Senate Bill No. 428–Committee on Commerce and Labor

 

CHAPTER..........

 

AN ACT relating to real estate; making various changes regarding the powers and duties of the Real Estate Commission, the Real Estate Division of the Department of Business and Industry and the Commission of Appraisers of Real Estate; revising provisions governing the regulation of property managers; authorizing certain agencies to conduct business electronically; authorizing the investigation and audit of certain accounts of a real estate broker; expanding the power of certain agencies to impose fines and penalties for certain unlawful conduct and to deny, suspend and revoke licenses under certain circumstances; increasing certain fees and authorizing certain agencies to establish other fees by regulation; making certain conduct unlawful; providing penalties; 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. Chapter 645 of NRS is hereby amended by adding

thereto the provisions set forth as sections 2 to 8, inclusive, of this

act.

    Sec. 2.  “Designated property manager” means a person who

has the qualifications required by section 3 of this act to be a

designated property manager and who is appointed as the

designated property manager for an office pursuant to section 3 of

this act.

    Sec. 3.  1.  If a real estate broker does not hold a permit to

engage in property management but intends to have property

management activities conducted at an office, the real estate

broker must:

    (a) Appoint a person, who has the qualifications required by

this section, as the designated property manager for the office to

supervise the property management activities conducted at the

office; and

    (b) Submit notice of the appointment to the Division.

    2.  The designated property manager for an office must be a

natural person who:

    (a) Holds a license as a real estate broker or real estate broker-

salesman;

    (b) Holds a permit to engage in property management; and

    (c) Has 2 years active experience, within the 4 years

immediately preceding the date of the appointment, in conducting

property management activities in the United States as a licensed


real estate broker, real estate broker-salesman or real estate

salesman.

    3.  While acting as the designated property manager for an

office, the person:

    (a) Must comply with the provisions of this section and NRS

645.6052 to 645.6058, inclusive, and all other applicable

provisions of this chapter; and

    (b) Is subject to all the remedies and penalties provided for in

this chapter.

    Sec. 4.  1.  The Administrator may adopt regulations which

establish procedures for the Division to conduct business

electronically pursuant to title 59 of NRS with persons who are

regulated pursuant to this chapter and with any other persons with

whom the Division conducts business. The regulations may

include, without limitation, the establishment of fees to pay the

costs of conducting business electronically with the Division.

    2.  In addition to the process authorized by NRS 719.280, if

the Division is conducting business electronically with a person

and a law requires a signature or record to be notarized,

acknowledged, verified or made under oath, the Division may

allow the person to substitute a declaration that complies with the

provisions of NRS 53.045 to satisfy the legal requirement.

    3.  The Division may refuse to conduct business electronically

with a person who has failed to pay money which the person owes

to the Division or the Commission.

    Sec. 5.  1.  The Division may investigate and audit all

financial accounts related to the business of a real estate broker,

regardless of whether it is a trust account, if the Division has

reasonable cause to believe that the broker is using or has used the

account to operate or carry on the broker’s business and the

Division:

    (a) Has reasonable cause to believe or has received a credible

complaint that the real estate broker is insolvent or is in any

financial condition or has engaged in any financial practice which

creates a substantial risk of insolvency; or

    (b) Determines that the investigation and audit is reasonably

necessary to assist the Division in administering or enforcing any

other provision of this chapter or any other statute that the

Division is charged with administering or enforcing.

    2.  The Commission shall adopt regulations prescribing the

scope of an audit conducted pursuant to this section.

    3.  The Commission may take action pursuant to NRS 645.630

against:

    (a) Any real estate broker or other licensee who knowingly

fails to cooperate or comply with or knowingly impedes or


interferes with any investigation or audit conducted by the

Division pursuant to this section; or

    (b) Any real estate broker who is insolvent or who is in any

financial condition or has engaged in any financial practice which

creates a substantial risk of insolvency.

    4.  As used in this section, “insolvent” or “insolvency” means

a condition in which a real estate broker is unable to meet the

liabilities of the broker’s business as those liabilities become due

in the regular course of the broker’s business and which creates a

substantial risk of harm to the public or a consumer.

    Sec. 6.  In addition to any other remedy or penalty, the

Commission or the Division, as appropriate, may:

    1.  Refuse to issue a license, permit, certificate or registration

to a person who has failed to pay money which the person owes to

the Commission or the Division.

    2.  Refuse to renew, or suspend or revoke, the license, permit,

certificate or registration of a person who has failed to pay money

which the person owes to the Commission or the Division.

    Sec. 7.  1.  In addition to any other remedy or penalty, the

Commission may impose an administrative fine against any

person who knowingly:

    (a) Engages or offers to engage in any activity for which a

license, permit, certificate or registration or any type of

authorization is required pursuant to this chapter, or any

regulation adopted pursuant thereto, if the person does not hold

the required license, permit, certificate or registration or has not

been given the required authorization; or

    (b) Assists or offers to assist another person to commit a

violation described in paragraph (a).

    2.  If the Commission imposes an administrative fine against a

person pursuant to this section, the amount of the administrative

fine may not exceed the amount of any gain or economic benefit

that the person derived from the violation or $5,000, whichever

amount is greater.

    3.  In determining the appropriate amount of the

administrative fine, the Commission shall consider:

    (a) The severity of the violation and the degree of any harm

that the violation caused to other persons;

    (b) The nature and amount of any gain or economic benefit

that the person derived from the violation;

    (c) The person’s history or record of other violations; and

    (d) Any other facts or circumstances that the Commission

deems to be relevant.

    4.  Before the Commission may impose the administrative

fine, the Commission must provide the person with notice and an

opportunity to be heard.


    5.  The person is entitled to judicial review of the decision of

the Commission in the manner provided by chapter 233B of NRS.

    6.  The provisions of this section do not apply to a person who

engages or offers to engage in activities within the purview of this

chapter if:

    (a) A specific statute exempts the person from complying with

the provisions of this chapter with regard to those activities; and

    (b) The person is acting in accordance with the exemption

while engaging or offering to engage in those activities.

    Sec. 8.  1.  It is unlawful for any person to file with the

Administrator, the Division or the Commission any notice,

statement, complaint or other document required under the

provisions of this chapter which is false or which contains any

willful, material misstatement of fact.

    2.  A person who violates any provision of this section is guilty

of a gross misdemeanor.

    Sec. 9.  NRS 645.0005 is hereby amended to read as follows:

    645.0005  As used in this chapter, unless the context otherwise

requires, the words and terms defined in NRS 645.001 to 645.040,

inclusive, and section 2 of this act have the meanings ascribed to

them in those sections.

    Sec. 10.  NRS 645.230 is hereby amended to read as follows:

    645.230  1.  It is unlawful for any person, limited-liability

company, partnership, association or corporation to engage in the

business of, act in the capacity of, advertise or assume to act as, a:

    (a) Real estate broker, real estate broker-salesman or real estate

salesman within the State of Nevada without first obtaining the

appropriate license from the Real Estate Division as provided for in

this chapter; [or]

    (b) Property manager within the State of Nevada without first

obtaining from the Real Estate Division as provided for in this

chapter a license as a real estate broker, real estate broker-salesman

or real estate salesman and a permit to engage in property

management[.] ; or

    (c) Designated property manager within the State of Nevada

without complying with the provisions of section 3 of this act.

    2.  The Real Estate Division may prefer a complaint for a

violation of this section before any court of competent jurisdiction

and may assist in presenting the law or facts upon any trial for a

violation of this section.

    3.  The district attorney of each county shall prosecute all

violations of this section in their respective counties in which

violations occur, unless prosecuted by the Attorney General. Upon

the request of the Administrator, the Attorney General shall

prosecute any violation of this section in lieu of the district attorney.

    Sec. 11.  (Deleted by amendment.)


    Sec. 12.  NRS 645.355 is hereby amended to read as follows:

    645.355  [An]

    1.  Each applicant for a license as a real estate broker, broker-

salesman or salesman [in this state] must pay a fee for the costs of

an investigation of the applicant’s background.

    2.  Each applicant must, as part of his application[, be

fingerprinted. Each applicant shall,] and at his own expense[, and] :

    (a) Arrange to have a complete set of his fingerprints taken by

a law enforcement agency or other authorized entity acceptable to

the Division on a fingerprint card provided by the law enforcement

agency or other authorized entity for that purpose; and

    (b) Submit to the Division[, arrange to be fingerprinted by any

police or sheriff’s office and shall attach his] the fingerprint card [,

after his fingerprints are taken, to his application.] and written

permission authorizing the Division to submit the applicant’s

fingerprints to the Central Repository for Nevada Records of

Criminal History for submission to the Federal Bureau of

Investigation for a report on the applicant’s background and to

such other law enforcement agencies as the Division deems

necessary.

    3.  The Division may [mail] :

    (a) Submit the applicant’s [fingerprint card to the Federal

Bureau of Investigation, Washington, D.C., for its report,]

fingerprints to the Central Repository for submission to the

Federal Bureau of Investigation and to such other law enforcement

agencies as the Division [may deem necessary.] deems necessary;

and

    (b) Request from each such agency any information regarding

the applicant’s background as the Division deems necessary.

    Sec. 13.  NRS 645.490 is hereby amended to read as follows:

    645.490  1.  Upon satisfactorily passing the written

examination and upon complying with all other provisions of law

and conditions of this chapter, a license shall thereupon be granted

by the Division to the successful applicant therefor as a real estate

broker, broker-salesman or salesman, and the applicant, upon

receiving the license, may conduct the business of a real estate

broker, broker-salesman or salesman in this state.

    2.  The Division shall issue licenses as a real estate broker,

broker-salesman or salesman to all applicants who qualify and

comply with all provisions of law and all requirements of this

chapter.

    3.  [A] Except as otherwise provided in NRS 645.840:

    (a) An original license as a real estate broker, broker-salesman

or salesman [shall renew his license] must be renewed with the

Division [within 1 year immediately after initial licensing and

thereafter shall renew his license every 2 years.] before the


expiration of the initial license period of 12 consecutive months as

prescribed in NRS 645.780; and

    (b) Thereafter, the license must be renewed with the Division

before the expiration of each subsequent license period of 24

consecutive months as prescribed in NRS 645.780.

    Sec. 14.  NRS 645.575 is hereby amended to read as follows:

    645.575  1.  The Commission shall adopt regulations that

prescribe the standards for the continuing education of persons

licensed pursuant to this chapter . [by adopting regulations which

include:] Until the Commission adopts such regulations, the

standards for continuing education are as follows:

    (a) For renewal of a license which is on active status, a

requirement for the hours of attendance at any approved educational

course, seminar or conference of:

        (1) Thirty hours within the first year immediately after initial

licensing; and

        (2) Fifteen hours within each subsequent 2-year period

before renewal.

For each period, at least 6 of the hours must be devoted to ethics,

professional conduct or the legal aspects of real estate.

    (b) For reinstatement of a license which has been placed on

inactive status, a requirement for total attendance at any approved

educational course, seminar or conference of:

        (1) Thirty hours if the license was on inactive status for 2

years or less during the initial license period;

        (2) Fifteen hours if the license was on inactive status for a

period of 2 years or less, no part of which was during the initial

license period;

        (3) Forty-five hours if the license was on inactive status for a

period of more than 2 years, part of which was during the initial

license period; or

        (4) Thirty hours if the license was on inactive status for a

period of more than 2 years, no part of which was during the initial

license period.

For each period, at least 6 of the hours must be devoted to ethics,

professional conduct or the legal aspects of real estate.

    (c) A basis and method of qualifying educational programs and

certifying attendance which will satisfy the requirements of this

section.

    (d) A procedure for the evaluation of petitions based on a claim

of equivalency with the requirements of paragraph (a) or (b).

    (e) A system of controlling and reporting qualifying attendance.

    (f) A statement of the conditions for which an extension of time

may be granted to comply with the continuing education

requirements as well as a method of applying and qualifying for an

extension.


    2.  The standards prescribed in subsection 1 must permit

alternatives of subject material, taking cognizance of specialized

areas of practice and alternatives in sources of programs considering

availability in area and time. The standards must include, where

qualified, generally accredited educational institutions, private

vocational schools, educational programs and seminars of

professional societies and organizations, other organized educational

programs on technical subjects, or equivalent offerings. The

Commission shall qualify only those educational courses that it

determines address the appropriate subject matter and are given by

an accredited university or community college. Subject to the

provisions of this section, the Commission has exclusive authority

to determine what is an appropriate subject matter for qualification

as a continuing education course.

    3.  In addition to any other standards for continuing

education that the Commission adopts by regulation pursuant to

this section, the Commission may, without limitation, adopt by

regulation standards for continuing education that:

    (a) Establish a post-licensing curriculum of continuing

education which must be completed by a person within the first

year immediately after initial licensing of the person.

    (b) Require a person whose license as a real estate broker or

real estate broker-salesman has been placed on inactive status for

any reason for 1 year or more or has been suspended or revoked to

complete a course of instruction in broker management that is

designed to fulfill the educational requirements for issuance of a

license which are described in paragraph (d) of subsection 2 of

NRS 645.343, before the person’s license is reissued or reinstated.

    4.  Except as otherwise provided in this subsection, the license

of a real estate broker, broker-salesman or salesman must not be

renewed or reinstated unless the Administrator finds that the

applicant for the renewal license or for reinstatement to active status

has completed the continuing education required by this chapter.

Any amendment or repeal of a regulation does not operate to

prevent an applicant from complying with this section for the next

licensing period following the amendment or repeal.

    Sec. 15.  NRS 645.6052 is hereby amended to read as follows:

    645.6052  1.  A person who is licensed pursuant to this chapter

as a real estate broker, real estate broker-salesman or real estate

salesman may apply to the Real Estate Division for a permit to

engage in property management.

    2.  An applicant for a permit must:

    (a) Furnish proof satisfactory to the Division that he has

successfully completed at least 24 classroom hours of instruction in

property management; and


    (b) Comply with all other requirements established by the

Commission for the issuance of a permit.

    3.  A permit expires, and may be renewed, at the same time as

the license of the holder of the permit.

    4.  An applicant for the renewal of a permit must:

    (a) Furnish proof satisfactory to the Division that he has

successfully completed at least 3 of the hours of the continuing

education required for the renewal of his license pursuant to NRS

645.575 in an approved educational course, seminar or conference

concerning property management; and

    (b) Comply with all other requirements established by the

Commission for the renewal of a permit.

    5.  The Commission may adopt such regulations as it

determines are necessary to carry out the provisions of this section.

The regulations may, without limitation:

    (a) Establish additional requirements for the issuance or renewal

of a permit.

    (b) Establish [a fee] fees for the issuance and renewal of a

permit[.] and fees to pay the costs of:

        (1) Any examination for a permit, including any costs

which are necessary for the administration of such an

examination.

        (2) Any investigation of an applicant’s background.

    (c) Set forth standards of education for the approval of a course

of instruction to qualify [a person] an applicant for a permit .

[pursuant to this section.]

    Sec. 16.  NRS 645.6058 is hereby amended to read as follows:

    645.6058  1.  Except as otherwise provided in subsection 3, all

fees, penalties and fines received by the Division pursuant to the

provisions of NRS 645.6052 to 645.6058, inclusive, and section 3

of this act must be deposited with the State Treasurer for credit to

the Division. The money must be used by the Division for the

administration of the provisions of NRS 645.6052 to 645.6058,

inclusive[.] , and section 3 of this act.

    2.  The Division may delegate to a hearing officer or panel its

authority to take any disciplinary action against property managers,

impose and collect fines pursuant to the disciplinary action and

deposit the money with the State Treasurer for credit to the

Division.

    3.  If a hearing officer or panel is not authorized to take

disciplinary action pursuant to subsection 2, the Division shall

deposit the money collected from the imposition of penalties and

fines collected from property managers with the State Treasurer for

credit to the State General Fund. The Division may present a claim

to the State Board of Examiners for recommendation to the Interim


Finance Committee if money is needed to pay an attorney’s fee or

the costs of an investigation, or both.

    Sec. 17.  NRS 645.6065 is hereby amended to read as follows:

    645.6065  1.  Except as otherwise provided in NRS 645.607, a

person shall not act as a qualified intermediary unless he is

registered as such with the Division. The Division may adopt such

regulations as it deems necessary to carry out the provisions of NRS

645.606 to 645.609, inclusive.

    2.  [A person may] To apply for registration [by paying to] , a

person must pay the Division a fee of $100 [fee plus the actual cost

of a background investigation conducted by the Federal Bureau of

Investigation and filing with] and a fee to pay the costs of an

investigation of the person’s background.

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

the person must submit to the Division:

    (a) The following information on a form provided by the

Division:

        (1) The applicant’s name, address and telephone number;

        (2) The name under which the applicant will hold the money

or other property of a client;

        (3) The names, residence and business addresses of all

persons having an interest in the business as principals, partners,

officers, trustees or directors, specifying the capacity and title of

each;

        (4) If the applicant is a natural person, the social security

number of the applicant; and

        (5) The length of time the applicant has been engaged in the

business of acting as such an intermediary; and

    (b) If the person is a natural person, the statement required

pursuant to NRS 645.6068 . [; and

    (c) A card provided by the Division upon which the applicant’s

fingerprints, taken by an agency of law enforcement, are displayed.

    3.] 4.  Each applicant must, as part of his application and at

his own expense:

    (a) Arrange to have a complete set of his fingerprints taken by

a law enforcement agency or other authorized entity acceptable to

the Division on a fingerprint card provided by the law enforcement

agency or other authorized entity for that purpose; and

    (b) Submit to the Division the completed fingerprint card and

written permission authorizing the Division to submit the

applicant’s fingerprints to the Central Repository for Nevada

Records of Criminal History for submission to the Federal Bureau

of Investigation for a report on the applicant’s background and to

such other law enforcement agencies as the Division deems

necessary.

    5.  The Division [shall:


    (a) Mail the card upon which the applicant’s fingerprints are

displayed] may:

    (a) Submit the applicant’s fingerprints to the Central

Repository for submission to the Federal Bureau of Investigation[;]

and to such other law enforcement agencies as the Division deems

necessary; and

    (b) Request from [the Bureau] each such agency any

information regarding the applicant’s [criminal history] background

as the Division deems necessary.

    [4.] 6. Registration pursuant to this section must be renewed

each year on or before the date of the original registration by

providing the information required by the Division for that purpose

and paying a renewal fee of $75.

    Sec. 18.  NRS 645.780 is hereby amended to read as follows:

    645.780  [Every]

    1.  Each license issued under the provisions of this chapter

expires at midnight on the last day of the last month of [a] the

applicable license period[. A] for the license.

    2.  The initial license period for an original license as a real

estate broker, broker-salesman or salesman is a period of 12

consecutive months beginning on the first day of the first calendar

month after the original license is issued by the Division.

Thereafter, each subsequent license period is a period of 24

consecutive months beginning on the first day of the first calendar

month after a renewal of the license is issued[.] by the Division for

the subsequent license period.

    3.  For all other licenses, the license period is a period of 24

consecutive months beginning on the first day of the first calendar

month after the license or any renewal of the license is issued by

the Division, unless a specific statute:

    (a) Provides for a different license period; or

    (b) Expressly authorizes a different license period to be

provided for by regulation.

    Sec. 19.  NRS 645.830 is hereby amended to read as follows:

    645.830  1.  The following fees must be charged by and paid

to the Division:

 

For each original real estate broker’s, broker-

salesman’s or corporate broker’s license[$85] $105

For each original real estate salesman’s license  [65] 85

For each original branch office license[100] 120

For real estate education, research and recovery

to be paid at the time an [original] application

for [a] an original license is filed... [20]40


For real estate education, research and recovery

to be paid at the time an application for [a]

renewalof a license is [renewed] filed. $40

For each renewal of a real estate broker’s,

broker-salesman’s or corporate broker’s license[170] 180

For each renewal of a real estate salesman’s

license........................................... [130] 140

For each renewal of a real estate branch office

license........................................... [100] 110

For each penalty for late filing of a renewal for a

broker’s, broker-salesman’s or corporate

broker’s license................................. [85] 95

For each penalty for late filing of a renewal for a

salesman’s license............................. [65] 75

For each change of name or address[10] 20

For each transfer of a real estate salesman’s or

broker-salesman’s license and change of

association or employment............... [10] 20

For each duplicate license where the original

license is lost or destroyed, and an affidavit is

made thereof...................................... [10] 20

For each change of broker status from broker to

broker-salesman, [orthereverse]..... [10] 20

For each change of broker status from broker-

salesman to broker................................... 40

For each reinstatement to active status of an

inactive real estate broker’s, broker-salesman’s

or salesman’s license........................ [10] 20

For each reinstatement of a real estate broker’s

license when the licensee fails to give immediate

written notice to the Division of a change of

name or business location................ [20] 30

For each reinstatement of a real estate

salesman’s or broker-salesman’s license when

he fails to notify the Division of a change of

broker within 30 days of termination by previous

broker................................................ [20] 30

For each original registration of an owner-

developer....................................... [100] 125

For each annual renewal of a registration of an

owner-developer........................... [100] 125

For each enlargement of the area of an owner-

developer’s registration.................... [15] 50


For each cooperative certificate issued to an out-

of-state broker licensee for 1 year or fraction

thereof........................................... [40] $150

For each original accreditation of a course of

continuing education...................... [50] 100

For each renewal of accreditation of a course of

continuing education........................ [10] 50

For each annual approval of a course of

instruction offered in preparation for an

original license or permit...................... 100

 

    2.  The fees prescribed by this section for courses of

instruction offered in preparation for an original license or permit

or for courses of continuing education do not apply to [any] :

    (a) Any university or community college of the University and

Community College System of Nevada.

    (b) Any agency of the State.

    (c) Any regulatory agency of the Federal Government.

    3.  The Commission shall adopt regulations which establish

the fees to be charged and collected by the Division to pay the

costs of any investigation of a person’s background.

    Sec. 20.  NRS 645.842 is hereby amended to read as follows:

    645.842  1.  The Real Estate Education, Research and

Recovery Fund is hereby created as a special revenue fund.

    2.  A balance of not less than $50,000 must be maintained in the

Fund, to be used for satisfying claims against persons licensed under

this chapter, as provided in NRS 645.841 to 645.8494, inclusive.

Any balance over $50,000 at the end of any fiscal year must be set

aside and used by the Administrator, after approval of the

Commission, for real estate education and research.

    3.  The interest and income earned on the money in the Fund,

after deducting any applicable charges, must be credited to the

Fund.

    Sec. 21.  Chapter 645C of NRS is hereby amended by adding

thereto the provisions set forth as sections 22, 23 and 24 of this act.

    Sec. 22.  1.  The Administrator may adopt regulations which

establish procedures for the Division to conduct business

electronically pursuant to title 59 of NRS with persons who are

regulated pursuant to this chapter and with any other persons with

whom the Division conducts business. The regulations may

include, without limitation, the establishment of fees to pay the

costs of conducting business electronically with the Division.

    2.  In addition to the process authorized by NRS 719.280, if

the Division is conducting business electronically with a person

and a law requires a signature or record to be notarized,

acknowledged, verified or made under oath, the Division may


allow the person to substitute a declaration that complies with the

provisions of NRS 53.045 to satisfy the legal requirement.

    3.  The Division may refuse to conduct business electronically

with a person who has failed to pay money which the person owes

to the Division or the Commission.

    Sec. 23.  In addition to any other remedy or penalty, the

Commission or the Division, as appropriate, may:

    1.  Refuse to issue a certificate, license or registration card to

a person who has failed to pay money which the person owes to

the Commission or the Division.

    2.  Refuse to renew, or suspend or revoke, the certificate,

license or registration card of a person who has failed to pay

money which the person owes to the Commission or the Division.

    Sec. 24.  1.  In addition to any other remedy or penalty, the

Commission may impose an administrative fine against any

person who knowingly:

    (a) Engages or offers to engage in any activity for which a

certificate, license or registration card or any type of authorization

is required pursuant to this chapter, or any regulation adopted

pursuant thereto, if the person does not hold the required

certificate, license or registration card or has not been given the

required authorization; or

    (b) Assists or offers to assist another person to commit a

violation described in paragraph (a).

    2.  If the Commission imposes an administrative fine against a

person pursuant to this section, the amount of the administrative

fine may not exceed the amount of any gain or economic benefit

that the person derived from the violation or $5,000, whichever

amount is greater.

    3.  In determining the appropriate amount of the

administrative fine, the Commission shall consider:

    (a) The severity of the violation and the degree of any harm

that the violation caused to other persons;

    (b) The nature and amount of any gain or economic benefit

that the person derived from the violation;

    (c) The person’s history or record of other violations; and

    (d) Any other facts or circumstances that the Commission

deems to be relevant.

    4.  Before the Commission may impose the administrative

fine, the Commission must provide the person with notice and an

opportunity to be heard.

    5.  The person is entitled to judicial review of the decision of

the Commission in the manner provided by chapter 233B of NRS.

    6.  The provisions of this section do not apply to a person who

engages or offers to engage in activities within the purview of this

chapter if:


    (a) A specific statute exempts the person from complying with

the provisions of this chapter with regard to those activities; and

    (b) The person is acting in accordance with the exemption

while engaging or offering to engage in those activities.

    Sec. 25.  NRS 645C.300 is hereby amended to read as follows:

    645C.300  1.  [Every] Each application for a certificate,

license or registration card must include the social security number

of the applicant and be accompanied by the fee for the certificate,

license or registration card[.

    2.  Each] and the fee to pay the costs of an investigation of the

applicant’s background.

    2.  Each applicant must[:

    (a) At] , as part of his application and at his own expense [and]

:

    (a) Arrange to have a complete set of his fingerprints taken by

a law enforcement agency or other authorized entity acceptable to

the Division on a fingerprint card provided by the law enforcement

agency or other authorized entity for that purpose; and

    (b) Submit to the Division[, arrange to be fingerprinted by an

agency of law enforcement; and

    (b) Attach] the completed fingerprint card [to his application.]

and written permission authorizing the Division to submit the

applicant’s fingerprints to the Central Repository for Nevada

Records of Criminal History for submission to the Federal Bureau

of Investigation for a report on the applicant’s background and to

such other law enforcement agencies as the Division deems

necessary.

    3.  The Division may:

    (a) [Mail the card] Submit the applicant’s fingerprints to the

Central Repository for submission to the Federal Bureau of

Investigation [or any other agency of] and to such other law

enforcement[;] agencies as the Division deems necessary; and

    (b) Request from each such [an] agency any information

regarding the applicant’s [criminal history] background as the

Division deems necessary.

    Sec. 26.  NRS 645C.450 is hereby amended to read as follows:

    645C.450  1.  The following fees may be charged and

collected by the Division:

 

Application for a certificate, license or registration

card........................................................ $100

Issuance or renewal of a certificate or license as a

residential appraiser................................ 290

Issuance or renewal of a certificate as a general

appraiser.................................................. 390

Issuance of a permit................................ 115


Issuance or renewal of a registration card$190

Issuance of a duplicate certificate or license for an

additional office........................................ 50

Change in the name or location of a business  [10] 20

Reinstatement of an inactive certificate or license  [10] 30

Annual approval of a course of instruction offered in

preparation for an initial certificate or license100

[Annual] Original approval of a course of

instruction offered for continuing education   100

Renewal of approval of a course of instruction

offered for continuing education............. 50

 

    2.  The Division shall adopt regulations which establish the fees

to be charged and collected by the Division to pay [for:

    (a) The] the costs of:

    (a) Any examination for a certificate or license[; and

    (b) Any additional expenses] , including any costs which are

necessary for the administration of [the] such an examination.

    (b) Any investigation of a person’s background.

    Sec. 27.  Chapter 645D of NRS is hereby amended by adding

thereto the provisions set forth as sections 28, 29 and 30 of this act.

    Sec. 28.  1.  The Administrator may adopt regulations which

establish procedures for the Division to conduct business

electronically pursuant to title 59 of NRS with persons who are

regulated pursuant to this chapter and with any other persons with

whom the Division conducts business. The regulations may

include, without limitation, the establishment of fees to pay the

costs of conducting business electronically with the Division.

    2.  In addition to the process authorized by NRS 719.280, if

the Division is conducting business electronically with a person

and a law requires a signature or record to be notarized,

acknowledged, verified or made under oath, the Division may

allow the person to substitute a declaration that complies with the

provisions of NRS 53.045 to satisfy the legal requirement.

    3.  The Division may refuse to conduct business electronically

with a person who has failed to pay money which the person owes

to the Division.

    Sec. 29.  In addition to any other remedy or penalty, the

Administrator may:

    1.  Refuse to issue a certificate to a person who has failed to

pay money which the person owes to the Division.

    2.  Refuse to renew, or suspend or revoke, the certificate of a

person who has failed to pay money which the person owes to the

Division.


    Sec. 30.  1.  In addition to any other remedy or penalty, the

Administrator may impose an administrative fine against any

person who knowingly:

    (a) Engages or offers to engage in any activity for which a

certificate or any type of authorization is required pursuant to this

chapter, or any regulation adopted pursuant thereto, if the person

does not hold the required certificate or has not been given the

required authorization; or

    (b) Assists or offers to assist another person to commit a

violation described in paragraph (a).

    2.  If the Administrator imposes an administrative fine against

a person pursuant to this section, the amount of the administrative

fine may not exceed the amount of any gain or economic benefit

that the person derived from the violation or $5,000, whichever

amount is greater.

    3.  In determining the appropriate amount of the

administrative fine, the Administrator shall consider:

    (a) The severity of the violation and the degree of any harm

that the violation caused to other persons;

    (b) The nature and amount of any gain or economic benefit

that the person derived from the violation;

    (c) The person’s history or record of other violations; and

    (d) Any other facts or circumstances that the Administrator

deems to be relevant.

    4.  Before the Administrator may impose the administrative

fine, the Administrator must provide the person with notice and an

opportunity to be heard.

    5.  The person is entitled to judicial review of the decision of

the Administrator in the manner provided by chapter 233B of

NRS.

    6.  The provisions of this section do not apply to a person who

engages or offers to engage in activities within the purview of this

chapter if:

    (a) A specific statute exempts the person from complying with

the provisions of this chapter with regard to those activities; and

    (b) The person is acting in accordance with the exemption

while engaging or offering to engage in those activities.

    Sec. 31.  NRS 645D.180 is hereby amended to read as follows:

    645D.180  1.  [Every] Each application for a certificate must

be accompanied by the fee for the certificate[.

    2.  Each] and the fee to pay the costs of an investigation of the

applicant’s background.

    2.  Each applicant must[:

    (a) At] , as part of his application and at his own expense

[and] :


    (a) Arrange to have a complete set of his fingerprints taken by

a law enforcement agency or other authorized entity acceptable to

the Division on a fingerprint card provided by the law enforcement

agency or other authorized entity for that purpose; and

    (b) Submit to the Division[, arrange to be fingerprinted by an

agency of law enforcement; and

    (b) Attach] the completed fingerprint card [to his application.]

and written permission authorizing the Division to submit the

applicant’s fingerprints to the Central Repository for Nevada

Records of Criminal History for submission to the Federal Bureau

of Investigation for a report on the applicant’s background and to

such other law enforcement agencies as the Division deems

necessary.

    3.  The Division may:

    (a) Require more than one complete set of fingerprints;

    (b) [Mail a completed card] Submit the applicant’s fingerprints

to the Central Repository for submission to the Federal Bureau of

Investigation [or any other agency of] and to such other law

enforcement[;] agencies as the Division deems necessary; and

    (c) Request from each such [an] agency any information

regarding the applicant’s [criminal history] background that the

Division deems necessary.

    Sec. 32.  NRS 645D.240 is hereby amended to read as follows:

    645D.240  1.  The following fees must be charged and

collected by the Division:

 

[Application] For each application for a certificate  $100

[Issuance] For the issuance or renewal of a certificate250

For each penalty for a late renewal of a certificate125

For each change of name, address or association   20

For each duplicate certificate where the original is

lost or destroyed, and an affidavit is made thereof  20

For each reinstatement to active status of an inactive

certificate.................................................. 20

For each annual approval of a course of instruction

offered in preparation for an original certificate100

For each original accreditation of a course of

continuing education............................ 100

For each renewal of accreditation of a course of

continuing education.............................. 50

 

    2.  The Division shall adopt regulations which establish the

fees to be charged and collected by the Division to pay the costs of:

    (a) Any examination for a certificate, including any costs

which are necessary for the administration of such an

examination.


    (b) Any investigation of a person’s background.

    Sec. 33.  Chapter 116 of NRS is hereby amended by adding

thereto the provisions set forth as sections 34, 35 and 36 of this act.

    Sec. 34.  “Division” means the Real Estate Division of the

Department of Business and Industry.

    Sec. 35.  1.  The Administrator may adopt regulations which

establish procedures for the Division to conduct business

electronically pursuant to title 59 of NRS with persons who are

regulated pursuant to this chapter and with any other persons with

whom the Division conducts business. The regulations may

include, without limitation, the establishment of fees to pay the

costs of conducting business electronically with the Division.

    2.  In addition to the process authorized by NRS 719.280, if

the Division is conducting business electronically with a person

and a law requires a signature or record to be notarized,

acknowledged, verified or made under oath, the Division may

allow the person to substitute a declaration that complies with the

provisions of NRS 53.045 to satisfy the legal requirement.

    3.  The Division may refuse to conduct business electronically

with a person who has failed to pay money which the person owes

to the Division or the Real Estate Commission.

    Sec. 36.  1.  In addition to any other remedy or penalty, the

Real Estate Commission may impose an administrative fine

against any person who knowingly:

    (a) Engages or offers to engage in any activity for which a

permit or certificate or any type of authorization is required

pursuant to NRS 116.31139, or any regulation adopted pursuant

thereto, if the person does not hold the required permit or

certificate or has not been given the required authorization; or

    (b) Assists or offers to assist another person to commit a

violation described in paragraph (a).

    2.  If the Real Estate Commission imposes an administrative

fine against a person pursuant to this section, the amount of the

administrative fine may not exceed the amount of any gain or

economic benefit that the person derived from the violation or

$5,000, whichever amount is greater.

    3.  In determining the appropriate amount of the

administrative fine, the Real Estate Commission shall consider:

    (a) The severity of the violation and the degree of any harm

that the violation caused to other persons;

    (b) The nature and amount of any gain or economic benefit

that the person derived from the violation;

    (c) The person’s history or record of other violations; and

    (d) Any other facts or circumstances that the Real Estate

Commission deems to be relevant.


    4.  Before the Real Estate Commission may impose the

administrative fine, the Real Estate Commission must provide the

person with notice and an opportunity to be heard.

    5.  The person is entitled to judicial review of the decision of

the Real Estate Commission in the manner provided by chapter

233B of NRS.

    6.  The provisions of this section do not apply to a person who

engages or offers to engage in activities within the purview of NRS

116.31139 if:

    (a) A specific statute exempts the person from complying with

the provisions of NRS 116.31139 with regard to those activities;

and

    (b) The person is acting in accordance with the exemption

while engaging or offering to engage in those activities.

    Sec. 37.  NRS 116.1103 is hereby amended to read as follows:

    116.1103  [In] As used in this chapter and in the declaration

and bylaws [(NRS 116.3106), unless specifically provided otherwise

or] of an association, unless the context otherwise requires, [and in

this chapter,] the words and terms defined in NRS 116.110305 to

116.110393, inclusive, and section 34 of this act have the meanings

ascribed to them in those sections.

    Sec. 38.  NRS 116.110305 is hereby amended to read as

follows:

    116.110305  “Administrator” means the Real Estate

Administrator . [of the Real Estate Division of the Department of

Business and Industry.]

    Sec. 39.  NRS 116.1116 is hereby amended to read as follows:

    116.1116  1.  The Office of the Ombudsman for Owners in

Common-Interest Communities is hereby created within the [Real

Estate Division of the Department of Business and Industry.]

Division.

    2.  The Administrator shall appoint the Ombudsman for Owners

in Common-Interest Communities. The Ombudsman for Owners in

Common-Interest Communities is in the unclassified service of the

State.

    3.  The Ombudsman for Owners in Common-Interest

Communities must be qualified by training and experience to

perform the duties and functions of his office.

    4.  The Ombudsman for Owners in Common-Interest

Communities shall:

    (a) Assist in processing claims submitted to mediation or

arbitration pursuant to NRS 38.300 to 38.360, inclusive;

    (b) Assist owners in common-interest communities to

understand their rights and responsibilities as set forth in this

chapter and the governing documents of their associations,


including, without limitation, publishing materials related to those

rights and responsibilities;

    (c) Assist persons appointed or elected to serve on executive

boards of associations to carry out their duties; and

    (d) Compile and maintain a registration of each association

organized within the state which includes, without limitation:

        (1) The name, address and telephone number of the

association;

        (2) The name of the person engaged in property management

for the common-interest community or the name of the person who

manages the property at the site of the common-interest community;

        (3) The names, mailing addresses and telephone numbers of

the members of the executive board of the association;

        (4) The name of the declarant;

        (5) The number of units in the common-interest community;

and

        (6) The total annual assessment made by the association.

    Sec. 40.  NRS 116.31139 is hereby amended to read as

follows:

    116.31139  1.  An association may employ a person engaged

in property management for the common-interest community.

    2.  Except as otherwise provided in this section, a person

engaged in property management for a common-interest community

must:

    (a) Hold a permit to engage in property management that is

issued pursuant to the provisions of chapter 645 of NRS; or

    (b) Hold a certificate issued by the Real Estate Commission

pursuant to subsection 3.

    3.  The Real Estate Commission shall provide by regulation for

the issuance of certificates for the management of common-interest

communities to persons who are not otherwise authorized to engage

in property management pursuant to the provisions of chapter 645 of

NRS. The regulations:

    (a) Must establish the qualifications for the issuance of such a

certificate, including the education and experience required to obtain

such a certificate . [;]

    (b) May require applicants to pass an examination in order to

obtain a certificate . [;] If the regulations require such an

examination, the Real Estate Commission shall adopt regulations

which establish fees to pay the costs of the examination, including

any costs which are necessary for the administration of the

examination.

    (c) May require an investigation of an applicant’s background.

If the regulations require such an investigation, the Real Estate

Commission shall adopt regulations which establish fees to pay

the costs of the investigation.


    (d) Must establish standards of practice for persons engaged in

property management for a common-interest community . [;

    (d)] (e) Must establish the grounds for initiating disciplinary

action against a person to whom a certificate has been issued,

including, without limitation, the grounds for placing conditions,

limitations or restrictions on a certificate and for the suspension or

revocation of a certificate . [; and

    (e)] (f) Must establish rules of practice and procedure for

conducting disciplinary hearings.

The [Real Estate Division of the Department of Business and

Industry] Division may investigate the property managers to whom

certificates have been issued to ensure their compliance with the

standards of practice adopted pursuant to this subsection and collect

a fee for the issuance of a certificate by the Real Estate Commission

in an amount not to exceed the administrative costs of issuing the

certificate.

    4.  In addition to any other remedy or penalty, the Real Estate

Commission may:

    (a) Refuse to issue a permit or certificate to a person who has

failed to pay money which the person owes to the Real Estate

Commission or the Division.

    (b) Refuse to renew, or suspend or revoke, the permit or

certificate of a person who has failed to pay money which the

person owes to the Real Estate Commission or the Division.

    5.  The provisions of subsection 2 do not apply to:

    (a) A person who is engaged in property management for a

common-interest community on October 1, 1999, and is granted an

exemption from the requirements of subsection 2 by the

Administrator upon demonstration that he is qualified and

competent to engage in property management for a common-interest

community.

    (b) A financial institution.

    (c) An attorney licensed to practice in this state.

    (d) A trustee.

    (e) An employee of a corporation who manages only the

property of the corporation.

    (f) A declarant.

    (g) A receiver.

    [5.] 6. As used in this section, “property management” means

the physical, administrative or financial maintenance and

management of real property, or the supervision of those activities

for a fee, commission or other compensation or valuable

consideration.

 

 


    Sec. 41.  NRS 116.311391 is hereby amended to read as

follows:

    116.311391  The expiration or revocation of a certificate for the

management of a common-interest community by operation of law

or by order or decision of the Real Estate Commission or a court of

competent jurisdiction, or the voluntary surrender of such a

certificate by the holder of the certificate does not:

    1.  Prohibit the [Real Estate Division of the Department of

Business and Industry or] Real Estate Commission or the Division

from initiating or continuing an investigation of, or action or

disciplinary proceeding against, the holder of the certificate as

authorized pursuant to the provisions of this chapter or the

regulations adopted pursuant thereto; or

    2.  Prevent the imposition or collection of any fine or penalty

authorized pursuant to the provisions of this chapter or the

regulations adopted pursuant thereto against the holder of the

certificate.

    Sec. 42.  Chapter 119 of NRS is hereby amended by adding

thereto the provisions set forth as sections 43, 44 and 45 of this act.

    Sec. 43.  1.  The Administrator may adopt regulations which

establish procedures for the Division to conduct business

electronically pursuant to title 59 of NRS with persons who are

regulated pursuant to this chapter and with any other persons with

whom the Division conducts business. The regulations may

include, without limitation, the establishment of fees to pay the

costs of conducting business electronically with the Division.

    2.  In addition to the process authorized by NRS 719.280, if

the Division is conducting business electronically with a person

and a law requires a signature or record to be notarized,

acknowledged, verified or made under oath, the Division may

allow the person to substitute a declaration that complies with the

provisions of NRS 53.045 to satisfy the legal requirement.

    3.  The Division may refuse to conduct business electronically

with a person who has failed to pay money which the person owes

to the Division.

    Sec. 44.  In addition to any other remedy or penalty, the

Administrator may:

    1.  Refuse to issue a license, permit or registration to a person

who has failed to pay money which the person owes to the

Division.

    2.  Refuse to renew, or suspend or revoke, the license, permit

or registration of a person who has failed to pay money which the

person owes to the Division.

    Sec. 45.  1.  In addition to any other remedy or penalty, the

Administrator may impose an administrative fine against any

person who knowingly:


    (a) Engages or offers to engage in any activity for which a

license, permit or registration or any type of authorization is

required pursuant to this chapter, or any regulation adopted

pursuant thereto, if the person does not hold the required license,

permit or registration or has not been given the required

authorization; or

    (b) Assists or offers to assist another person to commit a

violation described in paragraph (a).

    2.  If the Administrator imposes an administrative fine against

a person pursuant to this section, the amount of the administrative

fine may not exceed the amount of any gain or economic benefit

that the person derived from the violation or $5,000, whichever

amount is greater.

    3.  In determining the appropriate amount of the

administrative fine, the Administrator shall consider:

    (a) The severity of the violation and the degree of any harm

that the violation caused to other persons;

    (b) The nature and amount of any gain or economic benefit

that the person derived from the violation;

    (c) The person’s history or record of other violations; and

    (d) Any other facts or circumstances that the Administrator

deems to be relevant.

    4.  Before the Administrator may impose the administrative

fine, the Administrator must provide the person with notice and an

opportunity to be heard.

    5.  The person is entitled to judicial review of the decision of

the Administrator in the manner provided by chapter 233B of

NRS.

    6.  The provisions of this section do not apply to a person who

engages or offers to engage in activities within the purview of this

chapter if:

    (a) A specific statute exempts the person from complying with

the provisions of this chapter with regard to those activities; and

    (b) The person is acting in accordance with the exemption

while engaging or offering to engage in those activities.

    Sec. 46.  NRS 119.015 is hereby amended to read as follows:

    119.015  “Administrator” means the [chief of the Division.]

Real Estate Administrator.

    Sec. 47.  NRS 119.184 is hereby amended to read as follows:

    119.184  1.  A subdivision consisting of land situated in the

State of Nevada or another state must not be advertised or offered

for sale within the State of Nevada until the advertising and offering

is approved by the Division. Each advertisement must contain the

processing number assigned by the Division.

    2.  Each application for approval of advertising must be

accompanied by [a] :


    (a) A filing fee [not to exceed $200, according to] based on a

schedule of fees [to be] established by the Division ; and [fees]

    (b) Fees for inspecting the advertising and the property in

amounts established by the Division.

    3.  The Division shall render a decision upon an application for

approval of an advertising or offering within 30 days from the date

the application is filed.

    4.  The Division shall adopt regulations to accomplish the

purpose of this section.

    Sec. 48.  NRS 119.320 is hereby amended to read as follows:

    119.320  1.  Subject to the provisions of this chapter, the

Division shall collect the following fees at such times and upon such

conditions as it may provide by regulation:

 

For each annual registered representative’s license

to represent a developer............... [$65] $85

For each transfer of a registered representative’s

license to represent a developer....... [20] 30

For each penalty for a late renewal of a

registered representative’s license......... 40

For each application for a developer’s request for

an exemption from any provision of this chapter[250] 275

For each application for renewal of an exemption

from any provision of this chapter[250] 275

For each developer’s permit per subdivision.. 500

For each developer’s temporary permit for each

subdivision.................................... [250] 275

For each renewal of a developer’s permit500

For each developer’s partial registration pursuant

to NRS 119.121........................... [250] 275

For each amendment to a developer’s permit  [100] 150

 

The $500 fee for a developer’s permit per subdivision does not

apply to any subdivision having 34 or fewer lots, parcels, interests

or units.

    2.  At the time of the original filing, each developer shall pay an

additional $5 for each lot, parcel, interest or unit in any one

subdivision in excess of 50, but not exceeding 250 such lots,

parcels, interests or units; $4 for 251 through 500 lots, parcels,

interests or units in any one subdivision; $3 for 501 through 750

lots, parcels, interests or units in any one subdivision; and $2.50 for

all lots, parcels, interests or units in excess of 750 in any one

subdivision. The developer may designate lots, parcels, interests or

units it intends to offer for sale or lease in this state out of the

subdivision, and the fee per lot, parcel, interest or unit is only


applicable to those lots, parcels, interests or units. The units must be

designated in groupings of no less than 5 contiguous units in each

group, except that the Division may accept fewer upon request of

the developer. If the developer determines to offer additional lots,

parcels, interests or units, it shall so certify to the Division and pay

the additional fee therefor.

    3.  With the exception of the fees for a registered

representative’s license or transfer, the fees enumerated in this

section must be reduced by the Administrator at such times as, in his

judgment, he considers a reduction equitable in relation to the

necessary costs of carrying out the administration and enforcement

of the provisions of this chapter.

    Sec. 49.  Chapter 119A of NRS is hereby amended by adding

thereto the provisions set forth as sections 50, 51 and 52 of this act.

    Sec. 50.  1.  The Administrator may adopt regulations which

establish procedures for the Division to conduct business

electronically pursuant to title 59 of NRS with persons who are

regulated pursuant to this chapter and with any other persons with

whom the Division conducts business. The regulations may

include, without limitation, the establishment of fees to pay the

costs of conducting business electronically with the Division.

    2.  In addition to the process authorized by NRS 719.280, if

the Division is conducting business electronically with a person

and a law requires a signature or record to be notarized,

acknowledged, verified or made under oath, the Division may

allow the person to substitute a declaration that complies with the

provisions of NRS 53.045 to satisfy the legal requirement.

    3.  The Division may refuse to conduct business electronically

with a person who has failed to pay money which the person owes

to the Division.

    Sec. 51.  In addition to any other remedy or penalty, the

Administrator may:

    1.  Refuse to issue a license, permit, certificate or registration

to a person who has failed to pay money which the person owes to

the Division.

    2.  Refuse to renew, or suspend or revoke, the license, permit,

certificate or registration of a person who has failed to pay money

which the person owes to the Division.

    Sec. 52.  1.  In addition to any other remedy or penalty, the

Administrator may impose an administrative fine against any

person who knowingly:

    (a) Engages or offers to engage in any activity for which a

license, permit, certificate or registration or any type of

authorization is required pursuant to this chapter, or any

regulation adopted pursuant thereto, if the person does not hold


the required license, permit, certificate or registration or has not

been given the required authorization; or

    (b) Assists or offers to assist another person to commit a

violation described in paragraph (a).

    2.  If the Administrator imposes an administrative fine against

a person pursuant to this section, the amount of the administrative

fine may not exceed the amount of any gain or economic benefit

that the person derived from the violation or $5,000, whichever

amount is greater.

    3.  In determining the appropriate amount of the

administrative fine, the Administrator shall consider:

    (a) The severity of the violation and the degree of any harm

that the violation caused to other persons;

    (b) The nature and amount of any gain or economic benefit

that the person derived from the violation;

    (c) The person’s history or record of other violations; and

    (d) Any other facts or circumstances that the Administrator

deems to be relevant.

    4.  Before the Administrator may impose the administrative

fine, the Administrator must provide the person with notice and an

opportunity to be heard.

    5.  The person is entitled to judicial review of the decision of

the Administrator in the manner provided by chapter 233B of

NRS.

    6.  The provisions of this section do not apply to a person who

engages or offers to engage in activities within the purview of this

chapter if:

    (a) A specific statute exempts the person from complying with

the provisions of this chapter with regard to those activities; and

    (b) The person is acting in accordance with the exemption

while engaging or offering to engage in those activities.

    Sec. 53.  NRS 119A.210 is hereby amended to read as follows:

    119A.210  1.  The Administrator shall issue a sales agent’s

license to each applicant who submits an application to the Division,

in the manner provided by the Division, which includes:

    (a) Satisfactory evidence, affirmed by the project broker or

another acceptable source, that the applicant has completed 14 hours

of instruction in:

        (1) Ethics.

        (2) The applicable laws and regulations relating to time

shares.

        (3) Principles and practices of selling time shares.

    (b) Satisfactory evidence that he has a reputation for honesty,

trustworthiness and competence.

    (c) A designation of the developer for whom he proposes to sell

time shares.


    (d) The social security number of the applicant.

    (e) Any further information required by the Division, including

the submission by the applicant to any investigation by the police or

the Division.

    2.  In addition to or in lieu of the 14 hours of instruction

required by paragraph (a) of subsection 1, the applicant may be

required to pass an examination which may be adopted by the

Division to examine satisfactorily the knowledge of the applicant in

those areas of instruction listed in paragraph (a) of subsection 1.

    3.  [The application must be accompanied by] Each applicant

must submit the statement required pursuant to NRS 119A.263 and

[a fee of $75. The fee must be used by the Division to] pay the

[costs of investigating, acting upon and reviewing applications for

sales agents’ licenses.] fees provided for in this chapter.

    4.  Each applicant must, as part of his application and at his

own expense:

    (a) Arrange to have a complete set of his fingerprints taken by

a law enforcement agency or other authorized entity acceptable to

the Division on a fingerprint card provided by the law enforcement

agency or other authorized entity for that purpose; and

    (b) Submit to the Division the completed fingerprint card and

written permission authorizing the Division to submit the

applicant’s fingerprints to the Central Repository for Nevada

Records of Criminal History for submission to the Federal Bureau

of Investigation for a report on the applicant’s background and to

such other law enforcement agencies as the Division deems

necessary.

    5.  The Division may:

    (a) Submit the applicant’s fingerprints to the Central

Repository for submission to the Federal Bureau of Investigation

and to such other law enforcement agencies as the Division deems

necessary; and

    (b) Request from each such agency any information regarding

the applicant’s background as the Division deems necessary.

    6.  A person who is licensed as a salesman pursuant to chapter

645 of NRS is not required to obtain a license pursuant to the

provisions of this section.

    [5.  Upon the issuance of a license to an applicant, the applicant

must pay a fee of $100 for the license and an additional fee of $25

for investigation.

    6.] 7. Each sales agent’s license issued pursuant to this section

expires 2 years after the last day of the calendar month in which it

was issued and must be renewed on or before that date. Each

licensee[must pay a] who submits the statement required pursuant

to NRS 119A.263 and meets the requirements for renewal may

renew his license upon the payment of the renewal fee [of $100.


    7.] before his license expires.

    8.  If a [sales agent] licensee fails to [pay the renewal fee before

the expiration of] renew his license[,] before it expires, the license

may be reinstated if the licensee submits the statement and pays [a

reinstatement fee of $50 and] the renewal fee and the penalty

specified in NRS 119A.360 within 1 year after the license expires.

    [8.] 9.  The Administrator may adopt regulations establishing

and governing requirements for the continuing education of sales

agents.

    Sec. 54.  NRS 119A.250 is hereby amended to read as follows:

    119A.250  1.  The registration of a representative issued

pursuant to this chapter expires 1 year after its issuance.

    2.  Each representative who submits the statement required

pursuant to NRS 119A.263 and meets the requirements for renewal

adopted by the Division may renew his registration upon the

payment of the annual renewal fee before [the expiration of] his

registration[.] expires.

    3.  If a representative fails to [pay the annual renewal fee before

the expiration of] renew his registration[,] before it expires, the

registration may be reinstated upon the submission of the statement

and the payment of the [reinstatement fee in addition to the] annual

renewal fee[. A registration may be reinstated under this subsection

only if the statement is submitted and the fees are paid] and the

penalty specified in NRS 119A.360 within 1 year after the

registration expires.

    4.  A representative issued a registration shall not change his

association to another developer or change his location with the

same developer unless he has obtained from the Division a transfer

of his registration for its unexpired term. An application to the

Division for the transfer of his registration for the unexpired term

must be accompanied by the fee specified in NRS 119A.360 for the

transfer of registration.

    Sec. 55.  NRS 119A.360 is hereby amended to read as follows:

    119A.360  1.  The Division shall collect the following fees at

such times and upon such conditions as it may provide by

regulation:

 

[Application fee for preliminary permit to sell

time shares............................................ $250

Application fee] For each application for the

registration of a representative........ [65] 85

For each renewal of the registration of a

representative.................................... [65] 85

[Application fee for] For each transfer of the

registration of a representative to a different

developer or location................................ 20


For [reinstatement] each penalty for a late

renewal of the registration of a representative   [25] $40

For each preliminary permit to sell time shares   275

For each permit to sell time shares, per

subdivision.............................................. 500

For each amendment to a public offering

statement after the issuance of the report[100] 150

For each renewal of a permit to sell time shares    500

For each original and annual registration of a

manager.................................................... 75

For each application for an original license as a

sales agent.............................................. 175

For each renewal of a license as a sales agent175

For each penalty for a late renewal of a license

as a sales agent........................................ 75

For each change of name or address.... 20

For each duplicate license, permit or

registration where the original is lost or

destroyed, and an affidavit is made thereof  20

For each annual approval of a course of

instruction offered in preparation for an

original license or permit...................... 100

For each original accreditation of a course of

continuing education............................ 100

For each renewal of accreditation of a course of

continuing education.............................. 50

 

    2.  Each developer shall pay an additional fee for each time

share he sells in a time-share plan over 50 pursuant to the following

schedule:

 

                                                                                                     Amount to be

        Number of time shares                                                   paid per time share

 

            51—250.......................................... $5.00

          251—500............................................. 4.00

          501—750............................................. 3.00

        751—1500............................................. 2.50

          over 1500............................................. 1.00

 

    3.  Except for the fees relating to the registration of a

representative, the Administrator may reduce the fees established by

this section if the reduction is equitable in relation to the costs of

carrying out the provisions of this chapter.

    4.  The Division shall adopt regulations which establish the

fees to be charged and collected by the Division to pay the costs of:


    (a) Any examination for a license, including any costs which

are necessary for the administration of such an examination.

    (b) Any investigation of a person’s background.

    Sec. 56.  NRS 119A.532 is hereby amended to read as follows:

    119A.532  1.  A person who wishes to engage in the business

of, act in the capacity of, advertise or assume to act as a manager

shall register with the Division on a form prescribed by the

Division.

    2.  The form for registration must include, without limitation:

    (a) The registered name of the time-share plan or the project, or

both, that the manager will manage;

    (b) The address and telephone number of the manager’s

principal place of business;

    (c) The social security number of the manager; and

    (d) The name of the manager’s responsible managing employee.

    3.  The form for registration must be accompanied by:

    (a) Satisfactory evidence, acceptable to the Division, that the

manager and his employees have obtained fidelity bonds in

accordance with regulations adopted by the Division; and

    (b) The statement required pursuant to NRS 119A.263.

    4.  The Division [may collect a fee for registering a manager in

an amount not to exceed the administrative costs of] shall collect

the fee specified in NRS 119A.360 upon registering the manager[.]

and annually thereafter to maintain the registration.

    5.  As used in this section, “responsible managing employee”

means the person designated by the manager to:

    (a) Make technical and administrative decisions in connection

with the manager’s business; and

    (b) Hire, superintend, promote, transfer, lay off, discipline or

discharge other employees or recommend such action on behalf of

the manager.

    Sec. 57.  Chapter 119B of NRS is hereby amended by adding

thereto the provisions set forth as sections 58 to 61, inclusive, of this

act.

    Sec. 58.  “Division” means the Real Estate Division of the

Department of Business and Industry.

    Sec. 59.  1.  The Administrator may adopt regulations which

establish procedures for the Division to conduct business

electronically pursuant to title 59 of NRS with persons who are

regulated pursuant to this chapter and with any other persons with

whom the Division conducts business. The regulations may

include, without limitation, the establishment of fees to pay the

costs of conducting business electronically with the Division.

    2.  In addition to the process authorized by NRS 719.280, if

the Division is conducting business electronically with a person

and a law requires a signature or record to be notarized,


acknowledged, verified or made under oath, the Division may

allow the person to substitute a declaration that complies with the

provisions of NRS 53.045 to satisfy the legal requirement.

    3.  The Division may refuse to conduct business electronically

with a person who has failed to pay money which the person owes

to the Division.

    Sec. 60.  In addition to any other remedy or penalty, the

Administrator may:

    1.  Refuse to issue a permit to a person who has failed to pay

money which the person owes to the Division.

    2.  Refuse to renew, or suspend or revoke, the permit of a

person who has failed to pay money which the person owes to the

Division.

    Sec. 61.  1.  In addition to any other remedy or penalty, the

Administrator may impose an administrative fine against any

person who knowingly:

    (a) Engages or offers to engage in any activity for which a

permit or any type of authorization is required pursuant to this

chapter, or any regulation adopted pursuant thereto, if the person

does not hold the required permit or has not been given the

required authorization; or

    (b) Assists or offers to assist another person to commit a

violation described in paragraph (a).

    2.  If the Administrator imposes an administrative fine against

a person pursuant to this section, the amount of the administrative

fine may not exceed the amount of any gain or economic benefit

that the person derived from the violation or $5,000, whichever

amount is greater.

    3.  In determining the appropriate amount of the

administrative fine, the Administrator shall consider:

    (a) The severity of the violation and the degree of any harm

that the violation caused to other persons;

    (b) The nature and amount of any gain or economic benefit

that the person derived from the violation;

    (c) The person’s history or record of other violations; and

    (d) Any other facts or circumstances that the Administrator

deems to be relevant.

    4.  Before the Administrator may impose the administrative

fine, the Administrator must provide the person with notice and an

opportunity to be heard.

    5.  The person is entitled to judicial review of the decision of

the Administrator in the manner provided by chapter 233B of

NRS.

    6.  The provisions of this section do not apply to a person who

engages or offers to engage in activities within the purview of this

chapter if:


    (a) A specific statute exempts the person from complying with

the provisions of this chapter with regard to those activities; and

    (b) The person is acting in accordance with the exemption

while engaging or offering to engage in those activities.

    Sec. 62.  NRS 119B.010 is hereby amended to read as follows:

    119B.010  As used in this chapter, unless the context otherwise

requires, the words and terms defined in NRS 119B.020 to

119B.100, inclusive, and section 58 of this act have the meanings

ascribed to them in those sections.

    Sec. 63.  NRS 119B.210 is hereby amended to read as follows:

    119B.210  1.  The Administrator shall collect the following

fees at such times and upon such conditions as he may provide by

regulation:

 

For an initial permit to sell memberships in a

campground.......................................... $500

For each renewal of a permit................. 500

For each amendment to a public offering

statement after the issuance of the report[100] 150

[Application fee] For each application for the

registration of a representative......... [65] 85

For each renewal of the registration of a

representative.................................... [65] 85

For each transfer of [a] the registration of a

representative to a different developer or location  20

For [reinstatement] each penalty for a late

renewal of the registration of a representative    [25] 40

For each change of name or address.... 20

 

    2.  Each developer shall pay an additional fee for each

membership he sells in a campground in which more than 50

memberships are available pursuant to the following schedule:

 

                                                                                                     Amount to be

        Number of memberships                                              paid per membership

 

            51—250.......................................... $5.00

          251—500............................................. 4.00

          501—750............................................. 3.00

        751—1500............................................. 2.50

          over 1500............................................. 1.00

 

    3.  The Administrator may reduce the fees established by this

section if the reduction is equitable in relation to the costs of

carrying out the provisions of this chapter.


    Sec. 64.  NRS 645.849 is hereby repealed.

    Sec. 65.  1.  This act becomes effective on July 1, 2003.

    2.  Sections 11, 17, 25, 53, 54 and 56 of this act expire by

limitation on the date on which the provisions of 42 U.S.C. § 666

requiring each state to establish procedures under which the state

has authority to withhold or suspend, or to restrict the use of

professional, occupational and recreational licenses of persons who:

    (a) Have failed to comply with a subpoena or warrant relating to

a proceeding to determine the paternity of a child or to establish or

enforce an obligation for the support of a child; or

    (b) Are in arrears in the payment for the support of one or more

children,

are repealed by the Congress of the United States.

 

20~~~~~03