S.B. 399
Senate Bill No. 399–Committee on Commerce and Labor
(On Behalf of the Attorney General)
March 21, 2003
____________
Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions governing trade practices and resident agents. (BDR 52‑429)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State: Yes.
~
EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to business activities; expanding the definition of “deceptive trade practice” to include the failure to disclose certain information or the making of certain false statements or representations relating to a sale or lease of goods or services; prohibiting certain providers of telecommunications services from billing a customer for a service if the provider is notified or knows or upon reasonable inquiry should know that the customer has not authorized the service; expanding the authority of a district court to grant equitable relief for a deceptive trade practice; providing that certain tangible evidence or answers relating to an unfair trade practice are not public records under certain circumstances; prohibiting the filing of a certificate of change of a resident agent under certain circumstances; providing a penalty; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 598 of NRS is hereby amended by adding
1-2 thereto the provisions set forth as sections 2 and 3 of this act.
1-3 Sec. 2. 1. A person engages in a “deceptive trade practice”
1-4 if, in the course of his business or occupation, he, directly or
2-1 through another person, employee, agent or representative acting
2-2 on his behalf:
2-3 (a) Fails to disclose in a truthful, clear and conspicuous
2-4 manner, before a customer pays for any goods or services offered,
2-5 or misrepresents, directly or by implication at the time of the sale
2-6 or lease of the goods or services, any of the following information:
2-7 (1) The total cost to purchase, receive or use, and the
2-8 quantity of, any goods or services that are the subject of the offer;
2-9 (2) Any material restriction, limitation or condition to
2-10 purchase, receive or use any goods or services that are the subject
2-11 of the offer;
2-12 (3) Any material aspect of the performance, efficacy,
2-13 nature or central characteristics of any goods or services that are
2-14 the subject of the offer;
2-15 (4) Any material aspect of the nature or terms of the seller’s
2-16 refund, cancellation, exchange or repurchase policies;
2-17 (5) Any affiliation of the seller with, or endorsement or
2-18 sponsorship by, any person or governmental entity;
2-19 (6) That any offered goods or services are required by a
2-20 person to provide protections that the person already has pursuant
2-21 to any federal or state law or regulation; or
2-22 (7) Any material aspect of a negative option including, but
2-23 not limited to, the fact that the customer’s account will be charged
2-24 unless the customer acts to avoid the charge, or the date the
2-25 charge will be submitted for payment and the specific actions the
2-26 customer must take to avoid the charge.
2-27 (b) Makes a false statement concerning or fails to disclose the
2-28 date the charge for the goods or services will be submitted for
2-29 payment or the date the customer’s account will be charged.
2-30 (c) Causes billing information to be submitted for payment, or
2-31 collects or attempts to collect payment for goods or services or a
2-32 charitable contribution without obtaining express authorization
2-33 from the customer or donor, as verified in accordance with
2-34 subsection 2.
2-35 (d) Presents for payment or deposits into a financial
2-36 institution’s credit card system or electronic banking system a
2-37 credit card sales draft or an electronic debit drawn on a
2-38 customer’s bank account that is generated by a sales transaction
2-39 for the purchase or lease of goods or services, if the credit card
2-40 sales draft or electronic debit is not the result of a sale or lease
2-41 transaction directly between the cardholder and the seller, as
2-42 verified in accordance with subsection 2, unless the financial
2-43 institution expressly authorizes the payment or deposit.
2-44 (e) Uses a business relationship or an affiliation with a seller
2-45 or lessor of goods or services to obtain access to the credit card
3-1 system of a financial institution or a person’s bank account
3-2 information, if the access is not authorized by an agreement
3-3 between the seller or lessor and the financial institution or bank.
3-4 (f) Sells, loans, gives, transmits, trades or distributes in any
3-5 manner, to another person, a customer’s credit card or banking
3-6 account information or any other information relating to the
3-7 customer that allows the recipient to access the customer’s credit
3-8 card or banking account, without express authorization of the
3-9 customer, for the purpose of enabling the recipient to use the
3-10 information to engage in advertising, telemarketing, direct
3-11 mailing, facsimile advertising, submitting mail electronically or
3-12 any indirect sales activity relating to the sale of goods or services.
3-13 2. For the purposes of this section, any authorization
3-14 specified in paragraph (c) or (d) of subsection 1 is verifiable upon:
3-15 (a) Presenting the express written authorization of the
3-16 customer or donor for the payment or charitable contribution,
3-17 which must include the signature of the customer or donor;
3-18 (b) Presenting the express oral authorization of the customer
3-19 or donor, if the authorization:
3-20 (1) Is recorded in audible form;
3-21 (2) Is made available to the customer or donor and to the
3-22 bank or other billing entity of the customer or donor upon request;
3-23 (3) Clearly indicates that the customer has authorized
3-24 payment for the goods or services or the donor has authorized the
3-25 charitable contribution; and
3-26 (4) Clearly indicates that the customer or donor has
3-27 received the following information:
3-28 (I) The number of debits, charges or payments required
3-29 to purchase the goods or services or to make the charitable
3-30 contribution;
3-31 (II) The date each debit, charge or payment will be
3-32 submitted for payment;
3-33 (III) The amount of each debit, charge or payment for
3-34 the goods or services or charitable contribution;
3-35 (IV) The name of the customer or donor;
3-36 (V) The billing information of the customer or donor,
3-37 stated with sufficient specificity to ensure that the customer or
3-38 donor understands the account that will be used to collect payment
3-39 for the goods or services or the charitable contribution;
3-40 (VI) A telephone number that is available for use by the
3-41 customer or donor to submit inquiries and that is answered by a
3-42 natural person during normal business hours; and
3-43 (VII) The date the authorization of the customer or
3-44 donor was obtained; or
4-1 (c) Presenting written confirmation of the transaction, set
4-2 forth in a clear and conspicuous manner and sent to the customer
4-3 or donor by first class mail at least 30 days before the submission
4-4 for payment of the customer’s or donor’s billing information,
4-5 which includes:
4-6 (1) The information set forth in subparagraph (4) of
4-7 paragraph (b); and
4-8 (2) A clear and concise statement indicating the manner in
4-9 which the customer or donor may, if the written confirmation is
4-10 inaccurate, cancel the sale or charitable contribution and obtain a
4-11 refund of any money paid for the sale or donated for the
4-12 charitable contribution.
4-13 3. As used in this section:
4-14 (a) “Credit” means the right granted by a creditor to a debtor
4-15 to defer payment of a debt or to incur a debt and defer its payment.
4-16 (b) “Credit card” means any card, plate, coupon book or other
4-17 credit device existing for the purpose of obtaining money,
4-18 property, labor or services on credit, or any debit card issued by a
4-19 financial institution.
4-20 (c) “Credit card sales draft” means any record or evidence of a
4-21 credit card or debit transaction.
4-22 (d) “Credit card system” means any method or procedure used
4-23 to process a credit card or debit card transaction involving a card
4-24 or other device issued or licensed by any financial institution or
4-25 any operator employed or licensed by a financial institution.
4-26 (e) “Customer” means any person who pays or is or may be
4-27 required to pay for goods or services.
4-28 (f) “Electronic banking system” means any method or
4-29 procedure used by a financial institution or an operator employed
4-30 by a financial institution to carry out an electronic banking
4-31 transaction.
4-32 Sec. 3. A person engages in a “deceptive trade practice” if, in
4-33 the course of his business or occupation, he, directly or through
4-34 another person, employee, agent or representative acting on his
4-35 behalf:
4-36 1. Makes a false, misleading or threatening statement to
4-37 induce a person to pay for goods or services that are not ordered,
4-38 delivered or authorized, or to induce the person to make a
4-39 charitable contribution.
4-40 2. Provides substantial assistance or support to any other
4-41 person, if he knows or consciously avoids knowing that the other
4-42 person is engaged in a deceptive trade practice.
4-43 Sec. 4. NRS 598.0903 is hereby amended to read as follows:
4-44 598.0903 As used in NRS 598.0903 to 598.0999, inclusive,
4-45 and sections 2 and 3 of this act, unless the context otherwise
5-1 requires, the words and terms defined in NRS 598.0905 to
5-2 598.0947, inclusive, and sections 2 and 3 of this act have the
5-3 meanings ascribed to them in those sections.
5-4 Sec. 5. NRS 598.0915 is hereby amended to read as follows:
5-5 598.0915 A person engages in a “deceptive trade practice” if,
5-6 in the course of his business or occupation, he[:] , directly or
5-7 through another person, employee, agent or representative acting
5-8 on his behalf:
5-9 1. Knowingly passes off goods or services for sale or lease as
5-10 those of another person.
5-11 2. Knowingly makes a false representation as to the source,
5-12 sponsorship, approval or certification of goods or services for sale or
5-13 lease.
5-14 3. Knowingly makes a false representation as to affiliation,
5-15 connection, association with or certification by another person.
5-16 4. Refuses to disclose, makes a false or misleading
5-17 representation or uses a mail drop, registered agent, post office
5-18 box, electronic mail address or unlisted telephone number as the
5-19 sole point of contact for the business for the purpose of concealing
5-20 the physical address or geographic location of:
5-21 (a) Each address where the operation of the business is
5-22 located;
5-23 (b) The location of any person who, by telephone, mail,
5-24 facsimile or electronic mail, or in any indirect manner, sells or
5-25 leases or solicits the sale or lease of any goods or services for or on
5-26 behalf of the business;
5-27 (c) The address of each owner, director or officer of the
5-28 business; or
5-29 (d) The geographic location from which any goods or services
5-30 are provided by the business.
5-31 5. Uses deceptive representations or designations of geographic
5-32 origin in connection with goods or services for sale or lease.
5-33 [5.] 6. Knowingly makes a false representation as to the
5-34 characteristics, ingredients, uses, benefits, alterations or quantities of
5-35 goods or services for sale or lease or a false representation as to the
5-36 sponsorship, approval, status, affiliation or connection of a person
5-37 therewith.
5-38 [6.] 7. Represents that goods for sale or lease are original or
5-39 new if he knows or should know that they are deteriorated, altered,
5-40 reconditioned, reclaimed, used or secondhand.
5-41 [7.] 8. Represents that goods or services for sale or lease are of
5-42 a particular standard, quality or grade, or that such goods are of a
5-43 particular style or model, if he knows or should know that they are
5-44 of another standard, quality, grade, style or model.
6-1 [8.] 9. Disparages the goods, services or business of another
6-2 person by false or misleading representation of fact.
6-3 [9.] 10. Advertises goods or services with intent not to sell or
6-4 lease them as advertised.
6-5 [10.] 11. Advertises goods or services for sale or lease with
6-6 intent not to supply reasonably expectable public demand, unless the
6-7 advertisement discloses a limitation of quantity.
6-8 [11.] 12. Advertises goods or services as being available free of
6-9 charge with intent to require payment of undisclosed costs as a
6-10 condition of receiving the goods or services.
6-11 [12.] 13. Advertises under the guise of obtaining sales
6-12 personnel when the purpose is to first sell or lease goods or services
6-13 to the sales personnel applicant.
6-14 [13.] 14. Makes false or misleading statements of fact
6-15 concerning the price of goods or services for sale or lease, or the
6-16 reasons for, existence of or amounts of price reductions.
6-17 [14.] 15. Fraudulently alters any contract, written estimate of
6-18 repair, written statement of charges or other document in connection
6-19 with the sale or lease of goods or services.
6-20 [15.] 16. Knowingly makes any other false representation in a
6-21 transaction.
6-22 [16.] 17. Knowingly falsifies an application for credit relating
6-23 to a retail installment transaction, as defined in NRS 97.115.
6-24 Sec. 6. NRS 598.0967 is hereby amended to read as follows:
6-25 598.0967 1. The Commissioner and the Director, in addition
6-26 to other powers conferred upon them by NRS 598.0903 to
6-27 598.0999, inclusive, and sections 2 and 3 of this act, may issue
6-28 subpoenas to require the attendance of witnesses or the production
6-29 of documents, conduct hearings in aid of any investigation or
6-30 inquiry and prescribe such forms and adopt such regulations as may
6-31 be necessary to administer the provisions of NRS 598.0903 to
6-32 598.0999, inclusive[.] , and sections 2 and 3 of this act. Such
6-33 regulations may include, without limitation, provisions concerning
6-34 the applicability of the provisions of NRS 598.0903 to 598.0999,
6-35 inclusive, and sections 2 and 3 of this act to particular persons or
6-36 circumstances.
6-37 2. Service of any notice or subpoena must be made as provided
6-38 in N.R.C.P. 45(c).
6-39 Sec. 7. NRS 598.0971 is hereby amended to read as follows:
6-40 598.0971 1. If, after an investigation, the Commissioner has
6-41 reasonable cause to believe that any person has been engaged or is
6-42 engaging in any deceptive trade practice in violation of NRS
6-43 598.0903 to 598.0999, inclusive, and sections 2 and 3 of this act,
6-44 the Commissioner may issue an order directed to the person to show
6-45 cause why the Commissioner should not order the person to cease
7-1 and desist from engaging in the practice. The order must contain a
7-2 statement of the charges and a notice of a hearing to be held thereon.
7-3 The order must be served upon the person directly or by certified or
7-4 registered mail, return receipt requested.
7-5 2. If, after conducting a hearing pursuant to the provisions of
7-6 subsection 1, the Commissioner determines that the person has
7-7 violated any of the provisions of NRS 598.0903 to 598.0999,
7-8 inclusive, and sections 2 and 3 of this act, or if the person fails to
7-9 appear for the hearing after being properly served with the statement
7-10 of charges and notice of hearing, the Commissioner may make a
7-11 written report of his findings of fact concerning the violation and
7-12 cause to be served a copy thereof upon the person and any
7-13 intervener at the hearing. If the Commissioner determines in the
7-14 report that such a violation has occurred, he may order the violator
7-15 to:
7-16 (a) Cease and desist from engaging in the practice or other
7-17 activity constituting the violation;
7-18 (b) Pay the costs of reporting services, fees for experts and other
7-19 witnesses, charges for the rental of a hearing room if such a room is
7-20 not available to the Commissioner free of charge, charges for
7-21 providing an independent hearing officer, if any, and charges
7-22 incurred for any service of process, if the violator is adjudicated to
7-23 have committed a violation of NRS 598.0903 to 598.0999, inclusive
7-24 [;] , and sections 2 and 3 of this act; and
7-25 (c) Provide restitution for any money or property improperly
7-26 received or obtained as a result of the violation.
7-27 The order must be served upon the person directly or by certified or
7-28 registered mail, return receipt requested. The order becomes
7-29 effective upon service in the manner provided in this subsection.
7-30 3. Any person whose pecuniary interests are directly and
7-31 immediately affected by an order issued pursuant to subsection 2 or
7-32 who is aggrieved by the order may petition for judicial review in the
7-33 manner provided in chapter 233B of NRS. Such a petition must be
7-34 filed within 30 days after the service of the order. The order
7-35 becomes final upon the filing of the petition.
7-36 4. If a person fails to comply with any provision of an order
7-37 issued pursuant to subsection 2, the Commissioner may, through the
7-38 Attorney General, at any time after 30 days after the service of
7-39 the order, cause an action to be instituted in the district court of the
7-40 county wherein the person resides or has his principal place of
7-41 business requesting the court to enforce the provisions of the order
7-42 or to provide any other appropriate injunctive relief.
7-43 5. If the court finds that:
7-44 (a) The violation complained of is a deceptive trade practice;
8-1 (b) The proceedings by the Commissioner concerning the
8-2 written report and any order issued pursuant to subsection 3 are in
8-3 the interest of the public; and
8-4 (c) The findings of the Commissioner are supported by the
8-5 weight of the evidence,
8-6 the court shall issue an order enforcing the provisions of the order of
8-7 the Commissioner.
8-8 6. An order issued pursuant to subsection 5 may include:
8-9 (a) A provision requiring the payment to the Commissioner of a
8-10 penalty of not more than $5,000 for each act amounting to a failure
8-11 to comply with the Commissioner’s order; or
8-12 (b) Such injunctive or other equitable or extraordinary relief as
8-13 is determined appropriate by the court.
8-14 7. Any aggrieved party may appeal from the final judgment,
8-15 order or decree of the court in a like manner as provided for appeals
8-16 in civil cases.
8-17 8. Upon the violation of any judgment, order or decree issued
8-18 pursuant to subsection 5 or 6, the Commissioner, after a hearing
8-19 thereon, may proceed in accordance with the provisions of
8-20 NRS 598.0999.
8-21 Sec. 8. NRS 598.0973 is hereby amended to read as follows:
8-22 598.0973 1. In any action brought pursuant to NRS 598.0979
8-23 to 598.099, inclusive, and sections 2 and 3 of this act, if the court
8-24 finds that a person has engaged in a deceptive trade practice directed
8-25 toward an elderly or disabled person, the court may, in addition to
8-26 any other civil or criminal penalty, impose a civil penalty of not
8-27 more than $10,000 for each violation.
8-28 2. In determining whether to impose a civil penalty pursuant to
8-29 subsection 1, the court shall consider whether:
8-30 (a) The conduct of the person was in disregard of the rights of
8-31 the elderly or disabled person;
8-32 (b) The person knew or should have known that his conduct was
8-33 directed toward an elderly or disabled person;
8-34 (c) The elderly or disabled person was more vulnerable to the
8-35 conduct of the person because of the age, health, infirmity, impaired
8-36 understanding, restricted mobility or disability of the elderly or
8-37 disabled person;
8-38 (d) The conduct of the person caused the elderly or disabled
8-39 person to suffer actual and substantial physical, emotional or
8-40 economic damage;
8-41 (e) The conduct of the person caused the elderly or disabled
8-42 person to suffer:
8-43 (1) Mental or emotional anguish;
8-44 (2) The loss of the primary residence of the elderly or
8-45 disabled person;
9-1 (3) The loss of the principal employment or source of income
9-2 of the elderly or disabled person;
9-3 (4) The loss of money received from a pension, retirement
9-4 plan or governmental program;
9-5 (5) The loss of property that had been set aside for retirement
9-6 or for personal or family care and maintenance;
9-7 (6) The loss of assets which are essential to the health and
9-8 welfare of the elderly or disabled person; or
9-9 (7) Any other interference with the economic well-being of
9-10 the elderly or disabled person, including the encumbrance of his
9-11 primary residence or principal source of income; or
9-12 (f) Any other factors that the court deems to be appropriate.
9-13 Sec. 9. NRS 598.0975 is hereby amended to read as follows:
9-14 598.0975 1. Except as otherwise provided in subsection 1 of
9-15 NRS 598.0999 and subsection 3, all fees, civil penalties and any
9-16 other money collected pursuant to the provisions of NRS 598.0903
9-17 to 598.0999, inclusive[:] , and sections 2 and 3 of this act:
9-18 (a) In an action brought by the Attorney General, Commissioner
9-19 or Director, must be deposited in the State General Fund and may
9-20 only be used to offset the costs of administering and enforcing the
9-21 provisions of NRS 598.0903 to 598.0999, inclusive[.] , and
9-22 sections 2 and 3 of this act.
9-23 (b) In an action brought by the district attorney of a county,
9-24 must be deposited with the county treasurer of that county and
9-25 accounted for separately in the county general fund.
9-26 2. Money in the account created pursuant to paragraph (b) of
9-27 subsection 1 must be used by the district attorney of the county for:
9-28 (a) The investigation and prosecution of deceptive trade
9-29 practices against elderly or disabled persons; and
9-30 (b) Programs for the education of consumers which are directed
9-31 toward elderly or disabled persons, law enforcement officers,
9-32 members of the judicial system, persons who provide social services
9-33 and the general public.
9-34 3. The provisions of this section do not apply to:
9-35 (a) Criminal fines imposed pursuant to NRS 598.0903 to
9-36 598.0999, inclusive[;] , and sections 2 and 3 of this act; or
9-37 (b) Restitution ordered pursuant to NRS 598.0903 to 598.0999,
9-38 inclusive, and sections 2 and 3 of this act, in an action brought by
9-39 the Attorney General. Money collected for restitution ordered in
9-40 such an action must be deposited by the Attorney General and
9-41 credited to the appropriate account of the Consumer Affairs
9-42 Division of the Department of Business and Industry or the Attorney
9-43 General for distribution to the person for whom the restitution was
9-44 ordered.
10-1 Sec. 10. NRS 598.098 is hereby amended to read as follows:
10-2 598.098 1. NRS 598.0903 to 598.0999, inclusive, and
10-3 sections 2 and 3 of this act do not prohibit the Commissioner or
10-4 Director from disclosing to the Attorney General, any district
10-5 attorney or any law enforcement officer the fact that a crime has
10-6 been committed by any person, if this fact has become known as a
10-7 result of any investigation conducted pursuant to the provisions of
10-8 NRS 598.0903 to 598.0999, inclusive[.] , and sections 2 and 3 of
10-9 this act.
10-10 2. Subject to the provisions of subsection 2 of NRS 598.0979
10-11 and except as otherwise provided in this section, the Commissioner
10-12 or Director may not make public the name of any person alleged to
10-13 have committed a deceptive trade practice. This subsection does not:
10-14 (a) Prevent the Commissioner or Director from issuing public
10-15 statements describing or warning of any course of conduct which
10-16 constitutes a deceptive trade practice.
10-17 (b) Apply to a person who is subject to an order issued pursuant
10-18 to subsection 5 of NRS 598.0971.
10-19 3. Upon request, the Commissioner may:
10-20 (a) Disclose the number of written complaints received by the
10-21 Commissioner during the current or immediately preceding fiscal
10-22 year. A disclosure made pursuant to this paragraph must include the
10-23 disposition of the complaint disclosed.
10-24 (b) Make public any order to cease and desist issued pursuant to
10-25 subsection 5 of NRS 598.0971.
10-26 This subsection does not authorize the Commissioner to disclose or
10-27 make public the contents of any complaint described in paragraph
10-28 (a) or the record of or any other information concerning a hearing
10-29 conducted in relation to the issuance of an order to cease and desist
10-30 described in paragraph (b).
10-31 4. The Commissioner may adopt regulations authorizing the
10-32 disclosure of information concerning any complaint or number of
10-33 complaints received by the Commissioner or Director relating to a
10-34 person who has been convicted of violating a provision of NRS
10-35 598.0903 to 598.0999, inclusive[.] , and sections 2 and 3 of this
10-36 act.
10-37 Sec. 11. NRS 598.0999 is hereby amended to read as follows:
10-38 598.0999 1. A person who violates a court order or
10-39 injunction issued pursuant to the provisions of NRS 598.0903 to
10-40 598.0999, inclusive, and sections 2 and 3 of this act, upon a
10-41 complaint brought by the Commissioner, the Director, the district
10-42 attorney of any county of this state or the Attorney General shall
10-43 forfeit and pay to the State General Fund a civil penalty of not more
10-44 than $10,000 for each violation. For the purpose of this section, the
10-45 court issuing the order or injunction retains jurisdiction over the
11-1 action or proceeding. Such civil penalties are in addition to any
11-2 other penalty or remedy available for the enforcement of the
11-3 provisions of NRS 598.0903 to 598.0999, inclusive[.] , and
11-4 sections 2 and 3 of this act.
11-5 2. In any action brought pursuant to the provisions of NRS
11-6 598.0903 to 598.0999, inclusive, and sections 2 and 3 of this act, if
11-7 the court finds that a person has willfully engaged in a deceptive
11-8 trade practice, the Commissioner, the Director, the district attorney
11-9 of any county in this state or the Attorney General bringing the
11-10 action may recover a civil penalty not to exceed $2,500 for each
11-11 violation. The court in any such action may, in addition to any other
11-12 relief or reimbursement, award reasonable attorney’s fees and costs.
11-13 3. A natural person, firm, or any officer or managing agent of
11-14 any corporation or association who knowingly and willfully engages
11-15 in a deceptive trade practice:
11-16 (a) For the first offense, is guilty of a misdemeanor.
11-17 (b) For the second offense, is guilty of a gross misdemeanor.
11-18 (c) For the third and all subsequent offenses, is guilty of a
11-19 category D felony and shall be punished as provided in
11-20 NRS 193.130.
11-21 4. Any offense which occurred within 10 years immediately
11-22 preceding the date of the principal offense or after the principal
11-23 offense constitutes a prior offense for the purposes of subsection 3
11-24 when evidenced by a conviction, without regard to the sequence of
11-25 the offenses and convictions.
11-26 5. If a person violates any provision of NRS 598.0903 to
11-27 598.0999, inclusive, and sections 2 and 3 of this act, 598.100
11-28 to 598.2801, inclusive, 598.305 to 598.395, inclusive, 598.405 to
11-29 598.525, inclusive, 598.741 to 598.787, inclusive, or 598.840 to
11-30 598.966, inclusive, fails to comply with a judgment or order of any
11-31 court in this state concerning a violation of such a provision, or fails
11-32 to comply with an assurance of discontinuance or other agreement
11-33 concerning an alleged violation of such a provision, the
11-34 Commissioner , [or] the district attorney of any county or the
11-35 Attorney General may bring an action in the name of the State of
11-36 Nevada seeking:
11-37 (a) The suspension of the person’s privilege to conduct business
11-38 within this state; or
11-39 (b) If the defendant is a corporation, dissolution of the
11-40 corporation.
11-41 The court may grant or deny the relief sought or may order other
11-42 appropriate relief.
11-43 6. In any action brought by a district attorney or the Attorney
11-44 General for injunctive or other equitable relief to restrain or
11-45 prevent a violation of any provision of NRS 598.0903 to 598.0999,
12-1 inclusive, and sections 2 and 3 of this act, if appropriate notice is
12-2 given in accordance with NRS 598.0997, the court in which the
12-3 action is brought:
12-4 (a) Shall grant or deny the requested relief based solely upon:
12-5 (1) Whether or not the existence of the deceptive trade
12-6 practice is shown;
12-7 (2) The extent of participation in the deceptive trade
12-8 practice by each person against whom the injunctive or other
12-9 equitable relief is sought; and
12-10 (3) The propriety of the relief requested;
12-11 (b) Shall not rely upon any principle or rule of common law
12-12 for granting or denying equitable relief or any requirement for
12-13 granting or denying equitable or injunctive relief set forth in the
12-14 Nevada Rules of Civil Procedure; and
12-15 (c) Shall not require a bond for any injunction issued by the
12-16 court in the action.
12-17 Sec. 12. NRS 598.969 is hereby amended to read as follows:
12-18 598.969 A provider shall not:
12-19 1. Make a statement or representation regarding the provision
12-20 of a telecommunications service, including, without limitation, a
12-21 statement regarding the rates, terms or conditions of a
12-22 telecommunications service, that:
12-23 (a) Is false, misleading or deceptive; or
12-24 (b) Fails to include material information which makes the
12-25 statement or representation false, misleading or deceptive.
12-26 2. Misrepresent his identity.
12-27 3. Falsely state to a person that the person has subscribed or
12-28 authorized a subscription to or has received a telecommunications
12-29 service.
12-30 4. Omit, when explaining the terms and conditions of a
12-31 subscription to a telecommunications service, a material fact
12-32 concerning the subscription.
12-33 5. Fail to provide a customer with timely written notice
12-34 containing:
12-35 (a) A clear and detailed description relating directly to the
12-36 services for which the customer is being billed and the amount the
12-37 customer is being charged for each service;
12-38 (b) All terms and conditions relating directly to the services
12-39 provided; [and
12-40 (c) The]
12-41 (c) For each charge for any telecommunications service, the
12-42 name, address and telephone number of [the provider.] :
12-43 (1) The provider who originates the charge; and
12-44 (2) The billing agent for the provider who originates the
12-45 charge, if the name, address and telephone number of the billing
13-1 agent differ from the name, address and telephone number of the
13-2 provider who originates the charge; and
13-3 (d) The duration of each call that is billed to the customer
13-4 reported in minutes, seconds or any fraction thereof, if the charges
13-5 for the telecommunications service are calculated, in whole or in
13-6 part, based upon the duration of the call.
13-7 6. Fail to honor, within a reasonable period, a request of a
13-8 customer to cancel a telecommunications service pursuant to the
13-9 terms and conditions for the service.
13-10 7. Bill a customer for a telecommunications service after the
13-11 customer has cancelled the telecommunications service pursuant to
13-12 the terms and conditions of the service.
13-13 8. Bill a customer for [services that] a service if the provider is
13-14 notified or knows or upon reasonable inquiry should know that the
13-15 customer has not authorized[,] the service, unless the service is
13-16 required to be provided by law. The failure of a customer to refuse a
13-17 proposal from a provider does not constitute specific authorization.
13-18 9. Change a customer’s subscription to a local exchange carrier
13-19 or an interexchange carrier unless:
13-20 (a) The customer has authorized the change within the 30 days
13-21 immediately preceding the date of the change; and
13-22 (b) The provider complies with the provisions of 47 U.S.C. §
13-23 258, as amended, and the verification procedures set forth in 47
13-24 C.F.R. Part 64, Subpart K, as amended.
13-25 10. Fail to provide to a customer who has authorized the
13-26 provider to change his subscription to a local exchange carrier or an
13-27 interexchange carrier a written confirmation of the change within 30
13-28 days after the date of the change.
13-29 11. Propose or enter into a contract with a person that purports
13-30 to:
13-31 (a) Waive the protection afforded to the person by any provision
13-32 of this section; or
13-33 (b) Authorize the provider or an agent, employee, independent
13-34 contractor or representative of the provider to violate any provision
13-35 of this section.
13-36 Sec. 13. NRS 598A.060 is hereby amended to read as follows:
13-37 598A.060 1. Every activity enumerated in this subsection
13-38 constitutes a contract, combination or conspiracy in restraint of
13-39 trade, and it is unlawful to conduct any part of any such activity in
13-40 this state:
13-41 (a) Price fixing, which consists of raising, depressing, fixing,
13-42 pegging or stabilizing the price of any commodity or service[,] and
13-43 which includes, but is not limited to:
13-44 (1) Agreements among competitors to depress prices at
13-45 which they will buy essential raw material for the end product.
14-1 (2) Agreements to establish prices for commodities or
14-2 services.
14-3 (3) Agreements to establish uniform discounts, or to
14-4 eliminate discounts.
14-5 (4) Agreements between manufacturers to price a premium
14-6 commodity at a specified amount above inferior commodities.
14-7 (5) Agreements not to sell below cost.
14-8 (6) Agreements to establish uniform trade-in allowances.
14-9 (7) Establishment of uniform cost surveys.
14-10 (8) Establishment of minimum markup percentages.
14-11 (9) Establishment of single or multiple basing point systems
14-12 for determining the delivered price of commodities.
14-13 (10) Agreements not to advertise prices.
14-14 (11) Agreements among competitors to fix uniform list
14-15 prices as a place to start bargaining.
14-16 (12) Bid rigging, including the misuse of bid depositories,
14-17 foreclosures of competitive activity for a period of time, rotation of
14-18 jobs among competitors, submission of identical bids[,] and
14-19 submission of complementary bids not intended to secure
14-20 acceptance by the customer.
14-21 (13) Agreements to discontinue a product, or agreements
14-22 with anyone engaged in the manufacture of competitive lines to
14-23 limit size, styles or quantities of items comprising the lines.
14-24 (14) Agreements to restrict volume of production.
14-25 (b) Division of markets, consisting of agreements between
14-26 competitors to divide territories and to refrain from soliciting or
14-27 selling in certain areas.
14-28 (c) Allocation of customers, consisting of agreements not to sell
14-29 to specified customers of a competitor.
14-30 (d) Tying arrangements, consisting of contracts in which the
14-31 seller or lessor conditions the sale or lease of commodities or
14-32 services on the purchase or leasing of another commodity or service.
14-33 (e) [Monopolization of trade or commerce in this state,
14-34 including, without limitation, attempting to monopolize or otherwise
14-35 combining or conspiring to monopolize trade or commerce in this
14-36 state.
14-37 (f)] Except as otherwise provided in subsection 2, consolidation,
14-38 conversion, merger, acquisition of shares of stock or other equity
14-39 interest, directly or indirectly, of another person engaged in
14-40 commerce in this state or the acquisition of any assets of another
14-41 person engaged in commerce in this state that may:
14-42 (1) Result in the monopolization of trade or commerce in this
14-43 state or would further any attempt to monopolize trade or commerce
14-44 in this state; or
15-1 (2) Substantially lessen competition or be in restraint of
15-2 trade.
15-3 2. The provisions of paragraph [(f)] (e) of subsection 1 do not:
15-4 (a) Apply to a person who, solely for an investment purpose,
15-5 purchases stock or other equity interest or assets of another person if
15-6 the purchaser does not use his acquisition to bring about or attempt
15-7 to bring about the substantial lessening of competition in this state.
15-8 (b) Prevent a person who is engaged in commerce in this state
15-9 from forming a subsidiary corporation or other business
15-10 organization and owning and holding all or part of the stock or
15-11 equity interest of that corporation or organization.
15-12 3. It is unlawful to engage in any monopolization of trade or
15-13 commerce in this state, including, without limitation, attempting to
15-14 monopolize or combining or conspiring to monopolize trade or
15-15 commerce in this state.
15-16 Sec. 14. NRS 598A.070 is hereby amended to read as follows:
15-17 598A.070 1. The Attorney General shall:
15-18 (a) Enforce the provisions of this chapter.
15-19 (b) Investigate suspected violations of the provisions of this
15-20 chapter.
15-21 (c) Institute proceedings on behalf of the State, its agencies,
15-22 political subdivisions, districts or municipal corporations, or as
15-23 parens patriae of the persons residing in the State for:
15-24 (1) Injunctive or other equitable relief to [prevent] :
15-25 (I) Prevent and restrain a violation of any provision of
15-26 this chapter[.] ; or
15-27 (II) Recover or otherwise address gains obtained in
15-28 violation of any provision of this chapter, including, without
15-29 limitation, restitution and disgorgement of any such gains.
15-30 (2) Civil penalties for violations of the provisions of this
15-31 chapter.
15-32 (3) Criminal penalties for violations of the provisions of this
15-33 chapter.
15-34 2. Any district attorney in this state, with the permission or at
15-35 the direction of the Attorney General, shall institute proceedings in
15-36 the name of the State of Nevada for any violation of the provisions
15-37 of this chapter.
15-38 Sec. 15. NRS 598A.090 is hereby amended to read as follows:
15-39 598A.090 The district courts have jurisdiction over actions and
15-40 proceedings for violations of the provisions of this chapter and may:
15-41 1. Issue temporary restraining orders and injunctions to prevent
15-42 and restrain violations of the provisions of this chapter.
15-43 2. Impose civil and criminal penalties and award damages as
15-44 provided in this chapter.
16-1 3. Grant mandatory injunctions or any other equitable relief
16-2 reasonably necessary to [eliminate] :
16-3 (a) Eliminate practices which are unlawful under the provisions
16-4 of this chapter[.] ; or
16-5 (b) Recover or otherwise address gains obtained in violation of
16-6 any provision of this chapter, including, without limitation,
16-7 restitution and disgorgement of any such gains.
16-8 Sec. 16. NRS 598A.110 is hereby amended to read as follows:
16-9 598A.110 Any procedure, testimony taken, document or other
16-10 tangible evidence produced, or answer made under NRS 598A.100
16-11 [shall] is not a public record and must be kept confidential by the
16-12 Attorney General [prior to the institution of an action brought under
16-13 this chapter for the alleged violation of the provisions of this chapter
16-14 under investigation,] unless:
16-15 1. Confidentiality is waived by the person upon whom the
16-16 written investigative demand is made;
16-17 2. Disclosure is authorized by the district court; or
16-18 3. Disclosure is made pursuant to NRS 598A.080.
16-19 Sec. 17. NRS 78.110 is hereby amended to read as follows:
16-20 78.110 1. [If] Except as otherwise provided in subsection 3,
16-21 if a corporation created pursuant to this chapter desires to change its
16-22 resident agent, the change may be effected by filing with the
16-23 Secretary of State a certificate of change signed by an officer of the
16-24 corporation which sets forth:
16-25 (a) The name of the corporation;
16-26 (b) The name and street address of its present resident agent; and
16-27 (c) The name and street address of the new resident agent.
16-28 2. The new resident agent’s certificate of acceptance must be a
16-29 part of or attached to the certificate of change.
16-30 3. A person who, by mail or electronic means, solicits a
16-31 corporation to change its present resident agent shall not file a
16-32 certificate of change for the corporation pursuant to subsection 1
16-33 unless:
16-34 (a) At least 30 days before the date the person files the
16-35 certificate of change, he provides a written notice of the proposed
16-36 change to the corporation and the present resident agent of the
16-37 corporation;
16-38 (b) The corporation has not rescinded its authorization to
16-39 change its present resident agent; and
16-40 (c) The person attests under oath that:
16-41 (1) He has provided the written notices required by
16-42 paragraph (a); and
16-43 (2) The corporation has not rescinded its authorization to
16-44 change its present resident agent.
17-1 4. A written notice provided to a corporation pursuant to
17-2 paragraph (a) of subsection 3 must include a statement indicating
17-3 that the corporation may rescind the authorization given by the
17-4 corporation to change its present resident agent.
17-5 5. A change authorized by this section becomes effective upon
17-6 the filing of the certificate of change.
17-7 6. A violation of a provision of subsection 3 or 4 or any false
17-8 statement made in connection with providing a written notice
17-9 pursuant to those subsections constitutes a deceptive trade practice
17-10 for the purposes of NRS 598.0903 to 598.0999, inclusive, and
17-11 sections 2 and 3 of this act.
17-12 Sec. 18. Chapter 80 of NRS is hereby amended by adding
17-13 thereto a new section to read as follows:
17-14 1. A person who, by mail or electronic means, solicits a
17-15 foreign corporation to change its present resident agent shall not
17-16 file a certificate of change for the foreign corporation pursuant to
17-17 NRS 80.070 unless:
17-18 (a) At least 30 days before the date the person files the
17-19 certificate of change, he provides a written notice of the proposed
17-20 change to the foreign corporation and the present resident agent
17-21 of the foreign corporation;
17-22 (b) The foreign corporation has not rescinded its authorization
17-23 to change its present resident agent; and
17-24 (c) The person attests under oath that:
17-25 (1) He has provided the written notices required by
17-26 paragraph (a); and
17-27 (2) The foreign corporation has not rescinded its
17-28 authorization to change its present resident agent.
17-29 2. A written notice provided to a foreign corporation pursuant
17-30 to paragraph (a) of subsection 1 must include a statement
17-31 indicating that the foreign corporation may rescind the
17-32 authorization given by the foreign corporation to change its
17-33 present resident agent.
17-34 3. A violation of a provision of this section or any false
17-35 statement made in connection with providing a written notice
17-36 pursuant to this section constitutes a deceptive trade practice for
17-37 the purposes of NRS 598.0903 to 598.0999, inclusive, and sections
17-38 2 and 3 of this act.
17-39 Sec. 19. NRS 80.070 is hereby amended to read as follows:
17-40 80.070 1. [A] Except as otherwise provided in section 18 of
17-41 this act, a foreign corporation may change its resident agent by
17-42 filing with the Secretary of State:
17-43 (a) A certificate of change, signed by an officer of the
17-44 corporation, setting forth:
17-45 (1) The name of the corporation;
18-1 (2) The name and street address of the present resident agent;
18-2 and
18-3 (3) The name and street address of the new resident agent;
18-4 and
18-5 (b) A certificate of acceptance executed by the new resident
18-6 agent, which must be a part of or attached to the certificate of
18-7 change.
18-8 The change authorized by this subsection becomes effective upon
18-9 the filing of the certificate of change.
18-10 2. A person who has been designated by a foreign corporation
18-11 as resident agent may file with the Secretary of State a signed
18-12 statement that he is unwilling to continue to act as the agent of the
18-13 corporation for the service of process.
18-14 3. Upon the filing of the statement of resignation with the
18-15 Secretary of State, the capacity of the resigning person as resident
18-16 agent terminates. If the statement of resignation is not accompanied
18-17 by a statement of the corporation appointing a successor resident
18-18 agent, the resigning resident agent shall give written notice, by mail,
18-19 to the corporation, of the filing of the statement and its effect. The
18-20 notice must be addressed to any officer of the corporation other than
18-21 the resident agent.
18-22 4. If a resident agent dies, resigns or moves from the State, the
18-23 corporation, within 30 days thereafter, shall file with the Secretary
18-24 of State a certificate of acceptance executed by the new resident
18-25 agent. The certificate must set forth the name of the new resident
18-26 agent, his street address for the service of process[,] and his mailing
18-27 address if different from his street address.
18-28 5. A corporation that fails to file a certificate of acceptance
18-29 executed by a new resident agent within 30 days after the death,
18-30 resignation or removal of its resident agent shall be deemed in
18-31 default and is subject to the provisions of NRS 80.150 and 80.160.
18-32 Sec. 20. NRS 86.235 is hereby amended to read as follows:
18-33 86.235 1. [If] Except as otherwise provided in subsection 3,
18-34 if a limited-liability company formed pursuant to this chapter desires
18-35 to change its resident agent, the change may be effected by filing
18-36 with the Secretary of State a certificate of change , signed by a
18-37 manager of the company or, if management is not vested in a
18-38 manager, by a member, that sets forth:
18-39 (a) The name of the limited-liability company;
18-40 (b) The name and street address of its present resident agent; and
18-41 (c) The name and street address of the new resident agent.
18-42 2. The new resident agent’s certificate of acceptance must be a
18-43 part of or attached to the certificate of change.
18-44 3. [The] A person who, by mail or electronic means, solicits a
18-45 limited-liability company to change its present resident agent shall
19-1 not file a certificate of change for the limited-liability company
19-2 pursuant to subsection 1 unless:
19-3 (a) At least 30 days before the date the person files the
19-4 certificate of change, he provides a written notice of the proposed
19-5 change to the limited-liability company and the present resident
19-6 agent of the limited-liability company;
19-7 (b) The limited-liability company has not rescinded its
19-8 authorization to change its present resident agent; and
19-9 (c) The person attests under oath that:
19-10 (1) He has provided the written notices required by
19-11 paragraph (a); and
19-12 (2) The limited-liability company has not rescinded its
19-13 authorization to change its present resident agent.
19-14 4. A written notice provided to a limited-liability company
19-15 pursuant to paragraph (a) of subsection 3 must include a
19-16 statement indicating that the limited-liability company may rescind
19-17 the authorization given by the limited-liability company to change
19-18 its present resident agent.
19-19 5. A change authorized by this section becomes effective upon
19-20 the filing of the certificate of change.
19-21 6. A violation of a provision of subsection 3 or 4 or any false
19-22 statement made in connection with providing a written notice
19-23 pursuant to those subsections constitutes a deceptive trade practice
19-24 for the purposes of NRS 598.0903 to 598.0999, inclusive, and
19-25 sections 2 and 3 of this act.
19-26 Sec. 21. NRS 87.490 is hereby amended to read as follows:
19-27 87.490 1. [If] Except as otherwise provided in subsection 2,
19-28 if a registered limited-liability partnership wishes to change the
19-29 location of its principal office in this state or its resident agent, it
19-30 shall first file with the Secretary of State a certificate of change that
19-31 sets forth:
19-32 (a) The name of the registered limited-liability partnership;
19-33 (b) The street address of its principal office;
19-34 (c) If the location of its principal office will be changed, the
19-35 street address of its new principal office;
19-36 (d) The name of its resident agent; and
19-37 (e) If its resident agent will be changed, the name of its new
19-38 resident agent.
19-39 The certificate of acceptance of its new resident agent must
19-40 accompany the certificate of change.
19-41 2. A person who, by mail or electronic means, solicits a
19-42 registered limited-liability partnership to change its present
19-43 resident agent shall not file a certificate of change for the
19-44 registered limited-liability partnership pursuant to subsection 1
19-45 unless:
20-1 (a) At least 30 days before the date the person files the
20-2 certificate of change, he provides a written notice of the proposed
20-3 change to the registered limited-liability partnership and the
20-4 present resident agent of the registered limited-liability
20-5 partnership;
20-6 (b) The registered limited-liability partnership has not
20-7 rescinded its authorization to change its present resident agent;
20-8 and
20-9 (c) The person attests under oath that:
20-10 (1) He has provided the written notices required by
20-11 paragraph (a); and
20-12 (2) The registered limited-liability partnership has not
20-13 rescinded its authorization to change its present resident agent.
20-14 3. A written notice provided to a registered limited-liability
20-15 partnership pursuant to paragraph (a) of subsection 2 must
20-16 include a statement indicating that the registered limited-liability
20-17 partnership may rescind the authorization given by the registered
20-18 limited-liability partnership to change its present resident agent.
20-19 4. A certificate of change filed pursuant to this section must be:
20-20 (a) Signed by a managing partner of the registered limited-
20-21 liability partnership; and
20-22 (b) Accompanied by a fee of $30.
20-23 5. A violation of a provision of subsection 2 or 3 or any false
20-24 statement made in connection with providing a written notice
20-25 pursuant to those subsections constitutes a deceptive trade practice
20-26 for the purposes of NRS 598.0903 to 598.0999, inclusive, and
20-27 sections 2 and 3 of this act.
20-28 Sec. 22. NRS 88.331 is hereby amended to read as follows:
20-29 88.331 1. [If] Except as otherwise provided in subsection 3,
20-30 if a limited partnership created pursuant to this chapter desires to
20-31 change its resident agent, the change may be effected by filing with
20-32 the Secretary of State a certificate of change, signed by a general
20-33 partner, which sets forth:
20-34 (a) The name of the limited partnership;
20-35 (b) The name and street address of its present resident agent; and
20-36 (c) The name and street address of the new resident agent.
20-37 2. The new resident agent’s certificate of acceptance must be a
20-38 part of or attached to the certificate of change.
20-39 3. [The] A person who, by mail or electronic means, solicits a
20-40 limited partnership to change its present resident agent shall not
20-41 file a certificate of change for the limited partnership pursuant to
20-42 subsection 1 unless:
20-43 (a) At least 30 days before the date the person files the
20-44 certificate of change, he provides a written notice of the proposed
21-1 change to the limited partnership and the present resident agent of
21-2 the limited partnership;
21-3 (b) The limited partnership has not rescinded its authorization
21-4 to change its present resident agent; and
21-5 (c) The person attests under oath that:
21-6 (1) He has provided the written notices required by
21-7 paragraph (a); and
21-8 (2) The limited partnership has not rescinded its
21-9 authorization to change its present resident agent.
21-10 4. A written notice provided to a limited partnership pursuant
21-11 to paragraph (a) of subsection 3 must include a statement
21-12 indicating that the limited partnership may rescind the
21-13 authorization given by the limited partnership to change its
21-14 present resident agent.
21-15 5. A change authorized by this section becomes effective upon
21-16 the filing of the certificate of change.
21-17 6. A violation of a provision of subsection 3 or 4 or any false
21-18 statement made in connection with providing a written notice
21-19 pursuant to those subsections constitutes a deceptive trade practice
21-20 for the purposes of NRS 598.0903 to 598.0999, inclusive, and
21-21 sections 2 and 3 of this act.
21-22 Sec. 23. NRS 88A.540 is hereby amended to read as follows:
21-23 88A.540 1. [If] Except as otherwise provided in subsection
21-24 3, if a business trust formed pursuant to this chapter desires to
21-25 change its resident agent, the change may be effected by filing with
21-26 the Secretary of State a certificate of change, signed by at least one
21-27 trustee of the business trust, setting forth:
21-28 (a) The name of the business trust;
21-29 (b) The name and street address of the present resident agent;
21-30 and
21-31 (c) The name and street address of the new resident agent.
21-32 2. A certificate of acceptance executed by the new resident
21-33 agent must be a part of or attached to the certificate of change.
21-34 3. [The] A person who, by mail or electronic means, solicits a
21-35 business trust to change its present resident agent shall not file a
21-36 certificate of change for the business trust pursuant to subsection
21-37 1 unless:
21-38 (a) At least 30 days before the date the person files the
21-39 certificate of change, he provides a written notice of the proposed
21-40 change to the business trust and the present resident agent of the
21-41 business trust;
21-42 (b) The business trust has not rescinded its authorization to
21-43 change its present resident agent; and
21-44 (c) The person attests under oath that:
22-1 (1) He has provided the written notices required by
22-2 paragraph (a); and
22-3 (2) The business trust has not rescinded its authorization to
22-4 change its present resident agent.
22-5 4. A written notice provided to a business trust pursuant to
22-6 paragraph (a) of subsection 3 must include a statement indicating
22-7 that the business trust may rescind the authorization given by the
22-8 business trust to change its present resident agent.
22-9 5. A change authorized by this section becomes effective upon
22-10 the filing of the certificate of change.
22-11 6. A violation of a provision of subsection 3 or 4 or any false
22-12 statement made in connection with providing a written notice
22-13 pursuant to those subsections constitutes a deceptive trade practice
22-14 for the purposes of NRS 598.0903 to 598.0999, inclusive, and
22-15 sections 2 and 3 of this act.
22-16 Sec. 24. This act becomes effective upon passage and
22-17 approval.
22-18 H