THE ONE HUNDRED AND FOURTEENTH DAY

Carson City (Tuesday), May 27, 2003

    Assembly called to order at 11:29 a.m.

    Mr. Speaker presiding.

    Roll called.

    All present.

    Prayer by the Chaplain, Reverend Albert Tilstra.

    These are stress-filled days for the legislators in this Chamber, dear God. Deliver them from the fear of what might happen and give them the grace to enjoy what now is and keep striving after what ought to be. We ask in Your Name.

Amen.

    Pledge of Allegiance to the Flag.

    Assemblyman Oceguera moved that further reading of the Journal be dispensed with, and the Speaker and Chief Clerk be authorized to make the necessary corrections and additions.

    Motion carried.

REPORTS OF COMMITTEES

Mr. Speaker:

    Your Committee on Judiciary, to which was referred Senate Bill No. 106, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Bernie Anderson, Chairman

Mr. Speaker:

    Your Committee on Natural Resources, Agriculture, and Mining, to which were referred Senate Bill No. 58; Senate Joint Resolution No. 10, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Tom Collins, Chairman

MESSAGES FROM THE Senate

Senate Chamber, Carson City, May 26, 2003

To the Honorable the Assembly:

    I have the honor to inform your honorable body that the Senate on this day passed
Assembly Bill No. 515.

    Also, I have the honor to inform your honorable body that the Senate on this day adopted Assembly Concurrent Resolutions Nos. 29, 30.

    Also, I have the honor to inform your honorable body that the Senate on this day respectfully refused to recede from its action on Assembly Bill No. 32, Senate Amendment No. 606, and requests a conference, and appointed Senators Hardy, Townsend, and Carlton as a first Conference Committee to meet with a like committee of the Assembly.

    Also, I have the honor to inform your honorable body that the Senate on this day respectfully refused to recede from its action on Assembly Bill No. 81, Senate Amendment No. 607, and requests a conference, and appointed Senators Hardy, Shaffer, and Schneider as a first Conference Committee to meet with a like committee of the Assembly.

    Also, I have the honor to inform your honorable body that the Senate on this day respectfully refused to recede from its action on Assembly Bill No. 232, Senate Amendment No. 667, and requests a conference, and appointed Senators Hardy, O’Connell, and Carlton as a first Conference Committee to meet with a like committee of the Assembly.

    Also, I have the honor to inform your honorable body that the Senate on this day respectfully refused to recede from its action on Assembly Bill No. 353, Senate Amendment No. 751, and requests a conference, and appointed Senators Raggio, Cegavske, and Coffin as a first Conference Committee to meet with a like committee of the Assembly.

    Also, I have the honor to inform your honorable body that the Senate on this day respectfully refused to recede from its action on Assembly Bill No. 498, Senate Amendment No. 605, and requests a conference, and appointed Senators Hardy, Shaffer, and Schneider as a first Conference Committee to meet with a like committee of the Assembly.

    Also, I have the honor to inform your honorable body that the Senate on this day passed, as amended, Senate Bill No. 209.

    Also, I have the honor to inform your honorable body that the Senate on this day respectfully refused to concur in the Assembly Amendment No. 748 to Senate Bill No. 34;
Assembly Amendment No. 811 to Senate Bill No. 102; Assembly Amendment No. 813 to Senate Bill No. 193; Assembly Amendment No. 818 to Senate Bill No. 372;
Assembly Amendment No. 625 to Senate Bill No. 432.

    Also, I have the honor to inform your honorable body that the Senate on this day concurred in the Assembly Amendment No. 776 to Senate Bill No. 136; Assembly Amendment No. 805 to Senate Bill No. 241; Assembly Amendments Nos. 816, 879 to Senate Bill No. 320;
Assembly Amendment No. 750 to Senate Bill No. 407; Assembly Amendment No. 819 to Senate Bill No. 423; Assembly Amendments Nos. 872, 899, 820 to Senate Bill No. 425; Assembly Amendment No. 821 to Senate Bill No. 426; Assembly Amendment No. 781 to Senate Bill No. 439.

Mary Jo Mongelli

Assistant Secretary of the Senate

INTRODUCTION, FIRST READING AND REFERENCE

    Senate Bill No. 209.

    Assemblyman Oceguera moved that the bill be referred to the Committee on Ways and Means.

    Motion carried.

SECOND READING AND AMENDMENT

    Senate Bill No. 58.

    Bill read second time and ordered to third reading.

    Senate Bill No. 106.

    Bill read second time and ordered to third reading.

    Senate Joint Resolution No. 10.

    Bill read second time and ordered to third reading.

UNFINISHED BUSINESS

Consideration of Senate Amendments

    Assembly Bill No. 320.

    The following Senate amendment was read:

    Amendment No. 742.

    Amend sec. 3, page 4, by deleting lines 20 through 26 and inserting:

    “7.  The Commissioner may require an administrator to provide evidence which demonstrates that the administrator has substantially complied with the requirements set forth in this section, including, without limitation, payment within 30 days of at least 95 percent of approved claims or at least 90 percent of the total dollar amount for approved claims.”.

    Amend sec. 3, page 4, line 27, by deleting “(b)” and inserting “8.”.

    Amend sec. 3, pages 4 and 5, by deleting lines 31 through 44 on page 4 and lines 1 and 2 on page 5, and inserting: “Commissioner. Upon a second or subsequent determination that an administrator is not in substantial compliance with the requirements set forth in this section, the Commissioner may suspend or revoke the certificate of registration of the administrator.”.

    Amend the bill as a whole by deleting sec. 4 and adding:

    “Sec. 4.  (Deleted by amendment.)”.

    Amend sec. 5, page 6, line 18, after “to” by inserting: “paragraph (a) of”.

    Amend sec. 5, page 6, by deleting line 22 and inserting: “interested person, and any association of persons or organization whose members may be affected, may intervene as a matter of right in”.

    Amend sec. 5, page 6, line 25, by deleting “686B.050.” and inserting: “686B.050 and subsection 2 of NRS 686B.070.”.

    Amend the bill as a whole by deleting sec. 8 and adding new sections designated sections 8 through 8.7, following sec. 7, to read as follows:

    “Sec. 8.  NRS 686B.070 is hereby amended to read as follows:

    686B.070  1.  Every authorized insurer and every rate service organization licensed under NRS [686B.130] 686B.140 which has been designated by any insurer for the filing of rates under subsection 2 of
NRS 686B.090 shall file with the Commissioner all:

[1.] (a) Rates and proposed increases thereto;

[2.] (b) Forms of policies to which the rates apply;

[3.] (c) Supplementary rate information; and

[4.] (d) Changes and amendments thereof, made by it for use in this state.

2.  If an insurer makes a filing for a proposed increase in a rate for insurance covering the liability of a practitioner licensed pursuant to
chapter 630, 631, 632 or 633 of NRS for a breach of his professional duty toward a patient, the insurer shall not include in the filing any component that is directly or indirectly related to the following:

(a) Capital losses, diminished cash flow from any dividends, interest or other investment returns, or any other financial loss that is materially outside of the claims experience of the professional liability insurance industry, as determined by the Commissioner.

(b) Losses that are the result of any criminal or fraudulent activities of a director, officer or employee of the insurer.

If the Commissioner determines that a filing includes any such component, the Commissioner shall, pursuant to NRS 686B.110, disapprove the proposed increase, in whole or in part, to the extent that the proposed increase relies upon such a component.

        Sec. 8.3.  NRS 686B.090 is hereby amended to read as follows:

    686B.090  1.  An insurer shall establish rates and supplementary rate information for any market segment based on the factors in NRS 686B.060. If an insurer has insufficient creditable loss experience, it may use rates and supplementary rate information prepared by a rate service organization, with modification for its own expense and loss experience.

    2.  An insurer may discharge its obligation under subsection 1
of NRS 686B.070 by giving notice to the Commissioner that it uses rates and supplementary rate information prepared by a designated rate service organization, with such information about modifications thereof as are necessary fully to inform the Commissioner. The insurer's rates and supplementary rate information shall be deemed those filed from time to time by the rate service organization, including any amendments thereto as filed, subject [, however,] to the modifications filed by the insurer.

    Sec. 8.7.  NRS 686B.110 is hereby amended to read as follows:

    686B.110  1.  The Commissioner shall consider each proposed increase or decrease in the rate of any kind or line of insurance or subdivision thereof filed with him pursuant to subsection 1 of NRS 686B.070. If the Commissioner finds that a proposed increase will result in a rate which is not in compliance with NRS 686B.050 [,] or subsection 2 of NRS 686B.070, he shall disapprove the proposal. The Commissioner shall approve or disapprove each proposal no later than 60 days after it is determined by him to be complete pursuant to subsection 4. If the Commissioner fails to approve or disapprove the proposal within that period, the proposal shall be deemed approved.

    2.  Whenever an insurer has no legally effective rates as a result of the Commissioner’s disapproval of rates or other act, the Commissioner shall on request specify interim rates for the insurer that are high enough to protect the interests of all parties and may order that a specified portion of the premiums be placed in an escrow account approved by him. When new rates become legally effective, the Commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are de minimis must not be required.

    3.  If the Commissioner disapproves a proposed rate and an insurer requests a hearing to determine the validity of his action, the insurer has the burden of showing compliance with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive. Any such hearing must be held:

    (a) Within 30 days after the request for a hearing has been submitted to the Commissioner; or

    (b) Within a period agreed upon by the insurer and the Commissioner.

If the hearing is not held within the period specified in paragraph (a) or (b), or if the Commissioner fails to issue an order concerning the proposed rate for which the hearing is held within 45 days after the hearing, the proposed rate shall be deemed approved.

    4.  The Commissioner shall by regulation specify the documents or any other information which must be included in a proposal to increase or decrease a rate submitted to him pursuant to subsection 1. Each such proposal shall be deemed complete upon its filing with the Commissioner, unless the Commissioner, within 15 business days after the proposal is filed with him, determines that the proposal is incomplete because the proposal does not comply with the regulations adopted by him pursuant to this subsection.”.

    Amend sec. 9, page 9, by deleting line 35 and inserting: “this section, if:

(1) The insured is actively undergoing a medically necessary course of treatment; and

(2) The provider of health care and the insured agree that the continuity of care is desirable.”.

    Amend sec. 9, page 9, by deleting lines 38 through 40 and inserting: “provides to the insured pursuant to this section, if the provider of
health care agrees:

(1) To provide medical treatment under the terms of the contract between the provider of health care and the insurer with regard to the insured, including, without limitation, the rates of payment for providing medical service, as those terms existed before the termination of the contract between the provider of health care and the insurer; and

(2) Not to seek payment from the insured for any medical service provided by the provider of health care that the provider of health care could not have received from the insured were the provider of health care still under contract with the insurer.”.

    Amend sec. 9, page 9, line 43, by deleting “180th” and inserting “120th”.

    Amend sec. 9, page 10, line 7, by deleting: “incompetence or misconduct” and inserting: “medical incompetence or professional misconduct”.

    Amend sec. 10, pages 10 and 11, by deleting lines 23 through 44 on
page 10 and lines 1 through 13 on page 11, and inserting: “to provide health care to an insured unless the insurer uses the form prescribed by the Commissioner pursuant to section 40.3 of this act to obtain any information related to the credentials of the provider of health care.

3.  A contract between an insurer and a provider of health care may be modified:

(a) At any time pursuant to a written agreement executed by both parties.

(b) Except as otherwise provided in this paragraph, by the insurer upon giving to the provider 30 days’ written notice of the modification. If the provider fails to object in writing to the modification within the 30-day period, the modification becomes effective at the end of that period. If the provider objects in writing to the modification within the 30-day period, the modification must not become effective unless agreed to by both parties as described in paragraph (a).

4.  If an insurer contracts with a provider of health care to”.

    Amend sec. 10, page 11, between lines 21 and 22, by inserting:

    “5.  As used in this section, “provider of health care” means a provider of health care who is licensed pursuant to chapter 630, 631, 632 or 633 of NRS.”.

    Amend sec. 12, page 12, by deleting lines 23 through 29 and inserting:

    “7.  The Commissioner may require an insurer to provide evidence which demonstrates that the insurer has substantially complied with the requirements set forth in this section, including, without limitation, payment within 30 days of at least 95 percent of approved claims or at least 90 percent of the total dollar amount for approved claims.”.

    Amend sec. 12, page 12, line 30, by deleting “(b)” and inserting “8.”.

    Amend sec. 12, pages 12 and 13, by deleting lines 34 through 45 on page 12 and lines 1 through 3 on page 13, and inserting: “Commissioner. Upon a second or subsequent determination that an insurer is not in substantial compliance with the requirements set forth in this section, the Commissioner may suspend or revoke the certificate of authority of the insurer.”.

    Amend sec. 13, page 13, by deleting line 17 and inserting: “this section, if:

(1) The insured is actively undergoing a medically necessary course of treatment; and

(2) The provider of health care and the insured agree that the continuity of care is desirable.”.

    Amend sec. 13, page 13, by deleting lines 20 through 22 and inserting: “provides to the insured pursuant to this section, if the provider of health care agrees:

(1) To provide medical treatment under the terms of the contract between the provider of health care and the insurer with regard to the insured, including, without limitation, the rates of payment for providing medical service, as those terms existed before the termination of the contract between the provider of health care and the insurer; and

(2) Not to seek payment from the insured for any medical service provided by the provider of health care that the provider of health care could not have received from the insured were the provider of health care still under contract with the insurer.”.

    Amend sec. 13, page 13, line 25, by deleting “180th” and inserting “120th”.

    Amend sec. 13, page 13, line 34, by deleting: “incompetence or misconduct” and inserting: “medical incompetence or professional misconduct”.

    Amend sec. 14, page 14, by deleting lines 8 through 42 and inserting: “unless the insurer uses the form prescribed by the Commissioner pursuant to section 40.3 of this act to obtain any information related to the credentials of the provider of health care.

3.  A contract between an insurer specified in subsection 1 and a provider of health care may be modified:

(a) At any time pursuant to a written agreement executed by both parties.

(b) Except as otherwise provided in this paragraph, by the insurer upon giving to the provider 30 days’ written notice of the modification. If the provider fails to object in writing to the modification within the 30-day period, the modification becomes effective at the end of that period. If the provider objects in writing to the modification within the 30-day period, the modification must not become effective unless agreed to by both parties as described in paragraph (a).

4.  If an insurer specified in subsection 1 contracts with a”.

    Amend sec. 14, page 15, between lines 7 and 8, by inserting:

    “5.  As used in this section, “provider of health care” means a provider of health care who is licensed pursuant to chapter 630, 631, 632 or 633 of NRS.”.

    Amend sec. 15, page 16, by deleting lines 1 through 7 and inserting:

    “7.  The Commissioner may require an insurer to provide evidence which demonstrates that the insurer has substantially complied with the requirements set forth in this section, including, without limitation, payment within 30 days of at least 95 percent of approved claims or at least 90 percent of the total dollar amount for approved claims.”.

    Amend sec. 15, page 16, line 8, by deleting “(b)” and inserting “8.”.

    Amend sec. 15, page 16, by deleting lines 12 through 26 and inserting: “Commissioner. Upon a second or subsequent determination that an insurer is not in substantial compliance with the requirements set forth in this section, the Commissioner may suspend or revoke the certificate of authority of the insurer.”.

    Amend sec. 16, pages 16 and 17, by deleting lines 35 through 44 on page 16 and lines 1 through 25 on page 17, and inserting: “unless the carrier uses the form prescribed by the Commissioner pursuant to section 40.3 of this act to obtain any information related to the credentials of the provider of health care.

3.  A contract between a carrier specified in subsection 1 and a provider of health care may be modified:

(a) At any time pursuant to a written agreement executed by both parties.

(b) Except as otherwise provided in this paragraph, by the carrier upon giving to the provider 30 days’ written notice of the modification. If the provider fails to object in writing to the modification within the 30-day period, the modification becomes effective at the end of that period. If the provider objects in writing to the modification within the 30-day period, the modification must not become effective unless agreed to by both parties as described in paragraph (a).

4.  If a carrier specified in subsection 1 contracts with a”.

    Amend sec. 16, page 17, between lines 34 and 35, by inserting:

    “5.  As used in this section, “provider of health care” means a provider of health care who is licensed pursuant to chapter 630, 631, 632 or 633 of NRS.”.

    Amend sec. 17, page 18, by deleting lines 29 through 35 and inserting:

    “7.  The Commissioner may require a carrier to provide evidence which demonstrates that the carrier has substantially complied with the requirements set forth in this section, including, without limitation, payment within 30 days of at least 95 percent of approved claims or at least 90 percent of the total dollar amount for approved claims.”.

    Amend sec. 17, page 18, line 36, by deleting “(b)” and inserting “8.”.

    Amend sec. 17, pages 18 and 19, by deleting lines 40 through 44 on
page 18 and lines 1 through 10 on page 19, and inserting:

“Commissioner. Upon a second or subsequent determination that a carrier is not in substantial compliance with the requirements set forth in this section, the Commissioner may suspend or revoke the certificate of authority of the carrier.”.

    Amend the bill as a whole by deleting sec. 19 and adding a new section designated sec. 19, following sec. 18, to read as follows:

    “Sec. 19.  If a settlement or judgment exceeds the limits of the coverage provided by a policy of insurance covering the liability of a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of his professional duty toward a patient, the Commissioner shall review the settlement or judgment. If the Commissioner finds, after notice and a hearing, or upon waiver of hearing by the insurer, that the insurer who issued the policy violated any provision of this code with regard to the settlement or judgment, any combination of such settlements or judgments, or any proceedings related thereto, the Commissioner may suspend, limit or revoke the insurer’s certificate of authority.”.

    Amend sec. 21, page 19, line 33, by deleting “1.”.

    Amend sec. 21, pages 19 and 20, by deleting lines 37 through 45 on
page 19 and lines 1 through 11 on page 20, and inserting:

“rate that is higher than the standard rate of the insurer for the applicable type of policy and specialty of the practitioner, the insurer shall, upon the request of the practitioner, disclose the reasons the insurer set the premium for the policy at the higher rate.”.

    Amend sec. 22, pages 20 and 21, by deleting lines 12 through 45 on
page 20 and lines 1 through 28 on page 21, and inserting:

    “Sec. 22.  1.  Except as otherwise provided in this section, if an insurer intends to cancel, terminate or otherwise not renew all policies of professional liability insurance that it has issued to any class, type or specialty of practitioner licensed pursuant to chapter 630, 631 or 633 of NRS, the insurer must provide 120 days’ notice of its intended action to the Commissioner and the practitioners before its intended action becomes effective.

2.  If an insurer intends to cancel, terminate or otherwise not renew a specific policy of professional liability insurance that it has issued to a practitioner who is practicing in one or more of the essential medical specialties designated by the Commissioner:

(a) The insurer must provide 120 days’ notice to the practitioner before its intended action becomes effective; and

(b) The Commissioner may require the insurer to delay its intended action for a period of not more than 60 days if the Commissioner determines that a replacement policy is not readily available to the practitioner.

3.  If an insurer intends to cancel, terminate or otherwise not renew all policies of professional liability insurance that it has issued to practitioners who are practicing in one or more of the essential medical specialties designated by the Commissioner:

(a) The insurer must provide 120 days’ notice of its intended action to the Commissioner and the practitioners before its intended action becomes effective; and

(b) The Commissioner may require the insurer to delay its intended action for a period of not more than 60 days if the Commissioner determines that replacement policies are not readily available to the practitioners.

4.  On or before April 1 of each year, the Commissioner shall:

(a) Determine whether there are any medical specialties in this state which are essential as a matter of public policy and which must be protected pursuant to this section from certain adverse actions relating to professional liability insurance that may impair the availability of those essential medical specialties to the residents of this state; and

(b) Make a list containing the essential medical specialties designated by the Commissioner and provide the list to each insurer that issues policies of professional liability insurance to practitioners who are practicing in one or more of the essential medical specialties.

5.  The Commissioner may adopt any regulations that are necessary to carry out the provisions of this section.

6.  Until the Commissioner determines which, if any, medical specialties are to be designated as essential medical specialties, the following medical specialties shall be deemed to be essential medical specialties for the purposes of this section:

(a) Emergency medicine.

(b) Neurosurgery.

(c) Obstetrics and gynecology.

(d) Orthopedic surgery.

(e) Pediatrics.

(f) Trauma surgery.

7.  As used in this section, “professional liability insurance” means insurance covering the liability of a practitioner for a breach of his professional duty toward a patient.”.

    Amend sec. 23, pages 21 and 22, by deleting lines 34 through 45 on
page 21 and lines 1 through 23 on page 22, and inserting: “to provide health care to an insured unless the society uses the form prescribed by the Commissioner pursuant to section 40.3 of this act to obtain any information related to the credentials of the provider of health care.

3.  A contract between a society and a provider of health care may be modified:

(a) At any time pursuant to a written agreement executed by both parties.

(b) Except as otherwise provided in this paragraph, by the society upon giving to the provider 30 days’ written notice of the modification. If the provider fails to object in writing to the modification within the 30-day period, the modification becomes effective at the end of that period. If the provider objects in writing to the modification within the 30-day period, the modification must not become effective unless agreed to by both parties as described in paragraph (a).

4.  If a society contracts with a provider of health care to”.

    Amend sec. 23, page 22, between lines 31 and 32, by inserting:

    “5.  As used in this section, “provider of health care” means a provider of health care who is licensed pursuant to chapter 630, 631, 632 or 633 of NRS.”.

    Amend sec. 24, page 23, by deleting line 3 and inserting: “this section, if:

(1) The insured is actively undergoing a medically necessary course of treatment; and

(2) The provider of health care and the insured agree that the continuity of care is desirable.”.

    Amend sec. 24, page 23, by deleting lines 7 and 8 and inserting: “this section, if the provider of health care agrees:

(1) To provide medical treatment under the terms of the contract between the provider of health care and the hospital or medical service corporation with regard to the insured, including, without limitation, the rates of payment for providing medical service, as those terms existed before the termination of the contract between the provider of health care and the hospital or medical service corporation; and

(2) Not to seek payment from the insured for any medical service provided by the provider of health care that the provider of health care could not have received from the insured were the provider of health care still under contract with the hospital or medical service corporation.”.

    Amend sec. 24, page 23, line 11, by deleting “180th” and inserting “120th”.

    Amend sec. 24, page 23, line 21, by deleting: “incompetence or misconduct” and inserting: “medical incompetence or professional misconduct”.

    Amend sec. 25, pages 23 and 24, by deleting lines 40 through 44 on
page 23 and lines 1 through 30 on page 24, and inserting: “unless the corporation uses the form prescribed by the Commissioner pursuant to section 40.3 of this act to obtain any information related to the credentials of the provider of health care.

3.  A contract between a corporation specified in subsection 1 and a provider of health care may be modified:

(a) At any time pursuant to a written agreement executed by both parties.

(b) Except as otherwise provided in this paragraph, by the corporation upon giving to the provider 30 days’ written notice of the modification. If the provider fails to object in writing to the modification within the 30-day period, the modification becomes effective at the end of that period. If the provider objects in writing to the modification within the 30-day period, the modification must not become effective unless agreed to by both parties as described in paragraph (a).

4.  If a corporation specified in subsection 1 contracts with a”.

    Amend sec. 25, page 24, between lines 39 and 40, by inserting:

    “5.  As used in this section, “provider of health care” means a provider of health care who is licensed pursuant to chapter 630, 631, 632 or 633 of NRS.”.

    Amend sec. 26, page 25, by deleting lines 37 through 43 and inserting:

    “7.  The Commissioner may require a corporation to provide evidence which demonstrates that the corporation has substantially complied with the requirements set forth in this section, including, without limitation, payment within 30 days of at least 95 percent of approved claims or at least 90 percent of the total dollar amount for approved claims.”.

    Amend sec. 26, page 25, line 44, by deleting “(b)” and inserting “8.”.

    Amend sec. 26, page 26, by deleting lines 3 through 17 and inserting: “Commissioner. Upon a second or subsequent determination that a corporation is not in substantial compliance with the requirements set forth in this section, the Commissioner may suspend or revoke the certificate of authority of the corporation.”.

    Amend sec. 27, page 26, by deleting line 33 and inserting: “this section, if:

(1) The insured is actively undergoing a medically necessary course of treatment; and

(2) The provider of health care and the insured agree that the continuity of care is desirable.”.

    Amend sec. 27, page 26, by deleting lines 37 and 38 and inserting: “section, if the provider of health care agrees:

(1) To provide medical treatment under the terms of the contract between the provider of health care and the health maintenance organization with regard to the insured, including, without limitation, the rates of payment for providing medical service, as those terms existed before the termination of the contract between the provider of health care and the health maintenance organization; and

(2) Not to seek payment from the insured for any medical service provided by the provider of health care that the provider of health care could not have received from the insured were the provider of health care still under contract with the health maintenance organization.”.

    Amend sec. 27, page 26, line 41, by deleting “180th” and inserting “120th”.

    Amend sec. 27, page 27, lines 5 and 6, by deleting: “incompetence or misconduct” and inserting: “medical incompetence or professional misconduct”.

    Amend sec. 28, page 27, line 33, by deleting “chapter 686A,”.

    Amend sec. 30, pages 28 and 29, by deleting lines 20 through 44 on
page 28 and lines 1 through 11 on page 29, and inserting: “unless the health maintenance organization uses the form prescribed by the Commissioner pursuant to section 40.3 of this act to obtain any information related to the credentials of the provider of health care.

2.  A contract between a health maintenance organization and a provider of health care may be modified:

(a) At any time pursuant to a written agreement executed by both parties.

(b) Except as otherwise provided in this paragraph, by the health maintenance organization upon giving to the provider 30 days’ written notice of the modification. If the provider fails to object in writing to the modification within the 30-day period, the modification becomes effective at the end of that period. If the provider objects in writing to the modification within the 30-day period, the modification must not become effective unless agreed to by both parties as described in paragraph (a).

3.  If a health maintenance organization contracts with a”.

    Amend sec. 30, page 29, between lines 20 and 21, by inserting:

    “4.  As used in this section, “provider of health care” means a provider of health care who is licensed pursuant to chapter 630, 631, 632 or 633 of NRS.”.

    Amend sec. 31, page 30, by deleting lines 18 through 25 and inserting:

    “7.  The Commissioner may require a health maintenance organization to provide evidence which demonstrates that the health maintenance organization has substantially complied with the requirements set forth in this section, including, without limitation, payment within 30 days of at least
95 percent of approved claims or at least 90 percent of the total dollar amount for approved claims.”.

    Amend sec. 31, page 30, line 26, by deleting “(b)” and inserting “8.”.

    Amend sec. 31, page 30, line 30, after “Commissioner.” by inserting: “Upon a second or subsequent determination that a health maintenance organization is not in substantial compliance with the requirements set forth in this section, the Commissioner may suspend or revoke the certificate of authority of the health maintenance organization.”.

    Amend sec. 31, pages 30 and 31, by deleting lines 31 through 44 on
page 30 and lines 1 and 2 on page 31.

    Amend sec. 33, page 32, by deleting line 35 and inserting: “this section, if:

(1) The insured is actively undergoing a medically necessary course of treatment; and

(2) The provider of health care and the insured agree that the continuity of care is desirable.”.

    Amend sec. 33, page 32, by deleting lines 39 and 40 and inserting: “section, if the provider of health care agrees:

(1) To provide medical treatment under the terms of the contract between the provider of health care and the managed care organization with regard to the insured, including, without limitation, the rates of payment for providing medical service, as those terms existed before the termination of the contract between the provider of health care and the managed care organization; and

(2) Not to seek payment from the insured for any medical service provided by the provider of health care that the provider of health care could not have received from the insured were the provider of health care still under contract with the managed care organization.”.

    Amend sec. 33, page 32, line 43, by deleting “180th” and inserting “120th”.

    Amend sec. 33, page 33, lines 7 and 8, by deleting: “incompetence or misconduct” and inserting: “medical incompetence or professional misconduct”.

    Amend sec. 33.5, page 33, by deleting line 31 and inserting: “care organization shall comply with [any] :

(a) The provisions of chapter 686A of NRS, including all obligations and remedies set forth therein; and

(b) Any other applicable provision”.

    Amend sec. 34, page 34, by deleting lines 6 through 41 and inserting: “unless the managed care organization uses the form prescribed by the Commissioner pursuant to section 40.3 of this act to obtain any information related to the credentials of the provider of health care.

2.  A contract between a managed care organization and a provider of health care may be modified:

(a) At any time pursuant to a written agreement executed by both parties.

(b) Except as otherwise provided in this paragraph, by the managed care organization upon giving to the provider 30 days’ written notice of the modification. If the provider fails to object in writing to the modification within the 30-day period, the modification becomes effective at the end of that period. If the provider objects in writing to the modification within the 30-day period, the modification must not become effective unless agreed to by both parties as described in paragraph (a).

3.  If a managed care organization contracts with a provider”.

    Amend sec. 34, page 35, between lines 7 and 8, by inserting:

    “4.  As used in this section, “provider of health care” means a provider of health care who is licensed pursuant to chapter 630, 631, 632 or 633 of NRS.”.

    Amend sec. 35, page 35, by deleting line 9 and inserting: “thereto a new section to read as follows:

1.  In an action for damages for medical malpractice or dental malpractice in which the defendant is insured pursuant to a policy of insurance covering the liability of the defendant for a breach of his professional duty toward a patient:

(a) At any settlement conference, the judge may recommend that the action be settled for the limits of the policy of insurance.

(b) If the judge makes the recommendation described in paragraph (a), the defendant is entitled to obtain from independent counsel an opinion letter explaining the rights of, obligations of and potential consequences to the defendant with regard to the recommendation. The insurer shall pay the independent counsel to provide the opinion letter described in this paragraph, except that the insurer is not required to pay more than $1,500 to the independent counsel to provide the opinion letter.

2.  The section does not:

(a) Prohibit the plaintiff from making any offer of settlement.

(b) Require an insurer to provide or pay for independent counsel for a defendant except as expressly provided in this section.”.

    Amend the bill as a whole by deleting sections 36 and 37 and adding:

    “Secs. 36 and 37.  (Deleted by amendment.)”.

    Amend the bill as a whole by deleting sec. 39.5 and adding:

    “Sec. 39.5.  (Deleted by amendment.)”.

    Amend the bill as a whole by adding new sections designated sections 40.3 and 40.7, following sec. 40, to read as follows:

    “Sec. 40.3.  Chapter 629 of NRS is hereby amended by adding thereto a new section to read as follows:

1.  Except as otherwise provided in subsection 2, the Commissioner of Insurance shall develop, prescribe for use and make available a single, standardized form for use by insurers, carriers, societies, corporations, health maintenance organizations and managed care organizations in obtaining any information related to the credentials of a provider of health care.

2.  The provisions of subsection 1 do not prohibit the Commissioner of Insurance from developing, prescribing for use and making available:

(a) Appropriate variations of the form described in that subsection for use in different geographical regions of this state.

(b) Addenda or supplements to the form described in that subsection to address, until such time as a new form may be developed, prescribed for use and made available, any requirements newly imposed by the Federal Government, the State or one of its agencies, or a body that accredits hospitals, medical facilities or health care plans.

3.  With respect to the form described in subsection 1, the Commissioner of Insurance shall:

(a) Hold public hearings to seek input regarding the development of the form;

(b) Develop the form in consideration of the input received pursuant to paragraph (a);

(c) Ensure that the form is developed in such a manner as to accommodate and reflect the different types of credentials applicable to different classes of providers of health care;

(d) Ensure that the form is developed in such a manner as to reflect standards of accreditation adopted by national organizations which accredit hospitals, medical facilities and health care plans; and

(e) Ensure that the form is developed to be used efficiently and is developed to be neither unduly long nor unduly voluminous.

4.  As used in this section:

(a) “Carrier” has the meaning ascribed to it in NRS 689C.025.

(b) “Corporation” means a corporation operating pursuant to the provisions of chapter 695B of NRS.

(c) “Health maintenance organization” has the meaning ascribed to it in NRS 695C.030.

(d) “Insurer” means:

(1) An insurer that issues policies of individual health insurance in accordance with chapter 689A of NRS; and

(2) An insurer that issues policies of group health insurance in accordance with chapter 689B of NRS.

(e) “Managed care organization” has the meaning ascribed to it in
NRS 695G.050.

(f) “Provider of health care” means a provider of health care who is licensed pursuant to chapter 630, 631, 632 or 633 of NRS.

(g) “Society” has the meaning ascribed to it in NRS 695A.044.

    Sec. 40.7.  1.  The Commissioner of Insurance shall develop, prescribe for use and make available the form described in section 40.3 of this act on or before July 1, 2004.

    2.  Notwithstanding the provisions of sections 10, 14, 16, 23, 25, 30 and 34 of this act, an insurer, carrier, society, corporation, health maintenance organization and managed care organization is not required to use the form described in section 40.3 of this act until the earlier of:

    (a) The date by which the Commissioner of Insurance develops, prescribes for use and makes available that form; or

    (b) July 1, 2004.”.

    Amend the bill as a whole by adding a new section designated sec. 42, following sec. 41, to read as follows:

    “Sec. 42.  1.  This section and sections 40.3 and 40.7 of this act become effective upon passage and approval.

    2.  Sections 1 to 40, inclusive, and 41 of this act become effective on October 1, 2003.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to malpractice; providing for certain defendants in malpractice actions to receive specified information from independent counsel under certain circumstances; prohibiting certain organizations from charging a fee for including the name of a provider of health care on a panel of providers of health care under certain circumstances; prescribing the manner in which a contract with a provider of health care may be modified; requiring the development and use of a uniform form for obtaining information regarding the credentials of providers of health care for the purposes of contracts; requiring the submission of a schedule of payments to a provider of health care under certain circumstances; expanding the scope of certain deceptive trade practices to include health maintenance organizations; expanding the scope of statutorily defined unfair practices to include certain actions by managed care organizations; authorizing suspension, limitation and revocation of the authority of certain insuring entities for failure to timely pay approved claims or for violating provisions of the Nevada Insurance Code under certain circumstances; authorizing intervention in certain insurance ratemaking proceedings; requiring the Commissioner of Insurance to disapprove a proposed increase in rates for malpractice insurance under certain circumstances; prescribing procedures for withdrawal of certain insurers from the malpractice insurance market in this state; requiring disclosure of reasons for certain underwriting decisions; requiring certain policies of health insurance and health care plans to provide coverage for continued medical treatment by a provider of health care under certain circumstances; revising the circumstances under which the Commissioner of Insurance may suspend or revoke a certificate of authority issued to a health maintenance organization; requiring certain public organizations that provide health insurance to provide coverage for continued medical treatment by a provider of health care under certain circumstances; and providing other matters properly relating thereto.”.

    Assemblyman Anderson moved that the Assembly concur in the Senate amendment to Assembly Bill No. 320.

    Remarks by Assemblyman Anderson.

    Motion carried by a constitutional majority.

    Bill ordered to enrollment.

Recede From Assembly Amendments

    Assemblyman Anderson moved that the Assembly do not recede from its action on Senate Bill No. 432, that a conference be requested, and that
Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

    Remarks by Assemblyman Anderson.

    Motion carried.

Appointment of Conference Committees

    Mr. Speaker appointed Assemblymen Anderson, Geddes, and Claborn as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 432.

Consideration of Senate Amendments

    Assembly Bill No. 509.

    The following Senate amendment was read:

    Amendment No. 623.

    Amend section 1, page 1, line 2, by deleting “1.” and inserting “[1.]”.

    Amend section 1, pages 1 and 2, by deleting lines 10 through 16 on page 1 and lines 1 through 22 on page 2, and inserting:

    “[2.  Any resident of the school district who is aggrieved by the decision of the board of trustees at the reconsideration hearing may, within 30 days after that decision is rendered, make a written request to the State Board of Education for a hearing to review the decision. The State Board of Education shall conduct the hearing in the county in which the school is located within 30 days after receiving the request and shall publish a notice of the time and place of the hearing in a newspaper of general circulation in the county at least 10 days before the hearing. The State Board of Education shall hear the matter de novo.] The decision of the [State Board of Education] board of trustees after its reconsideration hearing is a final decision subject to judicial review as provided by law.”.

    Assemblyman Williams moved that the Assembly concur in the Senate amendment to Assembly Bill No. 509.

    Remarks by Assemblyman Williams.

    Motion carried by a constitutional majority.

    Bill ordered to enrollment.

Appointment of Conference Committees

    Mr. Speaker appointed Assemblymen Oceguera, Buckley, and Brown as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Assembly Bill No. 81.

    Mr. Speaker appointed Assemblymen Goldwater, Conklin, and Griffin as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Assembly Bill No. 232.

    Mr. Speaker appointed Assemblymen Goldwater, Buckley, and Brown as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Assembly Bill No. 498.

MOTIONS, RESOLUTIONS AND NOTICES

    By Assemblywoman Ohrenschall:

    Assembly Concurrent Resolution No. 31—Encouraging the recognition of mental illness and suicide in the young people of Nevada as public health crises and recommending the implementation of evidence-based initiatives to screen children and adolescents for mental disorders.

    Assemblywoman Ohrenschall moved the adoption of the resolution.

    Remarks by Assemblywoman Ohrenschall.

    Resolution adopted.

UNFINISHED BUSINESS

Consideration of Senate Amendments

    Assembly Bill No. 425.

    The following Senate amendment was read:

    Amendment No. 763.

    Amend sec. 15, pages 13 and 14, by deleting lines 13 through 45 on
page 13 and lines 1 through 4 on page 14, and inserting:

    “Sec. 15.  NRS 338.1377 is hereby amended to read as follows:

    338.1377  [1.  Except as otherwise provided in NRS 338.1383,] If the governing body of [each] a local government that sponsors or finances a public work elects to award contracts for public works pursuant to the provisions of NRS 338.1377 to 338.139, inclusive, the governing body shall adopt the following criteria for [the qualification of bidders] determining whether a person who has applied pursuant to NRS 338.1379 is qualified to bid on contracts for public works of the local government [. The governing body shall use the criteria to determine the qualification of bidders on contracts for public works of the local government.

2.  Before adopting criteria pursuant to this section, the governing body of a local government shall hold at least one public hearing to solicit and evaluate public opinion regarding the criteria to be adopted. Notice of such a hearing must be provided by mail at least 10 days before the hearing to:

(a) Construction trade associations in this state; and

(b) Labor unions representing trades in the building industry in this state.

3.  The criteria adopted by a governing body pursuant to this section to determine whether an applicant is qualified to bid on a contract for a public work:

(a) Must be adopted in such a form that the determination of whether an applicant is qualified to bid on a contract for a public work does not require or allow the exercise of discretion by any one person.

(b) May include only:

(1) The financial ability of the applicant to perform a contract;

(2) The principal personnel of the applicant;

(3)] :

1.  Whether the applicant possesses a valid contractor’s license of a class corresponding to the work to be required by the local government;

2.  Whether the applicant has the ability to obtain the necessary bonding for the work to be required by the local government;

3.  Whether the applicant has successfully completed one or more projects during the 5 years immediately preceding the date of application of similar size, scope or type as the work to be required by the local government;

4.  Whether the principal personnel employed by the applicant have the necessary professional qualifications and experience for the work to be required by the local government;

5.  Whether the applicant has breached any contracts with a public agency or person in this state or any other state [; and

(4)] during the 5 years immediately preceding the date of application;

6.  Whether the applicant has been disqualified from being awarded a contract pursuant to NRS 338.017 or 338.1387 [.] ;

7.  Whether the applicant has been convicted of a violation for discrimination in employment during the 2 years immediately preceding the date of application;

8.  Whether the applicant has the ability to obtain and maintain insurance coverage for public liability and property damage within limits sufficient to protect the applicant and all the subcontractors of the applicant from claims for personal injury, accidental death and damage to property that may arise in connection with the work to be required by the local government;

9.  Whether the applicant has established a safety program that complies with the requirements of chapter 618 of NRS;

10.  Whether the applicant has been disciplined or fined by the State Contractors’ Board or another state or federal agency for conduct that relates to the ability of the applicant to perform the work to be required by the local government;

11.  Whether, during the 5 years immediately preceding the date of application, the applicant has filed as a debtor under the provisions of the United States Bankruptcy Code;

12.  Whether the application of the applicant is truthful and complete; and

13.  Whether, during the 5 years immediately preceding the date of application, the applicant has, as a result of causes within the control of the applicant or a subcontractor or supplier of the applicant, failed to perform any contract:

(a) In the manner specified by the contract and any change orders initiated or approved by the person or governmental entity that awarded the contract or its authorized representative;

(b) Within the time specified by the contract unless extended by the person or governmental entity that awarded the contract or its authorized representative; or

(c) For the amount of money specified in the contract or as modified by any change orders initiated or approved by the person or governmental entity that awarded the contract or its authorized representative.

Evidence of the failures described in this subsection may include, without limitation, the assessment of liquidated damages against the applicant, the forfeiture of any bonds posted by the applicant, an arbitration award granted against the applicant or a decision by a court of law against the applicant.”.

    Amend sec. 17, page 14, line 45, by deleting “30” and inserting “45”.

    Amend the title of the bill by deleting the eighth through tenth lines and inserting: “revising the provisions governing the criteria for determining the qualification of bidders on public works of local governments; revising certain”.

    Assemblyman Goldwater moved that the Assembly concur in the Senate amendment to Assembly Bill No. 425.

    Remarks by Assemblyman Goldwater.

    Motion carried by a constitutional majority.

    Bill ordered to enrollment.

    Assembly Bill No. 190.

    The following Senate amendment was read:

    Amendment No. 666.

    Amend the bill as a whole by renumbering sections 1 through 7 as
sections 6 through 12 and adding new sections designated sections 1 through 5, following the enacting clause, to read as follows:

    “Section 1.  Chapter 624 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

    Sec. 2.  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 624.010, 624.020 and section 3 of this act have the meanings ascribed to them in those sections.

    Sec. 3.  “Knowingly” imports a knowledge that the facts exist which constitute the act or omission, and does not require knowledge of the prohibition against the act or omission. Knowledge of any particular fact may be inferred from the knowledge of such other facts as should put an ordinarily prudent person upon inquiry.

    Sec. 4.  NRS 624.010 is hereby amended to read as follows:

    624.010  [As used in this chapter,] “Board” means the State Contractors’ Board.

    Sec. 5.  NRS 624.020 is hereby amended to read as follows:

    624.020  [For the purposes of this chapter, unless the context otherwise requires:]

    1.  “Contractor” is synonymous with “builder.”

    2.  A contractor is any person, except a registered architect or a licensed professional engineer, acting solely in his professional capacity, who in any capacity other than as the employee of another with wages as the sole compensation, undertakes to, offers to undertake to, purports to have the capacity to undertake to, or submits a bid to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith. Evidence of the securing of any permit from a governmental agency or the employment of any person on a construction project must be accepted by the Board or any court of this state as prima facie evidence that the person securing that permit or employing any person on a construction project is acting in the capacity of a contractor pursuant to the provisions of this chapter.

    3.  A contractor includes a subcontractor or specialty contractor, but does not include anyone who merely furnishes materials or supplies without fabricating them into, or consuming them in the performance of, the work of a contractor.

    4.  A contractor includes a construction manager who performs management and counseling services on a construction project for a professional fee.”.

    Amend sec. 5, page 7, line 42, by deleting “Submitting” and inserting “Knowingly submitting”.

    Assemblyman Goldwater moved that the Assembly concur in the Senate amendment to Assembly Bill No. 190.

    Remarks by Assemblyman Goldwater.

    Motion carried by a constitutional majority.

    Bill ordered to enrollment.

    Mr. Speaker announced if there were no objections, the Assembly would recess subject to the call of the Chair.

    Assembly in recess at 11:53 a.m.

ASSEMBLY IN SESSION

    At 11:57 a.m.

    Mr. Speaker presiding.

    Quorum present.

REPORTS OF COMMITTEES

Mr. Speaker:

    Your Concurrent Committee on Commerce and Labor, to which was referred Assembly Concurrent Resolution No. 19, has had the same under consideration, and begs leave to report the same back with the recommendation: Be adopted.

David Goldwater, Chairman

general file and third reading

    Assembly Bill No. 7.

    Bill read third time.

    Remarks by Assemblymen Manendo, Carpenter, Gustavson, Giunchigliani, Beers, Anderson, Mortenson, Hardy, Brown, Knecht, and Buckley.

    Roll call on Assembly Bill No. 7:

    Yeas—33.

    Nays—Beers, Carpenter, Collins, Giunchigliani, Goicoechea, Gustavson, Hettrick, Knecht, Marvel—9.

    Assembly Bill No. 7 having received a constitutional majority,
Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 195.

    Bill read third time.

    Roll call on Assembly Bill No. 195:

    Yeas—42.

    Nays—None.

    Assembly Bill No. 195 having received a constitutional majority,
Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 266.

    Bill read third time.

    Roll call on Assembly Bill No. 266:

    Yeas—26.

    Nays—Andonov, Angle, Beers, Brown, Carpenter, Christensen, Goicoechea, Grady, Gustavson, Hardy, Hettrick, Knecht, Mabey, Marvel, Sherer, Weber—16.

    Assembly Bill No. 266 having received a constitutional majority,
Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 533.

    Bill read third time.

    Roll call on Assembly Bill No. 533:

    Yeas—42.

    Nays—None.

    Assembly Bill No. 533 having received a constitutional majority,
Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 544.

    Bill read third time.

    Remarks by Assemblywoman Giunchigliani.

    Roll call on Assembly Bill No. 544:

    Yeas—42.

    Nays—None.

    Assembly Bill No. 544 having received a constitutional majority,
Mr. Speaker declared it passed.

    Bill ordered transmitted to the Senate.

    Senate Bill No. 415.

    Bill read third time.

    Roll call on Senate Bill No. 415:

    Yeas—42.

    Nays—None.

    Senate Bill No. 415 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

MOTIONS, RESOLUTIONS AND NOTICES

Assemblywoman Buckley moved that all rules be suspended and that Assembly Bills Nos. 7, 195, 266, 533, 544; Senate Bill No. 415 be immediately transmitted to the Senate.

    Motion carried unanimously.

UNFINISHED BUSINESS

Consideration of Senate Amendments

    Assembly Bill No. 452.

    The following Senate amendment was read:

    Amendment No. 670.

    Amend sec. 2, page 2, line 7, by deleting “have” and inserting “hold”.

    Amend sec. 2, page 2, line 9, by deleting: “2006, may have” and inserting: “2004, may hold”.

    Amend sec. 2, page 2, line 17, by deleting “637.122,” and inserting “637.120,”.

    Amend sec. 4, page 4, by deleting lines 3 through 17 and inserting:

    “Sec. 4.  1.  The Board may impose an administrative fine against a person who is not licensed pursuant to the provisions of this chapter if:

(a) The person violates any provision of NRS 637.125 or any regulation adopted by the Board to carry out the provisions of that section; or

(b) The person employs a dispensing optician, apprentice dispensing optician or other person and the dispensing optician, apprentice dispensing optician or other person, in the course of his employment or apprenticeship, violates any provision of NRS 637.125 or any regulation adopted by the Board to carry out the provisions of that section.

2.  The Board may impose a separate administrative fine against the person for each act that constitutes a separate violation.

3.  In the first administrative proceeding brought against the person pursuant to this section, the Board may impose, for each act that constitutes a separate violation, an administrative fine of not more than $1,000.

4.  In the second and any subsequent administrative proceeding brought against the person pursuant to this section, the Board may impose, for each act that constitutes a separate violation, an administrative fine of not more than $5,000.”.

    Amend sec. 5, page 4, by deleting lines 19 through 36 and inserting:

    “637.022  1.  “Ophthalmic dispensing” means the design, verification and delivery to the intended wearer of lenses, frames and other specially fabricated optical devices upon prescription.

2.  The term includes:

[1.] (a) The taking of measurements to determine the size, shape and specifications of the lenses, frames or contact lenses;

[2.] (b) The preparation and delivery of work orders to laboratory technicians engaged in grinding lenses and fabricating eyewear;

[3.] (c) The verification of the quality of finished ophthalmic products;

[4.] (d) The adjustment of lenses or frames to the intended wearer’s face or eyes;

[5.] (e) The adjustment, replacement, repair and reproduction of previously prepared ophthalmic lenses, frames or other specially fabricated ophthalmic devices; and

[6.] (f) The fitting of contact lenses and the dispensing of prepackaged contact lenses pursuant to a written prescription , when done by a dispensing optician or apprentice dispensing optician who [has been licensed pursuant to NRS 637.122] is authorized to do so [.] pursuant to the provisions of this chapter.

3.  The term does not include any act for which a license is required pursuant to chapter 630 or 636 of NRS, and the provisions of this chapter do not authorize a dispensing optician or apprentice dispensing optician to perform any such act.”.

    Amend the bill as a whole by deleting sections 6 through 15 and adding new sections designated sections 6 through 12, following sec. 5.5, to read as follows:

    “Sec. 6.  NRS 637.100 is hereby amended to read as follows:

    637.100  [A candidate, in order to]

1.  To qualify for examination and licensing as a dispensing optician, an applicant must furnish proof that he:

[1.] (a) Is at least 18 years of age.

[2.] (b) Is of good moral character.

[3.] (c) Is a citizen of the United States, or is lawfully entitled to remain and work in the United States.

[4.] (d) Is a graduate of an accredited high school or its equivalent.

[5.] (e) Has passed the examination of the American Board of Opticianry . [and has:

(a)] (f) Has done either of the following:

(1) Served as an apprentice dispensing optician for not less than
3 [years’ full-time employment] years in an optical establishment where prescriptions for spectacles or contact lenses from given formulae are fitted and filled [, has acquired experience in optical technology and has had 1 year of experience in ophthalmic dispensing] under the direct supervision of a licensed dispensing optician , licensed ophthalmologist or licensed optometrist [,] for the purpose of acquiring experience in ophthalmic dispensing and has passed [the career progression program of the National Academy of Opticianry or an equivalent program accepted] an educational program on the theory of ophthalmic dispensing approved by the Board; or

[(b)] (2) Successfully completed a course of study in a school which offers a degree of associate in applied science for studies in ophthalmic dispensing approved by the Board and has had 1 year of ophthalmic experience as an apprentice dispensing optician under the direct supervision of a licensed dispensing optician , licensed ophthalmologist or licensed optometrist.

(g) Has done all of the following:

(1) Successfully completed a course of instruction on the fitting of contact lenses approved by the Board;

(2) Completed at least 100 hours of training and experience in the fitting of and filling of prescriptions for contact lenses under the direct supervision of a licensed dispensing optician authorized to fit and fill prescriptions for contact lenses, a licensed ophthalmologist or a licensed optometrist;

(3) Passed the Contact Lens Registry Examination of the National Committee of Contact Lens Examiners; and

(4) Passed the practical examination on the fitting of and filling of prescriptions for contact lenses adopted by the Board.

2.  The Board shall adopt regulations to carry out the provisions of this section, including, without limitation, regulations that establish requirements for:

(a) The program of apprenticeship for apprentice dispensing opticians;

(b) The training and experience of apprentice dispensing opticians; and

(c) The issuance of licenses to apprentice dispensing opticians.

    Sec. 7.  NRS 637.110 is hereby amended to read as follows:

    637.110  1.  An application for the issuance of a license as [a dispensing optician or] an apprentice dispensing optician must [include the social security number of the applicant.] be accompanied by a fee of not more than $250 to cover the costs of the Board and the initial licensing.

    2.  An application for the issuance of a license as a dispensing optician must be accompanied by [:

(a) The statement required pursuant to NRS 637.113;

(b) A] a fee of not more than $250 to cover the cost of the examination by the Board and the initial licensing.

    3.  The Board shall, if it approves an application [,] for the issuance of a license as a dispensing optician, examine the applicant in ophthalmic dispensing, except that the Board may waive the examination of an applicant who is, at the time of application, licensed as a dispensing optician in another state.

    4.  To pass the examination [,] for the issuance of a license as a dispensing optician, an applicant must achieve a score of at least 70 percent.

    Sec. 8.  NRS 637.110 is hereby amended to read as follows:

637.110  1.  An application for the issuance of a license as an apprentice dispensing optician must be accompanied by a fee of not more than $250 to cover the costs of the Board and the initial licensing.

2.  An application for the issuance of a license as a dispensing optician must be accompanied by a fee of not more than [$250] $500 to cover the cost of the examination by the Board and the initial licensing.

3.  The Board shall, if it approves an application for the issuance of a license as a dispensing optician, examine the applicant in ophthalmic dispensing, except that the Board may waive the examination of an applicant who is, at the time of application, licensed as a dispensing optician in another state.

4.  To pass the examination for the issuance of a license as a dispensing optician, an applicant must achieve a score of at least 70 percent.

    Sec. 9.  NRS 637.113 is hereby amended to read as follows:

    637.113  1.  [An] In addition to any other requirements set forth in this chapter, an applicant for the issuance or renewal of a license as a dispensing optician or apprentice dispensing optician shall submit to the Board :

(a) In any application for issuance of a license, the social security number of the applicant and the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

(b) In any application for renewal of a license, the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

    2.  The Board shall include the statement required pursuant to subsection 1 in:

    (a) The application or any other forms that must be submitted for the issuance or renewal of the license; or

    (b) A separate form prescribed by the Board.

    3.  A license as a dispensing optician or apprentice dispensing optician may not be issued or renewed by the Board if the applicant:

    (a) Fails to submit the statement required pursuant to subsection 1; or

    (b) Indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

    4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Board shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

    Sec. 10.  NRS 637.120 is hereby amended to read as follows:

    637.120  1.  [An applicant successfully completing the examination must be issued a] The Board shall issue a license as a dispensing optician to each applicant who satisfies the requirements of this chapter for the issuance of the license.

2.  A license as a dispensing optician [by the Board. The license] authorizes the [applicant] holder to engage in the practice of ophthalmic dispensing [,] and must at all times be conspicuously displayed at the holder’s place of practice. The license is not transferable by the holder. [A separate license is required before the dispensing optician may fit contact lenses.

2.] 3.  The Board may, upon application and the payment of a fee not to exceed $100, issue one duplicate license.

    Sec. 11.  NRS 637.123 is hereby amended to read as follows:

    637.123  1.  Except as otherwise provided in this section:

(a) The license of [each] an apprentice dispensing optician [must expire] expires on January 31 of each year [. A license may be] unless the license is renewed before expiration upon [submission of the statement required pursuant to NRS 637.113 and] payment of the annual renewal fee set by the Board, not to exceed $200.

[2.] (b) The license of an apprentice dispensing optician that is not renewed before January 31 is delinquent. A delinquent license may be reinstated at the discretion of the Board upon [submission of the statement required pursuant to NRS 637.113 and] payment of each applicable annual renewal fee and an annual delinquency fee established by the Board, not to exceed $100.

[3.] 2.  The Board may by regulation require continuing education as a prerequisite to the renewal of the license of an apprentice dispensing optician.

3.  The license of an apprentice dispensing optician may be renewed not more than four times, unless the Board determines that good cause exists for one or more additional renewals.

    Sec. 12.  NRS 637.125 is hereby amended to read as follows:

    637.125  1.  A person may not employ another person to perform the services of a dispensing optician unless the other person:

(a) Is licensed by the Board as a dispensing optician; or

(b) Is licensed by the Board as an apprentice dispensing optician and is directly supervised as required by the provisions of this chapter.

2.  A licensed dispensing optician may [employ any] not allow another person who is under his direct supervision to perform the services of a dispensing optician [if] unless the other person is licensed by the Board as a dispensing optician or an apprentice dispensing optician.

[2.  A]

3.  If a person is licensed by the Board as an apprentice dispensing optician, a licensed dispensing optician [shall:

(a) Supervise] , licensed ophthalmologist or licensed optometrist must:

(a) Directly supervise all work done by [an] the apprentice dispensing optician.

    (b) Be in attendance whenever [an] the apprentice dispensing optician is engaged in ophthalmic dispensing.

    (c) Post the license of the apprentice dispensing optician in a conspicuous place where the apprentice dispensing optician works.

[3.] 4.  A licensed dispensing optician may not have under his supervision more than two licensed apprentice dispensing opticians at any one time.

[4.  The Board may require a fee of not more than $250 for the licensure of an apprentice dispensing optician.]

    5.  A licensed dispensing optician or a person who employs a licensed dispensing optician may employ other persons to assist in consulting on optical fashions [and in making optical repairs, and these persons need] , and a licensed dispensing optician may supervise such other persons. Such other persons:

(a) Are not required to be licensed [as apprentices.] pursuant to the provisions of this chapter.

(b) May not perform the services of a dispensing optician.

6.  The Board may adopt regulations to carry out the provisions of this section.”.

    Amend the bill as a whole by renumbering sections 16 through 18 as sections 13 through 15, deleting sec. 19 and adding a new section designated sec. 16, following sec. 18, to read as follows:

    “Sec. 16.  NRS 637.170 is hereby amended to read as follows:

    637.170  Any licensee whose license was revoked by the Board may apply for a new license [as provided in NRS 637.100 to 637.122, inclusive,] pursuant to the provisions of this chapter at any time after the date of revocation. The Board may consider such an application for licensure and may grant it upon the applicant’s payment of a fee set by the Board to cover the administrative costs of any investigation and hearing.”.

    Amend the bill as a whole by renumbering sec. 20 as sec. 17, deleting sections 21 through 23 and adding new sections designated sections 18 through 20, following sec. 20, to read as follows:

    “Sec. 18.  1.  NRS 637.0225 is hereby repealed.

    2.  NRS 637.122 is hereby repealed.

    Sec. 19.  1.  If, on February 1, 2004, a person holds an active license, inactive license or delinquent license as a dispensing optician who is not authorized to fit contact lenses, the person shall be deemed to hold an active limited license, inactive limited license or delinquent limited license, as appropriate, pursuant to the provisions of section 2 of this act.

    2.  If, on February 1, 2004, a person holds an active license, inactive license or delinquent license as a dispensing optician who is authorized to fit contact lenses, the person shall be deemed to hold an active license, inactive license or delinquent license, as appropriate, that is issued pursuant to
NRS 637.120, as amended by section 10 of this act.

    3.  Except as otherwise provided in subsection 4, if a person holds a license as an apprentice dispensing optician on or after the effective date of this act, the Board of Dispensing Opticians may not issue the person a license as a dispensing optician unless the person satisfies the requirements set forth in chapter 637 of NRS for the issuance of a license as a dispensing optician who is authorized to fit contact lenses.

    4.  Notwithstanding the amendatory provisions of this act, if a person holds a license as an apprentice dispensing optician on the effective date of this act:

    (a) The person may apply for a license as a dispensing optician who is not authorized to fit contact lenses; and

    (b) The Board of Dispensing Opticians shall issue such a license to the person if, before February 1, 2006, the person satisfies the requirements set forth in chapter 637 of NRS for the issuance of such a license, as those requirements existed on the date immediately preceding the effective date of this act. Upon issuance of the license, the person shall be deemed to hold an active limited license as a dispensing optician that is subject to the provisions of section 2 of this act.

    Sec. 20.  1.  This section and sections 1, 3, 4, 5, 5.5, 7, 9, 11, 12, 14, 16, 17 and 19 and subsection 1 of section 18 of this act become effective upon passage and approval.

    2.  Sections 2, 6, 8, 10, 13 and 15 and subsection 2 of section 18 of this act become effective on February 1, 2004.

    3.  Section 9 of this act expires 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.”.

    Amend the text of repealed sections by adding the text of NRS 637.122.

    Amend the title of the bill by deleting the fifth through nineteenth lines and inserting: “administrative fines for persons who violate certain provisions relating to ophthalmic dispensing; providing for one license for dispensing opticians that would authorize the licensee to engage in all activities reserved for dispensing opticians, including those relating to contact lenses; providing for a limited license for existing dispensing opticians who are not authorized to provide contact lenses; revising various provisions relating to apprentice dispensing opticians;”.

    Assemblyman Goldwater moved that the Assembly concur in the Senate amendment to Assembly Bill No. 452.

    Remarks by Assemblyman Goldwater.

    Motion carried by a two-thirds constitutional majority.

    Bill ordered to enrollment.

    Assembly Bill No. 493.

    The following Senate amendment was read:

    Amendment No. 712.

    Amend the bill as a whole by deleting sections 2 and 3 and adding new sections designated as sections 2 and 3, following section 1, to read as follows:

    “Sec. 2.  1.  Except as otherwise provided by law, any money appropriated to the Commissioner or the Division and any money collected by the Commissioner or Division pursuant to law:

(a) Must be deposited in the State Treasury and accounted for separately in the State General Fund; and

(b) May only be used to:

(1) Carry out the programs and laws administered by the Commissioner and the Division; and

(2) Pay the expenses related to the operations of the Commissioner and the Division.

2.  Except as otherwise provided by law, any money that remains in the account at the end of the fiscal year, does not revert to the State General Fund, and the balance of the account must be carried forward to the next fiscal year.

3.  The Commissioner shall administer the account. Any interest or income earned on the money in the account must be credited to the account, after deducting any applicable charges. Any claims against the account must be paid as other claims against the State are paid.

Sec. 3.  1.  On a quarterly or other regular basis, the Commissioner shall collect an assessment pursuant to this section from each:

(a) Check-cashing service or deferred deposit service that is supervised pursuant to chapter 604 of NRS;

(b) Escrow agent that is supervised pursuant to chapter 645 A of NRS;

(c) Mortgage broker that is supervised pursuant to chapter 645B of NRS;

(d) Mortgage company that is supervised pursuant to chapter 645E
of NRS;

(e) Collection agency that is supervised pursuant to chapter 649 of NRS;

(f) Bank that is supervised pursuant to chapters 657 to 668, inclusive,
of NRS;

(g) Trust company that is supervised pursuant to chapter 669 of NRS;

(h) Development corporation that is supervised pursuant to chapter 670
 of NRS;

(i) Corporation for economic revitalization and diversification that is supervised pursuant to chapter 670A of NRS;

(j) Person engaged in the business of selling or issuing checks or of receiving for transmission or transmitting money or credits that is supervised pursuant to chapter 671 of NRS;

(k) Savings and loan association that is supervised pursuant to
chapter 673 of NRS;

(l) Person engaged in the business of lending that is supervised pursuant to chapter 675 of NRS;

(m) Person engaged in the business of debt adjusting that is supervised pursuant to chapter 676 of NRS;

(n) Thrift company that is supervised pursuant to chapter 677 of NRS; and

(o) Credit union that is supervised pursuant to chapter 678 of NRS.

2.  The Commissioner shall determine the total amount of all assessments to be collected from the entities identified in subsection 1, but that amount must not exceed the amount necessary to recover the cost of legal services provided by the Attorney General to the Commissioner and to the Division. The total amount of all assessments collected must be reduced by any amounts collected by the Commissioner from an entity for the recovery of the costs of legal services provided by the Attorney General in a specific case.

3.  The Commissioner shall collect from each entity identified in subsection 1 an assessment that is based on:

(a) A portion of the total amount of all assessments as determined pursuant to subsection 2, such that the assessment collected from an entity identified in subsection 1 shall bear the same relation to the total amount of all assessments as the total assets of that entity bear to the total of all assets of all entities identified in subsection 1; or

(b) Any other reasonable basis adopted by the Commissioner.

4.  The assessment required by this section is in addition to any other assessment, fee or cost required by law to be paid by an entity identified in subsection 1.

5.  Money collected by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of section 2 of this act.”.

    Amend the bill as a whole by deleting sec. 4 and adding:

    “Sec. 4.  (Deleted by amendment.)”.

    Amend sec. 5, page 3, line 34, by deleting “paid into” and inserting: “[paid into] deposited in”.

    Amend sec. 5, page 3, by deleting line 35 and inserting: “State [General Fund.] Treasury pursuant to the provisions of”.

    Amend sec. 6, page 4, line 3, after “of the” by inserting: “money deposited to the”.

    Amend sec. 6, page 4, by deleting line 4 and inserting: “State [General Fund] Treasury pursuant to the provisions of”.

    Amend sec. 7, page 4, by deleting lines 35 through 37 and inserting: “must be [paid into] deposited in the State [General Fund and the State Treasurer shall issue a receipt therefor.] Treasury pursuant to the provisions of
section 2 of this act.”.

    Amend sec. 8, page 5, line 1, by deleting “paid into” and inserting: “[paid into] deposited in”.

    Amend sec. 8, page 5, by deleting line 2 and inserting: “State [General Fund.] Treasury pursuant to the provisions of”.

    Amend sec. 9, page 5, by deleting lines 9 and 10 and inserting: “[paid into] deposited in the State [General Fund] Treasury pursuant to the provisions of section 2 of this act.”.

    Amend sec. 10, page 5, by deleting lines 27 and 28 and inserting: “in the State Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.”.

    Amend the bill as a whole by deleting sec. 11 and adding:

    “Sec. 11.  (Deleted by amendment.)”.

    Amend sec. 12, page 7, by deleting lines 1 and 2 and inserting: “Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.”.

    Amend sec. 13, page 8, by deleting lines 21 and 22 and inserting: “Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.”.

    Amend sec. 14, page 9, by deleting lines 44 and 45 and inserting: “Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.”.

    Amend sec. 15, page 10, by deleting lines 38 and 39 and inserting: “deposited in the State Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this”.

    Amend sec. 16, page 11, by deleting lines 2 and 3 and inserting:“chapter must be [paid into the State General Fund.] deposited in the State Treasury pursuant to the provisions of section 2 of this act.”.

    Amend sec. 16, page 11, by deleting lines 5 and 6 and inserting: “expenses incurred under this chapter must be paid from the money deposited in the State [General Fund.] Treasury pursuant to the provisions of section”.

    Amend sec. 17, page 11, by deleting lines 24 and 25 and inserting: “[forthwith delivered to the State Treasurer and must be paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of”.

    Amend sec. 18, page 11, by deleting lines 40 through 42 and inserting: “sums so received by the Commissioner must be [delivered to the State Treasurer and must be paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.”.

    Amend sec. 19, page 12, line 11, by deleting “paid” and inserting “[paid”.

    Amend sec. 19, page 12, by deleting lines 12 and 13 and inserting: “into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act. Copies of appraisals must be”.

    Amend sec. 20, page 12, by deleting lines 42 and 43 and inserting: “[delivered to the State Treasurer and paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this”.

    Amend sec. 21, page 13, by deleting lines 9 through 11 and inserting: “shall [deliver it to the State Treasurer. The fees shall be paid into] deposit the fees in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.”.

    Amend sec. 22, page 13, by deleting lines 15 and 16 and inserting: “[paid into] deposited in the State [General Fund, and the State Treasurer shall issue his receipt therefor.] Treasury pursuant to the provisions of”.

    Amend sec. 23, page 13, by deleting lines 29 and 30 and inserting: “subsection 2 must be deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.”.

    Amend sec. 24, page 13, by deleting lines 34 and 35 and inserting: “[paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.”.

    Amend sec. 25, page 13, by deleting lines 39 and 40 and inserting: “deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.”.

    Amend sec. 26, page 14, by deleting lines 11 and 12 and inserting: “regulation adopted [thereunder,] pursuant thereto in the State Treasury [for credit to the State General Fund.] pursuant to the provisions of”.

    Amend the bill as a whole by deleting sections 27 and 28 and adding:

    “Secs. 27 and 28.  (Deleted by amendment.)”.

    Amend sec. 29, page 15, by deleting lines 27 through 29 and inserting:

    “Sec. 29.  1.  This act becomes”.

    Amend sec. 29, page 15, line 34, by deleting “3.” and inserting “2.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to state financial administration; providing that certain money collected by the Commissioner of Financial Institutions and the Division of Financial Institutions of the Department of Business and Industry must be deposited in the State Treasury and accounted for separately in the State General Fund; providing that the money deposited in the State Treasury by the Commissioner and the Division and accounted for separately in the State General Fund must be used to carry out the programs and pay for the expenses of the Commissioner and the Division; providing that the Commissioner shall collect an assessment from certain financial institutions for the purpose of recovering the cost to the Commissioner for legal services provided by the Attorney General to the Commissioner and the Division; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Provides for money collected by Commissioner of Financial Institutions and Division of Financial Institutions of Department of Business and Industry to be deposited in State Treasury and to be accounted for separately in State General Fund. (BDR 55‑463)”.

    Assemblyman Goldwater moved that the Assembly do not concur in the Senate amendment to Assembly Bill No. 493.

    Remarks by Assemblyman Goldwater.

    Motion carried.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 514.

    The following Senate amendment was read:

    Amendment No. 768.

    Amend sec. 105, pages 60 and 61, by deleting lines 18 through 45 on
page 60 and lines 1 through 4 on page 61 and inserting:

    “Section 1.  The above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, is hereby amended by adding thereto three new sections to be designated as sections 18.2, 47.4 and 47.5, respectively, immediately following sections 18.1 and 47, respectively, to read as follows:

    Sec. 18.2.  “Vehicle” has the meaning ascribed to it in NRS 482.135.

    Sec. 47.4.  1.  For the purposes of this section, “authorized appraisal” means an appraisal of the value of a motor vehicle made by:

(a) An employee of the Department of Motor Vehicles on its behalf;

(b) A county assessor or his employee as an agent of the Department of Motor Vehicles;

(c) A person licensed by the Department of Motor Vehicles as a dealer; or

(d) An independent appraiser authorized by the Department of Motor Vehicles.

2.  When computing the tax on the sale of a vehicle by a seller who is not required to be registered by the Department of Taxation, the Department of Motor Vehicles or the county assessor as an agent of the Department of Taxation shall, if an authorized appraisal is submitted, use as the vehicle’s sales price the amount stated on the authorized appraisal or $100, whichever is greater.

3.  The Department of Motor Vehicles shall establish by regulation the procedure for appraising vehicles and shall establish and make available a form for an authorized appraisal.

4.  The Department of Motor Vehicles shall retain a copy of the appraisal considered pursuant to subsection 2 with its record of the collection of the tax.

5.  A fee which does not exceed $10 may be charged and collected for each authorized appraisal made. Any money so collected by the Department of Motor Vehicles for such an appraisal made by its employees must be deposited with the State Treasurer to the credit of the Motor Vehicle Fund. Any money so collected by a county assessor must be deposited with the county treasurer to the credit of the county’s general fund.

6.  If an authorized appraisal is not submitted, the Department of Motor Vehicles or the county assessor as an agent of the Department of Taxation shall establish the sales price as a value which is based on the depreciated value of the vehicle as determined in accordance with the schedule in
section 47.5 of chapter 397, Statutes of Nevada 1955. To determine the original price from which the depreciation is calculated, the Department of Motor Vehicles shall use:

(a) The manufacturer’s suggested retail price in Nevada, excluding options and extras, as of the time the particular make and year model is first offered for sale in Nevada;

(b) If the vehicle is specially constructed, the original retail price to the original purchaser of the vehicle as evidenced by such document or documents as the Department may require;

(c) The procedures set forth in subsections 3 and 4 of NRS 371.050; or

(d) If none of these applies, its own estimate from any available information.

    Sec. 47.5.  1.  Except as otherwise provided in subsection 2, for the purpose of computing the tax on the sale of a vehicle by a seller who is not required to be registered with the Department of Taxation in the manner provided for in subsection 6 of section 47.4 of chapter 397, Statutes of Nevada 1955, a vehicle must be depreciated according to the following schedule:

Percentage of

Age Initial Value

New 100 percent

1 year 85 percent

2 years 75 percent

3 years 65 percent

4 years 60 percent

5 years 55 percent

6 years 50 percent

7 years 45 percent

8 years 40 percent

9 years 35 percent

10 years 30 percent

11 years 25 percent

12 years 20 percent

13 years 15 percent

14 years or more 10 percent

2.  The amount of depreciation calculated under subsection 1 must be rounded to the nearest whole multiple of $20 and the depreciated value must not be reduced below $100.

    Sec. 2.  Section 11 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 764, is hereby amended to read as follows:

    Sec. 11.  1.  “Sales price” means the total amount for which tangible property is sold, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:

    (a) The cost of the property sold.

    (b) The cost of materials used, labor or service cost, interest charged, losses, or any other expenses.

    (c) The cost of transportation of the property prior to its purchase.

    2.  The total amount for which property is sold includes all of the following:

    (a) Any services that are a part of the sale.

    (b) Any amount for which credit is given to the purchaser by the seller.

    3.  “Sales price” does not include any of the following:

    (a) Cash discounts allowed and taken on sales.

    (b) The amount charged for property returned by customers when the entire amount charged therefor is refunded either in cash or credit; but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.

    (c) The amount charged for labor or services rendered in installing or applying the property sold.

    (d) The amount of any tax , [(] not including [, however,] any manufacturers’ or importers’ excise tax , [)] imposed by the United States upon or with respect to retail sales, whether imposed upon the retailer or the consumer.

(e) The amount of any allowance against the selling price given by a retailer for the value of a used vehicle that is taken in trade on the purchase of another vehicle.

4.  For the purpose of a sale of a vehicle by a seller who is not required to be registered with the Department of Taxation, the sales price is the value established in the manner set forth in section 47.4 of chapter 397, Statutes of Nevada 1955.

    Sec. 3.  Section 12 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 764, is hereby amended to read as follows:

    Sec. 12.  1.  “Gross receipts” means the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers, valued in money, whether received in money or otherwise, without any deduction on account of any of the following:

    (a) The cost of the property sold. However, in accordance with such rules and regulations as the Tax Commission may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed his vendor for tax which the vendor is required to pay to the State or has paid the use tax with respect to the property, and has resold the property [prior to] before making any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business. If such a deduction is taken by the retailer, no refund or credit will be allowed to his vendor with respect to the sale of the property.

    (b) The cost of the materials used, labor or service cost, interest paid, losses or any other expense.

    (c) The cost of transportation of the property [prior to] before its sale to the purchaser.

    2.  The total amount of the sale or lease or rental price includes all of the following:

    (a) Any services that are a part of the sale.

    (b) All receipts, cash, credits and property of any kind.

    (c) Any amount for which credit is allowed by the seller to the purchaser.

    3.  “Gross receipts” does not include any of the following:

    (a) Cash discounts allowed and taken on sales.

    (b) [Sale] The sale price of property returned by customers when the full sale price is refunded either in cash or credit , [;] but this exclusion [shall] does not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.

    (c) The price received for labor or services used in installing or applying the property sold.

    (d) The amount of any tax , [(] not including [, however,] any manufacturers’ or importers’ excise tax , [)] imposed by the United States upon or with respect to retail sales, whether imposed upon the retailer or the consumer.

(e) The amount of any allowance against the selling price given by a retailer for the value of a used vehicle which is taken in trade on the purchase of another vehicle.

    4.  For purposes of the sales tax, if the retailers establish to the satisfaction of the Tax Commission that the sales tax has been added to the total amount of the sale price and has not been absorbed by them, the total amount of the sale price shall be deemed to be the amount received exclusive of the tax imposed.

    Sec. 4.  Section 15 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 765, is hereby amended to read as follows:

    Sec. 15.  1.  “Retailer” includes:

    (a) Every seller who makes any retail sale or sales of tangible personal property, and every person engaged in the business of making retail sales at auction of tangible personal property owned by the person or others.

    (b) Every person engaged in the business of making sales for storage, use or other consumption or in the business of making sales at auction of tangible personal property owned by the person or others for storage, use or other consumption.

    (c) Every person making any retail sale of a vehicle or more than two retail sales of other tangible personal property during any 12‑month period, including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy.

    2.  When the Tax Commission determines that it is necessary for the efficient administration of this chapter to regard any salesmen, representatives, peddlers or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the tangible personal property sold by them, irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors or employers, the Tax Commission may so regard them and may regard the dealers, distributors, supervisors or employers as retailers for purposes of this chapter.

[3.  A licensed optometrist or physician and surgeon is a consumer of, and shall not be considered, a retailer within the provisions of this chapter, with respect to the ophthalmic materials used or furnished by him in the performance of his professional services in the diagnosis, treatment or correction of conditions of the human eye, including the adaptation of lenses or frames for the aid thereof.]

    Sec. 5.  Section 18.1 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 766, is hereby amended to read as follows:

    Sec. 18.1  NRS 372.035 is hereby amended to read as follows:

    372.035  1.  “Occasional sale” includes:

    (a) A sale of property not held or used by a seller in the course of an activity for which he is required to hold a seller’s permit, [provided such] if the sale is not one of a series of sales sufficient in number, scope and character to constitute an activity requiring the holding of a seller’s permit.

    (b) Any transfer of all or substantially all the property held or used by a person in the course of such an activity when after [such] the transfer the real or ultimate ownership of [such] the property is substantially similar to that which existed before [such] the transfer.

    2.  The term does not include the sale of a vehicle other than the sale or transfer of a used vehicle to the seller’s spouse, child, grandchild, parent, grandparent, brother or sister. For the purposes of this section, the relation of parent and child includes adoptive and illegitimate children and stepchildren.

3.  For the purposes of this section, stockholders, bondholders, partners or other persons holding an interest in a corporation or other entity are regarded as having the “real or ultimate ownership” of the property of such corporation or other entity.

Sec. 6. Section 56.1 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, as added by chapter 306, Statutes of Nevada 1969, at page 532, and amended by chapter 627, Statutes of Nevada 1985, at
page 2028, and amended by chapter 404, Statutes of Nevada 1995, at page 1007, is hereby amended to read as follows:

    Sec. 56.1.  1.  There are exempted from the taxes imposed by this act the gross receipts from sales and the storage, use or other consumption of:

    (a) Prosthetic devices, orthotic appliances and ambulatory casts for human use, and other supports and casts if prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

    (b) Appliances and supplies relating to an ostomy.

    (c) Products for hemodialysis.

(d) Any ophthalmic or ocular device or appliance prescribed by a physician or optometrist.

(e) Medicines:

        (1) Prescribed for the treatment of a human being by a person authorized to prescribe medicines, and dispensed on a prescription filled by a registered pharmacist in accordance with law;

        (2) Furnished by a licensed physician, dentist or podiatric physician to his own patient for the treatment of the patient;

        (3) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, dentist or podiatric physician; or

        (4) Sold to a licensed physician, dentist, podiatric physician or hospital for the treatment of a human being.

    2.  As used in this section:

    (a) “Medicine” means any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease or affliction of the human body and which is commonly recognized as a substance or preparation intended for such use. The term includes splints, bandages, pads, compresses and dressings.

    (b) “Medicine” does not include:

        (1) Any auditory [, ophthalmic or ocular] device or appliance.

        (2) Articles which are in the nature of instruments, crutches, canes, devices or other mechanical, electronic, optical or physical equipment.

        (3) Any alcoholic beverage, except where the alcohol merely provides a solution in the ordinary preparation of a medicine.

        (4) Braces or supports, other than those prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

    3.  Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on a prescription within the meaning of this section.

Sec. 7. The above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, is hereby amended by adding thereto a new section to be designated as section 56.3, immediately following section 56.2, to read as follows:

Sec. 56.3. 1.  There are exempted from the taxes imposed by this Act the gross receipts from the sale of, and the storage, use or other consumption in a county of, farm machinery and equipment employed for the agricultural use of real property.

2.  As used in this section:

(a) “Agricultural use” has the meaning ascribed to it in NRS 361A.030.

(b) “Farm machinery and equipment” means a farm tractor, implement of husbandry, piece of equipment used for irrigation, or a part used in the repair or maintenance of farm machinery and equipment. The term does not include:

(1) A vehicle required to be registered pursuant to the provisions of chapter 482 or 706 of NRS; or

(2) Machinery or equipment only incidentally employed for the agricultural use of real property.

(c) “Farm tractor” means a motor vehicle designed and used primarily for drawing an implement of husbandry.

(d) “Implement of husbandry” means a vehicle that is designed, adapted or used for agricultural purposes, including, without limitation, a plow, machine for mowing, hay baler, combine, piece of equipment used to stack hay, till, harvest, handle agricultural commodities or apply fertilizers, or other heavy, movable equipment designed, adapted or used for agricultural purposes.

Sec. 8.  The above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, is hereby amended by adding thereto two new sections to be designated as sections 57.1 and 57.2, respectively, immediately following section 57, to read as follows:

    Sec. 57.1.  1.  Except as otherwise provided in section 57.2 of
chapter 397, Statutes of Nevada 1955, there are exempted from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption of, works of fine art for public display.

2.  In determining whether a payment made pursuant to a lease of a work of fine art is exempt under subsection 1, the value for the purpose of paragraph (a) of subsection 4 is the value of the work and not the value of possession for the term of the lease, and the calendar or fiscal year described in paragraph (a) of subsection 4 is the first full calendar or fiscal year, respectively, after the payment is made.

3.  During the first full fiscal year following the purchase of fine art for which a taxpayer receives the exemption provided in this section, the taxpayer shall make available, upon written request and without charge to any public school as defined in NRS 385.007, private school as defined in NRS 394.103 and parent of a child who receives instruction in a home pursuant to NRS 392.070, one copy of a poster depicting the fine art that the facility has on public display and that the facility makes available for purchase by the public at the time of the request.

4.  As used in this section:

(a) “Fine art for public display”:

(1) Except as otherwise provided in subparagraph (2), means a work of art which:

(I) Is an original painting in oil, mineral, water colors, vitreous enamel, pastel or other medium, an original mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber, wood, metal, plastic, glass or a similar material, an original work of mixed media or a lithograph;

(II) Is purchased in an arm’s length transaction for $25,000 or more, or has an appraised value of $25,000 or more;

(III) Will be on public display in a public or private art gallery, museum or other building or area in this state for at least 20 hours per week during at least 35 weeks of the first full calendar year after the date on which it is purchased or, if the facility displaying the fine art disposes of it before the end of that year, during at least two-thirds of the full weeks during which the facility had possession of it, or if the gallery, museum, or other building or area in which the fine art will be displayed will not be opened until after the beginning of the first full calendar year after the date on which the fine art is purchased, these display requirements must instead be met for the first full fiscal year after the date of opening, and the date of opening must not be later than 2 years after the purchase of the fine art being displayed; and

(IV) Will be on display in a facility that is available for group tours by pupils or students for at least 5 hours on at least 60 days of the first full fiscal year after the purchase of the fine art, during which the facility in which it is displayed is open, by prior appointment and at reasonable times, without charge; and

(2) Does not include:

(I) A work of fine art that is a fixture or an improvement to real property;

(II) Materials purchased by an artist for consumption in the production of a work of art that is to be a fixture or an improvement to real property;

(III) A work of fine art that constitutes a copy of an original work of fine art, unless the work is a lithograph that is a limited edition and that is signed and numbered by the artist;

(IV) Products of filmmaking or photography, including, without limitation, motion pictures;

(V) Literary works;

(VI) Property used in the performing arts, including, without limitation, scenery or props for a stage; or

(VII) Property that was created for a functional use other than, or in addition to, its aesthetic qualities, including, without limitation, a classic or custom-built automobile or boat, a sign that advertises a business, and custom or antique furniture, lamps, chandeliers, jewelry, mirrors, doors or windows.

(b) “Public display” means the display of a work of fine art where members of the public have access to the work of fine art for viewing during publicly advertised hours. The term does not include the display of a work of fine art in an area where the public does not generally have access, including, without limitation, a private office, hallway or meeting room of a business, a room of a business used for private lodging and a private residence.

(c) “Pupil” means a person who:

(1) Is enrolled for the current academic year in a public school as defined in NRS 385.007 or a private school as defined in NRS 394.103; or

(2) Receives instruction in a home and is excused from compulsory attendance pursuant to NRS 392.070.

(d) “Student” means a person who is enrolled for the current academic year in:

(1) A community college or university; or

(2) A licensed postsecondary educational institution as defined in
NRS 394.099 and a course concerning fine art.

    Sec. 57.2.  1.  A taxpayer may collect an admission fee for the exhibition of fine art otherwise exempt from taxation on its sale, storage, use or other consumption pursuant to section 57.1 of chapter 397, Statutes of Nevada 1955, if the taxpayer offers to residents of the State of Nevada a discount of 50 percent from any admission fee charged to nonresidents. The discounted admission fee for residents must be offered at any time the exhibition is open to the public and admission fees are being charged.

2.  If a taxpayer collects a fee for the exhibition of fine art otherwise exempt from taxation on its sale, storage, use or other consumption pursuant to section 57.1 of chapter 397, Statutes of Nevada 1955, and the fee is collected during the first full fiscal year after the purchase of the fine art, the exemption pertaining to that fine art must be reduced by the net revenue derived by the taxpayer for that first full fiscal year. The exemption pertaining to fine art must not be reduced below zero, regardless of the amount of the net revenue derived by the taxpayer for that first full fiscal year.

3.  Any tax due pursuant to this section must be paid with the first sales and use tax return otherwise required to be filed by the taxpayer following the 15th day of the fourth month after the end of the first full fiscal year following the purchase of the fine art or, if no sales and use tax return is otherwise required to be filed by the taxpayer, with a sales and use tax return filed specifically for this purpose on or before the last day of the fourth month after the end of the first full fiscal year following the purchase of the fine art.

4.  A taxpayer who is required to pay a tax resulting from the operation of this section may receive a credit against the tax for any donations made by the taxpayer to the Nevada Arts Council, the Division of Museums and History Dedicated Trust Fund established pursuant to NRS 381.0031, a museum that provides exhibits specifically related to nature or a museum that provides exhibits specifically related to children, if the taxpayer:

(a) Made the donation before the date that either return required pursuant to subsection 3 is due; and

(b) Provides to the Department documentation of the donation at the time that he files the return required pursuant to subsection 3.

5.  For the purposes of this section:

(a) “Direct costs of owning and exhibiting the fine art” does not include any allocation of the general and administrative expense of a business or organization that conducts activities in addition to the operation of the facility in which the fine art is displayed, including, without limitation, an allocation of the salary and benefits of a senior executive who is responsible for the oversight of the facility in which the fine art is displayed and who has substantial responsibilities related to the other activities of the business or organization.

(b) “Net revenue” means the amount of the fees collected for exhibiting the fine art during the fiscal year less the following paid or made during the fiscal year:

(1) The direct costs of owning and exhibiting the fine art; and

(2) The cost of educational programs associated with the taxpayer’s public display of fine art, including the cost of meeting the requirements of sub-subparagraph (IV) of subparagraph (1) of paragraph (a) of subsection 4 of section 57.1 of chapter 397, Statutes of Nevada 1955.

    Sec. 9.  Section 6 of the above-entitled Act, being chapter 397,
Statutes of Nevada 1955, at page 763, is hereby amended to read as follows:

    Sec. 6.  1.  “Retail sale” or “sale at retail” means a sale for any purpose other than resale in the regular course of business of tangible personal property. The terms do not include a sale of property that:

(a) Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4 of section 57.1 of chapter 397, Statutes of Nevada 1955;

(b) Is made available for sale within 2 years after it is acquired; and

(c) Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired, whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.

    2.  The delivery in this state of tangible personal property by an owner or former owner thereof or by a factor, or agent of such owner, former owner or factor, if the delivery is to a consumer or person for redelivery to a consumer, pursuant to a retail sale made by a retailer not engaged in business in this state, is a retail sale in this state by the person making the delivery. He shall include the retail selling price of the property in his gross receipts.

    Sec. 10.  Section 7 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 763, is hereby amended to read as follows:

    Sec. 7.  “Storage” includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased from a retailer. The term does not include keeping, retaining or exercising any right or power over tangible property that:

1.  Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4 of section 57.1 of chapter 397, Statutes of Nevada 1955;

2.  Is made available for sale within 2 years after it is acquired; and

3.  Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.

Sec. 11. Section 61.5 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, as added by chapter 466, Statutes of Nevada 1985, at page 1441, is hereby amended to read as follows:

    Sec. 61.5.  There are exempted from the taxes imposed by this chapter the gross receipts from the sale [of aircraft and major components] and the storage, use or other consumption in this state of:

1.  Aircraft, aircraft engines and component parts of aircraft [, such as engines and other components made for use only in aircraft, to an air carrier which:

1.  Holds a certificate to engage in air transportation issued pursuant to
49 U.S.C. § 1371 and is not solely a charter air carrier or a supplemental air carrier as described in Title 49 of the United States Code; and

2.  Maintains its central office in Nevada and bases a majority of its aircraft in Nevada.] or aircraft engines which are manufactured exclusively for use in aircraft, sold or purchased for lease to a commercial air carrier for use in the transportation of persons or property in intrastate, interstate or foreign commerce pursuant to a certificate or license issued to the air carrier authorizing such transportation; and

2.  Machinery, tools and other equipment and parts which are used exclusively in the repair, remodeling or maintenance of aircraft, aircraft engines or component parts of aircraft or aircraft engines which meet the requirements of subsection 1.

Sec. 12. The above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, is hereby amended by adding thereto a new section to be designated as section 61.6, immediately following section 61.5, to read as follows:

Sec. 61.6. 1.  There are exempted from the taxes imposed by this chapter the gross receipts from the sale, furnishing or service of, and the storage, use or other consumption in this state of:

(a) All engines and chassis of a professional racing vehicle;

(b) All parts and components that are used to replace or rebuild existing parts or components of any engine or chassis of a professional racing vehicle;

(c) All motor vehicles used by professional racing teams to transport professional racing vehicles or to transport parts or components of professional racing vehicles, including, without limitation, an engine and chassis of a professional racing vehicle; and

(d) All motor vehicles used by a professional racing team or sanctioning body to transport the business office of the professional racing team or sanctioning body or to transport a facility from which hospitality services are provided.

2.  As used in this section:

(a) “Professional racing team” means a racing operation that qualifies for the taxable year as an activity engaged in for profit pursuant to the Internal Revenue Code, Title 26 of the United States Code.

(b) “Professional racing motor vehicle” means any motor vehicle which is used in a professional racing competition and which is owned, leased or operated by a professional racing team.

(c) “Sanctioning body” means an organization that establishes an annual schedule of professional racing events in which professional racing teams participate, grants rights to conduct such events and establishes and administers rules and regulations governing the persons who conduct or participate in such events.

    Sec. 13.  This act becomes effective on January 1, 2006.”.

    Amend sec. 106, page 61, by deleting lines 8 through 12 and inserting:                “Shall the Sales and Use Tax Act of 1955 be amended to:

    1.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of the value of any used vehicle taken in trade on the purchase of another vehicle and to remove the exemption from those taxes for occasional sales of vehicles except where such sales are between certain family members;

    2.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of ophthalmic or ocular devices or appliances prescribed by a physician or optometrist;

    3.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of farm machinery and equipment employed for the agricultural use of real property;

    4.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of works of fine art for public display;

    5.  Revise and clarify the criteria used to determine which aircraft and parts of aircraft are exempt from the taxes imposed by this Act, including removing the requirement that an air carrier must be based in Nevada to be eligible for the exemption, and providing an exemption for certain machinery and equipment used on eligible aircraft and parts of aircraft; and

    6.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of engines and chassis, including replacement parts and components for the engines and chassis, of professional racing vehicles that are owned, leased or operated by professional racing teams?”.

    Amend sec. 107, page 61, by deleting lines 21 through 24 and inserting: “1955 would:

    1.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of the value of any used vehicle taken in trade on the purchase of another vehicle and remove the exemption from those taxes for occasional sales of vehicles except where such sales are between certain family members;

    2.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of ophthalmic or ocular devices or appliances prescribed by a physician or optometrist;

    3.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of farm machinery and equipment employed for the agricultural use of real property;

    4.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of works of fine art for public display;

    5.  Revise and clarify the criteria used to determine which aircraft and parts of aircraft are exempt from the taxes imposed by this Act, including removing the requirement that an air carrier must be based in Nevada to be eligible for the exemption, and providing an exemption for certain machinery and equipment used on eligible aircraft and parts of aircraft; and

    6.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of engines and chassis, including replacement parts and components for the engines and chassis, of professional racing vehicles that are owned, leased or operated by professional racing teams. A “yes” vote approves all of the proposals set forth in the question. A “no” vote disapproves all of the proposals set forth in the question. The proposals set forth in the question may not be voted upon individually.”.

    Amend the bill as a whole by deleting sections 108 through 132 and inserting:

    “Secs. 108-132.  (Deleted by amendment.)”.

    Amend sec. 133, page 81, by deleting lines 15 through 19 and inserting: “is yes, the amendment to the Sales and Use Tax Act of 1955 becomes effective on January 1, 2006. If less than a majority of votes cast on the question is yes, the question fails and the amendment to the Sales and Use Tax Act of 1955 does not”.

    Amend sec. 135, page 81, line 27, by deleting “any proposed” and inserting “the”.

    Amend sec. 135, page 81, line 29, by deleting “office” and inserting “Office”.

    Amend sec. 138, page 82, by deleting lines 28 through 33 and inserting:

    “Sec. 138.  NRS 374.107, 374.112, 374.113, 374.286, 374.291, 374.2911, 374.322 and 374.323 are hereby repealed.”.

    Amend sec. 139, page 83, by deleting lines 1 through 34 and inserting:

    “4.  Sections 30 and 39 of this act become effective on January 1, 2006, only if the proposal submitted pursuant to sections 103 to 107, inclusive, of this act is approved by the voters at the general election on November 2, 2004.

    5.  Sections 31, 51, 58 to 65, inclusive, 68, 73, 81, 82, 86, 93 and 138 of this act become effective on January 1, 2006, only if the proposal submitted pursuant to sections 103 to 107, inclusive, of this act is not approved by the”.

    Amend the title of the bill, ninth line, by deleting “questions” and inserting “a question”.

    Assemblyman Goldwater moved that the Assembly concur in the Senate amendment to Assembly Bill No. 514.

    Remarks by Assemblymen Parks and Goldwater.

    Motion carried by a constitutional majority.

    Bill ordered to enrollment.

    Assembly Bill No. 394.

    The following Senate amendment was read:

    Amendment No. 830.

    Amend section 1, page 2, by deleting lines 27 through 29 and inserting: “remove the vehicle or part of a vehicle to his garage unless directed otherwise by the police officer. The tow car operator is liable for any loss of or damage to the vehicle or its contents that occurs while the vehicle is in his possession or control.”.

    Assemblywoman Chowning moved that the Assembly concur in the Senate amendment to Assembly Bill No. 394.

    Remarks by Assemblywoman Chowning.

    Motion carried by a constitutional majority.

    Bill ordered to enrollment.

    Mr. Speaker announced if there were no objections, the Assembly would recess subject to the call of the Chair.

    Assembly in recess at 12:32 p.m.

ASSEMBLY IN SESSION

    At 12:47 p.m.

    Mr. Speaker presiding.

    Quorum present.

UNFINISHED BUSINESS

Appointment of Conference Committees

    Mr. Speaker appointed Assemblymen Horne, Atkinson, and Geddes as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Assembly Bill No. 353.

    Mr. Speaker appointed Assemblymen Manendo, Atkinson, and Hardy as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Assembly Bill No. 218.

REPORTS OF COMMITTEES

Mr. Speaker:

    Your Committee on Ways and Means, to which was re-referred Assembly Bill No. 490, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Morse Arberry Jr., Chairman

general file and third reading

    Assembly Bill No. 490.

    Bill read third time.

    The following amendment was proposed by the Committee on
Ways and Means:

    Amendment No. 903.

    Amend the bill as a whole by deleting sections 1 through 28 and adding new sections designated as sections 1 through 89 and the text of the repealed section, following the enacting clause, to read as follows:

    “Section 1.  Title 54 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 17, inclusive, of this act.

    Sec. 2.  As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 to 7, inclusive, of this act have the meanings ascribed to them in those sections.

    Sec. 3.  “Commissioner” means the Commissioner of Mortgage Lending.

    Sec. 4.  “Division” means the Division of Mortgage Lending of the Department of Business and Industry.

    Sec. 5.  “Escrow agency” has the meaning ascribed to it in
NRS 645A.010.

    Sec. 6.  “Mortgage banker” has the meaning ascribed to it in
NRS 645E.100.

    Sec. 7.  “Mortgage broker” has the meaning ascribed to it in
NRS 645B.0127.

    Sec. 8.  The Commissioner and the Division shall administer the provisions of this chapter and chapters 645A, 645B and 645E of NRS, subject to administrative supervision by the Director of the Department of Business and Industry.

    Sec. 9.  The Commissioner:

1.  Must be a person who has had practical experience in the financial services industry or the business of making loans secured by an interest in real property.

2.  Except as otherwise provided in NRS 284.143, shall devote his entire time and attention to the business of his office and shall not pursue any other business or occupation or hold any other office of profit.

    Sec. 10.  The Commissioner shall not, either directly or indirectly, be interested in any escrow agency, mortgage broker or mortgage banker to which chapters 645A, 645B and 645E of NRS apply, nor engage in business as a personal loan broker.

    Sec. 11.  After appointment and before entering upon the discharge of the duties of his office, the Commissioner shall take and subscribe to an official oath.

    Sec. 12.  1.  The Commissioner may appoint deputy commissioners of mortgage lending, examiners, assistants, clerks, stenographers and other employees necessary to assist him in the performance of his duties pursuant to this chapter, chapters 645A, 645B and 645E of NRS or any other law. These employees shall perform such duties as are assigned to them by the Commissioner.

2.  The Commissioner may employ or contract with a certified public accountant to review and conduct independent audits and examinations of escrow agencies, mortgage brokers and mortgage bankers. The Commissioner shall levy an assessment upon each licensed escrow agency, mortgage broker and mortgage banker to cover all the costs related to the employment of or the contract with the certified public accountant and the performance of the audits and examinations.

3.  Assessments collected by the Commissioner pursuant to subsection 2 must be deposited in the State Treasury for deposit to the Fund for Mortgage Lending created by section 17 of this act and accounted for separately. The Commissioner shall use the money for the purposes specified in subsection 2.

    Sec. 13.  Each deputy commissioner of mortgage lending shall, before entering upon the discharge of his duties, take and subscribe to the constitutional oath of office.

    Sec. 14.  The State Board of Finance shall act in an advisory capacity to the Division in the administration of this chapter and chapters 645A, 645B and 645E of NRS.

    Sec. 15.  1.  The Commissioner shall establish by regulation rates to be paid by mortgage agents, mortgage brokers and mortgage bankers for supervision and examinations by the Commissioner or the Division.

2.  In establishing a rate pursuant to subsection 1, the Commissioner shall consider:

(a) The complexity of the various examinations to which the rate applies;

(b) The skill required to conduct the examinations;

(c) The expenses associated with conducting the examination and preparing a report; and

(d) Any other factors the Commissioner deems relevant.

    Sec. 16.  1.  The Commissioner shall collect an assessment pursuant to this section from each:

(a) Escrow agent that is supervised pursuant to chapter 645A of NRS;

(b) Mortgage broker that is supervised pursuant to chapter 645B of NRS; and

(c) Mortgage banker that is supervised pursuant to chapter 645E of NRS.

2.  The Commissioner shall determine the total amount of all assessments to be collected from the entities identified in subsection 1, but that amount must not exceed the amount necessary to recover the cost of legal services provided by the Attorney General to the Commissioner and to the Division. The total amount of all assessments collected must be reduced by any amounts collected by the Commissioner from an entity for the recovery of the costs of legal services provided by the Attorney General in a specific case.

3.  The Commissioner shall collect from each entity identified in subsection 1 an assessment that is based on:

(a) An equal basis; or

(b) Any other reasonable basis adopted by the Commissioner.

4.  The assessment required by this section is in addition to any other assessment, fee or cost required by law to be paid by an entity identified in subsection 1.

5.  Money collected by the Commissioner pursuant to this section must be deposited in the Fund for Mortgage Lending created by section 17 of this act.

    Sec. 17.  1.  The Fund for Mortgage Lending is hereby created in the State Treasury as a special revenue fund.

2.  Except as otherwise provided by law, any money collected by the Commissioner or Division pursuant to law:

(a) Must be deposited in the Fund for Mortgage Lending; and

(b) May only be used to:

(1) Carry out the programs and laws administered by the Commissioner and the Division; and

(2) Pay the expenses related to the operations of the Commissioner and the Division.

3.  Except as otherwise provided by law, any money that remains in the Fund for Mortgage Lending at the end of the fiscal year does not revert to the State General Fund, and the balance of the Fund for Mortgage Lending must be carried forward to the next fiscal year.

4.  The Commissioner shall administer the Fund for Mortgage Lending. Any interest or income earned on the money in the Fund must be credited to the Fund after deducting any applicable charges. Any claims against the Fund must be paid as other claims against the State are paid.

    Sec. 18.  NRS 645A.010 is hereby amended to read as follows:

    645A.010  As used in this chapter, unless the context otherwise requires:

    1.  “Commissioner” means the Commissioner of [Financial Institutions.] Mortgage Lending.

    2.  “Division” means the Division of [Financial Institutions] Mortgage Lending of the Department of Business and Industry.

    3.  “Escrow” means any transaction wherein one person, for the purpose of effecting the sale, transfer, encumbering or leasing of real or personal property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered by such third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor or any agent or employee of any of the latter. The term includes the collection of payments and the performance of related services by a third person in connection with a loan secured by a lien on real property.

    4.  “Escrow agency” means:

    (a) Any person who employs one or more escrow agents; or

    (b) An escrow agent who administers escrows on his own behalf.

    5.  “Escrow agent” means any person engaged in the business of administering escrows for compensation.

    Sec. 19.  NRS 645A.037 is hereby amended to read as follows:

    645A.037  1.  Except as otherwise provided in subsection 2, a licensee may not conduct the business of administering escrows for compensation within any office, suite, room or place of business in which any other business is solicited or engaged in, except a notary public, or in association or conjunction with any other business, unless authority to do so is given by the Commissioner.

    2.  A licensee may conduct the business of administering escrows pursuant to this chapter in the same office or place of business as:

    (a) A firm or corporation that is exempt from licensing as a mortgage [company] banker pursuant to subsection 6 of NRS 645E.150.

    (b) A mortgage [company] banker if:

        (1) The licensee and the mortgage [company:] banker:

            (I) Operate as separate legal entities;

            (II) Maintain separate accounts, books and records;

            (III) Are subsidiaries of the same parent corporation; and

            (IV) Maintain separate licenses; and

        (2) The mortgage [company] banker is licensed by this state pursuant to chapter 645E of NRS and does not conduct any business as a mortgage broker licensed pursuant to chapter 645B of NRS in the office or place of business.

    Sec. 20.  NRS 645A.040 is hereby amended to read as follows:

    645A.040  1.  Every license issued pursuant to the provisions of this chapter expires on July 1 of each year if it is not renewed. A license may be renewed by filing an application for renewal, paying the annual fee for the succeeding year and, if the licensee is a natural person, submitting the statement required pursuant to NRS 645A.025.

    2.  The fees for the issuance or renewal of a license for an escrow agency are:

    (a) For filing an application for an initial license, $500 for the principal office and $100 for each branch office. [All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.]

    (b) If the license is approved for issuance, $200 for the principal office and $100 for each branch office. The fee must be paid before issuance of the license.

    (c) For filing an application for renewal, $200 for the principal office and $100 for each branch office.

    3.  The fees for the issuance or renewal of a license for an escrow agent are:

    (a) For filing an application for an initial license or for the renewal of a license, $100.

    (b) If a license is approved for issuance or renewal, $25. The fee must be paid before the issuance or renewal of the license.

    4.  If a licensee fails to submit the statement required pursuant to
NRS 645A.025 or pay the fee for the annual renewal of his license before its expiration, his license may be renewed only upon the payment of a fee one and one-half times the amount otherwise required for renewal. A license may be renewed pursuant to this subsection only if the required statement is submitted and all the fees are paid within 1 year after the date on which the license expired.

    5.  In addition to the other fees set forth in this section, each applicant or licensee shall pay:

    (a) For filing an application for a duplicate copy of any license, upon satisfactory showing of its loss, $10.

    (b) For filing any change of information contained in the application, $10.

    (c) For each change of association with an escrow agency, $25.

    6.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.

    Sec. 21.  NRS 645A.040 is hereby amended to read as follows:

    645A.040  1.  Every license issued pursuant to the provisions of this chapter expires on July 1 of each year if it is not renewed. A license may be renewed by filing an application for renewal and paying the annual fee for the succeeding year.

    2.  The fees for the issuance or renewal of a license for an escrow agency are:

    (a) For filing an application for an initial license, $500 for the principal office and $100 for each branch office. [All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.]

    (b) If the license is approved for issuance, $200 for the principal office and $100 for each branch office. The fee must be paid before issuance of the license.

    (c) For filing an application for renewal, $200 for the principal office and $100 for each branch office.

    3.  The fees for the issuance or renewal of a license for an escrow agent are:

    (a) For filing an application for an initial license or for the renewal of a license, $100.

    (b) If a license is approved for issuance or renewal, $25. The fee must be paid before the issuance or renewal of the license.

    4.  If a licensee fails to pay the fee for the annual renewal of his license before its expiration, his license may be renewed only upon the payment of a fee one and one-half times the amount otherwise required for renewal. A license may be renewed pursuant to this subsection only if all the fees are paid within 1 year after the date on which the license expired.

    5.  In addition to the other fees set forth in this section, each applicant or licensee shall pay:

    (a) For filing an application for a duplicate copy of any license, upon satisfactory showing of its loss, $10.

    (b) For filing any change of information contained in the application, $10.

    (c) For each change of association with an escrow agency, $25.

    6.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.

    Sec. 22.  NRS 645A.085 is hereby amended to read as follows:

    645A.085  1.  An escrow agency shall immediately notify the Commissioner of any change in the ownership of 5 percent or more of its outstanding voting stock.

    2.  An application must be submitted to the Commissioner, pursuant to NRS 645A.020, by a person who acquires:

    (a) At least 25 percent of the outstanding voting stock of an escrow agency; or

    (b) Any outstanding voting stock of an escrow agency if the change will result in a change in the control of the escrow agency.

    3.  Except as otherwise provided in subsection 5, the Commissioner shall conduct an investigation to determine whether the applicant has the experience, character, financial condition, business reputation and general fitness to command the confidence of the public and to warrant the belief that the business conducted will protect and safeguard the public. If the Commissioner denies the application, he may forbid the applicant from participating in the business of the escrow agency.

    4.  The escrow agency with which the applicant is affiliated shall pay a portion of the cost of the investigation as the Commissioner requires. All money received by the Commissioner pursuant to this section must be [placed in the Investigative Account created pursuant to NRS 232.545.] deposited in the Fund for Mortgage Lending created by section 17 of this act.

    5.  An escrow agency may submit a written request to the Commissioner to waive an investigation pursuant to subsection 3. The Commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his employment with a financial institution.

    Sec. 23.  NRS 645A.173 is hereby amended to read as follows:

    645A.173  1.  If an escrow for the sale of real property is established, the holder of the escrow shall, on the date of establishment of the escrow, record in writing the number and the date of expiration of the:

    (a) License issued pursuant to chapter 645 of NRS; or

    (b) Certificate of cooperation issued pursuant to NRS 645.605,

of any real estate broker, broker-salesman or salesman who will be paid compensation from money held in the escrow for performing the services of a real estate broker, broker-salesman or salesman in the transaction that is the subject of the escrow. The holder of the escrow is not required to verify independently the validity of the number of the license or certificate.

    2.  If an escrow for the sale of real property is established and the real property is or will be secured by a mortgage or deed of trust, the holder of the escrow shall, on the date of establishment of the escrow, record in writing the number and the date of expiration of the license issued pursuant to chapter 645B or 645E of NRS of any mortgage broker or mortgage [company] banker associated with the mortgage or deed of trust. The holder of the escrow is not required to verify independently the validity of the number of the license.

    Sec. 24.  Chapter 645B of NRS is hereby amended by adding thereto the provisions set forth as sections 25 to 30, inclusive, of this act.

    Sec. 25.  1.  An advertising spokesperson for a mortgage broker is jointly and severally liable with the mortgage broker for damages caused by the mortgage broker by fraud, embezzlement, misappropriation of property, a violation of the provisions of this chapter or the regulations adopted pursuant thereto, or an action of the mortgage broker that is grounds for disciplinary action, if:

(a) The advertising spokesperson knew or should have known of the fraud, embezzlement, misappropriation of property, violation of the provisions of this chapter or the regulations adopted pursuant thereto, or action of the mortgage broker that is grounds for disciplinary action; or

(b) In advertising for the mortgage broker, the advertising spokesperson knew or should have known that:

(1) The conduct of the advertising spokesperson was likely to deceive, defraud or harm the public or any person who engaged in business with the mortgage broker; or

(2) The advertising spokesperson was disseminating material information concerning the mortgage broker or the business, products or services of the mortgage broker which was false or misleading.

2.  As used in this section:

(a) “Advertising for a mortgage broker” means advertising or otherwise promoting a mortgage broker or the business, products or services of the mortgage broker using any medium of communication.

(b) “Advertising spokesperson for a mortgage broker” or “advertising spokesperson” means a person who consents to and receives compensation for using his name or likeness in advertising for a mortgage broker.

    Sec. 26.  A person shall not act as or provide any of the services of a mortgage agent or otherwise engage in, carry on or hold himself out as engaging in or carrying on the activities of a mortgage agent unless the person has a license as a mortgage agent issued pursuant to section 27 of this act.

    Sec. 27.  1.  To obtain a license as a mortgage agent, a person must:

(a) Be a natural person;

(b) File a written application for a license as a mortgage agent with the office of the Commissioner;

(c) Comply with the applicable requirements of this chapter; and

(d) Pay an application fee set by the Commissioner of not more than $185.

2.  An application for a license as a mortgage agent must:

(a) Be verified;

(b) State the name and residence address of the applicant;

(c) Include a provision by which the applicant gives his written consent to an investigation of his credit history, criminal history and background;

(d) Include a verified statement from the mortgage broker with whom the applicant will be associated that expresses the intent of that mortgage broker to associate the applicant with the mortgage broker and to be responsible for the activities of the applicant as a mortgage agent; and

(e) Include any other information or supporting materials required pursuant to the regulations adopted by the Commissioner or by an order of the Commissioner. Such information or supporting materials may include, without limitation, a complete set of fingerprints from the person and other forms of identification of the person.

3.  Except as otherwise provided in this chapter, the Commissioner shall issue a license as a mortgage agent to an applicant if:

(a) The application complies with the applicable requirements of this chapter; and

(b) The applicant:

(1) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude;

(2) Has not had a financial services license suspended or revoked within the immediately preceding 10 years;

(3) Has not made a false statement of material fact on his application;

(4) Has not violated any provision of this chapter or chapter
645E of NRS, a regulation adopted pursuant thereto or an order of the Commissioner; and

(5) Has a good reputation for honesty, trustworthiness and integrity and displays competence to transact the business of a mortgage agent in a manner which safeguards the interests of the general public. The applicant must submit satisfactory proof of these qualifications to the Commissioner.

4.  Money received by the Commissioner pursuant to this section must be deposited in the Fund for Mortgage Lending created by section 17 of this act.

    Sec. 28.  1.  A license as a mortgage agent issued pursuant to
section 27 of this act expires 1 year after the date the license is issued, unless it is renewed. To renew a license as a mortgage agent, the holder of the license must submit to the Commissioner each year, on or before the date the license expires:

(a) An application for renewal;

(b) Except as otherwise provided in this section, satisfactory proof that the holder of the license as a mortgage agent attended at least 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires; and

(c) A renewal fee set by the Commissioner of not more than $170.

2.  If the holder of the license as a mortgage agent fails to submit any item required pursuant to subsection 1 to the Commissioner each year on or before the date the license expires, the license is cancelled. The Commissioner may reinstate a cancelled license if the holder of the license submits to the Commissioner:

(a) An application for renewal;

(b) The fee required to renew the license pursuant to this section; and

(c) A reinstatement fee of $75.

3.  To be issued a duplicate copy of a license as a mortgage agent, a person must make a satisfactory showing of its loss and pay a fee of $10.

4.  To change the mortgage broker with whom the mortgage agent is associated, a person must pay a fee of $10.

5.  Money received by the Commissioner pursuant to this section must be deposited in the Fund for Mortgage Lending created by section 17 of this act.

6.  The Commissioner may provide by regulation that any hours of a certified course of continuing education attended during a 12-month period, but not needed to satisfy a requirement set forth in this section for the
12-month period in which the hours were taken, may be used to satisfy a requirement set forth in this section for a later 12-month period.

7.  As used in this section, “certified course of continuing education” has the meaning ascribed to it in NRS 645B.051.

    Sec. 29.  1.  In addition to any other requirement for the issuance of a license as a mortgage agent pursuant to section 27 of this act, an applicant for the issuance of the license must include his social security number in his application.

2.  In addition to any other requirement for the issuance or renewal of a license as a mortgage agent pursuant to section 27 or 28 of this act, an applicant for the issuance or renewal of the license shall submit to the Commissioner the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

3.  The Commissioner shall include the statement required pursuant to subsection 2 in:

(a) The application or any other forms that must be submitted for the issuance or renewal of a license as a mortgage agent; or

(b) A separate form prescribed by the Commissioner.

4.  The license as a mortgage agent may not be issued or renewed by the Commissioner if the applicant:

(a) Fails to submit the statement required pursuant to subsection 2; or

(b) Indicates on the statement submitted pursuant to subsection 2 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

5.  If an applicant indicates on the statement submitted pursuant to subsection 2 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

    Sec. 30.  1.  Any mortgage broker or mortgage agent licensed under the provisions of this chapter who is called into the military service of the United States shall, at his request, be relieved from compliance with the provisions of this chapter and placed on inactive status for the period of such military service and for a period of 6 months after discharge therefrom.

2.  At any time within 6 months after termination of such service, if the mortgage broker or mortgage agent complies with the provisions of subsection 1, the mortgage broker or mortgage agent may be reinstated, without having to meet any qualification or requirement other than the payment of the reinstatement fee, as provided in NRS 645B.050 or section 28 of this act, and the mortgage broker or mortgage agent is not required to make payment of the renewal fee for the current year.

3.  Any mortgage broker or mortgage agent seeking to qualify for reinstatement, as provided in subsections 1 and 2, must present a certified copy of his honorable discharge or certificate of satisfactory service to the Commissioner.

    Sec. 31.  NRS 645B.010 is hereby amended to read as follows:

    645B.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS [645B.0103] 645B.0105 to 645B.0135, inclusive, have the meanings ascribed to them in those sections.

    Sec. 32.  NRS 645B.0105 is hereby amended to read as follows:

    645B.0105  “Commissioner” means the Commissioner of [Financial Institutions.] Mortgage Lending.

    Sec. 33.  NRS 645B.0111 is hereby amended to read as follows:

    645B.0111  “Division” means the Division of [Financial Institutions] Mortgage Lending of the Department of Business and Industry.

    Sec. 34.  NRS 645B.0123 is hereby amended to read as follows:

    645B.0123  “Licensee” means a person who is licensed as a mortgage broker pursuant to this chapter. The term does not include a person issued a license as a mortgage agent pursuant to section 27 of this act.

    Sec. 35.  NRS 645B.0127 is hereby amended to read as follows:

    645B.0127  1.  “Mortgage broker” means a person who, directly or indirectly:

    (a) Holds himself out for hire to serve as an agent for any person in an attempt to obtain a loan which will be secured by a lien on real property;

    (b) Holds himself out for hire to serve as an agent for any person who has money to lend, if the loan is or will be secured by a lien on real property;

    (c) Holds himself out as being able to make loans secured by liens on real property;

    (d) Holds himself out as being able to buy or sell notes secured by liens on real property; or

    (e) Offers for sale in this state any security which is exempt from registration under state or federal law and purports to make investments in promissory notes secured by liens on real property.

    2.  The term does not include a person who is licensed as a mortgage [company,] banker, as defined in NRS 645E.100, unless the person is also licensed as a mortgage broker pursuant to this chapter.

    Sec. 36.  NRS 645B.015 is hereby amended to read as follows:

    645B.015  Except as otherwise provided in NRS 645B.016, the provisions of this chapter do not apply to:

    1.  Any person doing business under the laws of this state, any other state or the United States relating to banks, savings banks, trust companies, savings and loan associations, consumer finance companies, industrial loan companies, credit unions, thrift companies or insurance companies, unless the business conducted in this state is not subject to supervision by the regulatory authority of the other jurisdiction, in which case licensing pursuant to this chapter is required.

    2.  A real estate investment trust, as defined in 26 U.S.C. § 856, unless the business conducted in this state is not subject to supervision by the regulatory authority of the other jurisdiction, in which case licensing pursuant to this chapter is required.

    3.  An employee benefit plan, as defined in 29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the plan’s trustee.

    4.  An attorney at law rendering services in the performance of his duties as an attorney at law.

    5.  A real estate broker rendering services in the performance of his duties as a real estate broker.

    6.  Except as otherwise provided in this subsection and NRS 645B.690, any firm or corporation [:

(a) Whose principal] , or wholly owned subsidiary thereof, the sole purpose or activity of which is lending money on real property [which is] secured by a mortgage [;

(b) Approved] pursuant to approvals by the Federal National Mortgage Association , [as a seller and servicer; and

(c) Approved by] the Department of Housing and Urban Development and the Department of Veterans Affairs. A firm or corporation is not exempt from the provisions of this chapter pursuant to this subsection if it maintains any accounts described in subsection 1 of NRS 645B.175 or if it offers for sale in this state any unregistered security under state or federal law and purports to make investments in promissory notes secured by liens on real property. A firm or corporation which is exempted pursuant to this subsection must submit annually as a condition of its continued exemption a certified statement by an independent certified public accountant that the firm or corporation does not maintain any such accounts. This subsection does not prohibit an exempt firm or corporation from maintaining accounts described in NRS 645B.170 and subsection 4 of NRS 645B.175.

    7.  Any person doing any act under an order of any court.

    8.  Any one natural person, or husband and wife, who provides money for investment in loans secured by a lien on real property, on his own account, unless such a person makes a loan secured by a lien on real property using his own money and assigns all or a part of his interest in the loan to another person, other than his spouse or child, within 5 years after the date on which the loan is made or the deed of trust is recorded, whichever occurs later.

    9.  Agencies of the United States and of this state and its political subdivisions, including the Public Employees’ Retirement System.

    10.  A seller of real property who offers credit secured by a mortgage of the property sold.

    Sec. 37.  NRS 645B.016 is hereby amended to read as follows:

    645B.016  Except as otherwise provided in NRS 645B.690:

    1.  A person who claims an exemption from the provisions of this chapter pursuant to subsection 1 or 6 of NRS 645B.015 must:

    (a) File a written application for a certificate of exemption with the office of the Commissioner;

    (b) Pay the fee required pursuant to NRS 645B.050; and

    (c) Include with the written application satisfactory proof that the person meets the requirements of subsection 1 or 6 of NRS 645B.015.

    2.  The Commissioner may require a person who claims an exemption from the provisions of this chapter pursuant to subsections 2 to 5, inclusive, or 7 to 10, inclusive, of NRS 645B.015 to:

    (a) File a written application for a certificate of exemption with the office of the Commissioner;

    (b) Pay the fee required pursuant to NRS 645B.050; and

    (c) Include with the written application satisfactory proof that the person meets the requirements of at least one of those exemptions.

    3.  A certificate of exemption expires automatically if, at any time, the person who claims the exemption no longer meets the requirements of at least one exemption set forth in the provisions of NRS 645B.015.

    4.  If a certificate of exemption expires automatically pursuant to this section, the person shall not provide any of the services of a mortgage broker or mortgage agent or otherwise engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage broker [,] or mortgage agent unless the person applies for and is issued:

    (a) A license as a mortgage broker or mortgage agent, as applicable, pursuant to this chapter; or

    (b) Another certificate of exemption.

    5.  The Commissioner may impose upon a person who is required to apply for a certificate of exemption or who holds a certificate of exemption an administrative fine of not more than $10,000 for each violation that he commits, if the person:

    (a) Has knowingly made or caused to be made to the Commissioner any false representation of material fact;

    (b) Has suppressed or withheld from the Commissioner any information which the person possesses and which, if submitted by him, would have rendered the person ineligible to hold a certificate of exemption; or

    (c) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner that applies to a person who is required to apply for a certificate of exemption or who holds a certificate of exemption.

    Sec. 38.  NRS 645B.035 is hereby amended to read as follows:

    645B.035  1.  A license as a mortgage broker entitles a licensee to engage only in the activities authorized by this chapter.

    2.  The provisions of this chapter do not prohibit a licensee from:

    (a) Holding a license as a mortgage [company] banker pursuant to
chapter 645E of NRS; or

    (b) Conducting the business of a mortgage [company] banker and the business of a mortgage broker in the same office or place of business.

    Sec. 39.  NRS 645B.050 is hereby amended to read as follows:

    645B.050  1.  A license as a mortgage broker issued pursuant to this chapter expires each year on June 30, unless it is renewed. To renew such a license, the licensee must submit to the Commissioner on or before [June 30] May 31 of each year:

    (a) An application for renewal;

    (b) The fee required to renew the license pursuant to this section;

    (c) If the licensee is a natural person, the statement required pursuant to NRS 645B.023; and

    (d) The information required pursuant to NRS 645B.051.

    2.  If the licensee fails to submit any item required pursuant to
subsection 1 to the Commissioner on or before [June 30] May 31 of any year, the license is cancelled [.] as of June 30 of that year. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner:

    (a) An application for renewal;

    (b) The fee required to renew the license pursuant to this section;

    (c) If the licensee is a natural person, the statement required pursuant to NRS 645B.023;

    (d) The information required pursuant to NRS 645B.051; and

    (e) Except as otherwise provided in this section, a reinstatement fee of $200.

    3.  Except as otherwise provided in NRS 645B.016, a certificate of exemption issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a certificate of exemption, a person must submit to the Commissioner on or before [December 31] November 30 of each year:

    (a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter; and

    (b) The fee required to renew the certificate of exemption.

    4.  If the person fails to submit any item required pursuant to subsection 3 to the Commissioner on or before [December 31] November 30 of any year, the certificate of exemption is cancelled [.] as of December 31 of that year. Except as otherwise provided in NRS 645B.016, the Commissioner may reinstate a cancelled certificate of exemption if the person submits to the Commissioner:

    (a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter;

    (b) The fee required to renew the certificate of exemption; and

    (c) Except as otherwise provided in this section, a reinstatement fee of $100.

    5.  Except as otherwise provided in this section, a person must pay the following fees to apply for, to be issued or to renew a license as a mortgage broker pursuant to this chapter:

    (a) To file an original application or a license, $1,500 for the principal office and $40 for each branch office. The person must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. [All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.]

    (b) To be issued a license, $1,000 for the principal office and $60 for each branch office.

    (c) To renew a license, $500 for the principal office and $100 for each branch office.

    6.  Except as otherwise provided in this section, a person must pay the following fees to apply for or to renew a certificate of exemption pursuant to this chapter:

    (a) To file an application for a certificate of exemption, $200.

    (b) To renew a certificate of exemption, $100.

    7.  To be issued a duplicate copy of any license or certificate of exemption, a person must make a satisfactory showing of its loss and pay a fee of $10.

    8.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.

    9.  The Commissioner may, by regulation, increase any fee set forth in this section if the Commissioner determines that such an increase is necessary for the Commissioner to carry out his duties pursuant to this chapter. The amount of any increase in a fee pursuant to this subsection must not exceed the amount determined to be necessary for the Commissioner to carry out his duties pursuant to this chapter.

    Sec. 40.  NRS 645B.050 is hereby amended to read as follows:

    645B.050  1.  A license as a mortgage broker issued pursuant to this chapter expires each year on June 30, unless it is renewed. To renew such a license, the licensee must submit to the Commissioner on or before [June 30] May 31 of each year:

    (a) An application for renewal;

    (b) The fee required to renew the license pursuant to this section; and

    (c) The information required pursuant to NRS 645B.051.

    2.  If the licensee fails to submit any item required pursuant to
subsection 1 to the Commissioner on or before [June 30] May 31 of any year, the license is cancelled [.] as of June 30 of that year. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner:

    (a) An application for renewal;

    (b) The fee required to renew the license pursuant to this section;

    (c) The information required pursuant to NRS 645B.051; and

    (d) Except as otherwise provided in this section, a reinstatement fee of $200.

    3.  Except as otherwise provided in NRS 645B.016, a certificate of exemption issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a certificate of exemption, a person must submit to the Commissioner on or before [December 31] November 30 of each year:

    (a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter; and

    (b) The fee required to renew the certificate of exemption.

    4.  If the person fails to submit any item required pursuant to subsection 3 to the Commissioner on or before [December 31] November 30 of any year, the certificate of exemption is cancelled [.] as of December 31 of that year. Except as otherwise provided in NRS 645B.016, the Commissioner may reinstate a cancelled certificate of exemption if the person submits to the Commissioner:

    (a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter;

    (b) The fee required to renew the certificate of exemption; and

    (c) Except as otherwise provided in this section, a reinstatement fee of $100.

    5.  Except as otherwise provided in this section, a person must pay the following fees to apply for, to be issued or to renew a license as a mortgage broker pursuant to this chapter:

    (a) To file an original application for a license, $1,500 for the principal office and $40 for each branch office. The person must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. [All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.]

    (b) To be issued a license, $1,000 for the principal office and $60 for each branch office.

    (c) To renew a license, $500 for the principal office and $100 for each branch office.

    6.  Except as otherwise provided in this section, a person must pay the following fees to apply for or to renew a certificate of exemption pursuant to this chapter:

    (a) To file an application for a certificate of exemption, $200.

    (b) To renew a certificate of exemption, $100.

    7.  To be issued a duplicate copy of any license or certificate of exemption, a person must make a satisfactory showing of its loss and pay a fee of $10.

    8.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.

    9.  The Commissioner may, by regulation, increase any fee set forth in this section if the Commissioner determines that such an increase is necessary for the Commissioner to carry out his duties pursuant to this chapter. The amount of any increase in a fee pursuant to this subsection must not exceed the amount determined to be necessary for the Commissioner to carry out his duties pursuant to this chapter.

    Sec. 41.  NRS 645B.051 is hereby amended to read as follows:

    645B.051  1.  [In] Except as otherwise provided in this section, in addition to the requirements set forth in NRS 645B.050, to renew a license [:] as a mortgage broker:

    (a) If the licensee is a natural person, the licensee must submit to the Commissioner satisfactory proof that the licensee attended at least [5]
10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

    (b) If the licensee is not a natural person, the licensee must submit to the Commissioner satisfactory proof that each natural person who supervises the daily business of the licensee attended at least [5] 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

    2.  The Commissioner may provide by regulation that any hours of a certified course of continuing education attended during a 12-month period, but not needed to satisfy a requirement set forth in this section for the
12-month period in which the course was taken, may be used to satisfy a requirement set forth in this section for a later 12-month period.

3.  As used in this section, “certified course of continuing education” means a course of continuing education which relates to the mortgage industry or mortgage transactions and which is [:

(a) Certified by the] certified by:

(a) The National Association of Mortgage Brokers or any successor in interest to that organization; or

    (b) [Certified in a manner established by the Commissioner, if the National Association of Mortgage Brokers or any successor in interest to that organization ceases to exist.] Any organization designated for this purpose by the Commissioner by regulation.

    Sec. 42.  NRS 645B.060 is hereby amended to read as follows:

    645B.060  1.  Subject to the administrative control of the Director of the Department of Business and Industry, the Commissioner shall exercise general supervision and control over mortgage brokers and mortgage agents doing business in this state.

    2.  In addition to the other duties imposed upon him by law, the Commissioner shall:

    (a) Adopt any regulations that are necessary to carry out the provisions of this chapter, except as to loan brokerage fees.

    (b) Conduct such investigations as may be necessary to determine whether any person has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

    (c) Conduct an annual examination of each mortgage broker doing business in this state. The annual examination must include, without limitation, a formal exit review with the mortgage broker. The Commissioner shall adopt regulations prescribing:

        (1) Standards for determining the rating of each mortgage broker based upon the results of the annual examination; and

        (2) Procedures for resolving any objections made by the mortgage broker to the results of the annual examination. The results of the annual examination may not be opened to public inspection pursuant to
NRS 645B.090 until any objections made by the mortgage broker have been decided by the Commissioner.

    (d) Conduct such other examinations, periodic or special audits, investigations and hearings as may be necessary and proper for the efficient administration of the laws of this state regarding mortgage brokers and mortgage agents. The Commissioner shall adopt regulations specifying the general guidelines that will be followed when a periodic or special audit of a mortgage broker is conducted pursuant to this chapter.

    (e) Classify as confidential certain records and information obtained by the Division when those matters are obtained from a governmental agency upon the express condition that they remain confidential. This paragraph does not limit examination by the Legislative Auditor.

    (f) Conduct such examinations and investigations as are necessary to ensure that mortgage brokers and mortgage agents meet the requirements of this chapter for obtaining a license, both at the time of the application for a license and thereafter on a continuing basis.

    3.  For each special audit, investigation or examination, a mortgage broker or mortgage agent shall pay a fee based on the rate established pursuant to [NRS 658.101.] section 15 of this act.

    Sec. 43.  NRS 645B.450 is hereby amended to read as follows:

    645B.450  1.  [A person shall not act as or provide any of the services of a mortgage agent or otherwise engage in, carry on or hold himself out as engaging in or carrying on the activities of a mortgage agent if the person:

(a) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

(b) Has had a financial services license or registration suspended or revoked within the immediately preceding 10 years.

2.] A person licensed as a mortgage agent pursuant to the provisions of section 27 of this act may not be associated with or employed by more than one mortgage broker at the same time.

[3.  A mortgage broker shall register with the Division each person who will be associated with or employed by the mortgage broker as a mortgage agent. A mortgage broker shall register each such person with the Division when the person begins his association or employment with the mortgage broker and annually thereafter. A registration expires 12 months after its effective date.

4.  To register a person as a mortgage agent, a mortgage broker must :

(a) Submit to the Division a registration form which is provided by the Division and which:

(1) States the name, residence address and business address of the person;

(2) Is signed by the person;

(3) Includes a provision by which the person gives his written consent to an investigation of his credit history, criminal history and background; and

(4) Includes any other information or supporting materials required by the regulations adopted by the Commissioner. Such information or supporting materials may include, without limitation, a complete set of fingerprints from the person, the social security number of the person and other forms of identification of the person.

(b) For each initial registration, pay the actual costs and expenses incurred by the Division to investigate the credit history, criminal history and background of the person. All money received pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.

(c) For each annual registration, submit to the Division satisfactory proof that the person attended at least 5 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the registration expires.

5.  Not later than the date on which the mortgage broker submits the information for annual registration required by subsection 4, the person being registered shall pay an annual registration fee of $125. If the person does not pay the annual registration fee, the person shall be deemed to be unregistered for the purposes of this chapter.

6.] 2.  A mortgage broker shall not associate with or employ a person as a mortgage agent or authorize a person to be associated with the mortgage broker as a mortgage agent if the mortgage [broker has not registered the person] agent is not licensed with the Division pursuant to [this section or if the person:

(a) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

(b) Has had a financial services license or registration suspended or revoked within the immediately preceding 10 years.

7.] section 27 of this act.

3.  If a mortgage agent terminates his association or employment with a mortgage broker for any reason, the mortgage broker shall, not later than the third business day following the date of termination:

    (a) Deliver to the mortgage agent or send by certified mail to the last known residence address of the mortgage agent a written statement which advises him that his termination is being reported to the Division; and

    (b) Deliver or send by certified mail to the Division:

        (1) The license or license number of the mortgage agent;

(2) A written statement of the circumstances surrounding the termination; and

[(2)] (3) A copy of the written statement that the mortgage broker delivers or mails to the mortgage agent pursuant to paragraph (a).

[8.  As used in this section, “certified course of continuing education” has the meaning ascribed to it in NRS 645B.051.]

    Sec. 44.  NRS 645B.620 is hereby amended to read as follows:

    645B.620  1.  Whether or not a complaint has been filed, the Commissioner shall investigate a mortgage broker , mortgage agent or other person if, for any reason, it appears that:

    (a) The mortgage broker or mortgage agent is conducting business in an unsafe and injurious manner or in violation of any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;

    (b) The person is offering or providing any of the services of a mortgage broker or mortgage agent or otherwise engaging in, carrying on or holding himself out as engaging in or carrying on the business of a mortgage broker or mortgage agent without being appropriately licensed or exempt from licensing pursuant to the provisions of this chapter; or

    (c) The person is violating any other provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

    2.  If, upon investigation, the Commissioner has reasonable cause to believe that the mortgage broker , mortgage agent or other person has engaged in any conduct or committed any violation described in
subsection 1:

    (a) The Commissioner shall notify the Attorney General of the conduct or violation and, if applicable, the Commissioner shall immediately take possession of the property of the mortgage broker pursuant to
NRS 645B.630; and

    (b) The Attorney General shall, if appropriate:

        (1) Investigate and prosecute the mortgage broker , mortgage agent or other person pursuant to NRS 645B.800; and

        (2) Bring a civil action to:

            (I) Enjoin the mortgage broker , mortgage agent or other person from engaging in the conduct, operating the business or committing the violation; and

            (II) Enjoin any other person who has encouraged, facilitated, aided or participated in the conduct, the operation of the business or the commission of the violation, or who is likely to engage in such acts, from engaging in or continuing to engage in such acts.

    3.  If the Attorney General brings a civil action pursuant to subsection 2, the district court of any county of this state is hereby vested with the jurisdiction in equity to enjoin the conduct, the operation of the business or the commission of the violation and may grant any injunctions that are necessary to prevent and restrain the conduct, the operation of the business or the commission of the violation. During the pendency of the proceedings before the district court:

    (a) The court may issue any temporary restraining orders as may appear to be just and proper;

    (b) The findings of the Commissioner shall be deemed to be prima facie evidence and sufficient grounds, in the discretion of the court, for the
ex parte issuance of a temporary restraining order; and

    (c) The Attorney General may apply for and on due showing is entitled to have issued the court’s subpoena requiring forthwith the appearance of any person to:

        (1) Produce any documents, books and records as may appear necessary for the hearing of the petition; and

        (2) Testify and give evidence concerning the conduct complained of in the petition.

    Sec. 45.  NRS 645B.670 is hereby amended to read as follows:

    645B.670  Except as otherwise provided in NRS 645B.690:

    1.  For each violation committed by an applicant [,] for a license issued pursuant to this chapter, whether or not he is issued a license, the Commissioner may impose upon the applicant an administrative fine of not more than $10,000, if the applicant:

    (a) Has knowingly made or caused to be made to the Commissioner any false representation of material fact;

    (b) Has suppressed or withheld from the Commissioner any information which the applicant possesses and which, if submitted by him, would have rendered the applicant ineligible to be licensed pursuant to the provisions of this chapter; or

    (c) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner in completing and filing his application for a license or during the course of the investigation of his application for a license.

    2.  For each violation committed by a licensee, the Commissioner may impose upon the licensee an administrative fine of not more than $10,000, may suspend, revoke or place conditions upon his license, or may do both, if the licensee, whether or not acting as such:

    (a) Is insolvent;

    (b) Is grossly negligent or incompetent in performing any act for which he is required to be licensed pursuant to the provisions of this chapter;

    (c) Does not conduct his business in accordance with law or has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;

    (d) Is in such financial condition that he cannot continue in business with safety to his customers;

    (e) Has made a material misrepresentation in connection with any transaction governed by this chapter;

    (f) Has suppressed or withheld from a client any material facts, data or other information relating to any transaction governed by the provisions of this chapter which the licensee knew or, by the exercise of reasonable diligence, should have known;

    (g) Has knowingly made or caused to be made to the Commissioner any false representation of material fact or has suppressed or withheld from the Commissioner any information which the licensee possesses and which, if submitted by him, would have rendered the licensee ineligible to be licensed pursuant to the provisions of this chapter;

    (h) Has failed to account to persons interested for all money received for a trust account;

    (i) Has refused to permit an examination by the Commissioner of his books and affairs or has refused or failed, within a reasonable time, to furnish any information or make any report that may be required by the Commissioner pursuant to the provisions of this chapter or a regulation adopted pursuant to this chapter;

    (j) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude;

    (k) Has refused or failed to pay, within a reasonable time, any fees, assessments, costs or expenses that the licensee is required to pay pursuant to this chapter or a regulation adopted pursuant to this chapter;

    (l) Has failed to satisfy a claim made by a client which has been reduced to judgment;

    (m) Has failed to account for or to remit any money of a client within a reasonable time after a request for an accounting or remittal;

    (n) Has commingled the money or other property of a client with his own or has converted the money or property of others to his own use;

    (o) Has engaged in any other conduct constituting a deceitful, fraudulent or dishonest business practice;

    (p) Has repeatedly violated the policies and procedures of the mortgage broker;

    (q) Has failed to exercise reasonable supervision over the activities of a mortgage agent as required by NRS 645B.460;

    (r) Has instructed a mortgage agent to commit an act that would be cause for the revocation of the license of the mortgage broker, whether or not the mortgage agent commits the act;

    (s) Has employed a person as a mortgage agent or authorized a person to be associated with the licensee as a mortgage agent at a time when the licensee knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person:

        (1) Had been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

        (2) Had a financial services license or registration suspended or revoked within the immediately preceding 10 years; or

    (t) Has not conducted verifiable business as a mortgage broker for
12 consecutive months, except in the case of a new applicant. The Commissioner shall determine whether a mortgage broker is conducting business by examining the monthly reports of activity submitted by the licensee or by conducting an examination of the licensee.

    Sec. 46.  NRS 645B.680 is hereby amended to read as follows:

    645B.680  1.  If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license as a mortgage broker [,] or mortgage agent, the Commissioner shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

    2.  The Commissioner shall reinstate a license as a mortgage broker or mortgage agent that has been suspended by a district court pursuant to
NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

    Sec. 47.  NRS 645B.690 is hereby amended to read as follows:

    645B.690  1.  If a person offers or provides any of the services of a mortgage broker or mortgage agent or otherwise engages in, carries on or holds himself out as engaging in or carrying on the business of a mortgage broker or mortgage agent and, at the time:

    (a) The person was required to have a license pursuant to this chapter and the person did not have such a license; or

    (b) The person’s license was suspended or revoked pursuant to this chapter, the Commissioner shall impose upon the person an administrative fine of not more than $10,000 for each violation and, if the person has a license, the Commissioner shall revoke it.

    2.  If a person is exempt from the provisions of this chapter pursuant to subsection 6 of NRS 645B.015 and the person, while exempt, maintains, offers to maintain or holds himself out as maintaining any accounts described in subsection 1 of NRS 645B.175 or otherwise engages in, offers to engage in or holds himself out as engaging in any activity that would remove the person from the exemption set forth in subsection 6 of NRS 645B.015, the Commissioner shall impose upon the person an administrative fine of not more than $10,000 for each violation and the Commissioner shall revoke the person’s exemption. If the Commissioner revokes an exemption pursuant to this subsection, the person may not again be granted the same or a similar exemption from the provisions of this chapter. The person may apply for a license pursuant to this chapter unless otherwise prohibited by specific statute.

    3.  If a mortgage broker violates any provision of subsection 1 of
NRS 645B.080 and the mortgage broker fails, without reasonable cause, to remedy the violation within 20 business days after being ordered by the Commissioner to do so or within such later time as prescribed by the Commissioner, or if the Commissioner orders a mortgage broker to provide information, make a report or permit an examination of his books or affairs pursuant to this chapter and the mortgage broker fails, without reasonable cause, to comply with the order within 20 business days or within such later time as prescribed by the Commissioner, the Commissioner shall:

    (a) Impose upon the mortgage broker an administrative fine of not more than $10,000 for each violation;

    (b) Suspend or revoke the license of the mortgage broker; and

    (c) Conduct a hearing to determine whether the mortgage broker is conducting business in an unsafe and injurious manner that may result in danger to the public and whether it is necessary for the Commissioner to take possession of the property of the mortgage broker pursuant to
NRS 645B.630.

    Sec. 48.  NRS 645B.900 is hereby amended to read as follows:

    645B.900  It is unlawful for any person to offer or provide any of the services of a mortgage broker or mortgage agent or otherwise to engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage broker or mortgage agent without first obtaining [a license as a mortgage broker] the applicable license issued pursuant to this chapter, unless the person:

    1.  Is exempt from the provisions of this chapter; and

    2.  Complies with the requirements for that exemption.

    Sec. 48.5.  NRS 645E.020 is hereby amended to read as follows:

    645E.020  “Applicant” means a person who applies for licensure as a mortgage [company] banker pursuant to this chapter.

    Sec. 49.  NRS 645E.050 is hereby amended to read as follows:

    645E.050  “Commissioner” means the Commissioner of [Financial Institutions.] Mortgage Lending.

    Sec. 50.  NRS 645E.070 is hereby amended to read as follows:

    645E.070  “Division” means the Division of [Financial Institutions] Mortgage Lending of the Department of Business and Industry.

    Sec. 51.  NRS 645E.090 is hereby amended to read as follows:

    645E.090  “Licensee” means a person who is licensed as a mortgage [company] banker pursuant to this chapter.

    Sec. 52.  NRS 645E.100 is hereby amended to read as follows:

    645E.100  1.  “Mortgage [company”] banker” means any of the following:

    (a) A person who, directly or indirectly:

        (1) Holds himself out as being able to:

            (I) Buy or sell notes secured by liens on real property; or

            (II) Make loans secured by liens on real property using his own money; and

        (2) Does not engage in any other act or transaction described in the definition of “mortgage broker,” as set forth in NRS 645B.0127, unless the person is also licensed as a mortgage broker pursuant to chapter 645B
of NRS.

    (b) A person who, directly or indirectly:

        (1) Negotiates, originates or makes or offers to negotiate, originate or make commercial mortgage loans as an agent for or on behalf of an institutional investor; and

        (2) Does not engage in any other act or transaction described in the definition of “mortgage broker,” as set forth in NRS 645B.0127, unless the person is also licensed as a mortgage broker pursuant to chapter 645B
of NRS.

    2.  For the purposes of this section, a person does not make a loan secured by a lien on real property using his own money if any portion of the money that is used to make the loan is provided by another person who acquires ownership of or a beneficial interest in the loan.

    Sec. 53.  NRS 645E.130 is hereby amended to read as follows:

    645E.130  The provisions of this chapter do not:

    1.  Limit any statutory or common-law right of a person to bring a civil action against a mortgage [company] banker for any act or omission involved in the transaction of business by or on behalf of the mortgage [company;] banker;

    2.  Limit the right of the State to punish a person for the violation of any law, ordinance or regulation; or

    3.  Establish a basis for a person to bring a civil action against the State or its officers or employees for any act or omission in carrying out the provisions of this chapter, including, without limitation, any act or omission relating to the disclosure of information or the failure to disclose information pursuant to the provisions of this chapter.

    Sec. 54.  NRS 645E.150 is hereby amended to read as follows:

    645E.150  Except as otherwise provided in NRS 645E.160, the provisions of this chapter do not apply to:

    1.  Any person doing business under the laws of this state, any other state or the United States relating to banks, savings banks, trust companies, savings and loan associations, consumer finance companies, industrial loan companies, credit unions, thrift companies or insurance companies, unless the business conducted in this state is not subject to supervision by the regulatory authority of the other jurisdiction, in which case licensing pursuant to this chapter is required.

    2.  A real estate investment trust, as defined in 26 U.S.C. § 856, unless the business conducted in this state is not subject to supervision by the regulatory authority of the other jurisdiction, in which case licensing pursuant to this chapter is required.

    3.  An employee benefit plan, as defined in 29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the plan’s trustee.

    4.  An attorney at law rendering services in the performance of his duties as an attorney at law.

    5.  A real estate broker rendering services in the performance of his duties as a real estate broker.

    6.  Any firm or corporation [:

(a) Whose principal] , or wholly owned subsidiary thereof, the sole purpose or activity of which is lending money on real property [which is] secured by a mortgage [;

(b) Approved] pursuant to approvals by the Federal National Mortgage Association , [as a seller and servicer; and

(c) Approved by] the Department of Housing and Urban Development and the Department of Veterans Affairs.

    7.  Any person doing any act under an order of any court.

    8.  Any one natural person, or husband and wife, who provides money for investment in loans secured by a lien on real property, on his own account, unless such a person makes a loan secured by a lien on real property using his own money and assigns all or a part of his interest in the loan to another person, other than his spouse or child, within 5 years after the date on which the loan is made or the deed of trust is recorded, whichever occurs later.

    9.  Agencies of the United States and of this state and its political subdivisions, including the public employees’ retirement system.

    10.  A seller of real property who offers credit secured by a mortgage of the property sold.

    Sec. 55.  NRS 645E.160 is hereby amended to read as follows:

    645E.160  1.  A person who claims an exemption from the provisions of this chapter pursuant to subsection 1 or 6 of NRS 645E.150 must:

    (a) File a written application for a certificate of exemption with the Office of the Commissioner;

    (b) Pay the fee required pursuant to NRS 645E.280; and

    (c) Include with the written application satisfactory proof that the person meets the requirements of subsection 1 or 6 of NRS 645E.150.

    2.  The Commissioner may require a person who claims an exemption from the provisions of this chapter pursuant to subsections 2 to 5, inclusive, or 7 to 10, inclusive, of NRS 645E.150 to:

    (a) File a written application for a certificate of exemption with the Office of the Commissioner;

    (b) Pay the fee required pursuant to NRS 645E.280; and

    (c) Include with the written application satisfactory proof that the person meets the requirements of at least one of those exemptions.

    3.  A certificate of exemption expires automatically if, at any time, the person who claims the exemption no longer meets the requirements of at least one exemption set forth in the provisions of NRS 645E.150.

    4.  If a certificate of exemption expires automatically pursuant to this section, the person shall not provide any of the services of a mortgage [company] banker or otherwise engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage [company,] banker, unless the person applies for and is issued:

    (a) A license as a mortgage [company] banker pursuant to this chapter; or

    (b) Another certificate of exemption.

    5.  The Commissioner may impose upon a person who is required to apply for a certificate of exemption or who holds a certificate of exemption an administrative fine of not more than $10,000 for each violation that he commits, if the person:

    (a) Has knowingly made or caused to be made to the Commissioner any false representation of material fact;

    (b) Has suppressed or withheld from the Commissioner any information which the person possesses and which, if submitted by him, would have rendered the person ineligible to hold a certificate of exemption; or

    (c) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner that applies to a person who is required to apply for a certificate of exemption or who holds a certificate of exemption.

    Sec. 56.  NRS 645E.200 is hereby amended to read as follows:

    645E.200  1.  A person who wishes to be licensed as a mortgage [company] banker must file a written application for a license with the Office of the Commissioner and pay the fee required pursuant to NRS 645E.280. An application for a license as a mortgage [company] banker must:

    (a) Be verified.

    (b) State the name, residence address and business address of the applicant and the location of each principal office and branch office at which the mortgage [company] banker will conduct business in this state, including, without limitation, any office or other place of business located outside this state from which the mortgage [company] banker will conduct business in this state.

    (c) State the name under which the applicant will conduct business as a mortgage [company.] banker.

    (d) If the applicant is not a natural person, list the name, residence address and business address of each person who will have an interest in the mortgage [company] banker as a principal, partner, officer, director or trustee, specifying the capacity and title of each such person.

    (e) Indicate the general plan and character of the business.

    (f) State the length of time the applicant has been engaged in the business of a mortgage [company.] banker.

    (g) Include a financial statement of the applicant.

    (h) Include any other information required pursuant to the regulations adopted by the Commissioner or an order of the Commissioner.

    2.  If a mortgage [company] banker will conduct business in this state at one or more branch offices, the mortgage [company] banker must apply for a license for each such branch office.

    3.  Except as otherwise provided in this chapter, the Commissioner shall issue a license to an applicant as a mortgage [company] banker if:

    (a) The application complies with the requirements of this chapter; and

    (b) The applicant and each general partner, officer or director of the applicant, if the applicant is a partnership, corporation or unincorporated association:

        (1) Has a good reputation for honesty, trustworthiness and integrity and displays competence to transact the business of a mortgage [company] banker in a manner which safeguards the interests of the general public. The applicant must submit satisfactory proof of these qualifications to the Commissioner.

        (2) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.

        (3) Has not made a false statement of material fact on his application.

        (4) Has not had a license that was issued pursuant to the provisions of this chapter or chapter 645B of NRS suspended or revoked within the
10 years immediately preceding the date of his application.

        (5) Has not had a license that was issued in any other state, district or territory of the United States or any foreign country suspended or revoked within the 10 years immediately preceding the date of his application.

        (6) Has not violated any provision of this chapter or chapter 645B of NRS, a regulation adopted pursuant thereto or an order of the Commissioner.

    4.  If an applicant is a partnership, corporation or unincorporated association, the Commissioner may refuse to issue a license to the applicant if any member of the partnership or any officer or director of the corporation or unincorporated association has committed any act or omission that would be cause for refusing to issue a license to a natural person.

    5.  A person may apply for a license for an office or other place of business located outside this state from which the applicant will conduct business in this state if the applicant or a subsidiary or affiliate of the applicant has a license issued pursuant to this chapter for an office or other place of business located in this state and if the applicant submits with the application for a license a statement signed by the applicant which states that the applicant agrees to:

    (a) Make available at a location within this state the books, accounts, papers, records and files of the office or place of business located outside this state to the Commissioner or a representative of the Commissioner; or

    (b) Pay the reasonable expenses for travel, meals and lodging of the Commissioner or a representative of the Commissioner incurred during any investigation or examination made at the office or place of business located outside this state. The applicant must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.

    Sec. 57.  NRS 645E.210 is hereby amended to read as follows:

    645E.210  1.  In addition to the requirements set forth in NRS 645E.200 and 645E.280, a natural person who applies for the issuance or renewal of a license as a mortgage [company] banker shall submit to the Commissioner:

    (a) In any application for issuance of a license, the social security number of the applicant and the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

    (b) In any application for renewal of a license, the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

    2.  The Commissioner shall include the statement required pursuant to subsection 1 in:

    (a) The application or any other forms that must be submitted for the issuance or renewal of the license; or

    (b) A separate form prescribed by the Commissioner.

    3.  The Commissioner shall not issue or renew a license as a mortgage [company] banker if the applicant is a natural person who:

    (a) Fails to submit the statement required pursuant to subsection 1; or

    (b) Indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

    4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

    Sec. 58.  NRS 645E.220 is hereby amended to read as follows:

    645E.220  1.  A mortgage [company] banker shall post each license in a conspicuous place in the office for which the license has been issued.

    2.  A mortgage [company] banker may not transfer or assign a license to another person, unless the Commissioner gives his written approval.

    Sec. 59.  NRS 645E.230 is hereby amended to read as follows:

    645E.230  1.  A license entitles a licensee to engage only in the activities authorized by this chapter.

    2.  The provisions of this chapter do not prohibit a licensee from:

    (a) Holding a license as a mortgage broker pursuant to chapter
645B of NRS; or

    (b) Conducting the business of a mortgage [company] banker and the business of a mortgage broker in the same office or place of business.

    Sec. 60.  NRS 645E.280 is hereby amended to read as follows:

    645E.280  1.  A license issued to a mortgage [company] banker pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a license, the licensee must submit to the Commissioner on or before December 31 of each year:

    (a) An application for renewal that complies with the requirements of this chapter; and

    (b) The fee required to renew the license pursuant to this section.

    2.  If the licensee fails to submit any item required pursuant to
subsection 1 to the Commissioner on or before December 31 of any year, the license is cancelled. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner:

    (a) An application for renewal that complies with the requirements of this chapter;

    (b) The fee required to renew the license pursuant to this section; and

    (c) A reinstatement fee of $200.

    3.  Except as otherwise provided in NRS 645E.160, a certificate of exemption issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a certificate of exemption, a person must submit to the Commissioner on or before December 31 of each year:

    (a) An application for renewal that complies with the requirements of this chapter; and

    (b) The fee required to renew the certificate of exemption.

    4.  If the person fails to submit any item required pursuant to subsection 3 to the Commissioner on or before December 31 of any year, the certificate of exemption is cancelled. Except as otherwise provided in NRS 645E.160, the Commissioner may reinstate a cancelled certificate of exemption if the person submits to the Commissioner:

    (a) An application for renewal that complies with the requirements of this chapter;

    (b) The fee required to renew the certificate of exemption; and

    (c) A reinstatement fee of $100.

    5.  A person must pay the following fees to apply for, to be issued or to renew a license as a mortgage [company] banker pursuant to this chapter:

    (a) To file an original application for a license, $1,500 for the principal office and $40 for each branch office. The person must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. [All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.]

    (b) To be issued a license, $1,000 for the principal office and $60 for each branch office.

    (c) To renew a license, $500 for the principal office and $100 for each branch office.

    6.  A person must pay the following fees to apply for or to renew a certificate of exemption pursuant to this chapter:

    (a) To file an application for a certificate of exemption, $200.

    (b) To renew a certificate of exemption, $100.

    7.  To be issued a duplicate copy of any license or certificate of exemption, a person must make a satisfactory showing of its loss and pay a fee of $10.

    8.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.

    Sec. 61.  NRS 645E.300 is hereby amended to read as follows:

    645E.300  1.  Subject to the administrative control of the Director of the Department of Business and Industry, the Commissioner shall exercise general supervision and control over mortgage [companies] bankers doing business in this state.

    2.  In addition to the other duties imposed upon him by law, the Commissioner shall:

    (a) Adopt any regulations that are necessary to carry out the provisions of this chapter, except as to loan fees.

    (b) Conduct such investigations as may be necessary to determine whether any person has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

    (c) Conduct an annual examination of each mortgage [company] banker doing business in this state.

    (d) Conduct such other examinations, periodic or special audits, investigations and hearings as may be necessary and proper for the efficient administration of the laws of this state regarding mortgage [companies.] bankers.

    (e) Classify as confidential certain records and information obtained by the Division when those matters are obtained from a governmental agency upon the express condition that they remain confidential. This paragraph does not limit examination by the Legislative Auditor.

    (f) Conduct such examinations and investigations as are necessary to ensure that mortgage [companies] bankers meet the requirements of this chapter for obtaining a license, both at the time of the application for a license and thereafter on a continuing basis.

    3.  For each special audit, investigation or examination, a mortgage [company] banker shall pay a fee based on the rate established pursuant to [NRS 658.101.] section 15 of this act.

    Sec. 62.  NRS 645E.320 is hereby amended to read as follows:

    645E.320  Each mortgage [company] banker shall pay the assessment levied pursuant to [NRS 658.055] section 12 of this act and cooperate fully with the audits and examinations performed pursuant thereto.

    Sec. 63.  NRS 645E.350 is hereby amended to read as follows:

    645E.350  1.  Each mortgage [company] banker shall keep and maintain at all times at each location where the mortgage [company] banker conducts business in this state complete and suitable records of all mortgage transactions made by the mortgage [company] banker at that location. Each mortgage [company] banker shall also keep and maintain at all times at each such location all original books, papers and data, or copies thereof, clearly reflecting the financial condition of the business of the mortgage [company.] banker.

    2.  Each mortgage [company] banker shall submit to the Commissioner each month a report of the mortgage [company’s] banker’s activity for the previous month. The report must:

    (a) Specify the volume of loans made by the mortgage [company] banker for the month or state that no loans were made in that month;

    (b) Include any information required pursuant to the regulations adopted by the Commissioner; and

    (c) Be submitted to the Commissioner by the 15th day of the month following the month for which the report is made.

    3.  The Commissioner may adopt regulations prescribing accounting procedures for mortgage [companies] bankers handling trust accounts and the requirements for keeping records relating to such accounts.

    4.  A licensee who operates outside this state an office or other place of business which is licensed pursuant to this chapter shall:

    (a) Make available at a location within this state the books, accounts, papers, records and files of the office or place of business located outside this state to the Commissioner or a representative of the Commissioner; or

    (b) Pay the reasonable expenses for travel, meals and lodging of the Commissioner or a representative of the Commissioner incurred during any investigation or examination made at the office or place of business located outside this state.

The licensee must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.

    Sec. 64.  NRS 645E.360 is hereby amended to read as follows:

    645E.360  1.  Except as otherwise provided in this section, not later than 60 days after the last day of each fiscal year for a mortgage [company,] banker, the mortgage [company] banker shall submit to the Commissioner a financial statement that:

    (a) Is dated not earlier than the last day of the fiscal year; and

    (b) Has been prepared from the books and records of the mortgage [company] banker by an independent public accountant who holds a permit to engage in the practice of public accounting in this state that has not been revoked or suspended.

    2.  The Commissioner may grant a reasonable extension for the submission of a financial statement pursuant to this section if a mortgage [company] banker requests such an extension before the date on which the financial statement is due.

    3.  If a mortgage [company] banker maintains any accounts described in NRS 645E.430, the financial statement submitted pursuant to this section must be audited. The public accountant who prepares the report of an audit shall submit a copy of the report to the Commissioner at the same time that he submits the report to the mortgage [company.] banker.

    4.  The Commissioner shall adopt regulations prescribing the scope of an audit conducted pursuant to subsection 3.

    Sec. 65.  NRS 645E.370 is hereby amended to read as follows:

    645E.370  1.  Except as otherwise provided in this section or by specific statute, all papers, documents, reports and other written instruments filed with the Commissioner pursuant to this chapter are open to public inspection.

    2.  The Commissioner may withhold from public inspection or refuse to disclose to a person, for such time as the Commissioner considers necessary, any information that, in his judgment, would:

    (a) Impede or otherwise interfere with an investigation that is currently pending against a mortgage [company;] banker; or

    (b) Have an undesirable effect on the welfare of the public or the welfare of any mortgage [company.] banker.

    Sec. 66.  NRS 645E.390 is hereby amended to read as follows:

    645E.390  1.  The Commissioner must be notified of a transfer of
5 percent or more of the outstanding voting stock of a mortgage [company] banker and must approve a transfer of voting stock of a mortgage [company] banker which constitutes a change of control.

    2.  The person who acquires stock resulting in a change of control of the mortgage [company] banker shall apply to the Commissioner for approval of the transfer. The application must contain information which shows that the requirements of this chapter for obtaining a license will be satisfied after the change of control. Except as otherwise provided in subsection 3, the Commissioner shall conduct an investigation to determine whether those requirements will be satisfied. If, after the investigation, the Commissioner denies the application, he may forbid the applicant from participating in the business of the mortgage [company.] banker.

    3.  A mortgage [company] banker may submit a written request to the Commissioner to waive an investigation pursuant to subsection 2. The Commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his employment with a financial institution.

    4.  As used in this section, “change of control” means:

    (a) A transfer of voting stock which results in giving a person, directly or indirectly, the power to direct the management and policy of a mortgage [company;] banker; or

    (b) A transfer of at least 25 percent of the outstanding voting stock of a mortgage [company.] banker.

    Sec. 67.  NRS 645E.420 is hereby amended to read as follows:

    645E.420  1.  Except as otherwise provided in subsection 3, the amount of any advance fee, salary, deposit or money paid to any mortgage [company] banker or other person to obtain a loan secured by a lien on real property must be placed in escrow pending completion of the loan or a commitment for the loan.

    2.  The amount held in escrow pursuant to subsection 1 must be released:

    (a) Upon completion of the loan or commitment for the loan, to the mortgage [company] banker or other person to whom the advance fee, salary, deposit or money was paid.

    (b) If the loan or commitment for the loan fails, to the person who made the payment.

    3.  Advance payments to cover reasonably estimated costs paid to third persons are excluded from the provisions of subsections 1 and 2 if the person making them first signs a written agreement which specifies the estimated costs by item and the estimated aggregate cost, and which recites that money advanced for costs will not be refunded. If an itemized service is not performed and the estimated cost thereof is not refunded, the recipient of the advance payment is subject to the penalties provided in NRS 645E.960.

    Sec. 68.  NRS 645E.430 is hereby amended to read as follows:

    645E.430  1.  All money paid to a mortgage [company] banker for payment of taxes or insurance premiums on real property which secures any loan made by the mortgage [company] banker must be deposited in an insured depository financial institution and kept separate, distinct and apart from money belonging to the mortgage [company.] banker. Such money, when deposited, is to be designated as an “impound trust account” or under some other appropriate name indicating that the accounts are not the money of the mortgage [company.] banker.

    2.  The mortgage [company] banker has a fiduciary duty to each debtor with respect to the money in an impound trust account.

    3.  The mortgage [company] banker shall, upon reasonable notice, account to any debtor whose real property secures a loan made by the mortgage [company] banker for any money which that person has paid to the mortgage [company] banker for the payment of taxes or insurance premiums on the real property.

    4.  The mortgage [company] banker shall, upon reasonable notice, account to the Commissioner for all money in an impound trust account.

    5.  A mortgage [company] banker shall:

    (a) Require contributions to an impound trust account in an amount reasonably necessary to pay the obligations as they become due.

    (b) Within 30 days after the completion of the annual review of an impound trust account, notify the debtor:

        (1) Of the amount by which the contributions exceed the amount reasonably necessary to pay the annual obligations due from the account; and

        (2) That the debtor may specify the disposition of the excess money within 20 days after receipt of the notice. If the debtor fails to specify such a disposition within that time, the mortgage [company] banker shall maintain the excess money in the account. This subsection does not prohibit a mortgage [company] banker from requiring additional amounts to be paid into an impound trust account to recover a deficiency that exists in the account.

    6.  A mortgage [company] banker shall not make payments from an impound trust account in a manner that causes a policy of insurance to be cancelled or causes property taxes or similar payments to become delinquent.

    Sec. 69.  NRS 645E.440 is hereby amended to read as follows:

    645E.440  1.  Money in an impound trust account is not subject to execution or attachment on any claim against the mortgage [company.] banker.

    2.  It is unlawful for a mortgage [company] banker knowingly to keep or cause to be kept any money in a depository financial institution under the heading of “impound trust account” or any other name designating such money as belonging to the debtors of the mortgage [company,] banker, unless the money has been paid to the mortgage [company] banker by a debtor pursuant to NRS 645E.430 and is being held in trust by the mortgage [company] banker pursuant to the provisions of that section.

    Sec. 70.  NRS 645E.470 is hereby amended to read as follows:

    645E.470  1.  If a person is required to make a payment to a mortgage [company] banker pursuant to the terms of a loan secured by a lien on real property, the mortgage [company] banker may not charge the person a late fee, an additional amount of interest or any other penalty in connection with that payment if the payment is delivered to the mortgage [company] banker before 5 p.m. on:

    (a) The day that the payment is due pursuant to the terms of the loan, if an office of the mortgage [company] banker is open to customers until 5 p.m. on that day; or

    (b) The next day that an office of the mortgage [company] banker is open to customers until 5 p.m., if the provisions of paragraph (a) do not otherwise apply.

    2.  A person and a mortgage [company] banker may not agree to alter or waive the provisions of this section by contract or other agreement, and any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.

    Sec. 71.  NRS 645E.620 is hereby amended to read as follows:

    645E.620  1.  Whether or not a complaint has been filed, the Commissioner may investigate a mortgage [company] banker or other person if, for any reason, it appears that:

    (a) The mortgage [company] banker is conducting business in an unsafe and injurious manner or in violation of any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;

    (b) The person is offering or providing any of the services of a mortgage [company] banker or otherwise engaging in, carrying on or holding himself out as engaging in or carrying on the business of a mortgage [company] banker without being licensed or exempt from licensing pursuant to the provisions of this chapter; or

    (c) The person is violating any other provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

    2.  If, upon investigation, the Commissioner has reasonable cause to believe that the mortgage [company] banker or other person has engaged in any conduct or committed any violation described in subsection 1, the Commissioner may:

    (a) Advise the district attorney of the county in which the conduct or violation occurred, and the district attorney shall cause the appropriate legal action to be taken against the mortgage [company] banker or other person to enjoin the conduct or the operation of the business or prosecute the violation; and

    (b) Bring a civil action to:

        (1) Enjoin the mortgage [company] banker or other person from engaging in the conduct, operating the business or committing the violation; and

        (2) Enjoin any other person who has encouraged, facilitated, aided or participated in the conduct, the operation of the business or the commission of the violation, or who is likely to engage in such acts, from engaging in or continuing to engage in such acts.

    3.  If the Commissioner brings a civil action pursuant to subsection 2, the district court of any county of this state is hereby vested with the jurisdiction in equity to enjoin the conduct, the operation of the business or the commission of the violation and may grant any injunctions that are necessary to prevent and restrain the conduct, the operation of the business or the commission of the violation. During the pendency of the proceedings before the district court:

    (a) The court may issue any temporary restraining orders as may appear to be just and proper;

    (b) The findings of the Commissioner shall be deemed to be prima facie evidence and sufficient grounds, in the discretion of the court, for the
ex parte issuance of a temporary restraining order; and

    (c) The Commissioner may apply for and on due showing is entitled to have issued the court’s subpoena requiring forthwith the appearance of any person to:

        (1) Produce any documents, books and records as may appear necessary for the hearing of the petition; and

        (2) Testify and give evidence concerning the conduct complained of in the petition.

    Sec. 72.  NRS 645E.630 is hereby amended to read as follows:

    645E.630  1.  In addition to any other action that is permitted pursuant to this chapter, if the Commissioner has reasonable cause to believe that:

    (a) The assets or capital of a mortgage [company] banker are impaired; or

    (b) A mortgage [company] banker is conducting business in an unsafe and injurious manner that may result in danger to the public,

the Commissioner may immediately take possession of all the property, business and assets of the mortgage [company] banker that are located in this state and retain possession of them pending further proceedings provided for in this chapter.

    2.  If the licensee, the board of directors or any officer or person in charge of the offices of the mortgage [company] banker refuses to permit the Commissioner to take possession of the property of the mortgage [company] banker pursuant to subsection 1:

    (a) The Commissioner shall notify the Attorney General; and

    (b) The Attorney General shall immediately bring such proceedings as may be necessary to place the Commissioner in immediate possession of the property of the mortgage [company.] banker.

    3.  If the Commissioner takes possession of the property of the mortgage [company,] banker, the Commissioner shall:

    (a) Make or have made an inventory of the assets and known liabilities of the mortgage [company;] banker; and

    (b) File one copy of the inventory in his office and one copy in the office of the clerk of the district court of the county in which the principal office of the mortgage [company] banker is located and shall mail one copy to each stockholder, partner, officer, director or associate of the mortgage [company] banker at his last known address.

    4.  The clerk of the court with which the copy of the inventory is filed shall file it as any other case or proceeding pending in the court and shall give it a docket number.

    Sec. 73.  NRS 645E.640 is hereby amended to read as follows:

    645E.640  1.  If the Commissioner takes possession of the property of a mortgage [company] banker pursuant to NRS 645E.630, the licensee, officers, directors, partners, associates or stockholders of the mortgage [company] banker may, within 60 days after the date on which the Commissioner takes possession of the property, make good any deficit in the assets or capital of the mortgage [company] banker or remedy any unsafe and injurious conditions or practices of the mortgage [company.] banker.

    2.  At the expiration of the 60-day period, if the deficiency in assets or capital has not been made good or the unsafe and injurious conditions or practices remedied, the Commissioner may apply to the court to be appointed receiver and proceed to liquidate the assets of the mortgage [company] banker which are located in this state in the same manner as now provided by law for liquidation of a private corporation in receivership.

    3.  No other person may be appointed receiver by any court without first giving the Commissioner ample notice of his application.

    4.  The inventory made by the Commissioner and all claims filed by creditors are open at all reasonable times for inspection, and any action taken by the receiver upon any of the claims is subject to the approval of the court before which the cause is pending.

    5.  The expenses of the receiver and compensation of counsel, as well as all expenditures required in the liquidation proceedings, must be fixed by the Commissioner subject to the approval of the court and, upon certification of the Commissioner, must be paid out of the money in his hands as the receiver.

    Sec. 74.  NRS 645E.680 is hereby amended to read as follows:

    645E.680  1.  If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license as a mortgage [company,] banker, the Commissioner shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to
NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

    2.  The Commissioner shall reinstate a license as a mortgage [company] banker that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to
NRS 425.560.

    Sec. 75.  NRS 645E.900 is hereby amended to read as follows:

    645E.900  It is unlawful for any person to offer or provide any of the services of a mortgage [company] banker or otherwise to engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage [company] banker without first obtaining a license as a mortgage [company] banker pursuant to this chapter, unless the person:

    1.  Is exempt from the provisions of this chapter; and

    2.  Complies with the requirements for that exemption.

    Sec. 76.  NRS 645E.910 is hereby amended to read as follows:

    645E.910  It is unlawful for any foreign corporation, association or business trust to conduct any business as a mortgage [company] banker within this state, unless it:

    1.  Qualifies under chapter 80 of NRS; and

    2.  Complies with the provisions of this chapter or, if it claims an exemption from the provisions of this chapter, complies with the requirements for that exemption.

    Sec. 77.  NRS 40.750 is hereby amended to read as follows:

    40.750  1.  As used in this section, “financial institution” means a bank, mortgage broker, mortgage [company,] banker, credit union, thrift company or savings and loan association, or any subsidiary or affiliate of a bank, mortgage broker, mortgage [company,] banker, credit union, thrift company or savings and loan association, which is authorized to transact business in this state and which makes or acquires, in whole or in part, any loan of the kind described in subsection 2.

    2.  Except as otherwise provided in subsection 5, a person who, for the purpose of obtaining a loan secured by a lien on real property, knowingly conceals a material fact, or makes a false statement concerning a material fact knowing that the statement is false, is liable to any financial institution which relied upon the absence of that concealed fact or on that false statement for any damages it sustains because of the fraud.

    3.  In addition to its actual damages, a financial institution may recover exemplary or punitive damages in an amount not to exceed 50 percent of the actual damages awarded.

    4.  The cause of action provided by this section:

    (a) Is not, for the purposes of NRS 40.430, an action for the recovery of any debt or an action for the enforcement of any right secured by mortgage or lien upon real estate.

    (b) Is in addition to and not in substitution for any right of foreclosure existing in favor of the financial institution. Any recovery pursuant to this section does not limit the amount of a judgment awarded pursuant to
NRS 40.459, but the financial institution is not entitled to recover actual damages more than once for the same loss.

    5.  The provisions of this section do not apply to any loan which is secured by a lien on real property used for residential purposes if:

    (a) The residence is a single-family dwelling occupied by the person obtaining the loan, as represented by him in connection with his application for the loan; and

    (b) The loan is for the principal amount of $150,000 or less.

    Sec. 78.  NRS 90.530 is hereby amended to read as follows:

    90.530  The following transactions are exempt from NRS 90.460 and 90.560:

    1.  An isolated nonissuer transaction, whether or not effected through a broker-dealer.

    2.  A nonissuer transaction in an outstanding security if the issuer of the security has a class of securities subject to registration under section 12 of the Securities Exchange Act of 1934, 15 U.S.C. § 78l, and has been subject to the reporting requirements of section 13 or 15(c) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78m and 78o(d), for not less than 90 days next preceding the transaction, or has filed and maintained with the Administrator for not less than 90 days preceding the transaction information, in such form as the Administrator, by regulation, specifies, substantially comparable to the information the issuer would be required to file under section 12(b) or 12(g) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78l(b) and 78l(g), were the issuer to have a class of its securities registered under section 12 of the Securities Exchange Act of 1934, 15 U.S.C. § 78l, and paid a fee with the filing of $150.

    3.  A nonissuer transaction by a sales representative licensed in this state, in an outstanding security if:

    (a) The security is sold at a price reasonably related to the current market price of the security at the time of the transaction;

    (b) The security does not constitute all or part of an unsold allotment to, or subscription or participation by, a broker-dealer as an underwriter of the security;

    (c) At the time of the transaction, a recognized securities manual designated by the Administrator by regulation or order contains the names of the issuer’s officers and directors, a statement of the financial condition of the issuer as of a date within the preceding 18 months, and a statement of income or operations for each of the last 2 years next preceding the date of the statement of financial condition, or for the period as of the date of the statement of financial condition if the period of existence is less than 2 years;

    (d) The issuer of the security has not undergone a major reorganization, merger or acquisition within the preceding 30 days which is not reflected in the information contained in the manual; and

    (e) At the time of the transaction, the issuer of the security has a class of equity security listed on the New York Stock Exchange, American Stock Exchange or other exchange designated by the Administrator, or on the National Market System of the National Association of Securities Dealers Automated Quotation System. The requirements of this paragraph do not apply if:

        (1) The security has been outstanding for at least 180 days;

        (2) The issuer of the security is actually engaged in business and is not developing his business, in bankruptcy or in receivership; and

        (3) The issuer of the security has been in continuous operation for at least 5 years.

    4.  A nonissuer transaction in a security that has a fixed maturity or a fixed interest or dividend provision if there has been no default during the current fiscal year or within the 3 preceding years, or during the existence of the issuer, and any predecessors if less than 3 years, in the payment of principal, interest or dividends on the security.

    5.  A nonissuer transaction effected by or through a registered broker-dealer pursuant to an unsolicited order or offer to purchase.

    6.  A transaction between the issuer or other person on whose behalf the offering of a security is made and an underwriter, or a transaction among underwriters.

    7.  A transaction in a bond or other evidence of indebtedness secured by a real estate mortgage, deed of trust, personal property security agreement, or by an agreement for the sale of real estate or personal property, if the entire mortgage, deed of trust or agreement, together with all the bonds or other evidences of indebtedness secured thereby, is offered and sold as a unit.

    8.  A transaction by an executor, administrator, sheriff, marshal, receiver, trustee in bankruptcy, guardian or conservator.

    9.  A transaction executed by a bona fide secured party without the purpose of evading this chapter.

    10.  An offer to sell or sale of a security to a financial or institutional investor or to a broker-dealer.

    11.  Except as otherwise provided in this subsection, a transaction pursuant to an offer to sell securities of an issuer if:

    (a) The transaction is part of an issue in which there are not more than
25 purchasers in this state, other than those designated in subsection 10, during any 12 consecutive months;

    (b) No general solicitation or general advertising is used in connection with the offer to sell or sale of the securities;

    (c) No commission or other similar compensation is paid or given, directly or indirectly, to a person, other than a broker-dealer licensed or not required to be licensed under this chapter, for soliciting a prospective purchaser in this state; and

    (d) One of the following conditions is satisfied:

        (1) The seller reasonably believes that all the purchasers in this state, other than those designated in subsection 10, are purchasing for investment; or

        (2) Immediately before and immediately after the transaction, the issuer reasonably believes that the securities of the issuer are held by 50 or fewer beneficial owners, other than those designated in subsection 10, and the transaction is part of an aggregate offering that does not exceed $500,000 during any 12 consecutive months. The Administrator by rule or order as to a security or transaction or a type of security or transaction, may withdraw or further condition the exemption set forth in this subsection or waive one or more of the conditions of the exemption.

    12.  An offer to sell or sale of a preorganization certificate or subscription if:

    (a) No commission or other similar compensation is paid or given, directly or indirectly, for soliciting a prospective subscriber;

    (b) No public advertising or general solicitation is used in connection with the offer to sell or sale;

    (c) The number of offers does not exceed 50;

    (d) The number of subscribers does not exceed 10; and

    (e) No payment is made by a subscriber.

    13.  An offer to sell or sale of a preorganization certificate or subscription issued in connection with the organization of a depository institution if that organization is under the supervision of an official or agency of a state or of the United States which has and exercises the authority to regulate and supervise the organization of the depository institution. For the purpose of this subsection, “under the supervision of an official or agency” means that the official or agency by law has authority to require disclosures to prospective investors similar to those required under NRS 90.490, impound proceeds from the sale of a preorganization certificate or subscription until organization of the depository institution is completed, and require refund to investors if the depository institution does not obtain a grant of authority from the appropriate official or agency.

    14.  A transaction pursuant to an offer to sell to existing security holders of the issuer, including persons who at the time of the transaction are holders of transferable warrants exercisable within not more than 90 days after their issuance, convertible securities or nontransferable warrants, if:

    (a) No commission or other similar compensation other than a standby commission, is paid or given, directly or indirectly, for soliciting a security holder in this state; or

    (b) The issuer first files a notice specifying the terms of the offer to sell, together with a nonrefundable fee of $150, and the Administrator does not by order disallow the exemption within the next 5 full business days.

    15.  A transaction involving an offer to sell, but not a sale, of a security not exempt from registration under the Securities Act of 1933,
15 U.S.C. §§ 77a et seq., if:

    (a) A registration or offering statement or similar document as required under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., has been filed, but is not effective;

    (b) A registration statement, if required, has been filed under this chapter, but is not effective; and

    (c) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the Administrator or the Securities and Exchange Commission, and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.

    16.  A transaction involving an offer to sell, but not a sale, of a security exempt from registration under the Securities Act of 1933,
15 U.S.C. §§ 77a et seq., if:

    (a) A registration statement has been filed under this chapter, but is not effective; and

    (b) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the Administrator and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.

    17.  A transaction involving the distribution of the securities of an issuer to the security holders of another person in connection with a merger, consolidation, exchange of securities, sale of assets or other reorganization to which the issuer, or its parent or subsidiary, and the other person, or its parent or subsidiary, are parties, if:

    (a) The securities to be distributed are registered under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., before the consummation of the transaction; or

    (b) The securities to be distributed are not required to be registered under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., written notice of the transaction and a copy of the materials, if any, by which approval of the transaction will be solicited, together with a nonrefundable fee of $150, are given to the Administrator at least 10 days before the consummation of the transaction and the Administrator does not, by order, disallow the exemption within the next 10 days.

    18.  A transaction involving the offer to sell or sale of one or more promissory notes each of which is directly secured by a first lien on a single parcel of real estate, or a transaction involving the offer to sell or sale of participation interests in the notes if the notes and participation interests are originated by a depository institution and are offered and sold subject to the following conditions:

    (a) The minimum aggregate sales price paid by each purchaser may not be less than $250,000;

    (b) Each purchaser must pay cash either at the time of the sale or within 60 days after the sale; and

    (c) Each purchaser may buy for his own account only.

    19.  A transaction involving the offer to sell or sale of one or more promissory notes directly secured by a first lien on a single parcel of real estate or participating interests in the notes, if the notes and interests are originated by a mortgagee approved by the Secretary of Housing and Urban Development under sections 203 and 211 of the National Housing Act,
12 U.S.C. §§ 1709 and 1715b, and are offered or sold, subject to the conditions specified in subsection 18, to a depository institution or insurance company, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association.

    20.  A transaction between any of the persons described in subsection 19 involving a nonassignable contract to buy or sell the securities described in subsection 18 if the contract is to be completed within 2 years and if:

    (a) The seller of the securities pursuant to the contract is one of the parties described in subsection 18 or 19 who may originate securities;

    (b) The purchaser of securities pursuant to a contract is any other person described in subsection 19; and

    (c) The conditions described in subsection 18 are fulfilled.

    21.  A transaction involving one or more promissory notes secured by a lien on real estate, or participating interests in those notes, by:

    (a) A mortgage [company] banker licensed pursuant to chapter 645E
of NRS to engage in those transactions; or

    (b) A mortgage broker licensed pursuant to chapter 645B of NRS to engage in those transactions.

    Sec. 79.  Chapter 232 of NRS is hereby amended by adding thereto a new section to read as follows:

1.  A division, office, authority, commission, board or other entity set forth in NRS 232.510 may adopt regulations to establish procedures to conduct business electronically with persons who have business with that division, office, authority, commission, board or other entity. The regulations may include, without limitation, the establishment of fees to cover the costs to the division, office, authority, commission, board or other entity of conducting business electronically.

2.  Notwithstanding any other provision, if a division, office, authority, commission, board or other entity adopts regulations to conduct business electronically pursuant to subsection 1, the division, office, authority, commission, board or other entity may provide that a declaration made pursuant to NRS 53.045 may satisfy the requirement that a signature or statement be notarized, acknowledged, verified or made under oath.

3.  The division, office, authority, commission, board or other entity may refuse to conduct business electronically with a person who has failed to pay money owed to the division, office, authority, commission, board or other entity.

    Sec. 80.  NRS 232.510 is hereby amended to read as follows:

    232.510  1.  The Department of Business and Industry is hereby created.

    2.  The Department consists of a Director and the following:

    (a) Consumer Affairs Division.

    (b) Division of Financial Institutions.

    (c) Housing Division.

    (d) Manufactured Housing Division.

    (e) Real Estate Division.

    (f) Division of Insurance.

    (g) Division of Industrial Relations.

    (h) Office of Labor Commissioner.

    (i) Taxicab Authority.

    (j) Nevada Athletic Commission.

    (k) Office of the Nevada Attorney for Injured Workers.

    (l) Transportation Services Authority.

    (m) Division of Mortgage Lending.

(n) Any other office, commission, board, agency or entity created or placed within the Department pursuant to a specific statute, the budget approved by the Legislature or an executive order, or an entity whose budget or activities have been placed within the control of the Department by a specific statute.

    Sec. 81.  NRS 232.520 is hereby amended to read as follows:

    232.520  The Director:

    1.  Shall appoint a chief or executive director, or both of them, of each of the divisions, offices, commissions, boards, agencies or other entities of the Department, unless the authority to appoint such a chief or executive director, or both of them, is expressly vested in another person, board or commission by a specific statute. In making the appointments, the Director may obtain lists of qualified persons from professional organizations, associations or other groups recognized by the Department, if any. The Chief of the Consumer Affairs Division is the Commissioner of Consumer Affairs, the Chief of the Division of Financial Institutions is the Commissioner of Financial Institutions, the Chief of the Housing Division is the Administrator of the Housing Division, the Chief of the Manufactured Housing Division is the Administrator of the Manufactured Housing Division, the Chief of the Real Estate Division is the Real Estate Administrator, the Chief of the Division of Insurance is the Commissioner of Insurance, the Chief of the Division of Industrial Relations is the Administrator of the Division of Industrial Relations, the Chief of the Office of Labor Commissioner is the Labor Commissioner, the Chief of the Taxicab Authority is the Taxicab Administrator, the Chief of the Transportation Services Authority is the Chairman of the Authority, the Chief of the Division of Mortgage Lending is the Commissioner of Mortgage Lending and the chief of any other entity of the Department has the title specified by the Director, unless a different title is specified by a specific statute.

    2.  Is responsible for the administration of all provisions of law relating to the jurisdiction, duties and functions of all divisions and other entities within the Department. The Director may, if he deems it necessary to carry out his administrative responsibilities, be considered as a member of the staff of any division or other entity of the Department for the purpose of budget administration or for carrying out any duty or exercising any power necessary to fulfill the responsibilities of the Director pursuant to this subsection. This subsection does not allow the Director to preempt any authority or jurisdiction granted by statute to any division or other entity within the Department or to act or take on a function that would contravene a rule of court or a statute.

    3.  May:

    (a) Establish uniform policies for the department, consistent with the policies and statutory responsibilities and duties of the divisions and other entities within the Department, relating to matters concerning budgeting, accounting, planning, program development, personnel, information services, dispute resolution, travel, workplace safety, the acceptance of gifts or donations, the management of records and any other subject for which a uniform departmental policy is necessary to ensure the efficient operation of the Department.

    (b) Provide coordination among the divisions and other entities within the Department, in a manner which does not encroach upon their statutory powers and duties, as they adopt and enforce regulations, execute agreements, purchase goods, services or equipment, prepare legislative requests and lease or use office space.

    (c) Define the responsibilities of any person designated to carry out the duties of the director relating to financing, industrial development or business support services.

    4.  May, within the limits of the financial resources made available to him, promote, participate in the operation of, and create or cause to be created, any nonprofit corporation, pursuant to chapter 82 of NRS, which he determines is necessary or convenient for the exercise of the powers and duties of the department. The purposes, powers and operation of the corporation must be consistent with the purposes, powers and duties of the Department.

    5.  For any bonds which he is otherwise authorized to issue, may issue bonds the interest on which is not exempt from federal income tax or excluded from gross revenue for the purposes of federal income tax.

    6.  May, except as otherwise provided by specific statute, adopt by regulation a schedule of fees and deposits to be charged in connection with the programs administered by him pursuant to chapters 348A and 349 of NRS. Except as otherwise provided by specific statute, the amount of any such fee or deposit must not exceed 2 percent of the principal amount of the financing.

    7.  May designate any person within the Department to perform any of the duties or responsibilities, or exercise any of the authority, of the Director on his behalf.

    8.  May negotiate and execute agreements with public or private entities which are necessary to the exercise of the powers and duties of the Director or the Department.

    9.  May establish a trust account in the State Treasury for depositing and accounting for money that is held in escrow or is on deposit with the Department for the payment of any direct expenses incurred by the Director in connection with any bond programs administered by the Director. The interest and income earned on money in the trust account, less any amount deducted to pay for applicable charges, must be credited to the trust account. Any balance remaining in the account at the end of a fiscal year may be:

    (a) Carried forward to the next fiscal year for use in covering the expense for which it was originally received; or

    (b) Returned to any person entitled thereto in accordance with agreements or regulations of the Director relating to those bond programs.

    Sec. 82.  NRS 232.545 is hereby amended to read as follows:

    232.545  1.  An Investigative Account for Financial Institutions is hereby created in the State General Fund. The Account consists of money which is:

    (a) Received by the Department of Business and Industry in connection with the licensing of financial institutions and the investigation of persons associated with those institutions; and

    (b) Required by law to be placed therein.

    2.  The Director of the Department of Business and Industry or his designee may authorize expenditures from the Investigative Account to pay the expenses incurred:

    (a) In investigating applications for licensing of financial institutions and in investigating persons associated with those institutions;

    (b) In conducting special investigations relating to financial institutions and persons associated with those institutions; and

    (c) In connection with mergers, consolidations, conversions, receiverships and liquidations of financial institutions.

    3.  As used in this section, “financial institution” means an institution for which licensing or registration is required by the provisions of titles 55
and 56 and chapters 604 [, 645B, 645E] and 649 of NRS.

    Sec. 83.  NRS 604.090 is hereby amended to read as follows:

    604.090  1.  Except as otherwise provided in subsection 2, it is unlawful to operate a check-cashing or deferred deposit service without being registered with the Commissioner.

    2.  The provisions of this chapter do not apply to:

    (a) A person doing business pursuant to the authority of any law of this state or of the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions, development corporations, mortgage brokers, mortgage [companies,] bankers, thrift companies, pawnbrokers or insurance companies.

    (b) A person licensed to make installment loans pursuant to chapter 675
of NRS.

    (c) A person who is primarily engaged in the retail sale of goods or services who:

        (1) As an incident to or independently of a retail sale or service from time to time cashes checks for a fee or other consideration of not more than $2; and

        (2) Does not hold himself out as a check-cashing service.

    (d) A person while performing any act authorized by a license issued pursuant to chapter 671 of NRS.

    (e) A person who holds a nonrestricted gaming license issued pursuant to chapter 463 of NRS while performing any act in the course of that licensed operation.

    (f) A person who is exclusively engaged in a check-cashing service relating to out-of-state checks.

    (g) A corporation organized pursuant to the laws of this state that has been continuously and exclusively engaged in a check-cashing service in this state since July 1, 1973.

    Sec. 84.  NRS 675.040 is hereby amended to read as follows:

    675.040  This chapter does not apply to:

    1.  A person doing business under the authority of any law of this state or of the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions, development corporations, mortgage brokers, mortgage [companies,] bankers, thrift companies, pawnbrokers or insurance companies.

    2.  A real estate investment trust, as defined in 26 U.S.C. § 856.

    3.  An employee benefit plan, as defined in 29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the plan’s trustee.

    4.  An attorney at law rendering services in the performance of his duties as an attorney at law if the loan is secured by real property.

    5.  A real estate broker rendering services in the performance of his duties as a real estate broker if the loan is secured by real property.

    6.  Except as otherwise provided in this subsection, any firm or corporation:

    (a) Whose principal purpose or activity is lending money on real property which is secured by a mortgage;

    (b) Approved by the Federal National Mortgage Association as a seller or servicer; and

    (c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.

    7.  A person who provides money for investment in loans secured by a lien on real property, on his own account.

    8.  A seller of real property who offers credit secured by a mortgage of the property sold.

    9.  A person holding a nonrestricted state gaming license issued pursuant to the provisions of chapter 463 of NRS.

    Sec. 85.  NRS 675.230 is hereby amended to read as follows:

    675.230  1.  Except as otherwise provided in subsection 2, a licensee may not conduct the business of making loans under this chapter within any office, suite, room or place of business in which any other business is solicited or engaged in, except an insurance agency or notary public, or in association or conjunction with any other business, unless authority to do so is given by the Commissioner.

    2.  A licensee may conduct the business of making loans pursuant to this chapter in the same office or place of business as:

    (a) A mortgage broker if:

        (1) The licensee and the mortgage broker:

            (I) Operate as separate legal entities;

            (II) Maintain separate accounts, books and records;

            (III) Are subsidiaries of the same parent corporation; and

            (IV) Maintain separate licenses; and

        (2) The mortgage broker is licensed by this state pursuant to
chapter 645B of NRS and does not receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.

    (b) A mortgage [company] banker if:

        (1) The licensee and the mortgage [company:] banker:

            (I) Operate as separate legal entities;

            (II) Maintain separate accounts, books and records;

            (III) Are subsidiaries of the same parent corporation; and

            (IV) Maintain separate licenses; and

        (2) The mortgage [company] banker is licensed by this state pursuant to chapter 645E of NRS and, if the mortgage company banker is also licensed as a mortgage broker pursuant to chapter 645B of NRS, does not receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.

    Sec. 86.  NRS 645B.0103 is hereby repealed.

    Sec. 87.  1.  On October 1, 2003, the Commissioner of Mortgage Lending may begin accepting applications for, and issuing, licenses as mortgage agents pursuant to section 27 of this act. Any such license issued on or before July 1, 2004:

    (a) Becomes effective on July 1, 2004; and

    (b) Notwithstanding the provisions of section 28 of this act to the contrary, expires on a date between July 1, 2004, and June 30, 2005, as specified in a written notice provided with the license to the mortgage agent. The Commissioner of Mortgage Lending shall provide various expiration dates for the licenses issued on or before July 1, 2004, as needed to allow for the efficient administration of the requirements of this act. The fee required for such a license that is effective for less than 1 year must be prorated in an appropriate manner as determined by the Commissioner of Mortgage Lending.

    2.  On July 1, 2004, the registration of a mortgage agent who is registered pursuant to NRS 645B.450 expires.

    3.  As used in this section, “mortgage agent” has the meaning ascribed to it in NRS 645B.0125.

    Sec. 88.  The Legislative Counsel shall:

    1.  In preparing the reprint and supplements to the Nevada Revised Statutes, appropriately change any references to “mortgage company” to “mortgage broker.”

    2.  In preparing supplements to the Nevada Administrative Code, appropriately change any references to “mortgage company” to “mortgage broker.”

    Sec. 89.  1.  This section becomes effective upon passage and approval.

    2.  Sections 1 to 20, inclusive, 22 to 39, inclusive, and 41 to 88, inclusive, of this act become effective upon passage and approval for the purposes of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act, and:

    (a) Sections 1 to 20, inclusive, 22 to 25, inclusive, 31, 32, 33, 35, 36, 38, 39, 41, 42, 45 and 48.5 to 88, inclusive, of this act become effective on
July 1, 2003, for all other purposes.

    (b) Sections 26 to 30, inclusive, 34, 37, 43, 44, 46, 47 and 48 of this act become effective on July 1, 2004, for all other purposes.

    3.  Sections 20, 29, 39, 46 and 74 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.

    4.  Sections 21 and 40 of this act become effective on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the State has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

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

TEXT OF REPEALED SECTION

    645B.0103  “Applicant” defined.  “Applicant” means a person who applies for licensure as a mortgage broker pursuant to this chapter.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to mortgage investments; creating the Commissioner of Mortgage Lending and providing his duties; creating the Division of Mortgage Lending of the Department of Business and Industry; establishing the Fund for Mortgage Lending to be administered by the Commissioner; providing for the licensure of mortgage agents; providing that advertising spokespersons for mortgage brokers are jointly and severally liable for damages caused by the mortgage brokers under certain circumstances; revising the provisions relating to renewal of a license as a mortgage broker or mortgage agent; revising the provisions relating to exemptions to the licensure requirements of mortgage brokers and mortgage agents; increasing the amount of continuing education annually required of mortgage brokers and mortgage agents; revising provisions governing continuing education of mortgage brokers and mortgage agents; redesignating mortgage companies as mortgage bankers; providing that a division, office, authority, commission, board or other entity of the Department may provide for the conduct of business electronically; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes relating to escrow agencies, mortgage brokers, mortgage agents and mortgage bankers. (BDR 54‑998)”.

    Assemblyman Goldwater moved the adoption of the amendment.

    Remarks by Assemblyman Goldwater.

    Amendment adopted.

    Bill ordered reprinted, re-engrossed, and to third reading.

    Mr. Speaker announced if there were no objections, the Assembly would recess subject to the call of the Chair.

    Assembly in recess at 12:53 p.m.

ASSEMBLY IN SESSION

    At 1:00 p.m.

    Mr. Speaker presiding.

    Quorum present.

MESSAGES FROM THE Senate

Senate Chamber, Carson City, May 27, 2003

To the Honorable the Assembly:

    I have the honor to inform your honorable body that the Senate on this day passed
Assembly Bills Nos. 254, 470; Senate Bill No. 230; Senate Joint Resolution No. 11.

    Also, I have the honor to inform your honorable body that the Senate on this day passed, as amended, Senate Bill No. 252.

Mary Jo Mongelli

Assistant Secretary of the Senate

INTRODUCTION, FIRST READING AND REFERENCE

    Senate Bill No. 230.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Education.

    Motion carried.

    Senate Bill No. 252.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Education.

    Motion carried.

MOTIONS, RESOLUTIONS AND NOTICES

    Senate Joint Resolution No. 11.

    Assemblywoman Buckley moved that the resolution be referred to the Committee on Elections, Procedures, and Ethics.

    Motion carried.

UNFINISHED BUSINESS

Appointment of Conference Committees

    Mr. Speaker appointed Assemblymen Parks, Oceguera, and Hettrick as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Assembly Bill No. 32.

Recede From Assembly Amendments

    Assemblyman Goldwater moved that the Assembly do not recede from its action on Senate Bill No. 193, that a conference be requested, and that
Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

    Remarks by Assemblyman Goldwater.

    Motion carried.

Appointment of Conference Committees

    Mr. Speaker appointed Assemblymen Giunchigliani, Goldwater, and Griffin as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 193.

Recede From Assembly Amendments

    Assemblyman Goldwater moved that the Assembly do not recede from its action on Senate Bill No. 372, that a conference be requested, and that
Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

    Remarks by Assemblyman Goldwater.

    Motion carried.

Appointment of Conference Committees

    Mr. Speaker appointed Assemblymen Giunchigliani, Leslie, and Beers as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 372.

Recede From Assembly Amendments

    Assemblyman Williams moved that the Assembly do not recede from its action on Senate Bill No. 34, that a conference be requested, and that
Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

    Remarks by Assemblyman Williams.

    Motion carried.

Appointment of Conference Committees

    Mr. Speaker appointed Assemblymen Chowning, Geddes, and McCleary as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 34.

Consideration of Senate Amendments

    Assembly Bill No. 473.

    The following Senate amendment was read:

    Amendment No. 772.

    Amend the bill as a whole by renumbering sections 1 through 7 as sections 7 through 13 and adding new sections designated sections 1 through 6, following the enacting clause, to read as follows:

    “Section 1.  Chapter 445A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive, of this act.

Sec. 2.  As used in sections 2 to 6, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 and 4 of this act have the meanings ascribed to them in those sections.

    Sec. 3.  “Account” means the Account to Finance the Purchase of Alternative Sources of Safe Drinking Water in Schools created by section 5 of this act.

    Sec. 4.  “Administrator” means the Administrator of the Division of Environmental Protection of the State Department of Conservation and Natural Resources.

    Sec. 5.  1.  The Account to Finance the Purchase of Alternative Sources of Safe Drinking Water in Schools is hereby created in the State General Fund.

2.  The Administrator shall administer the Account. The Administrator may apply for and accept any gift, donation, bequest, grant or other source of money for deposit in the Account. Money received by the Administrator pursuant to this subsection must be deposited in the State Treasury for credit to the Account.

3.  The money in the Account must be used only for the purposes set forth in section 6 of this act and may not be used to pay for expenses related to the administration of the Account.

4.  All claims against the Account must be paid as other claims against the State are paid.

5.  The interest and income earned on the money in the Account must be credited to the Account. Money in the Account does not revert to the State General Fund at the end of any fiscal year and must be carried forward to the next fiscal year.

    Sec. 6.  1.  The board of trustees of a county school district that is served by a public water system may file an application with the Administrator requesting a grant of money from the Account to provide an alternative source of safe drinking water to pupils attending schools within the school district if:

(a) A majority of the members of the board of trustees approves a resolution requesting such a grant;

(b) The water provided by the public water system serving the school district contains arsenic or other substances at levels that are higher than the standards for safe drinking water adopted by the United States Environmental Protection Agency; and

(c) The board of trustees can demonstrate a need for financial assistance for the current budget or operating year to provide an alternative source of safe drinking water.

2.  An application filed pursuant to subsection 1 must be in such form and contain such information as may be required by the Administrator.

3.  Upon receipt of an application for a grant, the Administrator shall consult with the State Health Officer regarding the need of the school district to provide an alternative source of safe drinking water and the immediacy of that need.

4.  If the Administrator determines that the school district qualifies for a grant, the Administrator shall, to the extent of money available in the Account, grant money to the school district based on the need of the school district to purchase an alternative source of safe drinking water.

5.  The Administrator shall adopt such regulations as are necessary to carry out the provisions of this section, including, without limitation:

(a) Requirements for the submission and review of applications;

(b) Criteria for eligibility to receive a grant from the Account; and

(c) Standards for consulting with the State Health Officer regarding applications that are filed with the Administrator.

6.  As used in this section, “public water system” has the meaning ascribed to it in NRS 445A.235.”.

    Amend the bill as a whole by deleting sec. 3 and adding:

    “Sec. 9.  (Deleted by amendment.)”.

    Amend the bill as a whole by adding a new section designated sec. 12.5, following sec. 6, to read as follows:

    “Sec. 12.5.  1.  Any regulations adopted by the State Board of Health pursuant to NRS 445A.200 to 445A.295, inclusive, remain in force until amended by the State Environmental Commission. Such regulations may be enforced by the State Environmental Commission.

    2.  Any contracts or other agreements entered into by the Health Division of the Department of Human Resources pursuant to NRS 445A.200 to 445A.295, inclusive, are binding upon the Division of Environmental Protection of the State Department of Conservation and Natural Resources. Such contracts or other agreements may be enforced by the Division of Environmental Protection.”.

    Amend the title of the bill, first line, by deleting “water systems;” and inserting: “water; creating the Account to Finance the Purchase of Alternative Sources of Safe Drinking Water in Schools; establishing procedures for granting money from the Account to school districts;”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes relating to accounts concerning safe drinking water. (BDR 40‑1252)”.

    Assemblywoman Leslie moved that the Assembly do not concur in the Senate amendment to Assembly Bill No. 473.

    Remarks by Assemblywoman Leslie.

    Motion carried.

    Bill ordered transmitted to the Senate.

Signing of Bills and Resolutions

There being no objections, the Speaker and Chief Clerk signed Assembly Bills Nos. 21, 41, 48, 60, 84, 107, 125, 130, 136, 150, 156, 160, 166, 168, 185, 212, 215, 217, 225, 230, 236, 255, 267, 287, 288, 291, 293, 324, 343, 348, 365, 390, 396, 451, 458, 469, 471, 475, 504, 516, 526, 528, 541; Assembly Joint Resolutions Nos. 5, 6, 15; Assembly Concurrent Resolution No. 28; Senate Bills Nos. 18, 127, 174, 240, 246, 247, 280, 288, 351, 413, 440, 469, 476, 478, 481, 482, 490, 493, 494.

GUESTS EXTENDED PRIVILEGE OF ASSEMBLY FLOOR

    On request of Assemblyman Beers, the privilege of the floor of the Assembly Chamber for this day was extended to Dolores Holets.

    On request of Assemblyman Geddes, the privilege of the floor of the Assembly Chamber for this day was extended to Tamera Buzick.

    On request of Assemblywoman Leslie, the privilege of the floor of the Assembly Chamber for this day was extended to Paul Nielsen, Erika Allee, Juan Araiza, Ivan Barajas, Jamie Chiarella, Alex Chichester, Noah Conrath, Christopher Dudley, Reid Evans, Cali Fennelly, Robert Fifer,
Kenneth Gasaway, Pamela Gotera, Leonard Hernandez, Desirae Houle, Schinria Islam, Reem Itani, Daniel Juarez, Alexey Kanwetz,
Blaise Labranch, Clayton Lewis, Gage Locke, Scott Mase,
Jordan Mehrmafakham, Cassandra Melancon, Robert Morgan-Beesley, Gabrielle Newman, Hilary Peil, Kristine Perez, Justin Ring, Whitney Roubo, Tyler Stokes, Whitney Thomas, Jenessa Warren, Timothy Woodard,
Jakob Camarena, Bryan Chuan, Jaqueline Dory, Patrick Gamer,
David Headrick, Donald Hoeck, Austin Iveson, Daniel Jara, James Johnson, Andrea Lynch, Britton Murdock, Jennifer Oring, Steven Owens,
Niccolas Peralta, Kevin Peterson, Meryl Rasmussen, Anthony Rissone, Daniel Sanchez, Alexander Shaw, Cameron Sheridan, Ashley Ullrich,
Delson Barr, Vivian Carbajal, Jaclyn Johnson, Angela Madera, Hilary Allen, Anthony Bass, Zachary Blackburn, Casey Brown, Mark Brown,
Bradley Bush, Scott Carnahan, John Casey, Jose Evangelista, Tiffany Fortier, Santino Gallegos, Emily Hamilton, Dane Higgins, Hetty Hu,
Laura Kreidberg, Trevor Landa, Jenni Laureano, Morgan McCombs,
Jared Munson, Rosario Perez-Vincen, Erica Reid, Cassandra Summers,
Glen Washington, Nicholas York, Ami Borrego, Luis Cabrera, Stacy Challis, Harvey Downs, Nicole Franke, Kelsy Galli, Sara Goodman, Ryan Iinuma, Shabatun Islam, Ariadna Martinez, Riley McKowan, Allie McLoughlin, Vanessa Moreno, Luke Mudge, Anthony Mustin, Paulina Pulleyn,
William Richeson, Peter Savage, Amanda Schloegel, Joshua Shapiro,
Marcus Smith, Shireen Spears, Cameron Walburg, Judson Wesnousky, Ashley Wingate, Chelsea Zuppan, Ann-Marie Zwischenberg, Nicole Koffler, and Ernesto Schaefer.

    Assemblywoman Buckley moved that the Assembly adjourn until Wednesday, May 28, 2003, at 11:00 a.m.

    Motion carried.

    Assembly adjourned at 1:10 p.m. 

Approved:                                                                Richard D. Perkins

                                                                                  Speaker of the Assembly

Attest:    Jacqueline Sneddon

Chief Clerk of the Assembly