the use of public rights-of-way by the providers of telecommunications, video, data, electric or natural gas services.
(d) Consider individually telecommunications, video, data, electric and natural gas services to determine the most appropriate level of government for administering taxes and fees on such services.
(e) Analyze any services or benefits that are currently offered to providers of telecommunications, video, data, electric or natural gas services by local governments in exchange for the franchise fees charged by local governments.
(f) Examine and consider the proposed effects of eliminating franchise fees, business license fees and all other fees and taxes imposed upon providers of telecommunications, video, data, electric and natural gas services.
(g) Consider the methods of distribution to local governments of the revenue from the tax on aviation fuel and motor vehicle fuel imposed by or pursuant to chapter 365 of NRS.
(h) Review the price and availability of renewable and alternative fuels.
(i) Consider any other matter that the Committee determines is relevant to its duties prescribed in this subsection.
2. May review and study:
(a) The specific taxes collected in this State;
(b) The implementation of any taxes, fees and other methods for generating public revenue in this State;
(c) The impact of any changes to taxes, fees and other methods for generating public revenue that result from legislation enacted by the Legislature on the residents of this State and on the businesses located in this State, doing business in this State or considering locating in this State;
(d) The fiscal effects of any taxes, fees and other methods for generating public revenue;
(e) The impact, if any, on the prices charged to the residents of this State from the compounding of various new or increased taxes such as the real property transfer tax;
(f) The beneficial and detrimental effects, if any, of the reduction of the tax based on wages for the cost of employee health benefits;
κ2005 Statutes of Nevada, Page 1928 (CHAPTER 430, AB 498)κ
(g) Broad issues of tax policy and fiscal policy relevant to the future of the State of Nevada; and
(h) Any other issues related to taxation, the generation of public revenue, tax policy or fiscal policy which affect this State.
[2. Conduct]
3. May conduct investigations and hold hearings in connection with its powers pursuant to this section.
[3. Contract]
4. May contract with one or more consultants to obtain technical advice concerning its review and study.
[4. Apply]
5. May apply for any available grants and accept any gifts, grants or donations and use any such gifts, grants or donations to aid the Committee in exercising its powers pursuant to this section.
[5. Request]
6. May request that the Legislative Counsel Bureau assist in the research, investigations, hearings, studies and reviews of the Committee.
[6. Recommend]
7. May recommend to the Legislature, as a result of its review and study, any appropriate legislation.
Sec. 2. NRS 218.53747 is hereby amended to read as follows:
218.53747 If the Committee conducts investigations or holds hearings pursuant to subsection [2] 3 of NRS 218.53745:
1. The Secretary of the Committee or, in his absence, a member designated by the Committee may administer oaths; and
2. The Secretary or Chairman of the Committee may cause the deposition of witnesses, residing either within or outside of this State, to be taken in the manner prescribed by rule of court for taking depositions in civil actions in the district courts.
Sec. 3. Section 193 of Chapter 5, Statutes of Nevada 2003, 20th Special Session, at page 254, is hereby amended to read as follows:
Sec. 193. 1. This section and sections 110, 120, 121, 122, 122.3, 122.4, 122.5, 127, 130, 141, 143, 145, 154 to 161, inclusive, 164.10 to 164.34, inclusive, 166.5, 170, 185, 185.5, 185.7, 185.9, 187 to 188.7, inclusive, and 190 to 192.5, inclusive, of this act and subsection 1 of section 186 of this act become effective upon passage and approval.
2. Sections 189.58 and 189.64 of this act become effective upon passage and approval and apply retroactively to June 30, 2003.
3. Sections 164.50, 164.60, 164.70, 165.2, 185.1, 185.3, 189, 189.10, 189.14 to 189.56, inclusive, 189.60, 189.62 and 189.66 of this act become effective upon passage and approval and apply retroactively to July 1, 2003.
4. Sections 122.1, 122.2, 169.5 and 173.5 of this act become effective on August 1, 2003.
5. Sections 171 and 172 of this act and subsection 2 of section 186 of this act become effective:
(a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
(b) On September 1, 2003, for all other purposes.
κ2005 Statutes of Nevada, Page 1929 (CHAPTER 430, AB 498)κ
6. Sections 1 to 10, inclusive, 11 to 50, inclusive, 51 to 63, inclusive, 101 to 109, inclusive, 111 to 119, inclusive, 123 to 126, inclusive, 128, 129, 131 to 140, inclusive, 147 to 153, inclusive, 163, 164, 165, 166, 167, 174, 176 to 179, inclusive, 181.30 to 181.50, inclusive, 183 and 183.3 of this act and subsection 3 of section 186 of this act become effective:
(a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
(b) On October 1, 2003, for all other purposes.
7. Sections 10.5, 64 to 100, inclusive, 162, 164.38, 168, 169, 173, 173.7, 175, 180, 181 and 182 of this act and subsection 4 of section 186 of this act become effective:
(a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
(b) On January 1, 2004, for all other purposes.
8. Sections 183.5 and 184 of this act become effective:
(a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
(b) On July 1, 2004, for all other purposes.
9. Sections 165.4 and 189.12 of this act become effective on July 1, 2004.
10. Sections 50.5, 109.5 and 119.5 of this act become effective:
(a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
(b) On July 1, 2005, for all other purposes.
11. Sections 142, 144 and 146 of this act become effective at 12:01 a.m. on October 1, 2029.
12. Sections 154 to 160, inclusive, of this act expire by limitation on June 30, [2005.] 2007.
13. Sections 141, 143 and 145 of this act expire by limitation on September 30, 2029.
Sec. 4. This act becomes effective upon passage and approval.
________
Assembly Bill No. 504Committee on Transportation
CHAPTER 431
AN ACT relating to motor carriers; exempting an owner or operator of a motor vehicle that is used for the transportation of passengers or property from the provisions governing fully regulated carriers under certain circumstances; requiring the owner or operator to inspect the motor vehicle regularly and maintain a record of each inspection; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
κ2005 Statutes of Nevada, Page 1930 (CHAPTER 431, AB 504)κ
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 706 of NRS is hereby amended by adding thereto a new section to read as follows:
1. An owner or operator of a motor vehicle that is used for the transportation of passengers or property is not subject to the provisions of this chapter governing fully regulated carriers if:
(a) The owner or operator of the motor vehicle:
(1) Holds a nonrestricted license and is a resort hotel;
(2) Is not in the business of transporting passengers or property;
(3) Does not charge a fee for transporting passengers or property;
(4) Provides transportation only to its customers, guests, casino hosts, key employees, officers and directors; and
(5) Marks the vehicle with the owners or operators name or logo, which must be at least 2 inches in height and be visible from a distance of at least 50 feet; and
(b) The use of the motor vehicle is related to the business of the resort hotel for which the nonrestricted license was issued.
2. An owner or operator of a motor vehicle specified in subsection 1 shall regularly inspect the motor vehicle and maintain a record of the inspection for at least 3 years after the date of the inspection. Each record maintained pursuant to this subsection must be made available for inspection or audit by the Authority or its designee at any time during regular business hours.
3. As used in this section:
(a) Nonrestricted license has the meaning ascribed to it in NRS 463.0177; and
(b) Resort hotel has the meaning ascribed to it in NRS 463.01865.
Sec. 2. NRS 706.011 is hereby amended to read as follows:
706.011 As used in NRS 706.011 to 706.791, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 706.013 to 706.146, inclusive, have the meanings ascribed to them in those sections.
Sec. 3. 1. Each owner or operator of a resort hotel shall:
(a) To the greatest extent practicable, meet and confer with all other owners and operators of resort hotels in this State; and
(b) Prepare a report concerning limousines and other motor vehicles to which the provisions of section 1 of this act apply.
2. The report must include, without limitation, a discussion of the following subjects:
(a) The employment practices used for employees who drive limousines and other motor vehicles, including, without limitation, conducting background investigations, policies concerning testing for the presence of drugs and reviewing of driving records;
(b) The training provided for drivers to ensure proficiency in the operation of limousines and other motor vehicles; and
(c) The procedures used for the maintenance of limousines and other motor vehicles.
3. The report must be submitted on or before February 1, 2007, to the Director of the Legislative Counsel Bureau for transmittal to the 74th Session of the Nevada Legislature.
κ2005 Statutes of Nevada, Page 1931 (CHAPTER 431, AB 504)κ
4. As used in this section, resort hotel means any building or group of buildings that is maintained as and held out to the public to be a hotel where sleeping accommodations are furnished to the transient public and that has:
(a) More than 200 rooms available for sleeping accommodations;
(b) At least one bar with permanent seating capacity for more than 30 patrons that serves alcoholic beverages sold by the drink for consumption on the premises;
(c) At least one restaurant with permanent seating capacity for more than 60 patrons that is open to the public 24 hours each day and 7 days each week; and
(d) A gaming area within the building or group of buildings.
Sec. 4. This act becomes effective upon passage and approval.
________
Assembly Bill No. 572Committee on Ways and Means
CHAPTER 432
AN ACT relating to state financial administration; providing for the one-time issuance of a check to certain persons and entities; providing for the appropriation of the reversion for grants to disaster victims; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The Account for the One-Time Rebate is hereby created within the State General Fund. The Governor, with assistance from the State Treasurer, shall administer the Account.
Sec. 2. There is hereby appropriated from the State General Fund to the Account created by section 1 of this act the sum of $300,000,000 to pay the costs incurred for issuing and paying negotiable instruments of rebate as required by section 3 of this act.
Sec. 3. 1. The Governor, with assistance from the State Treasurer and the Director of the Department of Motor Vehicles, shall establish a program pursuant to which the Governor issues a negotiable instrument of rebate to:
(a) Each owner of each vehicle that was registered in this State during the 2004 calendar year; and
(b) Each person who was at least 65 years of age on or before January 1, 2005, held a valid identification card issued by the Department of Motor Vehicles on or before that date and continues to hold such valid identification card.
2. Except as otherwise provided in this subsection and subsection 3, the program established pursuant to subsection 1 must provide for the issuance to:
(a) Each owner of each vehicle that was registered in this State during the 2004 calendar year, a negotiable instrument of rebate in an amount equal to the lesser of:
(1) Two hundred seventy five dollars; or
κ2005 Statutes of Nevada, Page 1932 (CHAPTER 432, AB 572)κ
(2) The full amount of the Basic Governmental Services Tax and Registration Fees that was paid upon the registration of the vehicle during the 2004 calendar year.
Κ In no case may a negotiable instrument of rebate issued pursuant to this paragraph be in an amount less than $75.
(b) Each person who was at least 65 years of age on or before January 1, 2005, held a valid identification card issued by the Department of Motor Vehicles on or before that date and continues to hold such valid identification card, a negotiable instrument of rebate in an amount equal to $75.
3. The program established pursuant to subsection 1 must be designed and carried out to ensure that:
(a) With respect to the negotiable instruments of rebate described in paragraph (a) of that subsection, the negotiable instruments of rebate are issued on a per-vehicle basis, without regard to the number of vehicles owned by the registered owner.
(b) With respect to the negotiable instruments of rebate described in paragraphs (a) and (b) of that subsection:
(1) Each negotiable instrument of rebate is issued as soon as practicable after July 1, 2005, but in no case later than December 31, 2005.
(2) A negotiable instrument of rebate is void and without value of any kind if a demand for payment on the negotiable instrument is not made within 180 days after the date on which it was issued.
(3) Notwithstanding any other provision of law to the contrary, if a demand for payment on a negotiable instrument of rebate is not made within 180 days after its issuance, the full amount of the negotiable instrument that would otherwise have been payable reverts to the State General Fund.
4. If the State Treasurer determines that delays in the receipt of available funds will result in insufficient revenues to pay all the checks to be issued, he may submit a request for a temporary advance from the State General Fund to the Director of the Department of Administration to pay the checks.
5. The Director of the Department of Administration shall notify the State Controller and the Fiscal Analysis Division of the Legislative Counsel Bureau if he approves a request made pursuant to subsection 1. The State Controller shall draw a warrant upon receipt of such a notification.
6. An advance from the State General Fund approved by the Director of the Department of Administration as authorized pursuant to this section is limited to the total estimated amounts due from the unreturned checks.
7. Any money which is temporarily advanced from the State General Fund to the Account for the One-Time Rebate pursuant to this section must be repaid before money is deposited in the revolving account established by section 5 of this act.
8. As used in this section, unless the context otherwise requires:
(a) Registered owner has the meaning ascribed to it in NRS 482.102, but does not include a short-term lessor that charged and collected the recovery surcharge described in paragraph (b) of subsection 1 of NRS 482.313.
(b) Vehicle has the meaning ascribed to it in NRS 371.020, but does not include:
(1) A utility trailer, as that term is defined in NRS 482.134; or
κ2005 Statutes of Nevada, Page 1933 (CHAPTER 432, AB 572)κ
(2) A motor vehicle that is based in this State and that has a declared gross weight in excess of 26,000 pounds.
Sec. 4. The negotiable instruments of rebate described in this act are not warrants issued in payment of claims against the State for the purpose of the provisions of NRS 353.130, 353.135 and 353.140.
Sec. 5. 1. Any remaining balance of the appropriation made by section 2 of this act must not be committed for expenditure after January 31, 2006, and must be reverted to the State General Fund on or before September 15, 2006.
2. The Division of Emergency Management of the Department of Public Safety shall establish a revolving account within the State General Fund for grants to persons who own and occupy homes damaged by a disaster.
3. Except as otherwise provided in this subsection, any remaining balance reverted to the State General Fund pursuant to subsection 1 must be deposited in the revolving account established by subsection 2 and is appropriated for use by the Division in making grants to persons who own and occupy homes damaged by a disaster. Not more than $5,000,000 may be deposited in the revolving account and appropriated as described in this subsection.
Sec. 6. This act becomes effective upon passage and approval and expires by limitation on February 28, 2006.
________
Assembly Bill No. 575Committee on Ways and Means
CHAPTER 433
AN ACT relating to education; making appropriations to the State Distributive School Account for purposes relating to class-size reduction; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
Whereas, The intended goal of the Legislature is to achieve a pupil-teacher ratio of not more than 15 pupils per teacher or 30 pupils per two teachers in kindergarten and grades 1, 2 and 3 where core curriculum is taught; and
Whereas, Available money is estimated to provide a sufficient number of teachers to achieve in each school district pupil-teacher ratios of 16 pupils per teacher in selected kindergarten classrooms in which pupils are most at risk of failure and in grades 1 and 2 in Fiscal Years 2005-2006 and 2006-2007, and to achieve a pupil-teacher ratio in grade 3 of 19 pupils per teacher in Fiscal Years 2005-2006 and 2006-2007; and
Whereas, Certain school districts do not have a sufficient number of classrooms available to permit an average class size of 19 pupils per teacher in grade 3; and
Whereas, It is unreasonable to assign two teachers to classrooms of 38 pupils to attain a district-wide pupil-teacher ratio of 19 pupils per teacher in grade 3; and
Whereas, School districts may, instead, attain the desired pupil-teacher ratio in classes where core curriculum is taught by using alternative methods of reducing the ratio, such as employing teachers to provide remedial instruction; and
κ2005 Statutes of Nevada, Page 1934 (CHAPTER 433, AB 575)κ
of reducing the ratio, such as employing teachers to provide remedial instruction; and
Whereas, School districts may wish to use money for class-size reduction to carry out programs that have been found to be effective in improving academic achievement; and
Whereas, The Legislature has specifically designed the laws relating to class-size reduction to allow the local school districts the necessary discretion to effectuate the reduction in the manner appropriate in their respective districts; and
Whereas, School districts are encouraged, to the extent possible, to further reduce the pupil-teacher ratio in each classroom in the district for grades 1, 2 and 3 for which additional funding is provided; and
Whereas, With this act, the Legislature intends to continue the reduced pupil-teacher ratio for selected kindergarten classrooms in which pupils are most at risk of failure and for grades 1 and 2 throughout the State and to continue reducing the pupil-teacher ratio in grade 3; and
Whereas, Thereafter, the intended goal of the Legislature is to reduce the pupil-teacher ratio per class in grade 3 to not more than 15 pupils per class, thereafter to reduce the pupil-teacher ratio per class in grades 4, 5 and 6 to not more than 22 pupils per class and thereafter to reduce the pupil-teacher ratio per class in grades 7 to 12, inclusive, to not more than 25 pupils per class; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. There is hereby appropriated from the State General Fund to the State Distributive School Account the sum of $125,552,187 for distribution by the Superintendent of Public Instruction to the county school districts for Fiscal Year 2005-2006 which must, except as otherwise provided in sections 3 and 4 of this act, be used to employ teachers to comply with the required ratio of pupils to teachers, as set forth in NRS 388.700, in grades 1 and 2 and in selected kindergartens with pupils who are considered at risk of failure by the Superintendent of Public Instruction and to maintain the current ratio of pupils per teacher in grade 3. Expenditures for the class-size reduction program must be accounted for in a separate category of expenditure in the State Distributive School Account.
2. Except as otherwise provided in sections 3 and 4 of this act, the money appropriated by subsection 1 must be used to pay the salaries and benefits of not less than 2,107 teachers employed by school districts to meet the required pupil-teacher ratios in the 2005-2006 school year.
3. Any remaining balance of the sum appropriated by subsection 1 must not be committed for expenditure after June 30, 2006, and must be transferred and added to the money appropriated to the State Distributive School Account pursuant to section 2 of this act for the 2006-2007 Fiscal Year, and may be expended as that money is expended.
Sec. 2. 1. There is hereby appropriated from the State General Fund to the State Distributive School Account the sum of $137,922,619 for distribution by the Superintendent of Public Instruction to the county school districts for Fiscal Year 2006-2007 which must, except as otherwise provided in sections 3 and 4 of this act, be used to employ teachers to comply with the required ratio of pupils to teachers, as set forth in NRS 388.700, in grades 1 and 2 and in selected kindergartens with pupils who are considered at risk of failure by the Superintendent of Public Instruction and to maintain the current ratio of pupils per teacher in grade 3.
κ2005 Statutes of Nevada, Page 1935 (CHAPTER 433, AB 575)κ
and 2 and in selected kindergartens with pupils who are considered at risk of failure by the Superintendent of Public Instruction and to maintain the current ratio of pupils per teacher in grade 3. Expenditures for the class-size reduction program must be accounted for in a separate category of expenditure in the State Distributive School Account.
2. Except as otherwise provided in sections 3 and 4 of this act, the money appropriated by subsection 1 must be used to pay the salaries and benefits of not less than 2,197 teachers employed by school districts to meet the required pupil-teacher ratios in the 2006-2007 school year.
3. Any remaining balance of the sum appropriated by subsection 1, including any money added thereto pursuant to section 1 of this act, must not be committed for expenditure after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 3. The board of trustees of each county school district:
1. Shall file a plan with the Superintendent of Public Instruction describing how the money appropriated by sections 1 and 2 of this act will be used to comply with the required ratio of pupils to teachers in kindergarten and grades 1, 2 and 3; or
2. May, after receiving approval of the plan from the Superintendent of Public Instruction, use the money appropriated by sections 1 and 2 of this act to carry out:
(a) An alternative program for reducing the ratio of pupils per teacher, including, without limitation, any legislatively approved program of flexibility; or
(b) Programs of remedial education that have been found to be effective in improving pupil achievement in grades 1, 2 and 3, so long as the combined ratio of pupils per teacher in the aggregate of kindergarten and grades 1, 2 and 3 of the school district does not exceed the combined ratio of pupils per teacher in the aggregate of kindergarten and grades 1, 2 and 3 of the school district in the 2002-2003 school year.
Κ The plan approved by the Superintendent of Public Instruction must describe the method to be used by the school district to evaluate the effectiveness of the alternative program or remedial programs in improving pupil achievement.
Sec. 4. 1. The money appropriated for class-size reduction pursuant to sections 1 and 2 of this act:
(a) May be applied first to pupils considered most at risk of failure.
(b) Must not be used to settle or arbitrate disputes between a recognized organization representing employees of a school district and the school district, or to settle any negotiations.
(c) Must not be used to adjust the district-wide schedules of salaries and benefits of the employees of a school district.
2. The money appropriated for class-size reduction pursuant to sections 1 and 2 of this act must not be distributed to a school district unless that school district has:
(a) Filed with the Department of Education a plan for achieving the required ratio set forth in NRS 388.700; and
(b) Demonstrated that, from resources of the school district other than allocations received from the State Distributive School Account for class-size reduction, a sufficient number of classroom teachers have been employed to maintain the average pupil-teacher ratio that existed for each grade for grades 1, 2 and 3, in that school district for the 3 school years immediately preceding the start of the class-size reduction program in the 1990-1991 school year.
κ2005 Statutes of Nevada, Page 1936 (CHAPTER 433, AB 575)κ
immediately preceding the start of the class-size reduction program in the 1990-1991 school year.
Sec. 5. 1. This section and sections 1, 3 and 4 of this act become effective on July 1, 2005.
2. Section 2 of this act becomes effective on July 1, 2006.
________
Assembly Bill No. 576Committee on Ways and Means
CHAPTER 434
AN ACT relating to state financial administration; making appropriations from the State General Fund and the State Highway Fund for the support of the civil government of the State of Nevada for the fiscal years beginning July 1, 2005, and ending June 30, 2006, and beginning July 1, 2006, and ending June 30, 2007; providing for the use of the money so appropriated; making various other changes relating to the financial administration of the State; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The following sums are hereby appropriated from the State General Fund for the purposes expressed in sections 2 to 31, inclusive, of this act and for the support of the government of the State of Nevada for the fiscal years beginning July 1, 2005, and ending June 30, 2006, and beginning July 1, 2006, and ending June 30, 2007.
2005-2006 2006-2007
Sec. 2. The Office and Mansion of the Governor.
For the support of the:
Office of the Governor............................... $2,289,290 $2,317,481
Governors Mansion................................... 273,986 340,706
Governors Office of Consumer Health Assistance 511,159 497,008
High Level Nuclear Waste Project Office 2,028,158 1,017,328
Energy Conservation.................................. 46,557 68,299
Sec. 3. The Office of Lieutenant Governor.
For the support of the Office of the Lieutenant Governor $516,317 $541,653
Sec. 4. The Office of Attorney General.
For the support of the:
Attorney General Administration Account $9,165,114 $9,485,085
Special Litigation Account........................ 1,078,628 78,628
Medicaid Fraud Control Unit.................... 1,000 1,000
Crime Prevention Program........................ 205,331 206,753
Office of the Extradition Coordinator.... 553,136 549,547
Bureau of Consumer Protection.............. 1,356,903 1,395,131
κ2005 Statutes of Nevada, Page 1937 (CHAPTER 434, AB 576)κ
Advisory Council for Prosecuting Attorneys $100 $100
Sec. 5. The Office of Secretary of State.
For the support of the Office of the Secretary of State $7,843,775 $7,726,705
Sec. 6. The Office of State Treasurer.
For the support of the Office of the State Treasurer $1,473,467 $1,454,858
Sec. 7. The Office of State Controller.
For the support of the Office of the State Controller $3,834,222 $3,829,779
Sec. 8. Department of Administration.
For the support of the:
Budget and planning.................................. $2,770,898 $3,182,365
Division of Internal Audits........................ 2,057,852 2,046,973
Clear Creek Youth Center......................... 61,824 63,220
State Public Works Board......................... 906,583 910,473
Information Technology Division........... 931,971 927,172
Merit Award Board..................................... 5,000 5,000
Information Technology Projects............ 15,316,282 913,004
Buildings and Grounds Division............... 597,807 254,000
Judicial College & College of Juvenile & Family Justice 375,000 375,000
Sec. 9. Department of Taxation.
For the support of the Department of Taxation $37,228,211 $29,575,500
Sec. 10. Legislative Fund.
For the support of the:
Legislative Commission............................. $773,918 $582,802
Audit Division.............................................. 3,292,373 3,382,479
Administrative Division............................. 8,104,829 8,355,930
Legal Division.............................................. 6,829,464 7,396,925
Research Division....................................... 3,699,592 3,752,444
Fiscal Analysis Division............................. 3,239,236 3,202,586
Interim legislative operations.................... 528,030 563,744
Sec. 11. Supreme Court of Nevada.
For the support of the:
Supreme Court of Nevada........................ $5,388,788 $5,381,559
Law Library................................................. 1,435,036 1,473,675
Commission on Judicial Selection........... 8,871 8,871
Division of Planning and Analysis........... 526,781 556,426
Judicial Retirement System....................... 1,554,600 1,608,800
Retired Justice Duty ................................... 1,014,748 1,232,225
Sec. 12. Commission on Judicial Discipline.
For the support of the Commission on Judicial Discipline $491,617 $485,402
Sec. 13. District Judges Salaries.
For the support of the District Judges salaries $11,407,574 $11,552,331
Sec. 14. Commission on Economic Development.
For the support of:
Economic development............................. $8,476,079 $8,473,270
κ2005 Statutes of Nevada, Page 1938 (CHAPTER 434, AB 576)κ
Rural community development............... $207,169 $208,119
Small business and procurement outreach program 76,949 81,805
Sec. 15. Department of Education.
For the support of:
Education, state programs........................ $2,668,713 $2,736,906
Career and Technical Education............. 361,079 365,406
Teacher education and licensing.............. 100 100
Nutrition education programs................... 275,804 278,640
Continuing education................................. 555,676 558,063
Individuals with Disabilities Education Act 195,119 195,205
Proficiency testing....................................... 4,177,322 4,331,677
Other state education programs............... 13,515,436 12,650,158
Education support services....................... 956,969 1,016,567
Student Incentive Grants........................... 376,273 376,952
Sec. 16. Nevada System of Higher Education.
For the support of:
System administration............................... $4,465,289 $4,555,582
University Press........................................... 769,168 785,102
Statewide programs — UNR....................... 7,378,705 7,473,392
Intercollegiate athletics — UNR................. 5,389,249 5,457,948
Statewide Programs — UNLV.................... 1,285,481 1,306,109
Intercollegiate athletics — UNLV.............. 4,726,272 4,777,527
Agricultural Experiment Station............... 7,940,924 8,058,015
Cooperative Extension Services............... 7,718,111 7,958,662
Dental School — UNLV.............................. 7,378,524 7,558,066
System Computing Center........................ 20,684,209 21,659,261
UNLV, William S. Boyd School of Law. 8,017,757 8,153,772
Desert Research Institute........................... 7,795,711 7,940,225
National Direct Student Loan................... 50,904 50,904
University of Nevada, Reno.................. 121,050,253 123,939,366
University of Nevada, School of Medicine 26,908,651 30,705,592
Bureau of Laboratory and Research...... 1,792,648 1,806,750
University of Nevada, Las Vegas......... 148,381,076 149,886,957
Community College of Southern Nevada 83,914,519 89,256,692
Western Nevada Community College.... 18,452,850 18,756,858
Truckee Meadows Community College. 35,505,860 36,604,794
Great Basin College.................................... 13,788,726 14,079,872
Business Center, North............................... 2,189,668 2,225,024
Business Center, South.............................. 1,865,998 1,896,828
Nevada State College at Henderson....... 8,310,832 9,565,135
University system — special projects........ 2,467,097 2,366,543
Sec. 17. Commission on Postsecondary Education.
For the support of Commission on Postsecondary Education $243,253 $244,994
κ2005 Statutes of Nevada, Page 1939 (CHAPTER 434, AB 576)κ
Sec. 18. Western Interstate Commission for Higher Education.
For the administrative support of Nevadas membership in the Western Interstate Commission for Higher Education........................................ $325,011 $333,863
For the support of the Western Interstate Commission for Higher Education Loan Fund 789,191.................................................. 797,728
Sec. 19. Department of Cultural Affairs.
For the support of the:
Cultural Affairs administration................ $965,694 $887,434
Museums and history................................. 321,090 321,158
Nevada Historical Society, Reno............. 686,112 677,587
Nevada State Museum, Carson City...... 1,445,483 1,365,493
Nevada Museum and Historical Society, Las Vegas 1,194,883 998,072
Lost City Museum...................................... 369,752 331,488
State Railroad Museums........................... 1,164,272 1,132,394
State Arts Council....................................... 1,688,043 1,696,422
Nevada State Library................................. 3,442,690 3,435,124
Nevada State Library — Literacy............. 146,011 147,586
Archives and records.................................. 829,442 772,698
Office of Historic Preservation................. 312,570 321,101
Comstock Historic District........................ 144,506 150,024
Nevada Humanities Commission ........... 100,000 100,000
Sec. 20. Department of Human Resources.
For the support of the:
Department of Human Resources administration $1,199,704 $1,234,544
Indian Affairs Commission...................... 155,458 156,615
Developmental Disabilities........................ 154,140 154,119
Community-Based Services..................... 4,435,178 4,915,960
Grants Management Unit.......................... 2,991,242 2,992,188
Fund for a Healthy Nevada...................... 782,302 829,776
Office of the State Public Defender......... 1,593,255 1,356,751
Division of Health Care Financing and Policy:
Nevada Medicaid.............................. 384,919,350 428,556,825
Health Care Financing and Policy..... 1,841,115 1,875,589
Nevada Check-Up Program............... 10,255,282 11,804,595
HIFA Holding Account....................... 206,839 4,179,972
Aging Services Division:
Aging Services Division........................ 3,073,905 3,106,435
Senior Services Program...................... 1,807,646 1,899,264
Senior citizens property tax assistance 4,743,619 5,117,620
EPS/Homemaker programs................ 13,984 114,773
Division of Child and Family Services:
Juvenile justice programs.................... 707,605 707,605
UNITY/SACWIS.................................. 3,049,869 2,980,404
Child and family administration....... 4,346,423 4,273,381
κ2005 Statutes of Nevada, Page 1940 (CHAPTER 434, AB 576)κ
Nevada Youth Training Center.......... $8,818,602 $8,633,471
Caliente Youth Center......................... 6,705,209 6,791,668
Rural Child Welfare............................. 12,672,649 13,934,385
Youth alternative placement.............. 1,208,862 1,208,862
Youth parole services........................... 5,313,316 5,391,313
Northern Nevada child and adolescent services 3,101,915 3,042,393
Clark County Integration.................... 21,639,307 23,933,768
Washoe County Integration............... 9,115,923 10,085,729
Southern Nevada child and adolescent services 8,827,313 9,411,117
Summit View Youth correctional center 5,150,314 5,522,904
Wraparound in Nevada....................... 3,082,590 3,276,022
Health Division:
Office of health administration......... 603,726 606,826
Alcohol and drug rehabilitation......... 3,650,278 3,674,808
Vital statistics........................................ 687,565 700,886
Maternal child health services............ 1,290,372 1,291,918
Early Intervention Services ................ 13,192,827 13,832,844
Community health services................ 260,161 237,153
Consumer health protection............... 873,968 895,012
Sexually transmitted disease control 1,826,629 2,009,235
Communicable disease control.......... 798,779 803,793
Emergency medical services............... 779,069 824,151
Immunization program....................... 1,497,534 1,497,534
Division of Mental Health and Developmental Services:
Division administration....................... 2,643,158 2,878,864
Mental health information system.... 590,871 569,125
Southern Nevada adult mental health services 60,489,757 82,653,712
Northern Nevada adult mental health services 25,278,073 27,071,862
Lakes Crossing Center......................... 5,773,903 6,145,661
Rural clinics........................................... 11,179,017 13,171,568
Desert Regional Center........................ 30,905,933 35,351,553
Sierra Regional Center......................... 16,653,684 18,759,781
Rural Regional Center......................... 7,253,576 8,656,819
Family preservation program............. 1,799,351 1,907,149
Welfare Division:
Welfare administration........................ 7,505,399 7,627,690
Welfare field services........................... 21,207,018 21,658,280
Assistance to aged and blind.............. 6,693,286 6,916,508
Temporary Assistance for Needy Families 24,607,852 24,607,852
Child Assistance and Development.. 9,033,701 9,033,701
Sec. 21. Office of the Military.
For the support of the:
Nevada National Guard............................ $2,492,391 $2,423,898
κ2005 Statutes of Nevada, Page 1941 (CHAPTER 434, AB 576)κ
National Guard benefits............................ $20,000 $20,000
Sec. 22. Office of Veterans Services.
For the support of the:
Executive Director for veterans services................... $1,113,013 $1,176,771
Southern Nevada Veterans Home......... 1,940,449 1,894,699
Sec. 23. Department of Corrections.
For the support of the:
Office of the Director.............................. $15,473,402 $14,386,002
Medical care................................................ 30,769,831 33,461,042
Correctional Programs............................... 4,512,708 5,878,973
Southern Nevada Correctional Center.... 1,035,652 14,142,301
Southern Desert Correctional Center....... 16,669,121 16,851,387
Nevada State Prison................................... 15,204,987 15,302,792
Northern Nevada Correctional Center.... 19,157,290 19,190,516
Warm Springs Correctional Center.......... 6,020,397 6,071,701
Ely State Prison........................................... 23,075,047 23,428,134
Lovelock Correctional Center.................. 20,135,405 20,350,098
Southern Nevada Womens Correctional Facility 8,098,869 8,797,076
Stewart Conservation Camp.................... 1,461,444 1,426,784
Ely Conservation Camp............................ 1,137,525 1,096,486
Humboldt Conservation Camp............... 1,120,111 1,100,891
Indian Springs Conservation Camp........ 1,869,754 1,893,540
Jean Conservation Camp.......................... 1,474,442 1,492,612
Pioche Conservation Camp...................... 1,420,367 1,400,482
Carlin Conservation Camp....................... 1,142,963 1,077,093
Wells Conservation Camp........................ 1,051,697 1,065,614
Silver Springs Conservation Camp.......... 1,115,653 1,089,607
Tonopah Conservation Camp................. 1,038,264 1,013,979
Northern Nevada Restitution Center....... 514,976 523,259
High Desert State Prison............................ 26,967,368 27,575,074
Casa Grande Transitional Housing......... 1,794,110 2,423,773
Sec. 24. Department of Business and Industry.
For the support of the:
Business and Industry administration.... $214,607 $216,002
Division of Financial Institutions............. 100 100
Consumer Affairs Division........................ 1,324,438 1,319,016
Real Estate Administration....................... 1,229,281 1,280,973
Division of Insurance................................. 3,608,891 3,489,519
Employee-Management Relations Board 172,005 169,286
Office of Labor Commissioner................ 1,394,022 1,411,367
Nevada Athletic Commission................... 434,174 425,978
Sec. 25. State Department of Agriculture.
For the support of the:
Agriculture administration......................... $488,487 $472,204
Plant industry program.............................. 1,499,070 1,397,841
Veterinary medical services...................... 929,392 932,342
Weights and measures program............... 440,362 288,049
Junior Livestock Show Board................... 35,843 35,803
κ2005 Statutes of Nevada, Page 1942 (CHAPTER 434, AB 576)κ
State Predatory Animal and Rodent Committee $740,602 $749,006
Sec. 26. State Department of Conservation and Natural Resources.
For the support of the:
Conservation and Natural Resources administration $884,736 $857,078
Division of State Parks............................... 4,561,009 4,603,232
Nevada Tahoe regional planning............. 802 802
Nevada natural heritage............................ 88,588 135,219
Division of Forestry.................................... 4,496,539 3,832,659
Forest fire suppression/emergency response 1,000,000 1,000,000
Forestry honor camps................................ 5,279,894 5,237,250
Tahoe Regional Planning Agency............ 1,709,275 1,987,022
Water Quality Planning.............................. 366,545 366,545
Safe Drinking Water Regulatory.............. 180,744 194,855
Division of Water Resources..................... 5,851,084 5,696,494
Division of State Lands............................. 1,317,334 1,526,849
Division of Conservation Districts........... 383,608 387,466
Sec. 27. Department of Wildlife.
For the support of the Department of Wildlife $1,344,588 $1,195,593
Sec. 28. Department of Employment, Training and Rehabilitation.
For the support of:
Nevada Equal Rights Commission......... $1,177,495 $1,132,085
Bureau of Vocational Rehabilitation...... 2,631,757 2,629,100
Bureau of Services to the Blind and Visually Impaired 935,243 924,385
Office of Disability Employment Policy. 21,742 21,988
Sec. 29. Department of Motor Vehicles.
For the support of the Division of Field Services $21,322 $21,322
Sec. 30. Department of Public Safety.
For the support of the:
Training Division......................................... $163,193 $175,682
Justice grant................................................. 106,840 106,933
Highway Patrol (dignitary protection)..... 30,683 30,683
Dignitary protection.................................... 970,625 868,090
Investigation Division................................ 5,479,668 5,401,466
Division of Emergency Management..... 680,073 697,286
Homeland Security..................................... 226,463 236,308
Parole Board................................................ 1,551,779 1,562,110
Narcotics Control........................................ 1,386,808 1,887,039
Division of Parole and Probation............. 34,017,731 35,311,554
Criminal History Repository..................... 100 100
Child Volunteer Background check........ 25,000 25,000
State Fire Marshal....................................... 1,112,564 866,444
Sec. 31. Commission on Ethics.
For the support of the Commission on Ethics $193,579 $192,615
κ2005 Statutes of Nevada, Page 1943 (CHAPTER 434, AB 576)κ
Sec. 32. The following sums are hereby appropriated from the State Highway Fund for the purposes expressed in this section for the fiscal years beginning July 1, 2005, and ending June 30, 2006, and beginning July 1, 2006, and ending June 30, 2007:
Department of Motor Vehicles:
Directors Office.......................................... $3,717,623 $3,716,160
Administrative Services............................. 4,282,688 5,322,554
Hearings Office........................................... 1,005,118 977,690
Automation.................................................. 3,852,685 3,576,713
Field services................................................ 16,037,073 14,990,320
Compliance enforcement.......................... 3,161,502 3,099,163
Central services........................................... 7,209,673 7,206,679
Management services................................ 2,003,298 2,002,089
Motor carrier................................................ 2,738,185 2,762,426
Department of Public Safety:
Training Division......................................... 1,382,688 1,593,330
Highway Patrol............................................ 57,691,377 55,036,790
Highway safety plan & administration.. 194,105 213,662
Division of Investigations.......................... 354,553 299,214
State Emergency Response Commission 317,471 308,295
Department of Business and Industry:
Transportation Services Authority........... 2,105,265 2,229,396
Department of Administration:
Information Technology Projects............ 3,147,920 4,172,823
Buildings and Grounds............................... 150,000 0
Legislative Fund, Legislative Commission.... 7,500 7,500
Sec. 33. 1. Except as otherwise provided in subsection 3, the sums appropriated in this act must be:
(a) Expended in accordance with the allotment, transfer, work program and budget provisions of NRS 353.150 to 353.245, inclusive; and
(b) Work-programmed for the 2 separate Fiscal Years, 2005-2006 and 2006-2007, as required by NRS 353.215. Work programs may be revised with the approval of the Governor upon the recommendation of the Director of the Department of Administration and in accordance with the provisions of the State Budget Act.
2. Transfers to and from salary allotments, travel allotments, operating expense allotments, equipment allotments and other allotments must be allowed and made in accordance with the provisions of NRS 353.215 to 353.225, inclusive, and after separate consideration of the merits of each request.
3. Pursuant to law, sums appropriated for the support of the Supreme Court of Nevada and the Legislative Fund are excluded from the allotment, transfer, work program and budget provisions of NRS 353.150 to 353.245, inclusive.
Sec. 34. The sums appropriated to:
1. Senior citizens property tax assistance;
2. Individuals with Disabilities;
3. Forest fire suppression/emergency response;
4. National Guard benefits;
κ2005 Statutes of Nevada, Page 1944 (CHAPTER 434, AB 576)κ
5. Communicable disease control;
6. Maternal child health services;
7. Immunization program;
8. Welfare administration;
9. Welfare field services;
10. Temporary assistance for needy families (TANF);
11. Assistance to aged and blind;
12. Child Assistance and Development;
13. Nevada Medicaid;
14. Division of Health Care Financing and Policy;
15. Nevada Check-Up Program;
16. HIFA Holding Account;
17. Rural Child Welfare;
18. Attorney Generals special litigation account;
19. Attorney Generals extradition coordinator;
20. Commission on Ethics;
21. Veterans Home Account;
22. Clark County Integration;
23. Washoe County Integration;
24. Healthy Nevada Fund;
25. Child Volunteer Background Check;
26. High Level Nuclear Waste; and
27. Information Technology Projects,
Κ are available for both Fiscal Years 2005-2006 and 2006-2007, and may be transferred from one fiscal year to the other with the approval of the Interim Finance Committee upon the recommendation of the Governor.
Sec. 35. Amounts appropriated pursuant to sections 9, 14, 15, 20, 26 and 27 of this act to finance specific programs as outlined in this section are available for both Fiscal Years 2005-2006 and 2006-2007 and may be transferred from one fiscal year to the other with the approval of the Interim Finance Committee upon the recommendation of the Governor as follows:
1. Of the amounts appropriated to the Commission on Economic Development pursuant to section 14 of this act, a total of $500,000 in both Fiscal Year 2005-2006 and Fiscal Year 2006-2007 to support the Train Employees Now Program.
2. Of the amount appropriated to the Department of Education, other state education programs, pursuant to section 15 of this act:
(a) A total of $70,000 in both Fiscal Year 2005-2006 and Fiscal Year 2006-2007 for successful completion of the National Board Teacher Certification Program;
(b) A total of $6,052,000 in both Fiscal Year 2005-2006 and $6,354,000 in Fiscal Year 2006-2007 for new teacher signing bonuses;
(c) A total of $285,460 in both Fiscal Year 2005-2006 and Fiscal Year 2006-2007 for Counselor National Board Certification;
(d) A total of $482,671 in Fiscal Year 2005-2006 and $515,393 in Fiscal Year 2006-2007 for LEA library books; and
(e) A total of $5,350,000 in Fiscal Year 2005-2006 and $4,450,000 in Fiscal Year 2006-2007 for educational technology.
3. Of the amounts appropriated to the Department of Education, proficiency testing, pursuant to section 15 of this act:
(a) A total of $530,559 in Fiscal Year 2005-2006 and $552,470 in Fiscal Year 2006-2007 for the state norm-referenced examination.
κ2005 Statutes of Nevada, Page 1945 (CHAPTER 434, AB 576)κ
(b) A total of $1,402,692 in Fiscal Year 2005-2006 and $1,460,623 in Fiscal Year 2006-2007 for the high school proficiency examination.
(c) A total of $1,335,548 in Fiscal Year 2005-2006 and $1,390,717 in Fiscal Year 2006-2007 for the criterion-referenced examinations.
(d) A total of $366,348 in Fiscal Year 2005-2006 and $381,595 in Fiscal Year 2006-2007 for the state writing proficiency examinations.
4. Of the amounts appropriated to the Health Division pursuant to section 20 of this act a total of $1,637,289 in Fiscal Year 2005-2006 and $1,813,437 in Fiscal Year 2006-2007 to support medication costs within the AIDS Drug Assistance Program.
5. Of the amounts appropriated to the Department of Taxation pursuant to section 9 of this act, a total of $14,516,973 in Fiscal Year 2005-2006 and $6,935,554 in Fiscal Year 2006-2007 to support the Unified Tax System.
6. Of the amounts appropriated to the Tahoe Regional Planning Agency by section 26 of this act a total of $200,000 in Fiscal Year 2005-2006 and $200,000 in Fiscal Year 2006-2007 to support the Threshold Research/Pathway 2007 project.
7. Of the amounts appropriated to the Department of Wildlife pursuant to section 27 of this act a total of $150,000 in Fiscal Year 2005-2006 for implementation of the Sage Grouse Conservation Plan.
Sec. 36. Of the amounts appropriated by sections 2 through 32 of this act, amounts appropriated in both Fiscal Year 2005-2006 and Fiscal Year 2006-2007 to finance deferred maintenance projects approved as maintenance decision units within agency budgets are available for both Fiscal Year 2005-2006 and 2006-2007 and may be transferred within the same budget account from one year to the other with the approval of the Interim Finance Committee upon the recommendation of the Governor. Any amount so transferred must be used to complete the deferred maintenance as approved by the Legislature.
Sec. 37. 1. There is hereby appropriated from the State General Fund the sum of $838,200 to the Interim Finance Committee for allocation to the Department of Corrections to be expended for electronic equipment to augment security at the Southern Nevada Correctional Center. Funds appropriated pursuant to this section can only be allocated by the Interim Finance Committee upon submittal of a detailed cost proposal developed by the Department of Corrections and approved by the Board of Examiners.
2. Any remaining balance of the appropriation made in subsection 1 must not be allocated by the Interim Finance Committee after June 30, 2007, and reverts to the State General Fund as soon as all payments of money committed have been made.
Sec. 38. 1. There is hereby appropriated from the State General Fund the sum of $194,204 to the Supreme Court for moving and furnishings expenditures required for relocating to the Regional Justice Center in Clark County.
2. Any remaining balance of the appropriation made in subsection 1 must not be committed for expenditure after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 39. 1. There is hereby appropriated from the State General Fund the sum of $933,916 to the Interim Finance Committee for allocation to the Information Technology Projects account within the Department of Administration for the following technology projects:
(a) Department of Agriculture, License Payment System............ $278,201
κ2005 Statutes of Nevada, Page 1946 (CHAPTER 434, AB 576)κ
(b) Department of Business and Industry, Integrated Consumer Affairs Tracking System $341,096
(c) Department of Business and Industry, Labor Commissioner Wage Claim System $259,619
(d) Department of Conservation and Natural Resources, Division of Water Resources Video Conferencing System $55,000
2. Amounts appropriated pursuant to subsection 1 may only be allocated by the Interim Finance Committee upon submittal of a detailed project plan, including cost estimates, based on the results of a requirements study, gap analysis and/or request for proposal as appropriate.
3. Any remaining balance of the sums appropriated by subsection 1 must not be allocated by the Interim Finance Committee after June 30, 2007, and reverts to the State General Fund as soon as all payments of money committed have been made.
Sec. 40. 1. There is hereby appropriated from the State General Fund the sum of $204,670 in Fiscal Year 2005-2006 and $377,642 in Fiscal Year 2006-2007 to the Interim Finance Committee for allocation to the Rehabilitation Division of the Department of Employment, Training and Rehabilitation.
2. Money appropriated pursuant to subsection 1 may only be allocated upon expenditure of all funds appropriated in section 28 of this act for the costs of providing vocational rehabilitation services supported by federal funding pursuant to 29 U.S.C. 720-724 and 730-731.
3. Allocation of the amount appropriated in subsection 1 to the Bureau of Vocational Rehabilitation and the Bureau of Services to the Blind and Visually Impaired may not exceed the following amounts for Fiscal Years 2005-2006 and 2006-2007 and any funds allocated shall not be committed after June 30 of each fiscal year and must revert to the State General Fund as soon as all payments of the money committed have been made.
Bureau of Vocational Rehabilitation:
For Fiscal Year 2005-2006........................................................... $133,007
For Fiscal Year 2006-2007........................................................... $294,503
Bureau of Services to the Blind and Visually Impaired:
For Fiscal Year 2005-2006.............................................................. $71,663
For Fiscal Year 2006-2007.............................................................. $83,139
4. Any remaining balance of the sums appropriated by subsection 1 must not be allocated by the Interim Finance Committee after June 30, 2007, and reverts to the State General Fund as soon as all payments of money committed have been made.
Sec. 41. 1. The sums appropriated to the Legislative Fund by section 10 of this act for the support of the Legislative Commission, the various divisions of the Legislative Counsel Bureau and Interim Legislative Operations are available for both Fiscal Years 2005-2006 and 2006-2007, and may be transferred among the Legislative Commission, the various divisions of the Legislative Counsel Bureau and the Interim Legislative Operations and from one fiscal year to another with the approval of the Legislative Commission upon the recommendation of the Director of the Legislative Counsel Bureau. The provisions of chapter 338 of NRS do not apply to projects undertaken pursuant to those appropriations.
κ2005 Statutes of Nevada, Page 1947 (CHAPTER 434, AB 576)κ
2. The sums appropriated for the support of salaries and payroll costs must be applied pursuant to the budget approved by the Legislature notwithstanding the provisions of NRS 281.123.
Sec. 42. Except as otherwise provided in this section, the total amounts appropriated in section 20 of this act to each of the accounts of the Division of Health Care Financing and Policy and the Welfare Division enumerated in section 34 of this act, except for the amounts appropriated for the health care financing and policy account, the assistance to the aged and blind program, the welfare administration account, and the welfare field services account, are limits. The divisions shall not request additional money for these programs, except for:
1. Increased state costs in Fiscal Year 2006-2007 in the event that federal financial participation rates are less than legislatively approved effective on October 1, 2006;
2. Costs related to additional services mandated by the Federal Government on or after October 1, 2005, and not specifically funded in the Nevada Medicaid account in Fiscal Years 2005-2006 and 2006-2007; or
3. Increased state costs in Fiscal Year 2005-2006 and Fiscal Year 2006-2007 in the event that the annual allocation of federal Temporary Assistance for Needy Families (TANF) block grant funds is lower than the amounts approved by the Legislature for either fiscal year.
Sec. 43. The sums appropriated to the Welfare Division by section 20 of this act may be transferred among the various budget accounts of the Welfare Division with the approval of the Interim Finance Committee upon the recommendation of the Governor.
Sec. 44. The sums appropriated to Nevada Medicaid and the Nevada Check-Up Program by section 20 of this act may be transferred between each budget with the approval of the Interim Finance Committee upon the recommendation of the Governor.
Sec. 45. The positions approved within the budgets of, and the sums appropriated to the Division of Child and Family Services and the Division of Health Care Financing and Policy by section 20 of this act may be transferred between the various budget accounts of each division for the purpose of implementing the redesign of childrens mental health residential treatment services with the approval of the Interim Finance Committee upon the recommendation of the Governor.
Sec. 46. The sums appropriated to the Department of Corrections by section 23 of this act may be transferred among the various budget accounts of the Department of Corrections in the same manner and within the same limits as allowed for revisions of work programs in NRS 353.220.
Sec. 47. Of the amounts appropriated to the Department of Public Safety by sections 30 and 32 of this act, amounts appropriated to the various budget accounts enumerated in those sections for the support of payment to the Public Safety Information Services Section may be transferred among the various budgets of the Department of Public Safety as enumerated in sections 30 and 32 of this act for the support of payment to the Public Safety Information Services Section with the approval of the Interim Finance Committee upon the recommendation of the Governor. The amount transferred between accounts is limited to the total amount appropriated in the accounts for the support of payment to the Public Safety Information Services Section.
κ2005 Statutes of Nevada, Page 1948 (CHAPTER 434, AB 576)κ
Sec. 48. Of the amounts appropriated from the State Highway Fund to the Department of Motor Vehicles, Directors Office, pursuant to section 32 of this act:
1. A total of $1,502,095 in Fiscal Year 2005-2006 for the expansion and continuation of kiosk technology; and
2. A total of $1,502,095 in Fiscal Year 2006-2007 for the expansion and continuation of kiosk technology,
Κ may be transferred from one fiscal year to another with the approval of the Interim Finance Committee upon the recommendation of the Governor.
Sec. 49. The sums appropriated to any division, agency or section of any department of state government for the support of salaries and payroll costs may be transferred to any other division, bureau, agency or section of the same department for the support of salaries and payroll costs with the approval of the Interim Finance Committee upon the recommendation of the Governor. The amount transferred into a budget account is limited to the amount budgeted for vacancy savings. Such transfers are also limited only to those activities which are supported by State General Fund or State Highway Fund appropriations.
Sec. 50. In addition to the requirements of NRS 353.225, for the Fiscal Years 2005-2006 and 2006-2007, the Board of Regents of the University and Community College System of Nevada shall comply with any request by the Governor to set aside money from the appropriations made by this act in any specified amount.
Sec. 51. 1. Of the sums appropriated by section 16 of this act, any amounts utilized to match documented research grants in the Nevada System of Higher Education, which are not committed for expenditure by June 30 of each fiscal year may be carried forward for a maximum of 2 fiscal years after which time any unexpended amounts revert to the State General Fund.
2. All money appropriated by section 16 of this act other than the sums designated in subsection 1 to match documented research grants is subject to the provisions of section 54 of this act.
Sec. 52. There is hereby appropriated $103,302 from the State General Fund to the Public Employees Retirement Board to be expended for the administration of the Legislators Retirement System for the period from July 1, 2005, through June 30, 2007.
Sec. 53. The appropriations made to the Tahoe Regional Planning Agency in section 26 of this act are available contingent upon the State of California providing its two-thirds share of funding.
Sec. 54. 1. Except as otherwise provided in sections 51 and 66 of this act, unencumbered balances of the appropriations made in this act for the Fiscal Years 2005-2006 and 2006-2007 must not be committed for expenditure after June 30 of each fiscal year. Except as otherwise provided in subsection 2, unencumbered balances of these appropriations revert to the fund from which appropriated on or before September 15, 2006, and September 21, 2007, of each fiscal year, respectively.
2. Any encumbered balance of the appropriations made to the Legislative Fund by section 10 of this act does not revert to the State General Fund but constitutes a balance carried forward.
Sec. 55. The State Controller shall provide for the payment of claims legally obligated in each fiscal year on behalf of state agencies until the last business day of the August immediately following the end of each fiscal year. The State Controller shall process any transactions requested by the Director of the Department of Administration from the prior fiscal period until the third Friday in September immediately following the end of the fiscal year.
κ2005 Statutes of Nevada, Page 1949 (CHAPTER 434, AB 576)κ
Director of the Department of Administration from the prior fiscal period until the third Friday in September immediately following the end of the fiscal year.
Sec. 56. The State Controller shall transfer among the appropriate accounts and funds the amounts necessary to carry out the budget approved by the Legislature, and the amounts so transferred shall be deemed appropriated.
Sec. 57. The State Controller shall pay the annual salaries of Supreme Court Justices, District Court Judges, the Governor, the Lieutenant Governor, the Secretary of State, the State Treasurer, the State Controller and the Attorney General in biweekly installments for each day worked up to and including the date of payment. The payment of a portion of the annual salaries of these officers at the end of a calendar year for the purpose of reconciling the amount of the salary paid during that calendar year with the amount of the salary set forth in statute for that office must not be made if it will result in the issuance of a separate check.
Sec. 58. There is hereby appropriated from the State General Fund to the Legislative Fund, created pursuant to NRS 218.085, the sum of $2,100,000.
Sec. 59. Of the amounts appropriated to the Commission on Economic Development in section 14 of this act to support grants to regional development authorities, the Commission on Economic Development must retain a total of $500,000 in Fiscal Year 2005-2006 and $500,000 in Fiscal Year 2006-2007 from the amount allocated to the Nevada Development Authority for economic development activities involving the inner city or blighted areas within Clark County. These funds may be utilized by organizations, including the Urban Chamber of Commerce and Latin Chamber of Commerce, upon submittal of a detailed plan to the Nevada Development Authority which will review the plan and make a recommendation to the Commission on Economic Development for allocation of these funds to assist economic development activities in the inner city or blighted areas within Clark County. Upon approval of a detailed plan by the Commission on Economic Development the funds will be allocated from the $500,000 retained from funding appropriated for regional development authorities in Fiscal Years 2005-2006 and 2006-2007. The Commission on Economic Development shall develop criteria to measure whether the goals outlined in the approved plan have been attained upon conclusion of the project period.
Sec. 60. 1. If the Attorney General determines that delays in the receipt of recovery revenue for the Medicaid Fraud Control Unit will result in insufficient revenues to pay authorized expenditures, he may submit a request for a temporary advance from the State General Fund to the Director of the Department of Administration to pay authorized expenditures to support the operations of the Unit.
2. The Director of the Department of Administration shall notify the State Controller and the Fiscal Analysis Division of the Legislative Counsel Bureau if he approves a request made pursuant to subsection 1. The State Controller shall draw a warrant upon receipt of such a notification.
3. An advance from the State General Fund approved by the Director of the Department of Administration as authorized pursuant to this section is limited to the total estimated amounts due from outstanding billings for recoveries and must not exceed the total authorized recoveries in the appropriate fiscal year.
κ2005 Statutes of Nevada, Page 1950 (CHAPTER 434, AB 576)κ
recoveries and must not exceed the total authorized recoveries in the appropriate fiscal year.
4. Any money which is temporarily advanced from the State General Fund to the Medicaid Fraud Control Unit pursuant to this section must be repaid on or before the last business day in August immediately following the end of the fiscal year.
Sec. 61. 1. If the Executive Director for Veterans Services determines that delays in the receipt of federal reimbursement for services provided by the Veterans Home in Southern Nevada will result in insufficient revenues to pay authorized expenditures, he may submit a request for a temporary advance from the State General Fund to the Director of the Department of Administration to pay authorized expenditures to support operational costs of the Veterans Home.
2. The Director of the Department of Administration shall notify the State Controller and the Fiscal Analysis Division of the Legislative Counsel Bureau if he approves a request made pursuant to subsection 1. The State Controller shall draw a warrant upon receipt of such a notification.
3. An advance for the State General Fund approved by the Director of the Department of Administration as authorized pursuant to this section is limited to the total estimated reimbursement due from the Federal Government for operational costs incurred by the Veterans Home in Southern Nevada.
4. Any money which is temporarily advanced from the State General Fund to the Veterans Home in Southern Nevada pursuant to this section must be repaid on or before the last business day in August immediately following the end of the fiscal year.
Sec. 62. 1. If the Director of the State Department of Conservation and Natural Resources determines that, because of delays in the receipt of revenue for services billed to the Federal Government, local governments and other state governments, the amount of current claims for expenses incurred in the suppression of fire or response to emergencies exceeds the amount of money available to pay such claims within 30 days, he may request from the Director of the Department of Administration a temporary advance from the State General Fund to pay authorized expenses.
2. The Director of the Department of Administration shall notify the State Controller and the Fiscal Analysis Division of the Legislative Counsel Bureau if he approves a request made pursuant to subsection 1. The State Controller shall draw his warrant upon receipt of such a notification.
3. An advance from the State General Fund:
(a) May be approved by the Director of the Department of Administration only for expenses incurred in the suppression of fires or response to emergencies charged to the budget account for forest fire suppression/emergency response of the Division of Forestry of the State Department of Conservation and Natural Resources. Before approving the advance, the Director shall verify that billings for reimbursement have been sent to the agencies of the Federal Government, local governments or other state governments responsible for reimbursing the Division of Forestry for costs incurred in fire suppression or emergency response activities.
(b) Is limited to the total due from outstanding billings for reimbursable expenses incurred in the suppression of fires or response to emergencies as approved for payment to the State by agencies of the Federal Government, local governments, and other state governments.