AB232_EN

Assembly Bill No. 232–Assemblymen Conklin, Atkinson, Horne, Perkins, Buckley, Anderson, Andonov, Angle, Arberry, Beers, Brown, Carpenter, Chowning, Christensen, Claborn, Collins, Geddes, Gibbons, Giunchigliani, Goicoechea, Goldwater, Grady, Griffin, Gustavson, Hardy, Hettrick, Knecht, Koivisto, Leslie, Mabey, Manendo, Marvel, McClain, McCleary, Mortenson, Oceguera, Parks, Pierce, Sherer, Weber and Williams

Joint Sponsors: Senators Townsend, Amodei, Titus, Hardy, Carlton, Care, Cegavske, Mathews, McGinness, Neal, Nolan, O’Connell, Raggio, Rawson, Schneider, Shaffer, Tiffany, Washington and Wiener

CHAPTER..........

AN ACT relating to trade practices; requiring the establishment of a registry of certain telephone numbers or the use of a similar federal list; requiring the publication of a list of certain telephone numbers or the use of a similar federal list; prohibiting a telephone solicitor from making an unsolicited telephone call for the sale of goods or services to a telephone number included in the currently effective version of the list under certain circumstances; providing that the making of an unsolicited telephone call for the sale of goods and services is a deceptive trade practice under certain circumstances; providing that a seller of travel may maintain a trust account or post security; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 597.814 is hereby amended to read as follows:

597.814 1. Except as otherwise provided in subsection 3 and

NRS 597.816, a person shall not use a device for automatic dialing

and announcing to disseminate a prerecorded message in a

telephone call unless, before the message is disseminated, a

recorded or unrecorded natural voice:

(a) Informs the person who answers the telephone call of the

nature of the call, including, without limitation, the fact that a device

for automatic dialing and announcing will be used to disseminate

the message if the person who answers the call remains on the line;

and

(b) Provides to the person who answers the telephone call the

name, address and telephone number of the business or

organization, if any, being represented by the caller.

2. A person shall not operate a device for automatic dialing and

announcing to place:

(a) A call that is received by a telephone located in this state

during the period between [9] 8 p.m. and 9 a.m.; or

(b) A call-back or second call to the same telephone number [,]

if a person at the telephone number terminated the original call.

3. This section does not prohibit the use of a device for

automatic dialing and announcing to dial the number of and play a

recorded message to a person with whom the person using the

device or another person affiliated with the person using the device

has a preexisting business relationship.

Sec. 2. NRS 598.0918 is hereby amended to read as follows:

598.0918 A person engages in a “deceptive trade practice” if ,

during a solicitation by telephone or sales presentation, he:

1. Uses threatening, intimidating, profane or obscene language;

2. Repeatedly or continuously conducts the solicitation or

presentation in a manner that is considered by a reasonable person to

be annoying, abusive or harassing;

3. Solicits a person by telephone at his residence between [9] 8

p.m. and [8 a.m.; or] 9 a.m.;

4. Blocks or otherwise intentionally circumvents any service

used to identify the caller when placing an unsolicited telephone call

[.] ; or

5. Places an unsolicited telephone call that does not allow a

service to identify the caller by the telephone number or name of

the business, unless such identification is not technically feasible.

Sec. 3. NRS 598.0999 is hereby amended to read as follows:

598.0999 1. A person who violates a court order or

injunction issued pursuant to the provisions of NRS 598.0903 to

598.0999, inclusive, upon a complaint brought by the

Commissioner, the Director, the district attorney of any county of

this state or the Attorney General shall forfeit and pay to the State

General Fund a civil penalty of not more than $10,000 for each

violation. For the purpose of this section, the court issuing the order

or injunction retains jurisdiction over the action or proceeding. Such

civil penalties are in addition to any other penalty or remedy

available for the enforcement of the provisions of NRS 598.0903 to

598.0999, inclusive.

2. In any action brought pursuant to the provisions of NRS

598.0903 to 598.0999, inclusive, if the court finds that a person has

willfully engaged in a deceptive trade practice, the Commissioner,

the Director, the district attorney of any county in this state or the

Attorney General bringing the action may recover a civil penalty not

to exceed $2,500 for each violation. The court in any such action

may, in addition to any other relief or reimbursement, award

reasonable attorney’s fees and costs.

3. A natural person, firm, or any officer or managing agent of

any corporation or association who knowingly and willfully engages

in a deceptive trade practice:

(a) For the first offense, is guilty of a misdemeanor.

(b) For the second offense, is guilty of a gross misdemeanor.

category D felony and shall be punished as provided in

NRS 193.130.

4. Any offense which occurred within 10 years immediately

preceding the date of the principal offense or after the principal

offense constitutes a prior offense for the purposes of subsection 3

when evidenced by a conviction, without regard to the sequence of

the offenses and convictions.

5. If a person violates any provision of NRS 598.0903 to

598.0999, inclusive, 598.100 to 598.2801, inclusive, 598.305

to 598.395, inclusive, 598.405 to 598.525, inclusive, 598.741 to

598.787, inclusive, or 598.840 to 598.966, inclusive, fails to comply

with a judgment or order of any court in this state concerning a

violation of such a provision, or fails to comply with an assurance of

discontinuance or other agreement concerning an alleged violation

of such a provision, the Commissioner or the district attorney of any

county may bring an action in the name of the State of Nevada

seeking:

(a) The suspension of the person’s privilege to conduct business

within this state; or

(b) If the defendant is a corporation, dissolution of the

corporation.

The court may grant or deny the relief sought or may order other

appropriate relief.

6. If a person violates any provision of sections 5 to 19,

inclusive, of this act, fails to comply with a judgment or order of

any court in this state concerning a violation of such a provision,

or fails to comply with an assurance of discontinuance or other

agreement concerning an alleged violation of such a provision, the

Attorney General may bring an action in the name of the State of

Nevada seeking:

(a) The suspension of the person’s privilege to conduct

business within this state; or

(b) If the defendant is a corporation, dissolution of the

corporation.

The court may grant or deny the relief sought or may order other

appropriate relief.

Sec. 3.3. NRS 598.375 is hereby amended to read as follows:

598.375 1. Except as otherwise provided in subsection 8,

each seller of travel shall deposit with the Division:

(a) A bond executed by a corporate surety approved by the

Commissioner and licensed to do business in this state;

(b) An irrevocable letter of credit for which the seller of travel is

the obligor, issued by a bank whose deposits are federally insured;

doing business in this state and which is federally insured or insured

by a private insurer approved pursuant to NRS 678.755. The

certificate of deposit may be withdrawn only on the order of the

Commissioner, except that the interest may accrue to the seller of

travel.

2. The term of the bond, letter of credit or certificate of deposit,

or any renewal thereof, must be not less than 1 year.

3. The amount of the bond, letter of credit or certificate of

deposit, or any renewal thereof, must be $50,000.

4. If the seller of travel deposits a bond, the seller of travel

shall keep accurate records of the bond and the payments made on

the premium. The records must be open to inspection by the

Division during business hours. The seller of travel shall notify the

Division not later than 30 days before the date of expiration of

the bond and provide written proof of the renewal of the bond to the

Division.

5. The Commissioner may reject any bond, letter of credit or

certificate of deposit that fails to comply with the requirements of

this chapter.

6. A seller of travel may change the form of security that he

has deposited with the Division. If the seller of travel changes the

form of the security, the Commissioner may retain for not more than

1 year any portion of the security previously deposited by the seller

of travel as security for claims arising during the time the previous

security was in effect.

7. If the amount of the deposited security falls below the

amount required by this chapter for that security, the seller of travel

shall be deemed not to be registered as required by NRS 598.365 for

the purposes of this chapter.

8. The provisions of this section do not apply to a seller of

travel who [is] :

(a) Is accredited by and appointed as an agent of the Airlines

Reporting Corporation [.] ; or

(b) Maintains a trust account in accordance with the

provisions of section 5 of Assembly Bill No. 343 of this session.

Sec. 3.5. NRS 598A.260 is hereby amended to read as

follows:

598A.260 1. All money obtained as awards, damages or civil

penalties for the State of Nevada and its agencies by the Attorney

General as a result of enforcement of statutes pertaining to unfair

trade practices, whether by final judgment, settlement or otherwise

must be deposited in the State Treasury as follows:

(a) All attorney’s fees and costs and 50 percent of all recoveries

for credit to the Attorney General’s Special Fund.

(b) The balance of the recoveries for credit to the State General

Fund.

2. Money deposited in the State Treasury for credit to the

Attorney General’s Special Fund pursuant to subsection 1 must be

used for payment of the expenses of enforcing the statutes

pertaining to unfair trade practices [.] and sections 5 to 19,

inclusive, of this act. Those expenses which are in excess of the

amount available in the fund must be paid out of the legislative

appropriation for the support of the Office of Attorney General.

3. On June 30 of each fiscal year, any amount in excess of

[$200,000] $450,000 in the Attorney General’s Special Fund of the

money collected pursuant to subsection 1 reverts to the State

General Fund.

4. The balance of the money in the Attorney General’s Special

Fund that is collected pursuant to subsection 1 must not exceed

[$250,000.] $500,000. If money deposited in the State Treasury for

credit to the Attorney General’s Special Fund pursuant to subsection

1 would cause that balance to exceed [$250,000] $500,000 if

credited to the Fund, the amount of the deposit which would cause

the balance to exceed [$250,000] $500,000 immediately reverts to

the State General Fund.

Sec. 4. Chapter 228 of NRS is hereby amended by adding

thereto the provisions set forth as sections 5 to 19, inclusive, of this

act.

Sec. 5. As used in sections 5 to 19, inclusive, of this act,

unless the context otherwise requires, the words and terms defined

in sections 6, 7 and 8 of this act have the meanings ascribed to

them in those sections.

Sec. 6. “Registry” means the registry established pursuant to

section 10 of this act unless, pursuant to section 9 of this act, the

part of the single national database that relates to this state is

deemed to be the registry.

Sec. 7. 1. “Telephone solicitor” means a person who makes

or causes another person or a machine to make an unsolicited

telephone call for the sale of goods or services.

2. As used in this section:

(a) “Device for automatic dialing and announcing” has the

meaning ascribed to it in NRS 597.812.

(b) “Machine” includes, without limitation, a device for

automatic dialing and announcing.

Sec. 8. 1. “Unsolicited telephone call for the sale of goods

or services” means an unsolicited telephone call, other than a

telephone call on behalf of a charitable organization, religious

organization or political organization, to:

(a) Rent, lease, sell, exchange, promote or gift any good or

service;

(b) Solicit any act described in paragraph (a);

anything else of value; or

(d) Seek or obtain information, including, without limitation,

any document, intended to be used to facilitate any act described

in paragraph (a), (b) or (c).

2. As used in this section:

(a) “Charitable organization” means a person that the

Secretary of the Treasury has determined to be tax exempt

pursuant to the provisions of section 501(c)(3) of the Internal

Revenue Code of 1986, 26 U.S.C. § 501(c)(3).

(b) “Committee for political action” means a committee for

political action, as defined in NRS 294A.0055, which has

registered pursuant to NRS 294A.230.

(1) Any property or product, whether tangible or intangible;

(2) Any service, including, without limitation, financial

service;

(3) A loan or any other extension of credit;

(4) Insurance;

(5) Any investment or opportunity for investment;

(6) A gift, prize, bonus or any other inducement to act; or

(7) Anything of value.

(d) “Political organization” means a committee for political

action, political party or candidate for public office.

(e) “Religious organization” means an organization for which

the primary purpose is the operation of a church, synagogue or

other place of religious worship at which nonprofit religious

services and activities are regularly conducted.

(f) “Telephone call on behalf of a charitable organization,

religious organization or political organization” means a

telephone call on behalf of the organization if the call is made by:

(1) An employee of the organization who is paid directly by

the organization; or

(2) A volunteer.

3. For the purposes of this section, a telephone call is deemed

to have been solicited if it is made to a person who:

(a) Expressly requested or expressly gave permission for the

telephone call to be made;

(b) Had an established business relationship with the caller, if

the telephone call is made solely to verify the termination of the

business relationship; or

performance is due but has not been made, if the telephone call is

made to:

(1) Collect the payment or obtain the performance; or

(2) Extend credit to allow the person to make the payment.

Sec. 9. 1. If a federal agency establishes a single national

database of telephone numbers of persons who request not to

receive unsolicited telephone calls for the sale of goods or services,

the Attorney General shall, to the extent consistent with federal

law, examine that database and the federal law relating to that

database for the purposes of sections 5 to 19, inclusive, of this act.

Based upon this examination and his analysis of the applicable

needs of this state, the Attorney General may issue a finding that:

(a) The part of the single national database that relates to this

state is adequate to serve as the registry for the purposes of

sections 5 to 19, inclusive, of this act; and

(b) It is in the best interests of this state for the Attorney

General to use the part of the single national database that relates

to this state as the registry for the purposes of sections 5 to 19,

inclusive, of this act.

2. Except as otherwise provided in subsection 3, if the

Attorney General issues the finding described in subsection 1:

(a) The part of the single national database that relates to this

state shall be deemed to be the registry for the purposes of sections

5 to 19, inclusive, of this act;

(b) The Attorney General shall forward the applicable

information in the registry established pursuant to section 10 of

this act, if any, to the federal agency or other appropriate person

who maintains the single national database;

apply;

(d) The provisions of paragraphs (b), (c) and (d) of subsection

1 of section 11 of this act do not apply; and

(e) The provisions of subsection 3 of section 14 of this act do

not apply.

3. Not less than biennially, the Attorney General shall

reexamine the single national database and the federal law

relating to that database for the purposes of sections 5 to 19,

inclusive, of this act. Based upon this reexamination and his

analysis of the applicable needs of this state, the Attorney General

may rescind his finding issued pursuant to subsection 1. If the

Attorney General rescinds his finding:

(a) Except as otherwise provided in paragraph (d), 1 month

after the Attorney General rescinds his finding, the provisions of

section 10 of this act apply;

(b) Five months after the Attorney General rescinds his

finding, the provisions of section 13 of this act apply;

(1) The provisions of paragraphs (b), (c) and (d) of

subsection 1 of section 11 of this act apply;

(2) The provisions of subsection 3 of section 14 of this act

apply; and

(3) The part of the single national database that relates to

this state shall cease to be deemed to be the registry for the

purposes of sections 5 to 19, inclusive, of this act; and

(d) Three years after the Attorney General rescinds his

finding, the provisions of paragraph (d) of subsection 1 of section

10 of this act apply.

4. At any time after rescinding a finding pursuant to

subsection 3, the Attorney General may again issue a finding

described in subsection 1, and may rescind that finding pursuant

to subsection 3.

Sec. 10. 1. The Attorney General shall:

(a) Establish and maintain, or cause to be established and

maintained, a registry that includes the name and telephone

number of each person in this state who has requested that his

telephone number be included in the list published pursuant to

this section;

(b) Provide for a toll-free telephone number that may be used

to request inclusion or maintenance of a telephone number in the

registry;

least once every 6 months and ensure that no other personally

identifying information contained in the registry is included in the

published lists;

(d) On January 1, 2007, and every 3 years thereafter, delete

from the registry every telephone number and related information,

except for each telephone number and related information for

which the Attorney General has received a request within the

preceding 6 months to include or maintain the telephone number

in the registry;

(e) During the 6-month period identified in paragraph (d), use

reasonable means, including, without limitation, public service

announcements, to inform the public that telephone numbers and

related information in the registry will be deleted or otherwise

purged unless new or renewed requests for inclusion in the

registry are received by the Attorney General; and

(f) If a federal agency establishes a single national database of

telephone numbers of persons who request not to receive

unsolicited telephone calls for the sale of goods or services:

(1) Include the part of the single national database that

relates to this state in the registry;

(2) At least once every 6 months, add to the registry any

new and applicable information that has been added to the part of

the single national database that relates to this state; and

(3) At least once every 6 months, remove from the registry

any applicable information that has been removed from the part of

the single national database that relates to this state.

2. The Attorney General may:

(a) Contract for the establishment and maintenance of the

registry;

(b) Provide for additional procedures for requesting inclusion

or maintenance of a telephone number in the registry; and

names and telephone numbers be included in the registry,

including, without limitation, the mailing address of each person

who has requested inclusion in the registry.

3. A person may request that his telephone number be

included or maintained in the registry using:

(a) A toll-free telephone number provided by the Attorney

General for that purpose; or

(b) Any other method provided by the Attorney General.

4. A person may request to have his telephone number

removed from the registry. Such a request must be submitted to the

Attorney General in writing.

Sec. 11. 1. The Attorney General shall make information

available to the public concerning the establishment and

maintenance of the registry, including, without limitation:

(a) The procedures for requesting the inclusion or

maintenance of a telephone number in the registry;

(b) A statement indicating that a revised version of the list of

telephone numbers in the registry will be published at least once

every 6 months;

registry, other than the telephone numbers, will be included on

the list published pursuant to this section or otherwise disclosed to

the public; and

(d) A statement indicating that all telephone numbers and

related information in the registry will be deleted or otherwise

purged from the registry every 3 years, except for any telephone

number and related information for which the Attorney General

has received a new or renewed request for inclusion in the registry

within the 6 months before the potential deletion.

2. A person who publishes telephone directories for

distribution to the public in this state shall ensure that each such

telephone directory includes the information made available to the

public by the Attorney General pursuant to subsection 1.

Sec. 12. To the extent consistent with federal law:

1. The registry is not a public record. Any list published of the

telephone numbers contained within the registry is not a public

record.

2. The telephone numbers in the registry must not be

published or released except pursuant to the provisions of sections

5 to 19, inclusive, of this act.

3. The information in the registry other than the telephone

numbers:

(a) Must not be published or released; and

(b) May only be used by the Attorney General to administer the

provisions of sections 5 to 19, inclusive, of this act.

Sec. 13. Each list of telephone numbers published pursuant

to section 10 of this act must be made available to a telephone

solicitor upon the payment of the fee established by regulation for

this purpose by the Attorney General. The fee must not exceed

$1,000 annually for each telephone solicitor, regardless of the

number of revised editions of the list that are published during the

calendar year.

Sec. 14. 1. Except as otherwise provided in section 15 of

this act, a telephone solicitor shall not intentionally make an

unsolicited telephone call for the sale of goods or services to a

telephone number in the currently effective version of the list of

telephone numbers in the registry.

2. A person who obtains a copy of or access to the registry or

to any version of the list of telephone numbers in the registry shall

not use that information for any purpose other than determining

whether a particular telephone number is available for an

unsolicited telephone call for the sale of goods or services.

3. For the purposes of this section, a version of the list of

telephone numbers in the registry is deemed to be the currently

effective version of the list for the period beginning on the 31st day

after it is published and ending on the 30th day after the next

version is published.

Sec. 15. 1. The provisions of section 14 of this act do not

prohibit a telephone solicitor from making or causing another

person to make an unsolicited telephone call for the sale of goods

or services to a telephone number in the currently effective version

of the list of telephone numbers in the registry if:

(a) There is a preexisting business relationship between the

telephone solicitor and the person who is called; and

(b) The telephone solicitor complies with the provisions of this

section.

2. Before a telephone solicitor may make or cause another

person to make an unsolicited telephone call for the sale of goods

or services based on a preexisting business relationship, the

telephone solicitor must establish and maintain an internal do-

not-call registry that complies with federal and state laws and

regulations. The internal do-not-call registry must:

(a) Include, without limitation, a list of the telephone numbers

of any person who has requested that the telephone solicitor not

make or cause another person to make an unsolicited telephone

call for the sale of goods or services to a telephone number of the

person making the request; and

(b) Upon request, be provided by the telephone solicitor to the

Attorney General.

3. In addition to the requirements set forth in subsection 2, at

least once each year, the telephone solicitor shall provide written

notice to each person with whom the telephone solicitor has a

preexisting business relationship. The written notice must:

(a) Inform the person that the telephone solicitor is providing

the notice pursuant to state law;

(b) Explain to the person that the telephone solicitor may elect

to be placed on the internal do-not-call list of the telephone

solicitor and specify the procedures for making such an election;

and

customer service department of the telephone solicitor or

the Attorney General to obtain further information concerning the

provisions of this section and must provide the current address,

telephone number and electronic mail address of the customer

service department of the telephone solicitor and the Attorney

General.

4. As used in this section, “preexisting business relationship”

means a relationship between a telephone solicitor and a person

that is based on:

(a) The person’s purchase, rental or lease of goods or services

directly from the telephone solicitor, but not from any affiliate or

associate of the telephone solicitor; or

(b) Any other financial transaction directly between the person

and the telephone solicitor, but not between the person and any

affiliate or associate of the telephone solicitor,

that occurs within the 18 months immediately preceding the date

of the unsolicited telephone call for the sale of goods or services.

Sec. 16. If the Attorney General has reason to believe that a

person has violated any of the provisions of sections 5 to 19,

inclusive, of this act or any regulation adopted pursuant thereto,

he may institute an appropriate legal proceeding against the

person in a court of competent jurisdiction.

Sec. 17. A violation of a provision of sections 5 to 19,

inclusive, of this act constitutes a deceptive trade practice for the

purposes of NRS 598.0903 to 598.0999, inclusive.

Sec. 18. 1. The Registry Fund is hereby created as a special

revenue fund in the State Treasury for the use of the Attorney

General.

2. All money collected by the Attorney General pursuant to

section 13 of this act must be deposited in the State Treasury for

credit to the Registry Fund. The interest and income earned on the

money in the Registry Fund, after deducting any applicable

charges, must be credited to the Registry Fund.

3. Expenditures from the Registry Fund must be made only to

administer and enforce the provisions of sections 5 to 19,

inclusive, of this act.

4. The Attorney General shall administer the Registry Fund.

All claims against the Registry Fund must be paid as other claims

against the State are paid.

5. Any money remaining in the Registry Fund at the end of a

fiscal year does not revert to the State General Fund, and the

balance in the Registry Fund must be carried forward to the next

fiscal year.

6. Each year, the Attorney General shall submit an itemized

statement of the income and expenditures for the Registry Fund:

(a) To the Legislature, if the Legislature is in session; or

(b) To the Interim Finance Committee, if the Legislature is not

in session.

Sec. 19. The Attorney General shall adopt regulations to

carry out the provisions of sections 5 to 19, inclusive, of this act.

Sec. 20. Section 5 of Assembly Bill No. 343 of this session is

hereby amended to read as follows:

Sec. 5. 1. Except as otherwise provided in

subsection 2:

(a) A seller of travel shall maintain a trust account in a

bank, credit union or savings and loan association in this

state for the purpose of depositing all money that a

consumer pays to the seller of travel for the purchase of

travel services or a vacation certificate.

(b) If a consumer pays money to a seller of travel for the

purchase of travel services or a vacation certificate, the

seller of travel shall deposit all such money in the trust

account maintained by the seller of travel not later than 2

business days after the date on which the consumer pays the

money to the seller of travel.

the money paid to the seller of travel by the consumer as

needed to complete the purchase of the travel services or

vacation certificate purchased by the consumer.

2. The provisions of this section do not apply to a seller

of travel who deposits security with the Division pursuant to

NRS 598.375.

Sec. 21. Section 7 of Assembly Bill No. 343 of this session is

hereby amended to read as follows:

Sec. 7. 1. Except as otherwise provided in subsection

5, a consumer who is eligible for recovery from the account

must file a complaint with the Division or its designee not

later than 1 year after the scheduled date of completion of

the travel purchased by the consumer. The consumer must

file the complaint on a form established for this purpose by

the Division.

2. If the Division receives a complaint pursuant to

subsection 1, the Division or its designee shall hold a

hearing on the complaint. The Division shall:

(a) Affix the time and place for the hearing; and

(b) Notify the interested parties, in writing, at least 10

days before the date affixed for the hearing, of the time and

place of the hearing.

3. Any testimony taken at the hearing must be

considered a part of the record of the hearing before the

Division or its designee.

4. The hearing must be public if a request is made for a

public hearing.

5. If a consumer has obtained a judgment in any court

of competent jurisdiction for recovery of damages against a

seller of travel, the consumer may file with the Division or

its designee a complaint for recovery of the judgment from

the account. The consumer must file the complaint not later

than 2 years after the entry of the judgment. The consumer

is eligible for recovery of the judgment from the account if:

(a) The judgment is for actual damages suffered by the

consumer as a result of:

(1) Any act of fraud or misrepresentation by the

seller of travel acting in his capacity as a seller of travel;

(2) The bankruptcy of the seller of travel;

(3) The breach of any contract entered into by the

seller of travel in his capacity as a seller of travel; or

(4) The violation by the seller of travel of any

provision of NRS 598.305 to 598.395, inclusive, and sections

2 to 10, inclusive, of this act;

(b) The proceedings in connection with the judgment,

including all appeals, have terminated;

established for this purpose by the Division;

(d) The consumer submits proof satisfactory to the

Division of the judgment; and

(e) Upon obtaining payment from the account, the

consumer assigns his rights to enforce the judgment to the

Division.

6. If a consumer files a complaint pursuant to this

section, the Division or its designee shall act upon the

complaint not later than 60 days after the date on which the

complaint is filed with the Division, unless the Division:

(a) Determines that the complaint involves complex

issues that may not reasonably be resolved within 60 days;

and

(b) Notifies the interested parties, in writing, that the

time for acting on the complaint will be extended. If

the Division provides such notice to the interested parties,

the Division shall act upon the complaint not later than 180

days after the date on which the complaint is filed with the

Division.

Sec. 22. Section 8 of Assembly Bill No. 343 of this session is

hereby amended to read as follows:

Sec. 8. 1. Except as otherwise provided in subsection

2, a consumer is eligible for recovery from the account if:

(a) The Division or its designee, after conducting a

hearing on a complaint filed pursuant to the provisions of

subsection 1 of section 7 of this act, finds that the consumer

suffered actual damages as a result of:

(1) Any act of fraud or misrepresentation by the

seller of travel acting in his capacity as a seller of travel;

(2) The bankruptcy of the seller of travel;

(3) The breach of any contract entered into by the

seller of travel in his capacity as a seller of travel; or

(4) The violation by the seller of travel of any

provision of NRS 598.305 to 598.395, inclusive, and sections

2 to 10, inclusive, of this act; or

(b) The consumer complies with the provisions of

subsection 5 of section 7 of this act for the recovery of a

judgment from the account.

2. A consumer is not eligible for recovery from the

account if:

(a) The consumer is the spouse of the seller of travel or

is a personal representative of the spouse of the seller of

travel;

(b) The consumer was associated in a business

relationship with the seller of travel other than with regard

to the travel services or vacation certificate at issue;

travel for the purchase of the travel services or vacation

certificate at issue, the seller of travel was not registered

with the Division as required by NRS 598.365; or

(d) The consumer is seeking recovery of losses which

were incurred by the consumer as the result of a

cancellation penalty that:

(1) Was fully disclosed and agreed to by the

consumer at the time the consumer entered into the contract

for the purchase of the travel services or vacation certificate

at issue; and

(2) Was imposed against the consumer, in

accordance with the terms of the contract, after the

cancellation of the travel services or vacation certificate at

issue.

3. If the Division or its designee finds that a consumer

is eligible for recovery from the account pursuant to this

section, the Division or its designee may pay out of the

account:

(a) If the complaint was filed pursuant to subsection 1 of

section 7 of this act, the amount of actual damages suffered,

but not to exceed $10,000; or

(b) If the complaint was filed pursuant to subsection 5 of

section 7 of this act, the amount of actual damages included

in the judgment and remaining unpaid, but not to exceed

$10,000.

4. If a consumer has recovered a portion of his losses

from sources other than the account, the Division shall

deduct the amount recovered from the other sources from

the amount payable upon the claim and direct the difference

to be paid from the account.

5. To the extent that payments are made from the

account to a consumer, the Division is subrogated to the

rights of the consumer. The Division and the Attorney

General shall promptly enforce all subrogation claims.

6. The amount of recovery from the account based

upon claims made against any single seller of travel:

(a) Must not exceed $200,000; and

(b) For any single action of the seller of travel, must not

exceed 20 percent of the balance of the account.

Sec. 23. Section 9 of Assembly Bill No. 343 of this session is

hereby amended to read as follows:

Sec. 9. 1. A seller of travel shall display

conspicuously, at each place of business of the seller of

travel and on any website maintained by the seller of travel

for business purposes, a legible and typewritten statement

that notifies consumers that they may be eligible to recover

certain financial damages from the Recovery Fund. The

written statement must be in substantially the following

form:

RECOVERY FUND FOR CONSUMERS

DAMAGED BY SELLERS OF TRAVEL

You may be eligible for payment from the Recovery

Fund if you have paid money to a seller of travel registered

in this state for the purchase of travel services or a vacation

certificate and you have suffered certain financial damages

as a result of the transaction. To obtain information relating

to your rights under the Recovery Fund and the filing of a

claim for recovery from the Recovery Fund, you may

contact the Consumer Affairs Division of the Department of

Business and Industry at the following locations:

SOUTHERN NEVADA: 1850 East Sahara Avenue

Suite 101

Las Vegas, Nevada 89104

Phone: 702.486.7355

Fax: 702.486.7371

[email protected]

NORTHERN NEVADA: 4600 Kietzke Lane

Building B, Suite 113

Reno, Nevada 89502

Phone: 775.688.1800

Fax: 775.688.1803

2. The Division may impose upon a seller of travel an

administrative fine of not more than:

(a) For the first violation of subsection 1, $100; and

(b) For a second or subsequent violation of subsection 1,

$250.

3. The Division shall deposit any money received

pursuant to this section in the account established pursuant

to section 6 of this act.

4. The provisions of NRS 598.305 to 598.395, inclusive,

and sections 2 to 10, inclusive, of this act do not limit the

authority of the Division to take disciplinary action against

a seller of travel.

Sec. 24. Section 10 of Assembly Bill No. 343 of this session is

hereby amended to read as follows:

Sec. 10. 1. The Division shall:

(a) On or before February 1 of each year, prepare and

submit to the Director of the Legislative Counsel Bureau for

transmittal to the appropriate legislative committee if the

Legislature is in session, or to the Interim Finance

Committee if the Legislature is not in session, a statement of

the condition of the account that is prepared in accordance

with generally accepted accounting principles.

(b) Employ accountants as necessary for the

performance of the duties set forth in this section and pay

any related expenses from the money in the account. Except

as otherwise provided in subsection 3, the expenditures

made by the Division pursuant to this paragraph must not

exceed $10,000 in any fiscal year.

necessary equipment, supplies and services to be paid from

or purchased with the money in the account as may be

necessary to monitor or process claims filed by consumers

that may result in a recovery from the account.

2. Any interest earned on the money in the account

must be credited to the account. The Division may expend

the interest earned on the money in the account to increase

public awareness of the account. Except as otherwise

provided in subsection 3, the expenditures made by the

Division for this purpose must not exceed $50,000 in any

fiscal year.

3. The total expenditures made by the Division

pursuant to this section must not exceed 10 percent of the

account in any fiscal year.

4. Once an initial balance of $200,000 exists in the

account, the Division shall maintain a minimum balance of

$200,000 in the account.

5. The Division shall adopt such regulations as are

necessary to carry out the provisions of NRS 598.305 to

598.395, inclusive, and sections 2 to 10, inclusive, of this

act, including, without limitation, regulations governing:

(a) The disbursement of money from the account; and

(b) The manner in which a complaint is filed with the

Division or its designee pursuant to the provisions of section

7 of this act.

Sec. 25. Section 11 of Assembly Bill No. 343 of this session is

hereby amended to read as follows:

Sec. 11. NRS 598.0999 is hereby amended to read as

follows:

598.0999 1. A person who violates a court order or

injunction issued pursuant to the provisions of NRS 598.0903

to 598.0999, inclusive, upon a complaint brought by the

Commissioner, the Director, the district attorney of any

county of this state or the Attorney General shall forfeit and

pay to the State General Fund a civil penalty of not more than

$10,000 for each violation. For the purpose of this section,

the court issuing the order or injunction retains jurisdiction

over the action or proceeding. Such civil penalties are in

addition to any other penalty or remedy available for the

enforcement of the provisions of NRS 598.0903 to 598.0999,

inclusive.

2. In any action brought pursuant to the provisions of

NRS 598.0903 to 598.0999, inclusive, if the court finds that a

person has willfully engaged in a deceptive trade practice, the

Commissioner, the Director, the district attorney of any

county in this state or the Attorney General bringing the

action may recover a civil penalty not to exceed $2,500 for

each violation. The court in any such action may, in addition

to any other relief or reimbursement, award reasonable

attorney’s fees and costs.

3. A natural person, firm, or any officer or managing

agent of any corporation or association who knowingly and

willfully engages in a deceptive trade practice:

(a) For the first offense, is guilty of a misdemeanor.

(b) For the second offense, is guilty of a gross

misdemeanor.

category D felony and shall be punished as provided in NRS

193.130.

4. Any offense which occurred within 10 years

immediately preceding the date of the principal offense or

after the principal offense constitutes a prior offense for the

purposes of subsection 3 when evidenced by a conviction,

without regard to the sequence of the offenses and

convictions.

5. If a person violates any provision of NRS 598.0903 to

598.0999, inclusive, 598.100 to 598.2801, inclusive, 598.305

to 598.395, inclusive, and sections 2 to 10, inclusive, of this

act, 598.405 to 598.525, inclusive, and section 10.5 of this

act, 598.741 to 598.787, inclusive, or 598.840 to 598.966,

inclusive, fails to comply with a judgment or order of any

court in this state concerning a violation of such a provision,

or fails to comply with an assurance of discontinuance or

other agreement concerning an alleged violation of such a

provision, the Commissioner or the district attorney of any

county may bring an action in the name of the State of

Nevada seeking:

(a) The suspension of the person’s privilege to conduct

business within this state; or

(b) If the defendant is a corporation, dissolution of the

corporation.

The court may grant or deny the relief sought or may order

other appropriate relief.

Sec. 26. Section 12 of Assembly Bill No. 343 of this session is

hereby amended to read as follows:

Sec. 12. NRS 598.305 is hereby amended to read as

follows:

598.305 As used in NRS 598.305 to 598.395, inclusive,

and sections 2 to 10, inclusive, of this act, unless the context

otherwise requires, the words and terms defined in NRS

598.315 to 598.356, inclusive, and sections 2 and 3 of this

act have the meanings ascribed to them in those sections.

Sec. 27. Section 14 of Assembly Bill No. 343 of this session is

hereby amended to read as follows:

Sec. 14. NRS 598.365 is hereby amended to read as

follows:

598.365 1. Before advertising its services or

conducting business in this state, a seller of travel must

(a) Submitting to the Division an application for

registration on a form prescribed by the Division;

(b) Paying to the Division a fee of $25; [and]

598.375, if any, with the Division [.] ; and

(d) Paying to the Division a fee of $100 for deposit to the

account established pursuant to section 6 of this act.

2. The Division shall issue a certificate of registration to

the seller of travel upon receipt of :

(a) The security in the proper form if the seller of travel is

required to deposit security pursuant to NRS 598.375; and

(b) The payment of [the fee] any fees required by this

section.

3. A certificate of registration:

(a) Is not transferable or assignable; and

(b) Expires 1 year after it is issued.

4. A seller of travel must renew a certificate of

registration issued pursuant to this section before the

certificate expires by:

(a) Submitting to the Division an application for the

renewal of the certificate on a form prescribed by the

Division; [and]

(b) Paying to the Division a fee of $25 [.] ; and

account established pursuant to section 6 of this act.

5. The Division shall mail an application for the

renewal of a certificate to the last known address of a seller

of travel at least 30 days before the expiration of the

certificate.

6. The provisions of this section do not require a

person described in paragraph (a) of subsection 2 of NRS

598.335 to register with the Division.

Sec. 28. Section 15 of Assembly Bill No. 343 of this session is

hereby amended to read as follows:

Sec. 15. (Deleted by amendment.)

Sec. 29. 1. This section becomes effective upon passage and

approval.

2. Sections 1, 2, 3 and 3.5 to 19, inclusive, of this act become

effective upon passage and approval for the purposes of adopting

regulations and entering into contracts or otherwise preparing to

carry out the provisions of this act.

3. Sections 3.3 and 20 to 28, inclusive, of this act become

effective on October 1, 2003.

4. Sections 1, 2, 3 and 3.5 to 19, inclusive, of this act become

effective on January 1, 2004, for the purpose of the Attorney

General making the determination described in subsection 1 of

section 9 of this act.

5. If the Attorney General makes the determination described

in subsection 1 of section 9 of this act on or before April 1, 2004,

sections 1, 2, 3 and 3.5 to 19, inclusive, of this act become effective

on May 1, 2004, for all other purposes.

6. If the Attorney General does not make the determination

described in subsection 1 of section 9 of this act on or before

April 1, 2004, sections 1, 2, 3 and 3.5 to 19, inclusive, of this act

become effective:

(a) On May 1, 2004, for the purposes of the Attorney General

receiving and accepting requests to include telephone numbers in

the registry established pursuant to section 10 of this act.

(b) On June 1, 2004, for the purpose of publishing the first list

of telephone numbers in the registry; and

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