[Rev. 9/25/2018 2:01:47 PM]
[NAC-671 Revised Date: 9-18]
CHAPTER 671 - ISSUERS OF INSTRUMENTS FOR TRANSMISSION OR PAYMENT OF MONEY
671.005 “Licensee” defined.
671.007 Requirements for issuance of license to business entity.
671.010 Fee for supervision and related activities: Amount; collection; failure to pay.
671.020 Fees: Application for license.
671.030 Fees: Renewal of license; reinstatement of expired license.
671.040 Fees: Application and license for agent of licensee.
671.050 Fee: Failure to submit required report.
671.060 Annual assessments to cover costs related to legal services and performance of audits and examinations; failure to pay assessments.
671.070 Prerequisites to engaging in business.
671.075 Maintenance of separate custodial or trust account and related records.
671.080 Revocation, suspension or refusal to renew license.
671.085 Administrative fines and orders to cease and desist.
671.090 Inspection of documents filed with Division.
671.095 Confidentiality of records.
671.100 Complaints: Failure to respond in timely manner; confidentiality.
671.110 Hearings: Authority of Commissioner or designee.
671.120 Hearings: Rules of procedure or evidence; records.
671.130 Hearings: Subpoena; fees for witnesses.
671.140 Hearings: Examination of witnesses.
671.150 Hearings: Failure of party to appear.
NAC 671.005 “Licensee” defined. (NRS 671.030) As used in this chapter, unless the context otherwise requires, “licensee” means any person licensed pursuant to this chapter and chapter 671 of NRS.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006)
NAC 671.007 Requirements for issuance of license to business entity. (NRS 671.030, 671.055) If an application for a license is submitted by a business entity, the Commissioner will not issue a license to the applicant unless each partner, principal officer, director and trustee, whichever are applicable to the business entity, satisfies the requirements of NRS 671.055.
(Added to NAC by Comm’r of Financial Institutions by R137-08, eff. 10-15-2010)
NAC 671.010 Fee for supervision and related activities: Amount; collection; failure to pay. (NRS 658.101, 671.030, 671.120)
1. The Commissioner will charge and collect a fee of $75 per hour from each licensee for any supervision, examination, audit, investigation or hearing conducted pursuant to chapter 671 of NRS.
2. The Commissioner will bill each licensee upon the completion of the activity for the fee established in 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 that date 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. Failure of a licensee to pay the fee required in subsection 1 as provided in this section constitutes grounds for revocation of its license.
(Added to NAC by Comm’r of Financial Institutions, eff. 4-20-88; A 11-27-89, eff. 7-1-89; R137-08, 10-15-2010; R054-16, 9-9-2016)
NAC 671.020 Fees: Application for license. (NRS 671.030, 671.050) An application for a license submitted pursuant to NRS 671.050 must be accompanied by:
1. A nonrefundable fee of $375; and
2. A fee of $300, prorated by the Commissioner.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006; A by R137-08, 10-15-2010)
NAC 671.030 Fees: Renewal of license; reinstatement of expired license. (NRS 671.030, 671.070)
1. A licensee shall pay annually to the Division a fee of $300 for the renewal of his or her license.
2. If the Commissioner reinstates an expired license, the licensee shall pay a reinstatement fee of $300 in addition to the renewal fee prescribed in subsection 1.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006; A by R137-08, 10-15-2010)
NAC 671.040 Fees: Application and license for agent of licensee. (NRS 671.030, 671.090) An agent who must be licensed pursuant to NRS 671.090 shall pay to the Division:
1. An application fee of $250; and
2. A license fee of $250.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006; A by R137-08, 10-15-2010)
NAC 671.050 Fee: Failure to submit required report. (NRS 671.030, 671.183) A licensee shall pay a fee of $10 for each day that any report required pursuant to this chapter or chapter 671 of NRS is overdue.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006)
NAC 671.060 Annual assessments to cover costs related to legal services and performance of audits and examinations; failure to pay assessments. (NRS 658.055, 658.098, 671.030, 671.120, 671.180)
1. Except as otherwise provided in NAC 658.030, each licensee shall pay to the Division an annual assessment of $300 to cover the costs related to the employment of a certified public accountant and the performance of audits and examinations conducted by the Division.
2. Each licensee shall pay to the Division the assessment to cover the costs of legal services provided by the Attorney General to the Commissioner and the Division which is imposed pursuant to NRS 658.098.
3. The Division shall bill each licensee for the assessments described in subsections 1 and 2. The licensee shall pay the assessments within 30 days after the date on which the licensee receives the bill.
4. A charge of 10 percent of the assessment will be imposed on any licensee if payment for an assessment described in subsection 1 or 2 is received by the Division after the date on which the assessment is due.
5. The failure of a licensee to pay an assessment described in subsection 1 or 2 constitutes grounds for the revocation of the license of the licensee.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006; A by R137-08, 10-15-2010)
NAC 671.070 Prerequisites to engaging in business. (NRS 671.030) A person shall not engage in the business of selling or issuing checks or of receiving for transmission or transmitting money or credits in this State unless:
1. The person possesses each license, certificate and permit required by this chapter, chapter 671 of NRS and a local governmental entity; and
2. The location of the business complies with any applicable planning and zoning ordinances.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006)
NAC 671.075 Maintenance of separate custodial or trust account and related records. (NRS 671.030)
1. Every licensee shall at all times maintain a separate custodial or trust account in a bank or credit union in which must be deposited all money collected by the licensee. The account must be maintained in a bank or credit union located in this State and bear some title sufficient to distinguish it from the licensee’s personal or general checking account and to designate it as a trust account, such as “customer’s trust fund account.” The account must at all times contain sufficient money to pay all money due or owing to all customers, and no disbursement may be made from the account except to customers or to pay costs advanced for those customers, except that a licensee may periodically withdraw from the account such money as may accrue to the licensee from collections deposited or from adjustments resulting from costs advanced and payments made directly to customers.
2. Every licensee maintaining a separate custodial or trust account shall keep a record of all money deposited in the account, which must indicate clearly the date and from whom the money was received, the date deposited, the dates of withdrawals and other pertinent information concerning the transaction, and which must show clearly for whose account the money is deposited and to whom the money belongs. The records and money are subject to inspection by the Commissioner or an authorized representative of the Commissioner. The records must be maintained at the premises in this State at which the licensee is authorized to conduct business.
3. The licensee shall reconcile each custodial or trust account established pursuant to subsection 1 on a monthly basis.
4. If the Commissioner finds that a licensee’s records are not maintained pursuant to subsections 2 and 3, the Commissioner may require the licensee to deliver an audited financial statement prepared from the records of the licensee by a certified public accountant who holds a certificate to engage in the practice of public accounting in this State. The statement must be submitted within 60 days after the Commissioner requests it. The Commissioner may grant a reasonable extension for the submission of the financial statement if an extension is requested before the statement is due.
5. If money in a custodial or trust account of a licensee becomes presumed abandoned pursuant to NRS 120A.500, the licensee shall comply with the provisions of chapter 120A of NRS with respect to the money.
(Added to NAC by Comm’r of Financial Institutions by R137-08, eff. 10-15-2010)
NAC 671.080 Revocation, suspension or refusal to renew license. (NRS 671.030, 671.180) The Commissioner may revoke, suspend or refuse to renew a license in accordance with NRS 671.180 if a licensee violates any provision of this chapter or chapter 671 of NRS, including, without limitation, a provision that imposes a fee or assessment on a licensee.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006; A by R137-08, 10-15-2010)
NAC 671.085 Administrative fines and orders to cease and desist. (NRS 671.030, 671.185)
1. If a person engages in an activity in violation of the provisions of this chapter or chapter 671 of NRS, the Commissioner may issue an order to the person imposing an administrative fine pursuant to NRS 671.185 and directing the person to cease and desist from engaging in the activity.
2. An order issued pursuant to subsection 1 must:
(a) Be in writing.
(b) Be served by certified mail on the person to whom the order is directed. For the purposes of this paragraph, proof of attempted service by certified mail to the last known address of the person is sufficient to establish that service was complete.
(c) State that the person has 30 days after the date of the order to request an administrative hearing and that the order shall be deemed final if the Division does not receive a verified petition for a hearing within the prescribed time.
(d) State that, in the opinion of the Commissioner, the person has engaged in an activity:
(1) For which the person has not received a license as required by chapter 671 of NRS; or
(2) In a manner that violates the provisions of this chapter or chapter 671 of NRS.
3. A person who is served with an order to cease and desist pursuant to this section shall not engage in any activity prohibited by the order after the person is served with the order unless the order is suspended or rescinded.
4. If a verified petition for a hearing is received by the Division within the prescribed time, the Commissioner or the designee of the Commissioner shall hold a contested hearing.
5. An order to cease and desist may be amended or rescinded at any time before or during the contested hearing. Subject to the discretion of the Commissioner or the designee of the Commissioner, the hearing may be continued if an amendment to the order materially alters the facts or legal issues relating to the order or the respondent demonstrates an inability to prepare for the hearing as a result of the amendment.
6. The decision of the Commissioner or the designee of the Commissioner is final for the purposes of judicial review.
(Added to NAC by Comm’r of Financial Institutions by R137-08, eff. 10-15-2010)
NAC 671.090 Inspection of documents filed with Division. (NRS 671.030) Except as otherwise provided in NAC 671.100 and 671.130 and NRS 671.170, all papers, documents, reports and other written instruments filed with the Division pursuant to this chapter and chapter 671 of NRS are open to public inspection unless the Commissioner determines that the information is required to be withheld to protect the public welfare or the welfare of a licensee.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006; A by R137-08, 10-15-2010)
NAC 671.095 Confidentiality of records. (NRS 671.030) An application for a license and financial records, if any, submitted by an applicant pursuant to the provisions of this chapter and chapter 671 of NRS, financial records or other documents submitted by a licensee pursuant to an audit or examination conducted by the Division and any report of examination made by the Division are confidential and may be disclosed only to:
1. The Division, an authorized employee of the Division or an agency of this State, any other state or the Federal Government that is investigating the activities of an applicant or a licensee; or
2. Any person if the Commissioner determines, in the Commissioner’s sole discretion, that the public interest in disclosure of the information outweighs the interest of the applicant or licensee.
(Added to NAC by Comm’r of Financial Institutions by R137-08, eff. 10-15-2010)
NAC 671.100 Complaints: Failure to respond in timely manner; confidentiality. (NRS 671.030)
1. If a licensee, or an authorized representative of that licensee, fails to respond to the Commissioner within 20 business days after receipt of a written notice that a complaint has been filed against the licensee, the licensee is deemed to have admitted to the allegations contained in the complaint.
2. Subject to the discretion of the Commissioner and except as otherwise provided by specific statute, a complaint filed with the Division, any documents filed with the complaint, and any report or information resulting from an investigation of the complaint are confidential.
(Added to NAC by Comm’r of Financial Institutions by R109-06, eff. 6-28-2006; A by R137-08, 10-15-2010)
NAC 671.110 Hearings: Authority of Commissioner or designee. (NRS 671.030) The Commissioner or the designee of the Commissioner may:
1. Conduct hearings;
2. Question witnesses;
3. Make rulings on motions and objections; and
4. Issue findings of fact or conclusions of law at the conclusion of the case.
(Added to NAC by Comm’r of Financial Institutions by R137-08, eff. 10-15-2010)
NAC 671.120 Hearings: Rules of procedure or evidence; records. (NRS 671.030)
1. The Commissioner or the designee of the Commissioner is not bound by strict rules of procedure or rules of evidence when conducting the hearing, except that the hearing must be conducted pursuant to the provisions of chapter 233B of NRS.
2. A record of the alleged acts which constitute grounds for issuing the order and a copy of any evidence introduced before or during the hearing must be filed with the Division.
(Added to NAC by Comm’r of Financial Institutions by R137-08, eff. 10-15-2010)
NAC 671.130 Hearings: Subpoena; fees for witnesses. (NRS 671.030)
1. A party to a hearing may compel the attendance of witnesses in the party’s behalf at the hearing upon making a request to the Commissioner or the designee of the Commissioner and designating the name and address of the person to be served with a subpoena.
2. A witness required to appear at a hearing before the Commissioner or the designee of the Commissioner is entitled to receive from the party calling the witness the fees and reimbursement for mileage provided to witnesses in civil cases pursuant to NRS 50.225.
(Added to NAC by Comm’r of Financial Institutions by R137-08, eff. 10-15-2010)
NAC 671.140 Hearings: Examination of witnesses. (NRS 671.030)
1. A party to a hearing may call any other party or witness as an adverse witness. The party may question such a witness as if conducting a cross-examination.
2. Any party who is surprised by the testimony of a witness, called in good faith as a witness on the party’s behalf, may question the witness as if conducting a cross-examination.
(Added to NAC by Comm’r of Financial Institutions by R137-08, eff. 10-15-2010)
NAC 671.150 Hearings: Failure of party to appear. (NRS 671.030) If a party fails to appear at a hearing scheduled by the Commissioner or the designee of the Commissioner and a continuance has not been requested or granted, upon an offer of proof by the Division that the absent party was given proper notice and upon a determination by the Commissioner or the designee of the Commissioner that proper notice was given, the Commissioner or the designee of the Commissioner may proceed to consider the case without the participation of the absent party and may dispose of the matter on the basis of the evidence before the Commissioner or the designee of the Commissioner. If the respondent fails to appear at the hearing or fails to reply to the notice, the charges specified in the order may be considered as true.
(Added to NAC by Comm’r of Financial Institutions by R137-08, eff. 10-15-2010)