by the state department and county boards in the administration of this act and make necessary rules and regulations to maintain such standards;

      (d) Prescribe the form of and cause the respective county boards to print and supply such forms as said state department may deem necessary and advisable and may direct for use in each county;

      (e) Cooperate with the federal government in matters of mutual concern pertaining to assistance to the needy aged, including the adoption of such methods of administration as are found by the federal government to be necessary for the efficient operation of the plan for such assistance;

      (f) Make such reports, in such form and containing such information, as the federal government may from time to time require, and comply with such provisions as the federal government may from time to time find necessary to assure the correctness and verification of such reports;

      (g) Publish an annual report to the governor of the State of Nevada, not later than four months after the close of each fiscal year, showing, for such year, the total amount paid under this act, the total number of persons assisted, and such other particulars as may be deemed advisable by said state board or as may be required by the governor of this state or by the federal government.

      (h) Submit to the governor of the State of Nevada on or before the 31st day of December of each even-numbered year for use in preparing his legislative budget for the next ensuing legislature of this state, and at such other times as he may direct, itemized budgets or estimates, and other information, in such form and detail as he may request.

      (i) Establish a merit system covering all personnel engaged in the administration of this act, and the state department shall have the authority to establish and enforce the necessary rules and regulations not inconsistent with law to maintain such merit system.

      Sec. 2.  The above-entitled act is further amended hereby by inserting therein immediately after section 4 thereof a new section to be known as and designated section 4 1/2 which shall read as follows:

      Section 4 1/2.  Confidential Nature of Records.  Applications of applicants for old-age assistance and the records, papers, files and communications of the state department and boards of county commissioners relating thereto and on file with said department and said boards, or either of them, and the contents thereof, are and shall be considered confidential for all purposes, except for the use of said department and of said boards and the employees thereof in determining the eligibility of such applicants to old-age assistance and the amount to which each applicant is entitled under the law and other facts necessary for determination incident thereto.

Duties of state department

Confidential nature of records

Confidential nature of records

State financial participation and tax levy

and other facts necessary for determination incident thereto. The state department is hereby authorized and empowered to establish and enforce reasonable rules and regulations not inconsistent with the law governing the custody, use and preservation of such applications, records, papers, files and communications filed with said department and boards, or either of them, consistent with this section. The use of such applications, records, papers, files and communications and of the facts and other data contained therein by any other agency or department of government to which they may be furnished shall be limited to the above-mentioned purposes and the purposes for which they are furnished consistent herewith.

      It shall be unlawful, except for purposes directly connected with the administration of the old-age assistance act, and in accordance with said rules and regulations of the state department, for any person or persons to solicit, receive, disclose or make use of, or to authorize, or to knowingly permit or suffer, participate in or acquiesce in the use of any of the information contained in said applications, records, papers, files, and communications, or in any list of names of applicants for or recipients of old-age assistance, or any information concerning persons applying for or receiving such assistance, directly or indirectly derived from such applications, records, papers, files, or communications of or so filed with said state department and boards, or either of them, or with any officer of any county or a political subdivision of the state or of any agent or employee thereof, or of either or any thereof, acquired in the course of the performance of official duties, or in any other manner whatsoever, in violation of the provisions hereof, and any person found guilty of violation of any of the provisions of this section shall be deemed guilty of a misdemeanor and punished accordingly.

      Sec. 3.  Section 15 of the above-entitled act is hereby amended to read as follows:

      Section 15.  State Financial Participation and Tax Levy.  The funds to pay for the state’s participation in old-age assistance under this act shall be raised by the levy and collection of an ad valorem tax upon all the taxable property in this state, including the net proceeds of mines, sufficient to produce enough money to pay the state’s one-fourth (1/4) of the total amount of such old-age assistance, and administration thereof, as provided for in this act, and shall be included in the state tax levy for the fiscal years 1937 and 1938, and in the state tax levy for each fiscal year thereafter unless and until otherwise provided by law; and, inasmuch as the first installment of taxes to be paid under said tax levy will not be due and payable until in the month of December 1937, the funds to pay the state’s proportion of such participation in old-age assistance under this act up to that time and to supplement said state tax levy, if needed, shall be raised by state bond issue as authorized and provided for in another and separate act of this legislature.

December 1937, the funds to pay the state’s proportion of such participation in old-age assistance under this act up to that time and to supplement said state tax levy, if needed, shall be raised by state bond issue as authorized and provided for in another and separate act of this legislature. The state taxes so levied shall be collected and transmitted to and deposited in the state treasury in the same manner as now provided by law for the collection, transmission and deposit of other state taxes. The state treasurer shall immediately upon receipt of any moneys so received by such taxation and bond issue, or either of them, place the same in the fund in the state treasury to be known and designated as “State Old-Age Assistance Fund,” out of which the state’s portion of the old-age assistance provided for in this act shall be paid upon warrants drawn by the state controller and paid by the state treasurer as hereinafter provided.

      Sec. 4.  All acts and parts of acts, insofar as they may be in conflict with the provisions of this act, are hereby repealed.

      Sec. 5.  This act shall take effect from and after its passage and approval.

State financial participation and tax levy

Repeal

In effect

[Assembly Bill No. 207–Mr. Trower]

Chap. 161–An Act to amend the title of and to amend an act entitled “An act to provide for the acquisition of a site, construction, equipment and furnishings of school buildings in Pahranagat consolidated school district No. 1, Lincoln County, Nevada, the holding of an election and the issuance of bonds, levying of a tax, and other matters properly related thereto,” approved March 24, 1931.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  The title of the above-entitled act, being chapter 150, 1931 Statutes of Nevada, is hereby amended to read as follows:

      An act to provide for the acquisition of a site, construction, equipment, and furnishings of school buildings in Pahranagat consolidated school district No. 1, Lincoln County, Nevada, the holding of an election and the issuance of bonds, levying of a tax, conferring certain powers and imposing certain duties upon the board of trustees of said district, and other matters properly related thereto or connected therewith.

      Sec. 2.  The above-entitled act is hereby amended by adding thereto two new sections to be known as section 13a and section 13b, to read as follows:

Title of act amended

Powers and duties of trustees

Apportionment of school moneys

Repeal

      Section 13a.  In addition to the powers and duties conferred and imposed upon the board of trustees of Pahranagat consolidated school district No. 1, by the general laws of Nevada and by this act, it shall have the following:

      1.  With the written approval of the deputy superintendent of public instruction to establish and maintain a branch school or branch schools situated within the boundaries of said Pahranagat consolidated school district No. 1, Lincoln County, Nevada, but not within the boundaries of the former school districts of Alamo, Crystal Springs, Hiko, or Richardville; provided, that such school or schools may only be established when said board of trustees is convinced that such school or schools are, because of location or for other peculiar or particular reasons, absolutely necessary; and provided further, that no such branch school may be established by said board of trustees except upon presentation to said board of a certified petition signed by the parents or guardians of five resident school children living within that portion of the consolidated district requesting the establishment of such branch school or schools and stating that said children reside within such portion of the consolidated district.

      Section 13b.  Apportionment of state, county, and district moneys shall be made to the Pahranagat consolidated school district No. 1 for the branch school or schools established under the provisions of this act in the same manner and to the same extent that such funds are apportioned to any other school district in the state.

      Sec. 3.  All acts and parts of acts, general or special, in conflict herewith are hereby repealed.

[Assembly Bill No. 208–Mr. Trower]

Chap. 162–An Act to amend an act entitled “An act providing a general corporation law,” approved March 21, 1925, by amending section 11 thereof.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 11 of an act entitled “An act providing a general corporation law,” approved March 21, 1925 (Nevada Compiled Laws 1929, section 1610), is hereby amended to read as follows:

      Section 11.  Every corporation shall have power to issue one class or kind of stock, or two or more classes or kinds of stock, any of which may be of stock with par value or stock without par value, with full or limited voting powers or without voting powers and with such designations, preferences and relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, as shall be stated and expressed in the certificate or articles of incorporation, or in any amendment thereto, or in the resolution or resolutions providing for the issue of such stock adopted by the board of directors pursuant to authority expressly vested in it by the provisions of the certificate or articles of incorporation, or of any amendment thereto.

stock without par value, with full or limited voting powers or without voting powers and with such designations, preferences and relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, as shall be stated and expressed in the certificate or articles of incorporation, or in any amendment thereto, or in the resolution or resolutions providing for the issue of such stock adopted by the board of directors pursuant to authority expressly vested in it by the provisions of the certificate or articles of incorporation, or of any amendment thereto. Any class or kind of stock may be special stock, whether a corporation has power to issue one or more than one class or kind of stock. The power to increase or decrease or otherwise adjust the capital stock as in this chapter elsewhere provided shall apply to all or any of such classes of stock. Any preferred or special stock may be made subject to redemption at such time or times and at such prices or prices, and may be issued in such series, with such designations, preferences, and relative, participating, optional or other special rights, qualifications, limitations or restrictions thereof as shall be stated and expressed in the certificate or articles of incorporation, or any amendment thereto, or in the resolution or resolutions providing for the issue of such stock adopted by the board of directors as hereinabove provided. The holders of preferred or special stocks of any class or series thereof shall be entitled to receive dividends at such rates, on such conditions and at such times as shall be expressed in the certificate or articles of incorporation, or in any amendment thereto, or in the resolution or resolutions providing for the issue of such stock adopted by the board of directors as hereinabove provided, payable in preference to, or in such relation to, the dividends payable on any other class or classes of stock, and cumulative or noncumulative as shall be so expressed. When dividends upon the preferred and special stocks, if any, to the extent of the preference to which such stocks are entitled, shall have been paid or declared and set apart for payment, a dividend on any remaining class or classes of stock may then be paid out of the remaining assets of the corporation available for dividends. The holders of the preferred or special stocks of any class or series thereof shall be entitled to such rights upon the dissolution of, or upon any distribution of the assets of, the corporation as shall be stated and expressed in the certificate or articles of incorporation, or any amendment thereto, or in the resolution or resolutions providing for the issue of such stock adopted by the board of directors as hereinabove provided; and any preferred or special stocks of any class or series thereof, if there are other classes or series, may be made convertible into, or exchangeable for, shares of any other class or classes or of any other series of the same or any other class or classes of stock of the corporation at such price or prices or at such rates of exchange and with such adjustments as shall be stated and expressed in the certificate or articles of incorporation, or any amendment thereto, or in the resolution or resolutions providing for the issue of such stocks adopted by the board of directors as hereinabove provided.

May issue two or more kinds of stock

May issue two or more kinds of stock

In effect

shares of any other class or classes or of any other series of the same or any other class or classes of stock of the corporation at such price or prices or at such rates of exchange and with such adjustments as shall be stated and expressed in the certificate or articles of incorporation, or any amendment thereto, or in the resolution or resolutions providing for the issue of such stocks adopted by the board of directors as hereinabove provided. If the corporation shall be authorized to issue more than one class of stock or more than one series of any class, the designations, preferences and relative, participating, optional or other special rights of the various classes of stock or series thereof and the qualifications, limitations or restrictions of such rights shall be set forth in full or summarized on the face or back of the certificate which the corporation shall issue to represent such stock and, if the corporation shall be authorized to issue only special stock, such certificate shall set forth in full or summarize the rights of the holders of such stock and, when stock of any class or series thereof is issued, the designations, preferences and rights of which shall not have been set forth in the certificate or articles of incorporation or an amendment thereto, the designations, preferences and relative, participating, optional or other special rights of such stock and the qualifications, limitations or restrictions of such rights shall be set forth in a certificate made under the seal of the corporation and signed by its president, or a vice president, and its secretary, or an assistant secretary, and acknowledged by such president or vice president before an officer authorized by the laws of Nevada to take acknowledgements of deeds, and such certificate shall be filed and a copy thereof recorded in the same manner as certificates or articles of incorporation are required to be filed and recorded. No corporation shall create any preferred or special stock unless the creation of such stock shall be authorized by the certificate or articles of incorporation or an amendment thereto.

      Sec. 2.  This act shall take effect immediately upon its passage and approval.

[Assembly Bill No. 125–Committee on Agriculture]

Chap. 163–An Act to amend an act entitled “An act to provide for the inspection for and the destruction of noxious weeds, providing the manner of designation what constitutes a noxious weed, providing for the administration of this act, defining the duties of the state quarantine officer in relation thereto, defining the duties of county commissioners in relation to this act, making an appropriation for carrying out the provisions of this act, providing penalties for the violation thereof, and other matters properly related thereto,” approved March 29, 1929.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 2 of the above-entitled act, being section 415, N. C. L. 1929, is hereby amended to read as follows:

      Section 2.  It shall be the duty of the state quarantine officer to carry out and enforce the provisions of this act, and he may employ such properly qualified assistants, fix their compensation, and make any other expenditures from any funds available as may be necessary for that purpose. For the purpose of securing information to better carry out the provisions of this act the state quarantine officer may conduct reasonably limited trials of various methods of controlling or eradicating injurious and noxious or potentially injurious and noxious weeds under practical Nevada conditions. In carrying out any such trial or trials the state quarantine officer may cooperate financially or otherwise with any agency of the federal or any state government, any political subdivision of this state, or any corporation or individual; provided, such corporation shall not of itself relieve any such cooperator of any responsibility or liability existing under any of the provisions of this act. The state quarantine officer may provide supervision and technical advice in connection with any project approved by him for the control or eradication of any injurious and noxious weed, or weeds, in this state. All funds appropriated for, or received incident to so doing, shall be available for carrying out the provisions of this act. Any claims against such funds shall be audited by the state quarantine officer and, if approved, forwarded to the state board of examiners for their audit, approval and payment in the manner provided by law.

      Sec. 2.  This act shall be in full force and effect from and after its passage and approval.

Duties of quarantine officer

In effect

Clemency may be granted by court, when

May appeal to board of pardons and parole commissioners

[Assembly Bill No. 209–Mr. Phillips]

Chap. 164–An Act providing for the staying of execution of sentences in criminal cases in the discretion of the court for a limited time, providing for application to the board of pardons and parole commissioners by the convicted persons in such cases and action by the board thereon, repealing section 409 of the criminal practice act, and other matters relating thereto.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Whenever any person shall be convicted of any crime except murder, kidnaping, burglary in the first degree, arson in the first degree, robbery, carnal knowledge of a female child under the age of ten years, or rape, the court in which the conviction is had may in its discretion and when in its opinion clemency should be exercised, at the time of imposing sentence upon such person, direct that the execution of such sentence be staid for a period of not more than twenty days for the purpose of allowing such person to apply to the state board of pardons and parole commissioners for the remission of the fine or forfeiture, commutation of sentence, parole or pardon, as the case may be. Upon the staying of the execution of the sentence the court may, in its discretion, permit such person his liberty on his own recognizance, admit him to bail or commit him to such custody as to the court shall seem meet pending the determination of such application by the said board.

      Sec. 2.  Upon the staying of the sentence, as provided in section 1 of this act, the person making application to the board of pardons and parole commissioners shall make or cause to be made a statement in writing, signed by him, setting forth in full the reasons for the remission of the fine or forfeiture, commutation of the sentence, parole or pardon, as the case may be, which said statement shall be forwarded to and filed with the secretary of said board within six days of the staying of the execution of said sentence. Accompanying said statement shall be a statement in writing signed by the judge of the court staying the sentence, wherein such judge shall give his reasons for staying the sentence, his reasons for recommending consideration by the board, and such other matters as will fully advise the board concerning the case. When said statements are received by the secretary of the board such board shall convene and consider the statements and such other evidence as it may require within such time as will permit of a determination of the matter within the twenty-day period and transmittal of its order thereon to the court staying the execution of such sentence.

to the court staying the execution of such sentence. The board may, upon consideration of the statements, evidence, and any other matters in connection therewith, remit the fine or forfeiture, commute the sentence, grant a parole upon such terms as it deems just, or grant a full or conditional pardon. Upon the receipt of the order made by the board, the court shall enter the same upon its records and the sentence of the court theretofore imposed shall be vacated, or otherwise modified or changed so as to comply with the action of the board.

      Sec. 3.  If the board shall remit the fine or forfeiture in its entirety, or absolve the person from punishment, or grant an unconditional pardon, such person shall be relieved of all liability imposed by said sentence and said sentence shall be vacated and annulled by the court.

      Sec. 4.  Nothing in this act shall be deemed to provide for or be used as an appeal to an appellate court.

      Sec. 5.  Section 409 of “An act to regulate proceedings in criminal cases in this state and to repeal all other acts in relation thereto,” approved March 17, 1911, being section 11057 Nevada Compiled Laws 1929, is hereby repealed.

When sentence vacated

Provisions of act limited

Repeal

[Assembly Bill No. 296–Committee on Ways and Means]

Chap. 165–An Act supplemental to an act entitled “An act to provide for the erection and equipment of a gymnasium building at the University of Nevada; providing for the issuance and sale of bonds therefor and the redemption thereof,” approved March 25, 1939, providing for an additional fund therefor, and other matters properly relating thereto.

[Approved March 28, 1941]

      Whereas, Chapter 163 Statutes of Nevada 1939 authorized and directed the board of regents of the University of Nevada to erect a gymnasium building at the University of Nevada at a cost not to exceed two hundred thousand ($200,000) dollars; and

      Whereas, An adequate gymnasium building will cost approximately three hundred thousand ($300,000) dollars; and

      Whereas, The people of the State of Nevada deem it necessary to erect an adequate gymnasium building at the University of Nevada; now, therefore,

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  The board of regents of the University of Nevada is hereby authorized and directed to erect a gymnasium building at the University of Nevada and to provide for the heating and lighting, water and sewer connections and equipping of said building.

Preamble

Regents of university to erect gymnasium

Bonds to be issued; commission named

Sale of bonds

Tax to be levied

Nevada is hereby authorized and directed to erect a gymnasium building at the University of Nevada and to provide for the heating and lighting, water and sewer connections and equipping of said building. The cost of said building and the construction thereof, together with the heating and lighting, water and sewer connections and all equipment thereof shall not exceed the sum of three hundred thousand ($300,000) dollars.

      Sec. 2.  The governor, state controller, and state treasurer are hereby constituted a commission and hereby authorized, directed and empowered to prepare and issue bonds of the State of Nevada in the sum of one hundred thousand ($100,000) dollars. Said bonds shall be in denominations of one thousand ($1,000) dollars each, payable in legal tender of the United States and shall be numbered serially, and when retired shall be in order of their issuance. Said bonds shall be signed by the governor, and endorsed by the state treasurer, and countersigned by the state controller, and authenticated by the great seal of the state. Said bonds shall bear interest at a rate of not to exceed three percent (3%) per annum, payable semiannually, that is to say on the first day of January and on the first day of July of each year, and shall be payable within twenty years from the date of issuance; provided, that the board of regents shall within six months after the passage and approval of this act have prepared plans and specifications for the construction of said gymnasium and shall have advertised for bids for the construction thereof. In the event that said plans and specifications shall not be prepared and bids submitted within the time herein stated, then the bonds provided in this act shall not be issued, and any appropriation made hereunder shall within six months from the passage of this act revert to the general fund of the State of Nevada.

      Sec. 3.  Upon the issuance and execution of said bonds the same shall be sold and delivered to the state permanent school fund, university ninety-thousand-acre-grant fund, and/or the university irreducible fund, and when so sold the state controller shall draw his warrant against said fund or funds for the amount of said bonds. Said bonds shall be sold at not less than par, and the proceeds thereof shall be placed in a fund known as the university gymnasium building interest and redemption fund. At least ten of said bonds of one thousand ($1,000) dollars each shall be redeemed each year, commencing July 1, 1942, and annually thereafter on same date.

      Sec. 4.  There shall be annually levied an ad valorem tax of forty-two hundredths (42/100) of one cent on each one hundred ($100) dollars of taxable property in the State of Nevada, including the net proceeds of mines, and all moneys derived therefrom shall be paid into the university gymnasium building interest and redemption fund, which shall be used for the purpose of paying interest and the annual redemption of the bonds authorized by this act.

derived therefrom shall be paid into the university gymnasium building interest and redemption fund, which shall be used for the purpose of paying interest and the annual redemption of the bonds authorized by this act. If after the payment of interest and the redemption of the number of bonds as herein provided for there shall remain a surplus in said fund, such surplus shall be used for the retirement and cancelation of additional bonds provided in this act to the amount of such surplus.

      Sec. 5.  It is hereby expressly provided that this act is supplemental to that certain act of the legislature entitled “An act to provide for the erection and equipment of a gymnasium building at the University of Nevada; providing for the issuance and sale of bonds therefor and the redemption thereof,” approved March 25, 1939, same being chapter 163 Statutes of Nevada 1939.

      Sec. 6.  Bills for the employment of architect and for the erection and the heating and lighting, water, and sewer connections of said building and equipment thereof shall be paid out of the University gymnasium building interest and redemption fund, herein provided for in section 3, upon bills approved by the board of regents of the University of Nevada, and audited and approved by the board of examiners of the State of Nevada as other claims against the state are paid.

      Sec. 7.  This act shall be in full force and effect from and after its passage and approval.

Act supplemental

Fund created

In effect

[Assembly Bill No. 181–Messrs. Farndale and Jones]

Chap. 166–An Act to amend an act entitled “An act to create a state board of health, defining their duties, prescribing the manner of the appointments of its officers, fixing their compensation, making an appropriation for the support of said board, establishing county boards of health, requiring certain statements to be filed, defining certain misdemeanors and providing penalties therefor, and other matters relating thereto,” approved March 27, 1911, as amended 1913, 1915, 1919, 1937, and 1939, by amending sections 7, 14, 15, and 24 thereof, and by adding thereto new sections to be known as sections 20a, 25a, 42, 43, 44, 45, 46, 47, and 48.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 7 of the above-entitled act, being section 5241 N. C. L. 1929, is hereby amended to read as follows:

Certificate of death or of stillbirth, regulations regarding

What birth certificate to contain

      Section 7.  The certificate of death or of stillbirth that shall be used is of the United States standard form, as approved by the bureau of the census. The personal and statistical particulars of the death or stillbirth certificate shall be authenticated by the name of the informant, who may be any competent person acquainted with the facts. The statement of facts relating to the disposition of the body shall be signed by the undertaker or person acting as such. The medical certificate of the death shall be signed by the physician, if any, last in attendance on the deceased, who shall specify the time in attendance, the time he last saw the deceased alive and the hour of the day at which death occurred. And he shall further state the cause of death, so as to show the course [cause] of disease or sequence of causes resulting in the death, giving first the name of the disease causing death (primary cause), and the contributory (secondary) cause, if any, and the duration of each. The certificate of stillbirth shall be presented by the undertaker or person acting as such to the physician in attendance at the stillbirth, for the certificate of the fact of stillbirth, and the medical data pertaining to stillbirth as the physician can furnish them in his professional capacity. Indefinite and unsatisfactory terms, indicating only symptoms of disease or conditions resulting from disease, will not be held sufficient for issuing a burial or removal permit; and any certificate containing only such terms as defined by the state board of health shall be returned to the physician for correction and more definite statement. Causes of death, which may be the result of either disease or violence, shall be carefully defined; and if from violence, the means of injury shall be stated, and whether (probably) accidental, suicidal, or homicidal. And in deaths in hospitals, institutions, or of nonresidents, the physician shall furnish the information required under this head, and may state where, in his opinion, the disease was contracted.

      Sec. 2.  Section 14 of the above-entitled act, being section 5248 N. C. L. 1929, is hereby amended to read as follows:

      Section 14.  The form of the birth certificate to be used under this act shall include as a minimum the items required by the standard certificate of live birth as recommended by the United States bureau of the census.

      All certificates, either of birth, death or stillbirth shall be written legibly, in unfading black ink, or typewritten, and no certificate shall be held to be complete and correct that does not supply all of the items of information called for, or satisfactorily account for their omission.

      Sec. 3.  The above-entitled act is hereby amended by adding a new section to follow section 20, which said section shall be designated section 20a, and which said section shall read as follows:

shall be designated section 20a, and which said section shall read as follows:

      Section 20a.  Each certificate, as provided for in this act, filed within six months after the time prescribed for their filing, shall be prima facie evidence of the facts therein stated. Data pertaining to the father of a child are such evidene if the alleged father is, or becomes, the husband of the mother in a legal marriage; if not, the data pertaining to the father of a child are not such evidence in any civil or criminal proceeding adverse to the interests of the alleged father, or of his heirs, devisees, or other successors in interest, if the paternity is controverted.

      Sec. 4.  Section 15 of the above-entitled act, being section 5249 N. C. L. 1929, is hereby amended to read as follows:

      Section 15.  That when any certificate of birth of a living child is presented without the statement of the given name, then the local health officer, local registrar or state registrar shall make out and deliver to the parents of the child a special blank for the supplemental report of the given name of the child, which shall be filled out as directed, and returned to the state registrar as soon as the child shall have been named. The board shall prescribe by regulation the time within which a supplementary report furnishing information omitted on the original certificate may be returned for the purpose of completing the original certificate. Certificates of birth completed by a supplementary report shall not be considered as “delayed” or “altered.”

      Sec. 5.  Section 24 of the above-entitled act, being section 5258 N. C. L. 1929, is hereby amended to read as follows:

      Section 24.  That still-born children or those dead at birth shall be registered as a stillbirth and a certificate of stillbirth shall be filed with the local health officer, in the usual form and manner. The medical certificate of the cause of death shall be signed by the attending physician, if any. Midwives shall not sign certificates of stillbirth for stillborn children; but such cases, and stillbirths occurring without attendance of either physician or midwife, shall be treated as deaths without medical attendance as provided for in section 8 of this act.

      Sec. 6.  The above-entitled act is hereby amended by adding a new section to follow section 25, which said section shall be designated section 25a, and which said section shall read as follows:

      Section 25a.  (1) As used in this act “vital statistics” includes the registration, preparation, transcription, collection, compilation, and preservation of data pertaining to births, adoptions, legitimations, deaths, stillbirths, and data incidental thereto.

Certificate prima facie evidence

Given name of child, special blank for

Stillbirth recorded, how

Definition of terms

Live birth

Stillbirth

Dead body

Person in charge of interment

Physician

The board

State registrar

Filing of certificate of birth, regulations concerning

      (2) “Live birth” means a birth in which the child shows evidence of life after complete birth. A birth is complete when the child is entirely outside the mother, even if the cord is uncut and the placenta still attached. The words “evidence of life” include heart action, breathing, or coordinated movement of voluntary muscle.

      (3) “Stillbirth” means a birth after at least 20 weeks of gestation, in which the child shows no evidence of life after complete birth.

      (4) “Dead body” means lifeless human body, or such severed parts of the human body or the bones thereof, from the state of which it reasonably may be concluded that death had recently occurred, and where the circumstances under which such dead body was found indicate that the death has not been recorded.

      (5) “Person in charge of interment” means any person who places, or causes to be placed, a deceased still-born child, or dead body, or, after cremation the ashes thereof, in the earth, a grave, tomb, vault, urn, or other receptacle, either in a cemetery or at any other place, or otherwise disposes thereof.

      (6) “Physician” means a person authorized under the laws of this state to practice medicine.

      (7) “The board” means the state board of health.

      (8) “State registrar” means the state registrar of vital statistics who is the state health officer.

      Sec. 7.  The above-entitled act is hereby amended by adding thereto an additional section to be numbered 42, and which said section shall read as follows:

      Section 42.  The acceptance for filing of any certificate, by the state registrar, more than four years after the time prescribed for their filing, shall be governed by the following procedure: Any citizen of the State of Nevada wishing to file the record of any birth, not previously registered, may submit to the district court in the county where the birth occurred, or of the county of residence, a record of that birth written on the adopted form of birth certificate. The certificate shall be substantiated by the affidavit of the medical attendant present at the time of the birth. When the affidavit of the medical attendant cannot be secured the certificate shall be supported by the affidavit of some person who was acquainted with the facts surrounding the birth at the time the birth occurred, with a second affidavit of some person who is acquainted with the facts surrounding the birth, and who is not related to the individual by blood or marriage. The district court shall require such other information or evidence as may be deemed necessary to establish the citizenship of the individual filing the certificate, and the truthfulness of the statements made in that record.

      The clerk of the said court shall forward the certificate to the state registrar of vital statistics with an order from the court to the state registrar that the record be, or be not, accepted.

      The state registrar is authorized to accept the certificate when verified in the above manner, and shall issue certified copies of such records as provided for in section 5, 1929 Statutes. Such certified copies shall be prima facie evidence in all courts and places of the facts stated thereon. The state division of vital statistics shall furnish the forms upon which such records are filed, and no other form shall be used for that purpose.

      Sec. 8.  The above-entitled act is hereby amended by adding thereto an additional section to be numbered 43, and which said section shall read as follows:

      Section 43.  (1) Certificates accepted subsequent to four years after the time prescribed for filing and certificates which have been altered after being filed with the state registrar shall contain the date of the delayed filing and the date of the alteration and be marked distinctly “delayed” or “altered.”

      (2) After a certificate has been accepted for delayed filing or after the board has permitted an alteration of a certificate on file, the alteration shall be noted by the state registrar on the reverse side of the certificate, together with a summary statement of the evidence submitted in support of the alteration.

      (3) All the evidence affecting the alteration of a certificate, after it has been filed with the state registrar, shall be kept in a special permanent file.

      Sec. 9.  The above-entitled act is hereby amended by adding thereto an additional section to be numbered 44, and which said section shall read as follows:

      Section 44.  The admissibility in evidence of a “delayed” or “altered” certificate shall be subject to the discretion of the court, judicial or administrative body or official to whom any such certificate is offered as evidence.

      Sec. 10.  The above-entitled act is hereby amended by adding thereto an additional section to be numbered 45, and which said section shall read as follows:

      Section 45.  (1) All certificates in the custody of the state registrar are open to inspection subject to the provisions of this act. It shall be unlawful for any employee of the state to disclose data contained in vital statistics, except as authorized by this act or by the board.

      (2) Disclosure of illegitimacy of birth or information from which legitimacy or illegitimacy of birth of any child can be ascertained may be made only upon order of a court of competent jurisdiction in a case where such information is necessary for the determination of personal or property rights, and then only for such purpose.

Duties of clerk of court

Duties of state registrar

Filing of delayed certificates

Special file

Admissibility in evidence

Records open to inspection

Exception

Certified copies

Use of data restricted

New certificate to issue upon adoption, original sealed

Sealed certificate may be opened, when

Certificate to issue when child legitimated

Duties of person taking custody of child of unknown parentage

necessary for the determination of personal or property rights, and then only for such purpose.

      (3) The state registrar shall not issue a certified copy of a certificate, or parts thereof, unless he is satisfied that the applicant therefor has a direct and tangible interest in the matter recorded, subject, however, to review by the board or a court of competent jurisdiction under the limitations of this section.

      (4) The board may permit the use of data contained in vital statistics records for research purposes, but without identifying the persons to whom the records relate.

      Sec. 11.  The above-entitled act is hereby amended by adding thereto an additional section to be numbered 46, and which said section shall read as follows:

      Section 46.  (1) In case of the adoption of any person, the state registrar upon receipt of a certified copy of the adoption decree shall prepare a supplementary certificate in the new name of the adopted person, and showing the adoptive parents as the parents, and seal and file the original certificate of birth with the certified copy of the adoption decree attached thereto.

      (2) Such sealed documents may be opened by the state registrar only upon the demand of the adopted person, if of legal age, or by an order of a court of competent jurisdiction. Upon the receipt of a certificate copy of a court order of annulment of adoption, the state registrar shall restore the original certificate to its original place in the files.

      Sec. 12.  The above-entitled act is hereby amended by adding thereto an additional section to be numbered 47, and which said section shall read as follows:

      Section 47.  (1) In case of the legitimation of any child by subsequent marriage of its parents, the state registrar, upon receipt of a certified copy of the marriage certificate of the parents, together with a statement of the husband acknowledging paternity, shall prepare a new certificate of birth in the new name of the child so legitimated.

      (2) The evidence upon which the new certificate was made and the original certificate shall be sealed and filed and may be opened only upon order of a court of competent jurisdiction.

      Sec. 13.  The above-entitled act is hereby amended by adding thereto an additional section which shall be numbered 48, and which said section shall read as follows:

      Section 48.  (1) Whoever assumes the custody of a living child of unknown parentage shall immediately report, on a form to be approved by the board, to the local registrar of the registration district in which such custody is assumed, the following:

      (a) Date of finding or assumption of custody.

      (b) Place of finding or assumption of custody.

      (c) Sex.

      (d) Color or race.

      (e) Approximate age.

      (f) Name and address of the person or institution with whom the child has been placed for care, if any.

      (g) Name given to the child by the finder or custodian.

      (2) The place where the child was found or where custody has been assumed shall be known as the place of birth, and the date of birth shall be determined by approximation.

      (3) The foundling report shall constitute the certificate of birth for such foundling child and the provisions of this act relating to certificates of birth shall apply in the same manner and with the same effect to such report.

      (4) If a foundling child shall later be identified and a regular certificate of birth be found or obtained, the report constituting the certificate of birth shall be sealed and filed and may be opened only upon order of a court of competent jurisdiction.

      Sec. 14.  The above-entitled act is hereby amended by adding thereto an additional section to be numbered 49, and which said section shall read as follows:

      Section 49.  If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

      Sec. 15.  Upon the taking effect of this act all acts, general or special, and parts of acts, general or special, in conflict and inconsistent with the provisions of this act are hereby repealed.

      Sec. 16.  This act shall take effect immediately upon its passage and approval.

Duties of person taking custody of child of unknown parentage

Severability

Repeal

In effect

[Assembly Substitute for Assembly Bill No. 136–Committee on Judiciary]

Chap. 167–An Act authorizing and directing district courts of the State of Nevada to determine and establish facts relative to vital statistics, providing the method thereof, and other matters relating thereto.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  The district courts of the State of Nevada are hereby authorized to establish the date of birth, place of birth and parentage of any person and shall, in its order, so decree and appoint, in the manner hereinafter provided.

Birth may be established

Procedure

Powers of court

Decree of court prima facie evidence

Decree to be filed

No fee

In effect

birth and parentage of any person and shall, in its order, so decree and appoint, in the manner hereinafter provided.

      Sec. 2.  Every person desiring to have the date of his birth, the place of his birth, or his parentage established, shall file a verified petition accompanied by his fingerprint chart, with a small recent photograph attached, in the district court of the county in which such person shall have been a resident for at least six (6) months prior thereto, which said petition shall recite the circumstances involved, and the desire of the petitioner in relation thereto. Upon the filing of such petition in the office of the county clerk, the county clerk shall give notice of the hearing thereof by posting notices thereof in three (3) public places in said county, which said notice shall provide for the hearing of said petition at any time after the posting of said notices for fifteen (15) days. In addition to the posting of said notice the clerk shall send a copy of said notice to the federal bureau of vital statistics at Washington, D. C., and one to the sheriff of the county in which such petition is filed.

      Sec. 3.  Upon the hearing of said petition the court may require information appearing to be pertinent to the particular case at hand, and the court may require the presence of any person, or the affidavit of such person if he be out of the jurisdiction of said court, as to enable the court to be fully advised in the premises.

      Sec. 4.  After the court shall deem the evidence presented upon the hearing of said petition sufficient to grant the prayer of the petitioner he shall make an order establishing the facts of the matter as presented to the court. Any decree rendered by the court as establishing the date of birth, the place of birth, or parentage, or any of such, of any person shall be prima facie evidence thereof for all purposes in which the date of the person’s birth, place of birth, or parentage may be at issue.

      Sec. 5.  Any decree rendered under the provisions of this act shall be filed with the state health officer and in the office of the county recorder of the county in which the decree was rendered.

      Sec. 6.  There shall be no fee charged or collected by any county clerk for any proceeding under the provisions of this act.

      Sec. 7.  This act shall be in full force and effect immediately upon its passage and approval.

[Assembly Substitute for Assembly Bill No. 12–Committee on Judiciary]

Chap. 168–An Act to amend an act entitled “An act relating to holographic wills,” approved March 20, 1895.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 1 of the above-entitled act, being section 9926 N. C. L., is hereby amended so as to read as follows:

      Section 1.  Every person over the age of eighteen years, including married women, being of sound mind may by last holographic will dispose of all of his or her estate, real or personal, the same being chargeable with the payment of the testator’s debts. Such wills shall be valid and have full effect for the purpose for which they are intended; provided, that a married woman may not dispose of community property by will, except that in case the husband shall have abandoned his wife and lived separate and apart from her without such cause as would have entitled him to a divorce, the half of the community property subject to the payment of its equal share of the debts chargeable to the estate owned in community by the husband and wife is at her testamentary disposition in the same manner as her separate property.

      Sec. 2.  This act shall take effect immediately upon its passage and approval.

Holographic will valid

In effect

[Assembly Bill No. 153–Mr. Farndale]

Chap. 169–An Act to amend an act entitled “An act providing for the adoption of a prevailing wage for employment on state, county, city, municipal or other public work in the State of Nevada, defining prevailing wage, providing a penalty for the violation of the provisions hereof, and other matters properly relating thereto,” approved March 24, 1937, by amending the title thereof, amending certain sections, and by inserting a new section therein.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  The title of the above-entitled act, being chapter 139 Statutes of Nevada 1937, is hereby amended to read as follows:

      An act providing for the adoption of a prevailing wage for workmen employed by public bodies or their contractors on public works in the State of Nevada, defining such workmen, public bodies and other terms, providing for the ascertainment of prevailing wage and contracts relating thereto, providing for forfeitures and penalties for the violation of the provisions hereof, and other matters relating thereto.

Title of act amended

Prevailing wage rate on all public work

Definition of terms

for workmen employed by public bodies or their contractors on public works in the State of Nevada, defining such workmen, public bodies and other terms, providing for the ascertainment of prevailing wage and contracts relating thereto, providing for forfeitures and penalties for the violation of the provisions hereof, and other matters relating thereto.

      Sec. 2.  Section 1 of the above-entitled act is hereby amended to read as follows:

      Section 1.  Every contract to which a public body of this state is a party, requiring the employment of skilled mechanics, skilled workmen, semiskilled mechanics, semiskilled workmen or unskilled labor in the performance of public work shall contain in express terms the hourly and daily rate of wages to be paid each of the said classes of mechanics and workmen which said hourly and daily rate of wages shall not be less than the prevailing rate of such wages then prevailing in the county, city, town, village, or district in this state in which said public work is located, and which said prevailing rate of wages shall have been determined in the manner provided in section 2 of this act; provided, that when public work is performed by day labor, as such labor is in this act defined, the prevailing wage for each said class of mechanics and workmen so employed shall apply and shall be clearly stated to such mechanics and workmen when employed; provided, that in no case shall the daily rate of wages be less than five ($5) dollars.

      Sec. 3.  The above-entitled act is hereby amended by inserting therein a new section to follow section 1, which said section shall be designated as section 1 1/2, reading as follows:

      Section 1 1/2.  Definitions.  As used in this act the term “public body” shall mean the state, county, city, town, village, school district, or any public agency of this state or its political subdivisions sponsoring or financing a public work. The term “public work” shall mean new construction of and the repair and reconstruction work on all public buildings, public highways, public roads, public streets and alleys, public utilities paid for in whole or in part by public funds, publicly owned water mains and sewers, public parks and playgrounds, and all other publicly owned works and property. The term “day labor” shall mean all cases where public bodies, their officers, agents, or employees hire, supervise, and pay the wages thereof directly to a workman or workmen employed by them on public works by the day and not under a contract in writing. The term “workman” shall mean a skilled mechanic, skilled workman, semiskilled mechanic, semiskilled workman, or unskilled workman.

      Sec. 4.  Section 3 of the above-entitled act is hereby amended to read as follows:

      Section 3.  Workmen employed by contractors or subcontractors or by public bodies at the site of the work and necessary in the execution of any contract for public works are deemed to be employed on public works.

      Sec. 5.  Section 4 of the above-entitled act is hereby amended to read as follows:

      Section 4.  For the purpose of this act every workman employed by a contractor or subcontractor on public work covered by a contract therefor shall be subject to all of the provisions of this act, regardless of any contractual relationship alleged to exist between the contractor and subcontractor and such workman.

      Sec. 6.  Section 6 of the above-entitled act is hereby amended to read as follows:

      Section 6.  A contractor engaged on public works shall forfeit as a penalty to the public body in behalf of which the contract has been made and awarded to such contractor, five dollars for each workman employed for each calendar day or portion thereof that such workman is paid less than the designated rates for any work done under such contract, by him or any subcontractor under him, and said public body awarding the contract shall cause to be inserted in the contract a stipulation to this effect.

      Sec. 7.  Section 7 1/2. of the above-entitled act is hereby amended to read as follows:

      Section 7 1/2.  Any person, firm, or corporation, including the officers, agents, or employees of a public body, violating any of the provisions of this act shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars nor more than three hundred dollars, or by imprisonment in the county jail for not less than thirty days nor more than ninety days, or by both such fine and imprisonment.

      Sec. 8.  This act shall not apply to apprentices duly recorded under the Nevada apprenticeship law of 1939, as provided by chapter 192 Statutes of Nevada 1939.

Act to apply to contractors

Contractual relationship not bar to provisions of act

Penalty for violation of wage stipulation

Penalty for violation

Not to apply to apprentices

Bond issue for sewage disposal plant

To apply for federal aid

Duties of trustees

[Assembly Bill No. 178–Mr. Dickerson]

Chap. 170–An Act supplementary to an act entitled “An act to incorporate Carson City,” approved February 25, 1875; providing for the construction, establishment and operation of a sewage disposal plant and connections for Carson City, Nevada; the submission of the question of creating bonded indebtedness therefor to the qualified electors of said city; the issuance and sale or disposal of bonds of said city therefor; the payment thereof by the levy and collection of taxes; the acceptance and use of federal or other grants, aids, donations and funds therefor, and other matters properly connected therewith.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  The board of trustees of Carson City are hereby authorized and empowered to construct, establish and operate a sewage disposal plant and connections for Carson City, Nevada, at or near said city for the general public health and welfare, and to prepare and issue bonds of said city in the sum of sixty thousand dollars ($60,000), or so much thereof as may be necessary for said purpose.

      Sec. 2.  For the purpose set forth in section one of this act and in addition to the bond issue therein authorized, the board of trustees of Carson City is hereby authorized and empowered to apply for, accept and use, any federal or other grants, aids, donations and funds for said purpose which said board may deem beneficial and to the best interests of said city.

      Sec. 3.  Before exercising any power or authority conferred by section 1 of this act, or issuing or selling any of said bonds, the said board of trustees of Carson City shall, by resolution, declare its intention to proceed under the authority of this act and to describe with common certainty the project contemplated and the approximate cost thereof, the total cost not to exceed sixty thousand dollars ($60,000), the amount of said bond issue, in addition to any federal aid applied for or donations of money or lands offered for acceptance, and setting forth therein the total amount of bonds to be issued, and the maximum rate of interest such bonds shall bear and the par value thereof, and shall, in said resolution, submit the question of contracting a bonded indebtedness of said city for said purpose to a vote of the duly qualified electors of the city at a general election of the city trustees, or at a special election therein called for such purpose.

      The said resolution shall be captioned “Notice of Special Bond Election,” and must contain the following:

      First:  The question submitted.

      Second:  The time and place of holding such election; provided, however, the board may select but one polling place within the city.

      Third:  Names of one inspector and two clerks to conduct the same.

      Fourth:  The hours during the day in which the polls will be open.

      Fifth:  Notice of the date of close of registration, which shall not be less than ten days before the date of said election.

      Sixth:  The date, amount and denomination of the bonds, the rate of interest, when and where payable, and the number of years, not exceeding twenty from the date of issue, the bonds are to run.

      All persons voting on the question submitted at such election shall vote by separate ballot whereon is placed the question submitted and the words “For the Bonds” and “Against the Bonds” and instructions to voters.

      Said resolution shall be published for at least once a week for two successive weeks preceding said election in a newspaper printed and published in Carson City, Nevada.

      Except as herein specifically provided, the manner of registration, voting and conducting the election shall be as now provided for by law.

      Upon the ballots being counted and the results of said election ascertained, the inspector and clerks shall issue a certificate of returns of said election, which they shall cause to be filed with the city clerk of Carson City.

      Sec. 4.  Upon the approval by the qualified voters of Carson City, at said special bond election, of the issuance of said bonds, as in this act provided, the board of trustees of Carson City is hereby authorized and empowered to prepare and issue the bonds authorized under section 1 of this act and by said special bond election. Said bonds shall be known as “Carson City Sewage Disposal Plant Bonds,” and the proceeds from the sale thereof shall be used only for the purpose set forth in section 1 of this act.

      Sec. 5.  Said bonds shall be prepared in denominations of five hundred ($500) dollars each and shall be serially in form and maturity, and numbered from one upwards consecutively. They shall be made payable in lawful money of the United States, at the office of the city treasurer of said Carson City, and they shall have interest coupons attached. Each coupon shall be consecutively numbered and shall bear the number of the bond to which it is attached. Said bonds and coupons shall be signed by the president of the board of city trustees and countersigned by the city treasurer and authenticated by the official seal of said city.

Notice of special bond election, what to contain

Bonds to issue upon approval of electorate

Denomination of bonds

Retirement of bonds

Bonds to go to highest bidder

Fund created

Tax to be levied

authenticated by the official seal of said city. Facsimile signatures may be used on the coupons. Said bonds shall bear interest in like lawful money of the United States at a rate not exceeding four (4%) percent per annum, payable semiannually on the first days of March and September of each year. Said bonds shall be redeemed and retired consecutively in the order of their issuance; provided, the various annual maturities shall commence not later than the third year after the date of issuance of such bonds, and all such bonds shall be redeemed in annual installments as fixed and determined by said board at the time of issuance; and provided further, that the said bonds, and each of them, shall mature and be redeemed at a time not later than twenty (20) years from the date of issuance.

      Sec. 6.  Said board of trustees is authorized and empowered to issue and negotiate the sale of said bonds to the highest responsible bidder for cash, at a price not less than par value and accrued interest. Notice of sale of said bonds shall be published for at least once a week for two successive weeks preceding the day on which bids will be opened in a newspaper printed and published in Carson City.

      The proceeds of the sale of bonds shall be placed in the city treasury in a fund to be known as the “Carson City Sewage Disposal Plant Fund,” and shall be used only for the purpose of constructing and establishing a sewage disposal plant and connections for Carson City, as in this act provided. Payments from said fund shall be made only on claims presented and warrants ordered drawn on the city treasurer as other city claims are presented and warrants ordered drawn.

      Sec. 7.  To provide for the payment of the principal and interest on said bonds, as the same may become due and payable, the board of trustees of Carson City is hereby authorized, empowered and directed and shall levy and collect annually a tax on the assessed value of all property, both real and personal, subject to taxation within the city limits of Carson City, until such bonds and the interest thereon shall have been fully paid, sufficient to provide for the payment of the interest on said bonds and to pay and retire, beginning with bond numbered one and consecutively thereafter, the bonds falling due each year, until all such bonds shall have been redeemed and retired, such tax shall be levied and collected, and the proceeds thereof shall be kept by the city treasurer in a special fund to be known as “Carson City Sewage Disposal Plant Bond Redemption Fund.” Said bonds and the interest shall be paid from this fund. Said bonds and the interest thereon shall be a lien upon all property subject to taxation within said Carson City.

      Sec. 8.  Whenever the bonds and interest provided for in this act shall have been fully paid the tax authorized by this act shall cease, and all moneys remaining in said bond fund shall, by order of the board of trustees of said city, be transferred to the general fund of said city.

      Sec. 9.  All interest on any of said bonds shall cease when said bond becomes due and payable, whether presented for payment on its maturity date or thereafter, unless default be made in payment.

      Sec. 10.  Whenever the city treasurer shall redeem any of the bonds issued under the provisions of this act he shall cancel the same by writing across the face thereof the word “Paid,” together with the date of payment, and sign his or her name thereto, and turn the same over to the city clerk, taking his or her receipt therefor, which receipt shall be filed with the trustees of said city and the city clerk shall credit the city treasurer on his or her books with the amount so paid.

      Sec. 11.  The faith of the State of Nevada is hereby pledged that this act shall not be repealed nor the taxation thereby imposed be omitted, nor any other act or thing to be done or permitted to be done to impair the marketable value of the good faith of the State of Nevada in causing said bonds to be issued, until all of the bonds and coupons issued hereunder, and by virtue of the terms of this act, shall have been paid in full.

      Sec. 12.  The board of trustees shall give notice to contractors for the construction of said sewage disposal plant and connections by publishing the same at least once a week for two consecutive weeks preceding the date on which bids are to be opened in a newspaper printed and published in Carson City; provided, the board may contract for materials and labor or for labor separately by force account or under agreement with the public works administration or any federal agency, and in that case no notice shall be required respecting the furnishing of necessary labor for said work.

      Sec. 13.  The board of trustees of Carson City shall have power to regulate, operate, and maintain said sewage disposal plant and connections and the income of said plant and connections as well as the plant itself and connections shall be subject to the lien of said bonds irrespective of the location of said plant and/or connections, inside or outside of the limits of Carson City.

      Sec. 14.  All acts and parts of acts, insofar as they may be in conflict with the provisions of this act, are hereby repealed.

      Sec. 15.  This act shall be in full force and effect from and after its passage and approval.

Surplus, if any to go into general fund

Interest to cease when bonds become due

Duty of city treasurer when bonds redeemed

Faith of state pledged

Notice to contractors

City must maintain plant

Repeal

In effect

Inheritance rights of aliens

Burden of proof

When property escheats

In effect

[Assembly Bill No. 40–Mr. Loomis]

Chap. 171–An Act relating to the inheritance rights of aliens.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  The rights of aliens not residing within the United States or its territories to take either real or personal property or the proceeds thereof in this state by descent or inheritance, either under the terms of wills or in cases of intestacy, is dependent in each case upon the existence of a reciprocal right upon the part of citizens of the United States to take real and personal property and the proceeds thereof in like manner within the countries of which said aliens are inhabitants or citizens and upon the rights of citizens of the United States to receive by payment to them within the United States or its territories moneys originating from the estates of persons dying within such foreign countries.

      Sec. 2.  In the cases described in section 1 of this act the burden of proof shall be upon the alien claimant to establish that said reciprocal right to take and said right to receive exist.

      Sec. 3.  In the event no heirs other than said aliens are found eligible to take such property, said property shall escheat to the State of Nevada as provided by law in those cases where a person shall die intestate without heirs.

      Sec. 4.  This act shall be in force and effect immediately upon its passage and approval.

[Assembly Bill No. 159–Mr. Loomis]

Chap. 172–An Act to amend sections 9 and 10 of an act entitled “An act authorizing owners of land to lay out and plat such land into lots, streets, alleys and public places, and providing for the approval and filing of maps or plats thereof,” approved March 15, 1905.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 9 of the above-entitled act, being section 1350 N. C. L. 1929, is hereby amended so as to read as follows:

      Section 9.  If it is desired to vacate, alter or change a portion of any plat filed in accordance with the provisions of this act, or a street or alley therein, application in writing may be made for that purpose to the city council of the city wherein said land is situated, and in all other cases to the board of county commissioners of the county wherein said land is contained.

of this act, or a street or alley therein, application in writing may be made for that purpose to the city council of the city wherein said land is situated, and in all other cases to the board of county commissioners of the county wherein said land is contained. Such application or petition shall be signed by the owner or owners of seventy-five percent of the land situated, contiguous or adjacent to any such portion of any plat or street or alley therein. Upon the filing of such petition or application, the city council or board of county commissioners, as the case may be, shall, at its next regular meeting, proceed to hear and consider the same, and if the council or board be satisfied that neither the public nor any person will be materially injured thereby, it shall order such portion of said plat or such street or alley to be vacated, altered or changed, as prayed for in the petition, which order shall be duly recorded in the office of the recorder of the county wherein said land is situated, and endorsed upon the map or plat thereof on file therein so as to clearly indicate the portion thereof so vacated, altered or changed.

      Sec. 2.  Section 10 of the above-entitled act, being section 1351 N. C. L. 1929, is hereby amended so as to read as follows:

      Section 10.  The city council or county commissioners, as the case may be, shall, upon its own motion, publish notice of its intention to alter, change or vacate a portion of any plat filed in accordance with the provisions of this act, or street or alley therein at the meeting of the council or board stated in the notice. Such notice shall be published once in a newspaper of general circulation published in the city or county and such notice shall be published at least ten days prior to the time of the meeting stated in the notice. Any persons desiring to object to such proposed alteration, change, or vacation may appear at such meeting and shall be heard. If, after such hearing, the city council or county commissioners, as the case may be, deems it for the best interest of the public and that no person will be materially injured thereby, it may order such portion of any plat or street or alley therein vacated, altered or changed which order shall be duly recorded in the office of the county recorder of the county wherein such land is situated, and shall be endorsed by such recorder upon the map or plat thereof on file therein so as to clearly indicate the portion thereof so vacated, altered, or changed.

Vacation of portion of plat

How plat may be changed

Certificate, how acknowledged

Conveyances

[Assembly Bill No. 158–Mr. Loomis]

Chap. 173–An Act to amend an act entitled “An act to provide for the incorporation of religious, charitable, literary, scientific and other associations,” approved March 2, 1867, by amending section 3 thereof, and by adding thereto a new section to be known as section 9.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 3 of the above-entitled act, being section 3217 N. C. L. 1929, is hereby amended so as to read as follows:

      Section 3.  Such certificate shall be acknowledged by the person making the same, or proved by a subscribing witness thereto, before some officer authorized to take acknowledgments of deeds, and recorded, together with the certificate of such acknowledgment or proof, by the clerk of the county within which such church, congregation, religious, moral, beneficial, charitable, literary, or scientific society or association shall be situated, and thereupon such society or association shall be incorporated within the meaning of the provisions of this act without the necessity of complying with the general incorporation laws.

      Sec. 2.  There is hereby added to the act entitled above a new section to be known as section 9.

      Section 9.  All lands, tenements and hereditaments which may hereafter be, in any manner whatsoever, conveyed or encumbered by any religious, charitable, literary, scientific or other association herein specified may be so conveyed or encumbered either in the name of the trustees or directors of such association or in the corporate name of such association, as such name is provided for in section 2 hereof. The provisions of this section shall make lawful and validate any conveyance or encumbrance of any nature whatsoever which has heretofore been made pursuant to the provisions of this act in the name of the directors or trustees of any such association or in the corporate name of such association.

[Assembly Bill No. 43–Mr. Giroux]

Chap. 174–An Act providing for leave of absence for county officials; the length of time of such leave, and providing for their salary during such time.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Elective county officials who have been in the service of the county for one year, or more, in whatever capacity, shall be allowed in each calendar year, a leave of absence of fifteen (15) days, with full pay.

      Sec. 2.  This act shall be in full force and effect from and after its passage and approval.

Vacations for county officials

In effect

[Assembly Bill No. 46–Churchill County Delegation]

Chap. 175–An Act requiring persons hunting on private-fenced lands to obtain written permission therefor; providing a penalty for the violation hereof, and other matters properly related thereto.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  It shall be unlawful for any person to hunt with bow and arrow, gun, dog or trap upon occupied, cultivated, and fenced property of another without first obtaining written permission from the owner, occupant, or agent thereof.

      Sec. 2.  Any person who shall violate any of the provisions of this act shall be deemed guilty of a misdemeanor and upon conviction shall be punished by a fine of not less than $50 nor more than $200, or by imprisonment in the county jail for a period of not less than twenty-five days nor more than sixty days, or by both such fine and imprisonment.

Permission to hunt must be secured

Penalty

Appropriation for state historical society

In effect

[Senate Bill No. 91–Senator Heidtman]

Chap. 176–An Act to amend an act entitled “An act providing an appropriation for the support and maintenance of the Nevada state historical society for the years 1939 and 1940,” approved March 23, 1939.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 2 of the above-entitled act, being chapter 137 Statutes of Nevada 1939, is hereby amended to read as follows:

      Section 2.  The state controller is hereby authorized and directed to draw his warrants upon vouchers and certifications, for the support and maintenance of the Nevada state historical society, as the same may be presented, in the sum of not to exceed one thousand five hundred ($1,500) dollars for each of the years 1939 and 1940, and the treasurer of the State of Nevada is hereby directed to pay the same. Of the fifteen hundred dollars allocated for the fiscal year 1940-1941, four hundred ($400) dollars shall be used by the executive officer for traveling and subsistence, and two hundred ($200) dollars shall be used as a revolving fund for incidental and miscellaneous purposes.

      Sec. 2.  This act shall be in full force and effect from and after its passage and approval.

Publication of legal notices

[Senate Bill No. 88–Committee on Judiciary]

Chap. 177–An Act to amend an act entitled “An act to define legal notices and newspapers in which such notices may be legally published,” approved March 11, 1925, as amended.

[Approved March 28, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 3 of the above-entitled act, being section 4702 N. C. L. 1929, is hereby amended to read as follows:

      Section 3.  Any and all legal notices or advertisements shall be published only in a daily, a triweekly, a semiweekly, or a weekly newspaper of general circulation and printed in whole or in part in the county in which such notice or advertisement is required to be published; which said newspaper, if published triweekly, semiweekly, or weekly, shall have been so published in such county, continuously and uninterruptedly, during the period of at least one hundred four consecutive weeks next prior to the first issue thereof containing any such notice or advertisement, and which said newspaper, if published daily, shall have been so published in such county, uninterruptedly and continuously, during the period of at least one year next prior to the first issue thereof containing any such notice or advertisement; provided, that the mere change in the name of any newspaper, or the removal of the principal business office or seat of publication of any newspaper from one place to another in the same county shall not break or affect the continuity in the publication of any such newspaper if the same is in fact continuously and uninterruptedly printed and published within such county as herein provided; provided further, that a newspaper shall not lose its rights as a legal publication if any of the following conditions maintain:

uninterruptedly, during the period of at least one hundred four consecutive weeks next prior to the first issue thereof containing any such notice or advertisement, and which said newspaper, if published daily, shall have been so published in such county, uninterruptedly and continuously, during the period of at least one year next prior to the first issue thereof containing any such notice or advertisement; provided, that the mere change in the name of any newspaper, or the removal of the principal business office or seat of publication of any newspaper from one place to another in the same county shall not break or affect the continuity in the publication of any such newspaper if the same is in fact continuously and uninterruptedly printed and published within such county as herein provided; provided further, that a newspaper shall not lose its rights as a legal publication if any of the following conditions maintain:

      1.  If by reason of a strike or other good cause it should suspend publication; provided, the period shall not exceed thirty days in any calendar year.

      2.  If by reason of generally recognized economic stress of a serious nature over which the publisher has no control it shall be necessary to suspend publication for a period not to exceed one year; provided, however, that the provisions of this paragraph shall apply only in the case of publications that have been operating continuously for a period of five years prior to such suspension; provided, that any legal notice which fails of publication for the required number of insertions for such reason shall not be declared illegal, if publication has been made in one issue of said publication, and is resumed within a reasonable period; provided further, that if in any county in this state there shall not have been published therein any newspaper or newspapers for the prescribed period, at the time when any such notice or advertisement is required to be published, then such notice or advertisement may be published in any newspaper or newspapers having a general circulation and printed and published in whole or in part in said county.

      Sec. 2.  All acts and parts of acts insofar as they conflict with the provisions of this act are hereby repealed.

      Sec. 3.  This act shall become effective from and after its passage and approval.

Legal publication defined

Repeal

In effect

Clerks provided for justice’s courts, when

In effect

[Assembly Bill No. 269–Committee on Elections]

Chap. 178–An Act authorizing clerks for justice courts in certain townships in the State of Nevada, fixing the duties of said clerks, and other matters properly relating thereto.

[Approved March 31, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  In any county in this state wherein in any township in said county there are cast at a general election not less than one thousand, six hundred twenty-five (1,625) nor more than one thousand seven hundred fifty (1,750) votes, it shall be the duty of the county commissioners of such county to appoint for the justice’s court of any such township, a clerk, and provide compensation therefor not to exceed the sum of sixty ($60) dollars per month, upon the written nomination and recommendation of the duly elected, qualified, and acting justice of the peace of the said township. Said justice’s clerk shall take the constitutional oath of office and give bond in the sum of two thousand ($2,000) dollars for the faithful discharge of the duties of the office, and in the same manner as is or may be required of other officers of such township and county. Said justice’s clerk shall have authority to administer oaths, take and certify affidavits and acknowledgments, issue process, enter suit on the docket, and do all clerical work in connection with the keeping of the records, files, and dockets of said court, and perform such other duties in connection with the office as the justice of the peace shall prescribe.

      Sec. 2.  This act shall become effective from and after its passage and approval.

Semimonthly pay days for state officers and employees

[Assembly Bill No. 244–Committee on Labor]

Chap. 179–An Act providing for semimonthly pay days for state officers and employees.

[Approved March 31, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Notwithstanding any present law of this state to the contrary, all state and county officers and regular employees of this state and its counties shall be paid their salaries as fixed by law in two equal semimonthly payments, the first of which semimonthly payment for each month shall be for the first half of that particular month, and the second of which shall be for the last half of said month; provided, however, that the first half of said monthly salary shall not be paid before the fifteenth day of that month and the second half thereof before the last day of that month.

however, that the first half of said monthly salary shall not be paid before the fifteenth day of that month and the second half thereof before the last day of that month.

      Sec. 2.  All acts or parts of acts insofar as they are inconsistent herewith are hereby repealed.

Repeal

[Assembly Bill No. 219–Mr. Kleppe]

Chap. 180–An Act to authorize the condemnation of land in this state by an irrigation district organized under the laws of an adjoining state, and other matters properly related thereto.

[Approved March 31, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Any irrigation district heretofore organized and existing under the laws of any state adjoining the State of Nevada, and which is now qualified to do business in the State of Nevada as a foreign corporation in the manner provided by law for the qualification of foreign corporations doing business within the State of Nevada, and where said irrigation district is now the owner of lands within the State of Nevada, said lands being now used for reservoir purposes, may and hereby is authorized to acquire title to any land within the State of Nevada by purchase or condemnation necessary or required for dams, ditches, reservoirs and other works for the diversion, conveyance or storage of water, which lies within any watershed from which said irrigation district obtains its water supply for the irrigation and development of lands within the boundaries of said irrigation district in said adjoining state.

      Sec. 2.  The use of any land and the necessity therefor within the State of Nevada for either any or all of the purposes specified in this act is hereby declared to be a public use.

      Sec. 3.  The provisions of this act shall apply to irrigation districts organized and existing under the laws of an adjoining state only when such adjoining state grants like rights and privileges in that state to irrigation districts organized and existing under the laws of the State of Nevada.

      Sec. 4.  This act shall take effect upon its passage and approval.

Certain privileges granted to irrigation districts of adjoining states

Public use declared

Reciprocity to control

In effect

Preamble

Appropriation for recodifying school laws

To be completed by January 1, 1943

In effect

[Senate Bill No. 83–Senator Grant]

Chap. 181–An Act making an appropriation for the purpose of recodifying the law relating to public schools.

[Approved March 31, 1941]

      Whereas, The Nevada state educational association has heretofore donated the sum of five hundred ($500) dollars to the end and for the purpose that the law relating to public schools should be recodified; and

      Whereas, Additional sums are needed in order to carry out the codification of same; and

      Whereas, Such recodification is necessary, proper, and very desirable in order that the chaotic condition of the public school laws should be remedied so far as possible; now, therefore,

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  For the purpose of recodifying the law relating to public schools there is hereby appropriated out of any moneys in the general fund of the state treasury, not otherwise specifically appropriated, the sum of one thousand ($1,000) dollars to be paid out upon the order of the state superintendent of public instruction, and allowed as other claims against the State of Nevada.

      Sec. 2.  The said recodification shall be carried on under the direction and control of the state superintendent of public instruction and shall be completed on or before January 1, 1943, at which time such recommendations, amendments, and additions to the existing law shall be proposed to the legislative session for the year 1943, as in the judgment of the state superintendent of public instruction shall be deemed necessary and proper.

      Sec. 3.  This act shall become effective from and after its passage and approval.

[Senate Bill No. 38–Committee on Corporations]

Chap. 182–An Act to amend an act entitled “An act providing a general corporation law,” approved March 21, 1925, and all acts amendatory thereof and supplementary thereto, by adding thereto a new section to be known as section 49a (N. C. L. sec. 1648.01) and repealing all acts and parts of acts in conflict herewith.

[Approved March 31, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  The above-entitled act, as amended, is hereby amended by adding thereto a new section to be known as section 49a (N. C. L. 1648.01) reading as follows:

      Section 49a.  Whenever a corporation has willfully violated its charter, or its trustees or directors have been guilty of fraud or collusion or gross mismanagement in the conduct or control of its affairs, or misfeasance, malfeasance, or nonfeasance, or shall be unable to conduct the business or conserve the assets of the corporation by reason of the act, neglect, or refusal to function of any of the directors or trustees, or the assets of the corporation are in danger of waste, sacrifice, or loss, through attachment, foreclosure, litigation, or otherwise, or said corporation has abandoned its business, or has not proceeded diligently to wind up its affairs, or to distribute its assets in a reasonable time, or has become insolvent, or, although not insolvent, is for any cause not able to pay its debts or other obligations as they mature or is not about to resume its business with safety to the public, any holder or holders of one-tenth of the issued and outstanding capital stock may apply to the district court, held in the district where the corporation has its principal place of business, for an order dissolving the corporation and appointing a receiver to wind up its affairs, and by injunction restrain the corporation from exercising any of its powers or doing any business whatsoever, except by and through a receiver appointed by the court. Such application may be for the appointment of a receiver, without at the same time applying for the dissolution of the corporation, and notwithstanding the absence, if any there be, of any action or other proceedings in the premises pending in such court. In any such application for a receivership, it shall be sufficient for a temporary appointment if notice of the same be given to the corporation alone, by process as in the case of an application for a temporary restraining order or injunction, and the hearing thereon may be had after five days’ notice unless the court shall direct a longer or different notice and parties. Such court may, if good cause exist therefor, appoint one or more receivers for such purpose, but in all cases directors or trustees who have been guilty of no negligence nor active breach of duty shall have the right to be preferred in making such appointment, and such court may at any time for sufficient cause make a decree terminating such receivership, or dissolving such corporation and terminating its existence, or both, as may be proper.

Procedure for request for receiver for insolvent corporation

Procedure for request for receiver for insolvent corporation

Repeal

In effect

therefor, appoint one or more receivers for such purpose, but in all cases directors or trustees who have been guilty of no negligence nor active breach of duty shall have the right to be preferred in making such appointment, and such court may at any time for sufficient cause make a decree terminating such receivership, or dissolving such corporation and terminating its existence, or both, as may be proper. Receivers so appointed shall have, among the usual powers, all the functions, powers, tenure, and duties, to be exercised under the direction of the court, as are conferred on receivers; and provided, in sections 47, 48, and 49 of this act (N. C. L. secs. 1646, 1647, 1648) whether the corporation shall be insolvent or not.

      Sec. 2.  All acts and parts of acts in conflict with the provisions of this act are hereby repealed.

      Sec. 3.  This act shall take effect immediately from and after its passage and approval.

Title of act amended

[Assembly Bill No. 261–Mr. McCuistion]

Chap. 183–An Act to amend an act entitled “An act to provide for cooperation of state and county officers and agencies with the federal government in relation to grazing lands, for the disposition of money received from the federal government, for the creation of state grazing boards to direct and guide disposition of such moneys, and defining their powers and duties, providing for certain duties by state and county officials, and other matters relating thereto,” approved March 14, 1939.

[Approved March 31, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  The title of the above-entitled act, being chapter 67 of the Statutes of the State of Nevada, passed at the thirty-ninth session of the legislature, 1939, is hereby amended to read as follows:

      An act to provide for cooperation between state and county officers and agencies and between state agencies and the federal government in relation to grazing lands, for the disposition of money received from the federal government, for the creation of state grazing boards to direct and guide disposition of such money, and defining their powers and duties, providing for certain duties by state and county officials, and other matters relating thereto.

      Sec. 2.  Section 4 of the above-entitled act, being section 4 of chapter 67 of the Statutes of the State of Nevada passed at the thirty-ninth session of the legislature, 1939, is hereby amended to read as follows:

at the thirty-ninth session of the legislature, 1939, is hereby amended to read as follows:

      Section 4.  Each state grazing board hereby created is hereby authorized out of the funds at its disposal to direct and guide the disposition of the range improvement fund of its grazing district for the construction and maintenance of range improvements or any other purpose beneficial to the stock raising and ranching industries and, in turn, the counties situated within the grazing district concerned; provided, that none of the said funds shall be so disposed of unless some legally constituted and authorized federal or state governmental department, division, bureau, service, board or commission is available for and authorized and willing to undertake direct management and supervision of the project concerned. Each state grazing board hereby created is also authorized out of the funds at its disposal to direct and guide the disposition of the range improvement funds of its grazing district for the payment of proper administrative costs of the board, including travel and subsistence costs of its members and for payment of the services of its secretary and his necessary office expenses, as provided for herein; and during periods of range depletion due to severe drouth and similar causes, or in case of a general epidemic of disease affecting stock raising and ranching enterprises of the district concerned, or whenever conditions are such that payment of grazing fees under the provisions of the said Taylor grazing act impose a burden on the payers beyond their reasonable ability to pay, each of the said state grazing boards is hereby authorized in its discretion, for the general welfare of the state and counties, to direct and guide such disposition of the said fund as may be required to make refund in whole or part to the payers of the grazing fees from which the said fund was derived. In such event, the refund to each payer shall be determined by each state grazing board concerned, the share of each payer to be determined by the extent to which the grazing fees paid by each contributed to the total fund on hand when the refund is approved by such board.

      When and if any part of any unexpended balance in said fund carried over from one refund period to another and remaining on hand after disposals therefrom by such boards for the purposes authorized hereby is finally refunded, shares of such payers in the same shall retain their original status.

      Sec. 3.  Section 6 of the above-entitled act, being section 6 of chapter 67 of the Statutes of the State of Nevada passed at the thirty-ninth session of the legislature, 1939, is hereby amended to read as follows:

      Section 6.  In the case of any project involving construction and maintenance of range improvements as provided for in this act, and within any grazing district established under the provisions of the Taylor grazing act, such project or projects shall be undertaken only under cooperative agreements entered into on the part either of the state grazing boards or the boards of county commissioners, as the case may be, and the federal officials in charge of the grazing district concerned.

Grazing board to control funds

Cooperative agreements to be entered into

Disposition of funds

in this act, and within any grazing district established under the provisions of the Taylor grazing act, such project or projects shall be undertaken only under cooperative agreements entered into on the part either of the state grazing boards or the boards of county commissioners, as the case may be, and the federal officials in charge of the grazing district concerned. In the case of any project involving other than construction and maintenance of range improvements, and in the case of which the said state grazing boards are empowered by section 4 of this act to guide and direct the disposition of the said funds, such project shall be undertaken only under cooperative agreements entered into on the part of the state grazing boards and either the federal or state officials, as the state grazing boards concerned may decide, who are in charge of whichever governmental department, division, bureau, service, board or commission happens to be in charge of and have jurisdiction over the kind of project concerned.

      Either the boards of county commissioners or the state grazing boards concerned, as the case may be, are hereby authorized to enter into such cooperative agreements and to take such steps as may be necessary, under the provisions of this act, to contribute from their respective funds to such projects under the terms of such cooperative agreements. Such cooperative agreements shall prescribe the manner, terms, and conditions of such cooperation as the amounts to be contributed from the range improvement fund of the grazing district or county concerned, as the case may be, and such agreements also shall provide that the direct management and supervision of such projects shall be exercised by the officials in charge of whichever federal or state governmental department, division, bureau, service, board, or commission is designated in such cooperative agreements as the agency cooperating with the state grazing board concerned in the case of the project concerned.

      Any funds coming into or remaining in the possession of any federal or state agency as a result of cooperation between any such agency and any of the said state grazing boards, as provided for herein, may be restored to or placed in the range improvement fund of the grazing district concerned; provided, that in the case of any such restoration or placement, the state grazing board concerned shall first advise the federal or state agency concerned, by resolution as to the amounts in which the said restorations or placements shall be made in the case of each county within such district, whereupon the said restoration or placement shall be made directly to the county concerned by the federal or state agency concerned in accordance with such resolution. Any and all such funds received by any county shall be placed at once in the range improvement fund of the district concerned and immediately become subject to any and all provisions of this act applying to the said fund.

at once in the range improvement fund of the district concerned and immediately become subject to any and all provisions of this act applying to the said fund.

      Sec. 4.  This act shall be effective from and after its passage and approval.

In effect

[Assembly Bill No. 280–Committee on Roads and Highways]

Chap. 184–An Act declaring the public policy of the state with reference to the use of state highway funds, to provide safety in the construction, maintenance and use of improved state highways; and providing for the protection, preservation and maintenance of such highways and of the state highway fund of this state, and other matters relating thereto, all to be paid for out of the state highway fund.

[Approved March 31, 1941]

      Whereas, The people amended the constitution of this state at the November election, 1940, by adding a new section to article IX thereof in and by which expenditures out of the state highway fund, derived from the excise tax on gasoline and other motor vehicle fuels and from registration and motor carrier license fees on automobiles and other motor vehicles, are limited to the costs and expenses of the construction and maintenance of the highways of this state and of administration connected therewith; and the words “construction,” “maintenance,” and “administration” contemplate construction and maintenance of said highways in a manner which will be safe to the traveling public and the proper expenses of administration incident to such safety; and it is necessary to have many detours around portions of said highways which are under construction or reconstruction, and for the state, therefore, to exercise supervision and control over the use of such highways in the interest of safety and of economical maintenance thereof, and to the end that the traffic units operating over said highways be not larger and heavier than the roadbeds, bridges, culverts, and overpasses of said highways were constructed to carry, and also to the end that the speed, care and safety with which drivers of motor vehicles use said highways be supervised and regulated in the interest of the public and public safety; and

      Whereas, The department of highways authorized in 1921 the publication of a bulletin known as the “Nevada Highway News” for the purpose of promoting more travel to and through the State of Nevada, and later authorized the publication of “Highways and Parks” in lieu of “Nevada Highway News,” also to promote more travel to and through the State of Nevada and to the parks, museums, monuments, scenic attractions and other places of interest in this state, and thereby to promote the sale of more gasoline and the collection of more gasoline tax therefrom and build up said state highway fund, as well as to advertise the natural resources of the state and promote the welfare of the people of the state by such tourist travel and the trade and business derived from it, which experiment has proven a success and beneficial to all materially increased travel into and through the state, and promoted the sale of more gasoline, and thereby built up said state highway fund out of which the highway system of the state is maintained; and

Preamble

Preamble

scenic attractions and other places of interest in this state, and thereby to promote the sale of more gasoline and the collection of more gasoline tax therefrom and build up said state highway fund, as well as to advertise the natural resources of the state and promote the welfare of the people of the state by such tourist travel and the trade and business derived from it, which experiment has proven a success and beneficial to all materially increased travel into and through the state, and promoted the sale of more gasoline, and thereby built up said state highway fund out of which the highway system of the state is maintained; and

      Whereas, The act of Congress known as the federal aid highway act, as amended in 1928, and accepted by enactment of the legislature of this state in an act entitled “An act to provide a general highway law for the State of Nevada,” approved March 23, 1917, provides for landscaping and roadside improvement on all roads built with federal funds from and after that date and the federal bureau of public roads originally required and the federal public roads administration now requires “that not less than 1% of the federal aid appropriation to each state must be expended each year on comprehensive landscaping or roadside improvement work”; and the same federal authorities have required and do now require and direct that not to exceed 1 1/2% of the federal funds apportioned to the state be used for highway planning surveys and projects, to the end that said federal authorities that furnish said federal funds for highway construction in this state may have the information obtained collected, tabulated and made available for their use and the use of the state highway department in determining the new highways of the state for the construction of which there is the greatest need and, therefore, what new highways may be constructed in this state with federal funds; and said planning survey project has, by order of said federal authorities, become an integral part of the highway work in this state and should be continued to completion for the assistance it furnishes in such determination and also in preparation for actual construction; and, inasmuch as the money so allocated by the federal government for said landscaping and roadside improvement and also for said planning surveys and the benefits thereof to the state will be lost unless used for those purposes, these enterprises should be continued; now, therefore,

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  It is hereby declared to be the public policy of the State of Nevada to construe the meaning of the words “construction,” “maintenance,” and “administration” used in said constitutional amendment as broad enough to include and as contemplating such construction, maintenance, and administration in a manner which will be safe to the traveling public; that the publication of such a magazine as “Nevada Highways and Parks” by said highway department promotes tourist travel into and through the state and to our parks, monuments, scenic attractions, places of interest and natural resources, and attracts attention to them, and promotes prosperity and aids business generally, and, in particular, increases the sale of gasoline in the state and thereby protects, preserves, maintains, and builds up said highway fund, and that it is therefore for the best interests of this state and its said highway fund that the publication of that or a similar magazine be resumed and continued, and that, inasmuch as the federal government and the said federal authorities require such landscaping and roadside improvement and such planning surveys as a condition to obtaining the federal funds appropriated for that purpose and said landscaping and roadside improvement are beneficial to the state in rendering our highways more attractive and of more convenient use for the traveling public, and said planning surveys are beneficial and important in securing, preserving, and furnishing the information necessary in order to determine the most important and necessary roads of the state to be constructed with federal and state funds, and practically all of the funds devoted thereto are federal funds and would be lost to the state unless used, said roadside improvement and landscaping and said planning surveys shall be continued; and each and all of said enterprises insofar as the state highway fund and the moneys thereof are concerned are hereby declared to be within the provisions of said constitutional amendment.

in said constitutional amendment as broad enough to include and as contemplating such construction, maintenance, and administration in a manner which will be safe to the traveling public; that the publication of such a magazine as “Nevada Highways and Parks” by said highway department promotes tourist travel into and through the state and to our parks, monuments, scenic attractions, places of interest and natural resources, and attracts attention to them, and promotes prosperity and aids business generally, and, in particular, increases the sale of gasoline in the state and thereby protects, preserves, maintains, and builds up said highway fund, and that it is therefore for the best interests of this state and its said highway fund that the publication of that or a similar magazine be resumed and continued, and that, inasmuch as the federal government and the said federal authorities require such landscaping and roadside improvement and such planning surveys as a condition to obtaining the federal funds appropriated for that purpose and said landscaping and roadside improvement are beneficial to the state in rendering our highways more attractive and of more convenient use for the traveling public, and said planning surveys are beneficial and important in securing, preserving, and furnishing the information necessary in order to determine the most important and necessary roads of the state to be constructed with federal and state funds, and practically all of the funds devoted thereto are federal funds and would be lost to the state unless used, said roadside improvement and landscaping and said planning surveys shall be continued; and each and all of said enterprises insofar as the state highway fund and the moneys thereof are concerned are hereby declared to be within the provisions of said constitutional amendment.

      Sec. 2.  All acts or parts of acts insofar as they are in conflict with this act are hereby repealed.

      Sec. 3.  This act shall be in full force and effect immediately upon its passage and approval.

Certain words defined

Repeal

In effect

Definition of terms

Base period

[Assembly Bill No. 163–Mr. Dalbey]

Chap. 185–An Act to amend an act entitled “An act to amend the title of and to amend an act entitled ‘An act relating to unemployment compensation, creating unemployment compensation and administration funds and providing for the administration thereof; making an appropriation therefor; defining unemployment and providing compensation therefor; requiring contributions by employers to the unemployment compensation fund; creating the office of director, a board of review and providing for other officers and employees and defining their powers and duties; and other matters relating thereto,’ approved March 23, 1937, and to insert therein two new sections to be known as sections 14 1/2 and 15 1/2,” approved March 21, 1939, adding thereto four sections to be numbered 14.2, 14.3, 14.4, and 18.1, and repealing section 15 1/2 thereof.

[Approved March 31, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 2 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 2.  As used in this act, unless the context clearly requires otherwise–

      (a) “Base period” means the first four of the last five completed calendar quarters immediately preceding the first day of an individual’s benefit year; provided, however, there shall be excluded from the base period any completed calendar quarter the whole of which is spent by an individual in active military service of the United States and the quarter in which he was inducted into such service, if:

      (1) Such individual shall have been inducted into active military service in the land or naval forces of the United States by operation of the selective training and service act of 1940 (public act No. 783), or ordered into such service as provided in the national guard and reserve officers mobilization act (public resolution No. 96 as amended by public act No. 783), and have so served for more than thirty days; and

      (2) He shall have notified the commissioner of such induction or order in accordance with such regulations as the commissioner may prescribe; and

      (3) He shall exhibit to the commissioner a certificate showing satisfactory completion of the period of training and service as in said acts provided, within forty days following completion of such service; and provided further, that the wages earned by an individual for employment within that quarter in which he is inducted into such service shall be deemed for benefit purposes to have been earned within that quarter of his base period in which he completes such period of military training and service.

deemed for benefit purposes to have been earned within that quarter of his base period in which he completes such period of military training and service.

      (b) “Benefits” means the money payments payable to an individual, as provided in this act, with respect to his unemployment.

      (c) “Benefit year,” with respect to any individual, means the fifty-two consecutive week period beginning with the first day of the week with respect to which a valid claim shall be filed, and thereafter the fifty-two consecutive week period beginning with the first day of the first week with respect to which a valid claim shall be filed after the termination of his last preceding benefit year; provided, however, that there shall be excluded from such period any week spent in whole or in part by an individual in the active military service of the United States if such service is in conformity with and the individual has complied with the requirements of subsections (1), (2) and (3) of section 2(a) of this act. Any claim for benefits made in accordance with section 6(a) of this act shall be deemed to be a valid claim for the purposes of this subsection if the individual has earned wages for employment by employers as provided in section 4(e) of this act.

      (d) “Contributions” means the money payments to the state unemployment compensation fund required by this act.

      (e) “Calendar quarter” means the period of three consecutive calendar months ending on March 31, June 30, September 30, or December 31, or the equivalent thereof as the commissioner may by regulation prescribe, excluding, however, any calendar quarter or portion thereof which occurs prior to January 1, 1938.

      (f) “Commissioner” and “director” as used in this act mean the executive director of the employment security department.

      (g) “Employing unit” means any individual or type of organization, including any partnership, association, trust, estate, joint-stock company, insurance company, or corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or successor thereof, or the legal representative of a deceased person, which has or subsequent to January 1, 1936, had in its employ one or more individuals performing services for it within this state. All individuals performing services within this state for any employing unit which maintains two or more separate establishments within this state shall be deemed to be employed by a single employing unit for all the purposes of this act. Each individual employed to perform or to assist in performing the work of any agent or employee of any employing unit shall be deemed to be employed by such employing unit for all the purposes of this act, whether such individual was hired or paid directly by such employing unit or by such agent or employee, provided the employing unit had actual or constructive knowledge of the work.

Benefits

Benefit year

Contributions

Calendar quarter

Commissioner and director

Employing unit

Employer defined

Employment defined

purposes of this act, whether such individual was hired or paid directly by such employing unit or by such agent or employee, provided the employing unit had actual or constructive knowledge of the work.

      (h) “Employer” means:

      (1) Any employing unit which for any calendar quarter has paid or is liable to pay wages of $225 or more, and which employs during such period one or more persons in an employment subject to this act;

      (2) Any individual or employing unit which acquired the organization, trade, or business, or substantially all the assets thereof, of another which at the time of such acquisition was an employer subject to this act;

      (3) Any individual or employing unit which acquired the organization, trade, or business, or substantially all of the assets thereof, of another employing unit, if the employment record of such individual or employing unit subsequent to such acquisition, together with the employment record of the acquired unit prior to such acquisition, both within the same calendar quarter, would be sufficient to constitute such employing unit as an employer subject to this act under paragraph 1 of this subsection.

      (4) Any employing unit which, having become an employer under paragraphs (1), (2) or (3) has not, under section 8, ceased to be an employer subject to this act; or

      (5) For the effective period of its election pursuant to section 8(c) any other employing unit which has elected to become fully subject to this act.

      (i) (1) “Employment,” subject to the other provisions of this subsection, means service, including service and interstate commerce, performed for wages or under any contract of hire, written or oral, express or implied.

      (2) The term “employment” shall include an individual’s entire service, performed within or both within and without this state if–

      (a) The service is localized in this state; or

      (b) The service is not localized in any state but some of the service is performed in this state and (i) the base of operations, or, if there is no base of operations, then the place from which such service is directed or controlled, is in this state; or (ii) the base of operations or place from which such service is directed or controlled is not in any state in which some part of the service is performed, but the individual’s residence is in this state.

      (3) Services not covered under paragraph (2) of this subsection and performed entirely without this state, with respect to no part of which contributions are required and paid under an unemployment compensation law of any other state or of the federal government, shall be deemed to be employment subject to this act if the individual performing such services is a resident of this state and the commissioner approves the election of the employing unit for whom such services are performed that the entire service of such individual shall be deemed to be employment subject to this act.

employment subject to this act if the individual performing such services is a resident of this state and the commissioner approves the election of the employing unit for whom such services are performed that the entire service of such individual shall be deemed to be employment subject to this act.

      (4) Service shall be deemed to be localized within a state if–

      (a) The service is performed entirely within such state; or

      (b) The service is performed both within and without such state, but the service performed without such state is incidental to the individual’s service within the state, for example, is temporary or transitory in nature or consists of isolated transactions.

      (5) Services performed by an individual for wages shall be deemed to be employment subject to this act unless and until it is shown to the satisfaction of the commissioner that–

      (a) Such individual has been and will continue to be free from control or direction over the performance of such services, both under his contract of service and in fact; and

      (b) Such service is either outside the usual course of the business for which such service is performed or that such service is performed outside of all the places of business of the enterprises for which such service is performed; and

      (c) Such service is performed in the course of an independently established trade, occupation, profession or business in which the individual is customarily engaged, of the same nature as that involved in the contract of service.

      (6) The term “Employment” shall not include:

      (a) Agricultural labor;

      (b) Domestic service in a private home;

      (c) Service performed as an officer or member of the crew of a vessel on the navigable waters of the United States;

      (d) Service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child under the age of twenty-one in the employ of his father or mother;

      (e) Service performed in the employ of any other state or its political subdivisions, or of the United States government, or of an instrumentality of any other state or states or their political subdivisions or of the United States; provided, that in the event that the Congress of the United States shall permit the states to require any instrumentality of the United States to make payment into an unemployment fund under a state unemployment compensation act, and to comply with state regulations thereunder, then, to the extent permitted by Congress, and from and after the date as of which such permission becomes effective, all of the provisions of this act shall be applicable to such instrumentality and to services performed for such instrumentality in the same manner, to the same extent, and on the same terms as to all other employers, employing units, individuals and services; provided further, that if this state should not be certified by the social security board under section 903 of the social security act for any year, then the payments required from such instrumentality and their workers with respect to such year shall be refunded by the commissioner from the unemployment fund, without interest;

Employment defined

Employment; certain exemptions

Employment; certain exemptions

instrumentality and to services performed for such instrumentality in the same manner, to the same extent, and on the same terms as to all other employers, employing units, individuals and services; provided further, that if this state should not be certified by the social security board under section 903 of the social security act for any year, then the payments required from such instrumentality and their workers with respect to such year shall be refunded by the commissioner from the unemployment fund, without interest;

      (f) Service performed in the employ of this state, or of any political subdivision thereof, or of any instrumentality of this state or its political subdivisions, which is wholly owned by this state or one or more of its political subdivisions; and any service performed in the employ of any such instrumentality to the extent that the instrumentality is, with respect to such service, exempt under the constitution of the United States from the tax imposed by section 1600 of the United States internal revenue code;

      (g) Service performed in the employ of a corporation, community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual;

      (h) Service performed after June 30, 1939, in the employ of an employer as defined in the railroad unemployment insurance act (52 Stat. 1094); and service with respect to which unemployment compensation is payable under any other unemployment compensation system established by an act of Congress; provided, that the commissioner is hereby authorized and directed to enter into agreements with the proper agencies under such act or acts of Congress, which agreement shall become effective ten days after publication thereof in the manner provided in section 11(b) of this act for general rules, to provide reciprocal treatment to individuals who have, after acquiring potential rights to benefits under this act, acquired rights to unemployment compensation under such act or acts of Congress, or who have, after acquiring potential rights to unemployment compensation under such act or acts of Congress, acquired rights to benefits under this act;

      (i) Service performed by an individual under the age of eighteen in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution.

      (7) If the services performed during one-half or more of any pay period by an individual for the employing unit constitute employment, all the services of such individual for such period shall be deemed to be employment; but if the services performed during more than one-half of any such period by an individual for the employing unit do not constitute employment, then none of the services of such individual for such period shall be deemed to be employment.

such period shall be deemed to be employment; but if the services performed during more than one-half of any such period by an individual for the employing unit do not constitute employment, then none of the services of such individual for such period shall be deemed to be employment.

      (j) “Employment office” means a free public employment office or branch thereof, operated by this state or maintained as a part of a state controlled system of public employment offices.

      (k) “Fund” means the unemployment compensation fund established by this act, to which all contributions required and from which all benefits provided under this act shall be paid.

      (l) “State” includes, in addition to the states of the United States of America, Alaska, Hawaii, and the District of Columbia.

      (m) “Unemployment.” An individual shall be deemed “unemployed” in any week during which he performs no services and with respect to which no remuneration is payable to him or in any week of less than full-time work, if the remuneration payable to him with respect to such week is less than his weekly benefit amount. The commissioner shall prescribe regulations applicable to unemployed individuals, making such distinctions in the procedures as to total unemployment, part-total unemployment, partial unemployment of individuals attached to their regular jobs, and other forms of short-time work, as the commissioner deems necessary.

      (n) “Wages” means all remuneration payable for personal services, including commissions and bonuses and the cash value of all remunerations payable in any medium other than cash; provided, that the term “wages” shall not include:

      (1) The amount of any payment with respect to services performed after July 1, 1941, to, or on behalf of, an individual in its employ under a plan or system established by an employing unit which makes provision for individuals in its employ generally or for a class or classes of such individuals (including any amount paid by an employing unit for insurance or annuities, or into a fund, to provide for such payment), on account of (a) retirement, or (b) sickness or accident disability, or (c) medical and hospitalization expenses, in connection with sickness or accident disability, or (d) death, provided an individual in its employ (i) has not the option to receive, instead of provision for such death benefit, any part of such payment, or, if such death benefit is insured, any part of the premiums, or contributions to premiums, paid by his employing unit, and (ii) have not the right, under the provisions of the plan or system, or policy of insurance providing for such death benefit, to assign such benefit, or to receive a cash consideration in lieu of such benefit upon either his withdrawal from the plan or system providing for such benefit or upon termination of such plan or system or policy of insurance or of his services with such employing unit;

Employment office

Fund

State

Unemployment

Wages

Wages

Weekly benefit amount

Payment of benefits

Weekly benefit amount

Weekly benefit for unemployment

benefit, or to receive a cash consideration in lieu of such benefit upon either his withdrawal from the plan or system providing for such benefit or upon termination of such plan or system or policy of insurance or of his services with such employing unit;

      (2) The payment by an employing unit, without deduction from the remuneration of the individual in its employ, of the tax imposed upon an individual in its employ, under section 1400 of the United States internal revenue code;

      (3) Dismissal payments after July 1, 1941, which the employing unit is not legally required to make.

      The reasonable cash value of remuneration payable in any medium other than cash shall be estimated and determined in accordance with rules prescribed by the commissioner.

      (o) “Week” means such period of seven consecutive calendar days as the commissioner may by regulations prescribe.

      (p) “Weekly benefit amount.” An individual’s “weekly benefit amount” means the amount of benefit he would be entitled to receive for one week of total unemployment.

      Sec. 2.  Section 3 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 3.  (a) Payment of Benefits.  Twenty-four months after the date when contributions first accrue under this act, benefits shall become payable from the fund; provided, that wages earned for services performed in the employ of an employer, as defined in the railroad unemployment insurance act (52 Stat. 1094), shall not be included for purposes of determining eligibility under section 4(e), or total amount of benefits under subsection (d) of this section with respect to any benefit year commencing on or after July 1, 1939, nor shall any benefits with respect to unemployment occurring on and after July 1, 1939, be payable on basis of such wages under subsections (b) or (c) of this section. All benefits shall be paid through employment offices in accordance with such regulations as the commissioner may prescribe.

      (b) (1) Weekly Benefit Amount.  An individual’s “weekly benefit amount” shall be an amount equal to one-twentieth of his total wages for employment by employers during that quarter of his base period in which such total wages were highest, but not more than fifteen dollars per week, nor less than five dollars per week, and if not a multiple of $1 shall be computed to the next higher multiple of $1.

      (2) Weekly Benefit for Unemployment.  Each eligible individual who is unemployed in any week shall be paid with respect to such week a benefit in an amount equal to his weekly benefit amount, less that part of the remuneration (if any) payable to him with respect to such week which is in excess of $3. Such benefit, if not a multiple of $1, shall be computed to the next higher multiple of $1.

be computed to the next higher multiple of $1. For the purpose of this subsection, no individual shall be deemed to be unemployed in any week in which he is self-employed for more than three days.

      (c) Duration of Benefits.  Any otherwise eligible individual shall be entitled during any benefit year to a total amount of benefits equal to whichever is the lesser of (1) eighteen times his weekly benefit amount, or (2) one-third of the wages earned by him for employment by employers during his base period; provided, that such total amount of benefits if not a multiple of $1 shall be computed to the next higher multiple of $1. For the purposes of this section, and of section 4(e) hereof, wages shall be counted as “wages for employment by employers” for benefit purposes with respect to any benefit year only if such benefit year begins subsequent to the date on which the employer from whom such wages were earned has satisfied the conditions of section 2(h) or section 8(c) with respect to becoming an employer.

      Sec. 3.  Section 4 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 4.  An unemployed individual shall be eligible to receive benefits with respect to any week only if the commissioner finds that–

      (a) He has registered for work at, and thereafter has continued to report at, an employment office, in accordance with such regulations as the commissioner may prescribe, except that the commissioner may by regulation waive or alter either or both of the requirements of this subsection as to individuals attached to regular jobs and as to such other types of cases or situations with respect to which he finds that compliance with such requirements would be oppressive or inconsistent with the purposes of this act.

      (b) He has made a claim for benefits in accordance with the provisions of section 6(a) of this act.

      (c) He is able to work, and is available for work.

      (d) He has been unemployed for a waiting period of two weeks. Such weeks of unemployment need not be consecutive. No week shall be counted as a week of unemployment for the purposes of this subsection:

      (1) Unless it occurs within the benefit year which includes the week with respect to which he claims payment of benefits;

      (2) If benefits have been paid or are payable with respect thereto;

      (3) Unless the individual was eligible for benefits with respect thereto as provided in sections 4 and 5 of this act, except for the requirements of this subsection and of subsection (e) of section 5.

Duration of benefits

Qualifications for benefits

Qualifications for benefits

Disqualifications

Suitable work defined

      (e) He has within his base period earned wages of not less than two hundred ($200) dollars, or two times the product of his weekly benefit amount multiplied by itself, whichever amount is greater, and which shall include in either case wages of not less than five times his weekly benefit amount earned in some quarter within his base period other than the quarter upon which his weekly benefit amount is computed. For the purpose of this section wages shall be counted for benefit purposes with respect to any benefit year only if such benefit year began subsequent to the date on which the employer, from whom such wages were earned, has satisfied the conditions of section 8(c) or 2(h) with respect to becoming an employer.

      Sec. 4.  Section 5 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 5.  An individual shall be disqualified for benefits–

      (a) For the week in which he has left his work voluntarily without good cause, if so found by the commissioner, and for not more than fifteen consecutive weeks thereafter, occurring within the benefit year, as determined by the commissioner according to the circumstances in each case.

      (b) For the week in which he has been discharged by his most recent employing unit for misconduct connected with his work, if so found by the commissioner, and for not more than fifteen consecutive weeks thereafter occurring within the benefit year, as determined by the commissioner in each case according to the seriousness of the misconduct.

      (c) If the commissioner finds that he has failed, without good cause, either to apply for available, suitable work when so directed by the employment office or the commissioner or to accept suitable work when offered him. Such disqualification shall continue for the week in which such failure occurred and for not more than fifteen consecutive weeks thereafter occurring within the benefit year, as determined by the commissioner according to the circumstances in each case.

      (1) In determining whether or not any work is suitable for an individual, the commissioner shall consider the degree of risk involved to his health, safety, and morals, his physical fitness and prior training, his experience and prior earnings, his length of unemployment and prospects for securing local work in his customary occupation.

      (2) Notwithstanding any other provisions of this act, no work shall be deemed suitable and benefits shall not be denied under this act to any otherwise eligible individual for refusing to accept new work under any of the following conditions: (a) If the position offered is vacant due directly to a strike, lockout, or other labor dispute; (b) if the wages, hours or other conditions of work offered are substantially less favorable to the individual than those prevailing for similar work in the locality; (c) if as a condition of being employed the individual would be required to join a company union or to resign from or refrain from joining any bona fide labor organization.

strike, lockout, or other labor dispute; (b) if the wages, hours or other conditions of work offered are substantially less favorable to the individual than those prevailing for similar work in the locality; (c) if as a condition of being employed the individual would be required to join a company union or to resign from or refrain from joining any bona fide labor organization.

      (d) For any week with respect to which the commissioner finds that his total or partial unemployment is due to a labor dispute in active progress at the factory, establishment, or other premises at which he is or was last employed; provided, that this subsection shall not apply if it is shown to the satisfaction of the commissioner that–

      (1) He is not participating in or financing or directly interested in the labor dispute which caused his unemployment; and

      (2) He does not belong to a grade or class of workers of which, immediately before the commencement of the labor dispute there were members employed at the premises at which the labor dispute occurs, any of whom are participating in or financing or directly interested in the labor dispute; provided, that if in any case separate branches of work which are commonly conducted as separate businesses in separate premises are conducted in separate departments of the same premises, each such department shall, for the purposes of this subsection, be deemed to be a separate factory, establishment or other premises.

      (e) For any week with respect to which or to a part of which he has received or is seeking unemployment benefits under an unemployment compensation law of another state or of the United States; provided, that if the appropriate agency of such other state or of the United States finally determines that he is not entitled to such unemployment benefits, this disqualification shall not apply.

      (f) For fifty-two weeks from the date of his conviction under the provisions of section 16(a) of this act.

      (g) For any week with respect to which or to a part of which he is registered for and in attendance at any established school, college or university; provided, that nothing in this subsection shall apply to night or vocational training schools.

      (h) For any week, after the employment of a female individual has been discontinued on account of marriage, but only with respect to benefit rights accrued prior to her marriage.

      Sec. 5.  Section 6 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 6.  (a) Filing.  Claims for benefits shall be made in accordance with such regulations as the commissioner may prescribe, not inconsistent herewith.

Labor disputes

Outside benefits

When benefits barred

Idem

Idem

Claim for benefits, filing

Exception

Idem

Initial determination

in accordance with such regulations as the commissioner may prescribe, not inconsistent herewith. Each employer shall post and maintain in places readily accessible to individuals in his service a printed statement concerning such regulations or such other matters as the commissioner may by regulation prescribe and each employer or employing unit must supply to each individual in his service, at the time such individual becomes unemployed, a copy of a written statement signed by the employer or employing unit stating the date of separation from such employment and the reasons therefor. The original of such statement so signed must be filed by the employer or employing unit with the division within two weeks thereafter. It shall be the duty of any individual claiming benefits to file with the division, within two weeks following the date on which his initial claim for benefits is filed, a copy of such written statement from his most recent employer or employing unit, or to furnish his own affidavit setting forth the reasons for the separation and the fact that such a statement cannot be obtained because either:

      (1) The employer or employing unit has suspended operations and left the state; or

      (2) The employer or employing unit, if an individual, is dead; or

      (3) Other reasons for failure to obtain the statement. No further claims for benefits shall be accepted, and no benefits shall be paid, in the absence of such written statement, or, when an affidavit is received, until it appears to the satisfaction of the commissioner that the facts therein stated are true and sufficient to justify the acceptance of such an affidavit in lieu of the statement. Each employer shall supply to each individual in his service, in addition to the foregoing, at the time such individual becomes unemployed, copies of such printed statements or materials relating to claims for benefits as the commissioner may by regulation prescribe. Such printed statements or other material shall be supplied by the commissioner to each employer without cost to said employer.

      (b) Initial Determination.  Each claim shall be examined in accordance with such regulations as the commissioner may prescribe, and on the basis of the facts found it shall be determined whether or not benefits are payable with respect to such claim, and, if payable, the week with respect to which benefits shall commence, the weekly benefit amount payable, and the maximum duration thereof; provided, that in any case where the payment or denial of benefits will be determined by the provisions of section 5(d) of the act, the findings of fact with respect to that subsection shall be transmitted to the commissioner, who, on the basis of the evidence submitted and such additional evidence as he may require, shall make a determination as to whether benefits are payable, commencement of benefits, weekly benefit amount payable, and the maximum duration thereof.

shall make a determination as to whether benefits are payable, commencement of benefits, weekly benefit amount payable, and the maximum duration thereof. Any determination rendered in accordance with the preceding sentence shall be deemed an initial determination. Notice of any determination, together with the reasons therefor, shall be promptly given to the claimant; notice of any determination under which the claimant is held to be eligible for benefits or waiting period credit shall be given to the most recent employer, and may be given to such other parties as the commissioner may by regulation prescribe. Within seven days after delivery of any determination, the claimant or such other party may file an appeal from such determination, and unless such appeal is filed as herein provided such determination shall be final and benefits shall be paid or denied in accordance therewith; provided, that if under the determination benefits in any amount are payable as to which there is no dispute, such benefits shall be promptly paid regardless of such appeal. If an appeal is duly filed, benefits with respect to the period prior to the final decision of the board of review shall be paid only after such decision; provided, that if an appeal tribunal affirms the initial determination or amended decision, or the board of review affirms a decision of an appeal tribunal, allowing benefits, such benefits shall be paid regardless of any appeal which may thereafter be taken, but if such decision is finally reversed no employer’s account shall be charged with benefits so paid. When any request for adjustment as herein provided shall be filed, benefits shall be paid at the rate and in the amount determined by the initial determination, if such request for adjustment indicates that a higher amount or duration of benefits is payable, until such time as the amended decision shall be made.

      (1) Redeterminations.  The commissioner or a representative duly authorized to act in his behalf may at any time reopen any such determination on the grounds of fraud, error, mistake, or change of conditions, and may make a redetermination on such claim ending, diminishing, maintaining, or increasing benefits previously found payable, or a redetermination allowing benefits previously denied. Notice of such redetermination and the reason therefor shall be promptly given to the claimant and any other parties who were entitled to notice of the initial determination, and the claimant and such other parties shall be entitled to appeal in the same manner and subject to the same conditions as an appeal may be taken from an initial determination. Accrued or potential (but unpaid) benefit rights during the succeeding 12-month period may be adjusted in and by such redetermination.

      (c) Appeals.  Unless such appeal is withdrawn, an appeal tribunal, after affording the parties reasonable opportunity for fair hearing, shall affirm, reverse, or modify the determination.

Initial determination

Redeterminations

Appeals

Appeal tribunals

Board of review

tribunal, after affording the parties reasonable opportunity for fair hearing, shall affirm, reverse, or modify the determination. The parties shall be duly notified of such tribunal’s decision, together with its reasons therefor, which shall be deemed to be the final decision of the board of review, unless within ten days after the date of notification or mailing of such decision further appeal is initiated pursuant to subsection (e) of this section.

      (d) Appeal Tribunals.  To hear and decide appealed claims, the board of review shall appoint one or more impartial appeal tribunals consisting in each case of either a salaried examiner, selected in accordance with section 11(d) of this act, or a body consisting of three members, one of whom shall be a salaried examiner, and who shall serve as chairman, one of whom shall be a representative of employers and the other of whom shall be a representative of employees; each of the latter two members shall serve at the pleasure of the board of review and be paid a fee of not more than $10 per day of active service on such tribunal, plus necessary expenses. No person shall participate on behalf of the commissioner or the board of review in any case in which he is an interested party. The board of review may designate alternatives to serve in the absence or disqualification of any member of an appeal tribunal. The chairman shall act alone in the absence or disqualification of any other member and his alternates. In no case shall the hearings proceed unless the chairman of the appeal tribunal is present. The commissioner shall provide the board of review and such appeal tribunals with proper facilities and assistants for the execution of their functions.

      (e) Board of Review.  The board of review may on its own motion affirm, reverse, modify, or set aside any decision of an appeal tribunal on the basis of the evidence previously submitted in such case, or direct the taking of additional evidence, or may permit any of the parties to such decision to initiate further appeals before it. The board of review shall permit such further appeal by any of the parties interested in a decision of an appeal tribunal which is not unanimous and by the deputy whose decision has been overruled or modified by an appeal tribunal. The board of review may remove to itself or transfer to another appeal tribunal the proceedings on any claim pending before an appeal tribunal. Any proceedings so removed to the board of review shall be heard by the board of review, or in the absence or disqualification of any partisan member by the impartial member acting alone in accordance with the requirements of subsection (c) of this section. The board of review shall promptly notify the parties to any proceedings before it of its findings and decision.

      (f) Procedure.  The manner in which appealed claims shall be presented and the conduct of hearings and appeals shall be in accordance with regulations prescribed by the board of review for determining the rights of the parties, whether or not such regulations conform to common law or statutory rules of evidence and other technical rules of procedure. A full and complete record shall be kept of all proceedings in connection with an appealed claim. All testimony at any hearing upon an appealed claim shall be recorded, but need not be transcribed unless the appealed claim is further appealed.

      (g) Witness Fees.  Witnesses subpenaed pursuant to this section shall be allowed fees at a rate fixed by the commissioner. Such fees shall be deemed a part of the expenses of administering this act.

      (h) Appeal to Courts.  Any decision of the board of review in the absence of an appeal therefrom as herein provided shall become final ten days after the date of notification or mailing hereof, and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhausted his administrative remedies as provided by this act. The commissioner shall be deemed to be a party to any judicial action involving any such decision, and may be represented in any such judicial action by any qualified attorney employed by the commissioner and designated by him for that purpose, or at the commissioner’s request by the attorney-general.

      (i) Court Review.  Within ten days after the decision of the board of review has become final, any party aggrieved thereby may secure judicial review thereof by commencing an action in the district court of the county wherein the appealed claim or claims were filed against the commissioner for the review of such decision, in which action any other party to the proceeding before the board of review shall be made a defendant. In such action, a petition which need not be verified, but which shall state the grounds upon which a review is sought, shall be served upon the commissioner, or upon such person as the commissioner may designate and such service shall be deemed completed service on all parties, but there shall be left with the party so served as many copies of the petition as there are defendants, and the commissioner shall forthwith mail one such copy to each such defendant. With his answer, the commissioner shall certify and file with said court all documents and papers and a transcript of all testimony taken in the matter, together with the board of review’s findings of fact and decision therein. The commissioner may also, in his discretion, certify to such court questions of law involved in any decision. In any judicial proceeding under this section, the findings of the board of review as to the facts, if supported by evidence and in the absence of fraud, shall be conclusive, and the jurisdiction of said court shall be confined to questions of law.

Procedure

Witness fees

Appeal to courts

Court review

Court review

Payment of benefits

Future rates based on benefit experience

board of review as to the facts, if supported by evidence and in the absence of fraud, shall be conclusive, and the jurisdiction of said court shall be confined to questions of law. Such actions, and the questions so certified, shall be heard in a summary manner and shall be given precedence over all other civil cases except cases arising under the workmen’s compensation law of this state. An appeal may be taken from the decision of such district court to the supreme court of Nevada, in the same manner, but not inconsistent with the provisions of this act, as is provided in civil cases. It shall not be necessary, in any judicial proceeding under this section, to enter exceptions to the rulings of the board of review, and no bond shall be required for entering such appeal. Upon the final determination of such judicial proceeding the board of review shall enter an order in accordance with such determination. A petition for judicial review shall not act as a supersedeas or stay unless the board of review shall so order.

      Sec. 6.  Section 7 of the above-entitled act is hereby amended to read as follows:

      Section 7.  (a) Payment.  (1) On and after January 1, 1937, contributions shall accrue and become payable by each employer for each calendar quarter in which he is subject to this act, with respect to wages payable for employment occurring during such calendar quarter. Such contribution shall become due and be paid by each employer to the commissioner for the fund in accordance with such regulation as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the wages of individuals in such employer’s employ.

      (2) In the payment of any contributions, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

      (b) Rate of Contribution.  Each employer shall pay contributions equal to the following percentages of wages payable by him with respect to employment:

      (1) One and eight-tenths per centum with respect to employment during the calendar year 1937;

      (2) With respect to employment after December 31, 1937, two and seven-tenths per centum, except as otherwise prescribed in subsection (c) of this section.

      (c) Future Rates Based on Benefit Experience.  The commissioner shall, for the period of twelve months commencing January 1, 1944, and for each calendar year thereafter, classify employers in accordance with their actual contribution and benefit experience, and shall determine for each employer the rate of contribution which shall apply to him throughout the calendar year in order to reflect said experience and classification. In making such classification, the commissioner shall take account of the degree of unemployment hazard shown by each employer’s experience, and of any other measurable factors which he finds bear a reasonable relation to the purposes of this subsection.

the commissioner shall take account of the degree of unemployment hazard shown by each employer’s experience, and of any other measurable factors which he finds bear a reasonable relation to the purposes of this subsection. For the purpose of the study, benefits paid to an individual since January 1, 1939, shall be immediately charged against the accounts of his employers, and hereafter charged currently against his employer’s accounts. He may apply such form of classification or rating system which in his judgment is best calculated to rate individually and most equitably the employment risk of each employer and to encourage the stabilization of employment. The general basis of classification proposed to be used for any calendar year shall be subject to fair notice, opportunity for hearing, and publication. The rates for any calendar year shall be so fixed that they would, if applied to all employers and their annual pay rolls of the preceding calendar year, have yielded total contributions equaling approximately 2 7/10 per centum of the total of all such annual pay rolls. The commissioner shall determine the contribution rate applicable to each employer for any calendar year subject to the following limitations:

      (1) Each employer’s contribution rate shall be 2 7/10 per centum, unless and until there shall have been three calendar years throughout which any individual in his employ could have received benefits if unemployed and eligible.

      (2) No employer’s contribution rate shall be less than 1 per centum.

      As used in this section the term “annual pay roll” means the total amount of wages payable by an employer (regardless of the time of payment) for employment during a calendar year.

      Sec. 7.  Section 8 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 8.  (a) Any employing unit which becomes an employer subject to this act within any calendar quarter shall be subject to this act from the beginning of that quarter and during the remainder of such calendar year.

      (b) Except as otherwise provided in subsection (c) of this section an employing unit shall cease to be an employer subject to this act at any time when it shall appear to the satisfaction of the commissioner that during each of the four completed calendar quarters immediately preceding such finding, such employing unit had not employed in employment subject to this act, one or more persons in any calendar quarter wherein such employing unit had a pay roll of $225 or more. For the purposes of this subsection, the two or more employing units mentioned in paragraph (2) or (3) of section 2(h) shall be treated as a single employing unit.

Fututre rates based on benefit experience

Employing unit defined

Employing unit defined

Establishment and control

Accounts and deposits

      (c) (1) An employing unit, not otherwise subject to this act, which files with the commissioner its written election to become an employer subject hereto for not less than two calendar years, shall, with the written approval of such election by the commissioner, become an employer subject hereto to the same extent as all other employers, as of the date stated in such approval, and shall cease to be subject hereto as of January 1 of any calendar year subsequent to such two calendar years only if at least thirty days prior to such 1st day of January it has filed with the commissioner a written notice to that effect.

      (2) Any employing unit for which services that do not constitute employment, as defined in this act, are performed, may file with the commissioner a written election that all such services performed by individuals in its employ in one or more distinct establishments or places of business shall be deemed to constitute employment for all the purposes of this act for not less than two calendar years. Upon the written approval of such election by the commissioner, such services shall be deemed to constitute employment subject to this act from and after the date stated in such approval. Such services shall cease to be deemed employment subject hereto as of January 1 of any calendar year subsequent to such two calendar years, only if at least thirty days prior to such 1st day of January such employing unit has filed with the commissioner a written notice to that effect.

      Sec. 8.  Section 9 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 9.  (a) Establishment and Control.  There is hereby established as a special fund, separate and apart from all public moneys or funds of this state, an unemployment compensation fund, which shall be administered by the commissioner exclusively for the purposes of this act. This fund shall consist of (1) all contributions collected under this act, together with any interest or forfeit thereon collected pursuant to section 14 of this act; (2) interest earned upon any moneys in the fund; (3) any property or securities acquired through the use of moneys belonging to the fund; and (4) all earnings of such property or securities. All moneys in the fund shall be mingled and undivided. All fines and penalties collected pursuant to the criminal provisions of this act shall be paid to the Nevada state school fund.

      (b) Accounts and Deposits.  The state treasurer shall be the treasurer and custodian of the fund who shall administer such fund in accordance with the directions of the commissioner and shall issue his warrants upon it in accordance with such regulations as the commissioner shall prescribe.

prescribe. He shall maintain within the fund three separate accounts: (1) A clearing account, (2) an unemployment trust fund account, and (3) a benefit account. All moneys payable to the fund, upon receipt thereof by the commissioner, shall be forwarded to the treasurer who shall immediately deposit them in the clearing account. Refunds payable pursuant to section 14 of this act may be paid from the clearing account or from the benefit account upon warrants issued by the treasurer under the direction of the commissioner. After clearance thereof, all other moneys in the clearing account shall be immediately deposited with the secretary of the treasury of the United States of America to the credit of the account of this state in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act, as amended, any provisions of law in this state relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this state to the contrary notwithstanding. The benefit account shall consist of all moneys requisitioned from this state’s account in the unemployment trust fund. Except as herein otherwise provided, moneys in the clearing and benefit accounts may be deposited by the treasurer, under the direction of the commissioner, in any bank or public depositary in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund. The treasurer shall give a separate bond conditioned upon the faithful performance of his duties as custodian of the fund in an amount fixed by the commissioner and in a form prescribed by law or approved by the attorney-general. Premiums for said bond shall be paid from the administration fund. Moneys in the clearing and benefit accounts shall not be commingled with other state funds, but shall be maintained in a separate account on the books of the depositary. Such moneys shall be secured by said bank or public depositary to the same extent and in the same manner as required by the general depositary laws of the State of Nevada and collateral pledged shall be maintained in a separate custody account. All sums recovered on the official bond for losses sustained by the unemployment compensation fund shall be deposited in said fund.

      (c) Withdrawals.  Moneys shall be requisitioned from this state’s account in the unemployment trust fund solely for the payment of benefits and refunds in accordance with regulations prescribed by the commissioner. The commissioner shall from time to time requisition from the unemployment trust fund such amounts, not exceeding the amounts standing to this state’s account therein, as he deems necessary for the payment of benefits for a reasonable future period.

Accounts and deposits

Withdrawals

Withdrawals

Management of funds upon discontinuance of unemployment trust fund

period. Upon receipt thereof the treasurer shall deposit such moneys in the benefit account and the treasurer shall issue his warrants for the payment of benefits solely from such benefit account. Expenditures of such moneys in the benefit account and refunds from the clearing account shall not be subject to any provisions of law requiring specific appropriations or other formal release by state officers of money in their custody. All warrants issued by the treasurer for the payment of benefits and refunds shall bear the signature of the treasurer and the counter-signature of the commissioner or his duly authorized agent for that purpose. Any balance of moneys requisitioned from the unemployment trust fund which remains unclaimed or unpaid in the benefit account after the expiration of the period for which such sums were requisitioned shall be either deducted from estimates for, and may be utilized for the payment of, benefits during succeeding periods, or in the discretion of the commissioner shall be redeposited with the secretary of the treasury of the United States of America, to the credit of this state’s account in the unemployment trust fund, as provided in subsection (b) of this section.

      (d) Management of Funds upon Discontinuance of Unemployment Trust Fund.   The provisions of subsections (a), (b), and (c) to the extent that they relate to the unemployment trust fund, shall be operative only so long as such unemployment trust fund continues to exist and so long as the secretary of the treasury of the United States of America continues to maintain for this state a separate book account of all funds deposited therein by this state for benefit purposes, together with this state’s proportionate share of the earnings of such unemployment trust fund, from which no other state is permitted to make withdrawals. If and when such unemployment trust fund ceases to exist, or such separate book account is no longer maintained, all moneys, properties, or securities therein, belonging to the unemployment compensation fund of this state, shall be transferred to the treasurer of the unemployment compensation fund, who shall hold, invest, transfer, sell, deposit, and release such moneys, properties, or securities in a manner approved by the commissioner in accordance with the provisions of this act; provided, that such investment shall at all times be so made that all the assets of the fund shall always be readily convertible into cash when needed for the payment of benefits. The treasurer shall dispose of securities or other properties belonging to the unemployment compensation fund only under the direction of the commissioner.

      (e) Notwithstanding any requirements of the foregoing subsections of this section, the commissioner shall, prior to whichever is the later of (i) 30 days after the close of this session of the legislature and (ii) July 1, 1939, authorize and direct the secretary of the treasury of the United States to transfer from this state’s account in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act as amended, to the railroad unemployment insurance account, established and maintained pursuant to section 10 of the railroad unemployment insurance act, an amount hereinafter referred to as the preliminary amount and shall, prior to whichever is the later of (i) 30 days after the close of this session of the legislature and (ii) January 1, 1940, authorize and direct the secretary of the treasury of the United States to transfer from this state’s account in said unemployment trust fund to said railroad unemployment insurance account an additional amount, hereinafter referred to as the liquidating amount.

session of the legislature and (ii) July 1, 1939, authorize and direct the secretary of the treasury of the United States to transfer from this state’s account in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act as amended, to the railroad unemployment insurance account, established and maintained pursuant to section 10 of the railroad unemployment insurance act, an amount hereinafter referred to as the preliminary amount and shall, prior to whichever is the later of (i) 30 days after the close of this session of the legislature and (ii) January 1, 1940, authorize and direct the secretary of the treasury of the United States to transfer from this state’s account in said unemployment trust fund to said railroad unemployment insurance account an additional amount, hereinafter referred to as the liquidating amount. Both such amounts shall be determined by the social security board, after agreement with the railroad retirement board, and after consultation with the commissioner. The preliminary amount shall consist of that proportion of the balance in the unemployment compensation fund as of June 30, 1939, as the total amount of contributions collected from “employers” (as the term “employer” is defined in section 1(a) of the railroad unemployment insurance act) and credited to the unemployment compensation fund bears to all contributions theretofore collected under this act and credited to the unemployment compensation fund. The liquidating amount shall consist of the total amount of contributions collected from “employers” (as the term “employer” is defined in section 1(a) of the railroad unemployment insurance act) pursuant to the provisions of this act during the period July 1, 1939, to December 31, 1939, inclusive.

      Sec. 9.  Section 13 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 13.  (a) Special Fund.  There is hereby created in the state treasury a special fund to be known as the unemployment compensation administration fund. All moneys which are deposited or paid into this fund are hereby appropriated and made available to the commissioner. All moneys in this fund shall be expended solely for the purpose of defraying the cost of the administration of this act, and of the employment security administration law, and for no other purpose whatsoever, and all moneys received from the social security board for the fund pursuant to section 302 of the social security act shall be expended solely for the purposes and in the amounts found necessary by the social security board for the proper and efficient administration of these acts. The fund shall consist of all moneys appropriated by this state, and all moneys received from the United States of America or any agency thereof, including the social security board, the railroad retirement board, and the United States employment service, or from any other source, for such purpose.

Proviso

Special fund

Special fund

Reimbursement of fund

United States of America or any agency thereof, including the social security board, the railroad retirement board, and the United States employment service, or from any other source, for such purpose. Moneys received from the railroad retirement board as compensation for services or facilities supplied to said board shall be paid into this fund. All moneys in this fund shall be deposited, administered, and disbursed in the same manner and under the same conditions and requirements as is provided by law for other special funds in the state treasury. Any balances in this fund shall not lapse at any time, but shall be continuously available to the commissioner for expenditure consistent with this act. Moneys in this fund shall not be commingled with other state funds, but shall be maintained in a separate account on the books of the depositary. Such moneys shall be secured by the depositary in which they are held, to the same extent and in the same manner as required by the general depositary laws of the state, and collateral pledged shall be maintained in a separate custody account. All sums recovered on any official bond for losses sustained by the unemployment compensation administration fund shall be deposited in said fund.

      (b) Reimbursement of Fund.  If any moneys received after June 30, 1941, from the social security board under title III of the social security act, or any unencumbered balances in the unemployment compensation administration fund as of that date, or any moneys granted after that date to this state pursuant to the provisions of the Wagner-Peyser act, are found by the social security board, because of any action or contingency, to have been lost or been expended for purposes other than, or in amounts in excess of, those found necessary by the social security board for the proper administration of this act, it is the policy of this state that such moneys shall be replaced by moneys appropriated for such purpose from the general funds of this state to the unemployment compensation administration fund for expenditure as provided in subsection (a) of this section. Upon receipt of notice of such a finding by the social security board, the commissioner shall promptly report the amount required for such replacement to the governor and the governor shall at the earliest opportunity submit to the legislature a request for the appropriation of such amount. This subsection shall not be construed to relieve this state of its obligation with respect to funds received prior to July 1, 1941, pursuant to the provisions of title III of the social security act.

      Sec. 10.  Section 14 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 14.  (a) Past Due Contributions.  When any contribution as provided in this act shall remain unpaid on the date on which it becomes due and payable, as prescribed by the commissioner, it shall bear interest at the rate of one per centum for each month or portion of a month thereafter until such payment, plus accrued interest, is received by the commissioner. Interest accrued under this subsection shall not be waived under any circumstances. Interest collected pursuant to this subsection shall be paid into the unemployment compensation fund.

      (b) Collection.  (1) If, after due notice thereof, any employer defaults in any payment of contributions, interest or forfeit imposed under this act, the commissioner, or his authorized representative, may collect the amount due by civil action brought in the name of the State of Nevada, in the district court, and which shall include the right of attachment.

      (2) In addition to or independently of the foregoing remedy by civil action, the commissioner, or his authorized representative, after giving to any employer who defaults in any payment of contributions, interest or forfeit provided by this act, fifteen days’ notice by registered mail, addressed to his last-known place of business or address, may file in the office of the clerk of the district court in the county in which the employer has his principal place of business, or if there be no such principal place of business, then in Ormsby County, a certificate which need not be verified, but which shall specify the amount of contribution, interest and forfeit due, the name and last-known place of business of the employer liable for the same, and which shall contain a statement that the unemployment compensation division has complied with all the provisions of this act in relation to the computation and levy of the contribution, together with the request that judgment be entered for the State of Nevada, and against the employer named, in the amount of the contribution, interest, and forfeit set forth in the certificate; provided, however, that the employer may, within said fifteen-day period, pay the amount specified in such notice, under protest, to the unemployment compensation division, and shall thereupon have the right to initiate, within sixty days following such payment, and to maintain his action against the Nevada unemployment compensation division for a refund of all or any part of any such amount and to recover so much thereof as may have been erroneously assessed or paid. Such an action by the employer shall be commenced and maintained in the district court wherein is located the principal place of business of the employer, and in the event of entry of judgment for the employer the unemployment compensation division shall promptly refund such sum without interest as may be determined by the court.

Past due contributions

Collection of contributions

Interest on past-due contributions

Interest on past-due contributions

Judgments

Priorities under legal dissolutions or distributions

division shall promptly refund such sum without interest as may be determined by the court. If no such payment under protest is made, upon filing the certificate aforesaid the clerk of the district court shall immediately enter a judgment in favor of the State of Nevada unemployment compensation division, and against the employer in the amount of the contributions, interest and forfeits set forth in the certificate. No costs or filing fees shall be charged to the State of Nevada in any proceedings, brought under any subsection of this section, nor shall any bond or undertaking be required of the State of Nevada, either in proceedings in the district court or on appeal to the supreme court.

      (3) Judgments.  An abstract of such judgment or a copy thereof may be recorded with the county recorder of any county in the State of Nevada, and from the time of such recording the amount of the contribution, interest and forfeit therein set forth shall constitute a lien upon all the real and personal property of the employer in such county, owned by him or which he may afterwards acquire, which lien shall have the force, effect and priority of a judgment lien. Execution shall issue upon such a judgment upon request of the commissioner or his authorized representative in the same manner as execution may issue upon other civil judgments, and sales shall be held under such execution as upon other executions upon civil judgments. In all proceedings under this section the unemployment compensation division shall be authorized to act in its name on behalf of the State of Nevada. Appeals may be taken to the supreme court from the judgment of the district court in the same manner and with the same effect as in other civil cases, except that notice of appeal must be served and filed within sixty days from the entry of judgment.

      (c) Priorities Under Legal Dissolutions or Distributions.  In the event of any distribution of any employer’s assets either voluntarily or pursuant to any order of any court under the laws of this state, including any receivership, assignment for the benefit of creditors, adjudicated insolvency, composition, or similar proceeding, the lien for contributions then or thereafter due shall be paid in full prior to all other liens or claims except prior taxes. In the event of an employer’s adjudication in bankruptcy, judicially confirmed extension proposal, composition or other proceeding under the federal bankruptcy act of 1898, as amended, contributions then or thereafter due shall be entitled to the same priority as is afforded by that act to taxes due to states.

      (d) Refunds.  If not later than two years after the date on which any contributions, forfeit or interest thereon became due, an employer who has paid such contributions, forfeit or interest thereon shall make application for an adjustment thereof in connection with subsequent contribution payments, or for a refund thereof because such adjustment cannot be made, and the commissioner shall determine that such contributions, forfeit or interest or any portion thereof was erroneously collected, the commissioner shall allow such employer to make an adjustment thereof, without interest, in connection with subsequent contribution payments by him, or if such adjustment cannot be made the commissioner shall refund said amount, without interest, from the fund; provided, that in no case shall a refund be made with respect to contributions paid on wages which have been included in the determination of an eligible claimant for benefits, unless and until it is shown to the satisfaction of the commissioner that such determination was due entirely to the fault or mistake of the division.

or interest thereon shall make application for an adjustment thereof in connection with subsequent contribution payments, or for a refund thereof because such adjustment cannot be made, and the commissioner shall determine that such contributions, forfeit or interest or any portion thereof was erroneously collected, the commissioner shall allow such employer to make an adjustment thereof, without interest, in connection with subsequent contribution payments by him, or if such adjustment cannot be made the commissioner shall refund said amount, without interest, from the fund; provided, that in no case shall a refund be made with respect to contributions paid on wages which have been included in the determination of an eligible claimant for benefits, unless and until it is shown to the satisfaction of the commissioner that such determination was due entirely to the fault or mistake of the division.

      Sec. 11.  Section 14 1/2 of the above-entitled act, as added by chapter 109 Statutes of 1939, is hereby renumbered as section 14.1, and further amended to read as follows:

      Section 14.1.  (a) Arbitrary Assessments.  If an employer shall neglect or refuse to make and file any report of wages and contributions as required by this act or by any regulation of the commissioner, or if any report which has been filed is deemed by the commissioner to be incorrect or insufficient, and if, within seven days after the commissioner has given written notice by mail to the employer to file a sufficient report, the employer fails to file such report, the commissioner may make an estimate based upon any information in his possession of the amount of wages paid or payable by the employer for the period or periods in respect to which he failed to report, which said estimate shall be prima facie correct, and upon the basis of said estimated amount shall compute and assess the contribution payable by the employer, adding to the amount of contribution so determined a forfeit equal to ten percent (10%) of such contribution.

      (b) Additional Forfeits.  When it appears to the commissioner that the neglect or refusal of an employer to file a report, as required by this act or by regulation, is willful and deliberate, or fraudulent, or with intent to evade the payment of contributions, there shall be added to the contribution and forfeit provided in the preceding section, a further forfeit equal to twenty-five percent (25%) of the amount of contribution so assessed, which shall become due and payable at the same time as the assessed contribution.

      (c) Notice.  Upon the levy of any assessment as heretofore provided, the commissioner shall forthwith give written notice thereof by mail to the employer at his last-known address.

Refunds

Arbitrary assessments

Additional forfeits

Notice

Modification of assessment

Jeopardy assessment

address. Said notice shall contain the amount of the assessment and forfeit, if any there be, and shall advise the employer of the right to petition for readjustment thereof as hereinafter provided. The assessment shall become final, and the amount of contribution and forfeit therein specified shall become due and payable fifteen days after the date of mailing such notice, except as hereinafter provided. An assessment which has become final shall be subject to the same interest as provided in section 14(a) for other unpaid contributions.

      (d) Modification of Assessment.  At any time within fifteen days after the mailing of notice of assessment, the employer affected thereby may file a verified petition with the commissioner praying for readjustment of the assessments so levied; provided, that at the time of filing such petition the employer upon whom an assessment is levied shall deposit such security or bond as the commissioner may deem necessary to assure compliance with the provisions of this act. The petition may request a hearing before the commissioner and shall specify the objections to the assessment. The commissioner may by regulation prescribe the manner in which petitions for modification shall be determined; provided, that such regulations shall guarantee to the employer a fair hearing on the question of his liability for contributions. If, at any time within one year following the date of mailing of notice of assessment, it shall appear to the satisfaction of the commissioner that any assessment is unreasonable or unjust, or not in conformity with the facts, he shall have authority to modify such assessment to conform to the facts, as of the date of the original assessment. The order or decision of the commissioner modifying an assessment shall be final, and the sum therein specified shall become due and payable ten (10) days after the date of mailing notice of such order or decision to the employer.

      (e) Jeopardy Assessment.  (1) Whenever the commissioner finds that the collection of any contribution computed under the provisions of the law will be jeopardized by delay, he may immediately assess such contribution together with all forfeit which may have accrued, whether or not the final date otherwise prescribed for making such contribution has arrived. Such contribution shall thereupon become immediately due and payable and notice of demand for payment shall be made upon the employer for the payment thereof. Upon failure or refusal to pay such assessed contribution and forfeit, collection thereof may be enforced according to the provisions of the law applicable to the collection of unpaid contributions.

      (2) Stay of Collection.  When a jeopardy assessment has been made as provided in the foregoing paragraph, the employer may stay its collection until such time as the contributions for the period in question would normally become due, by filing a bond with the commissioner in an amount equal to the amount of assessment.

employer may stay its collection until such time as the contributions for the period in question would normally become due, by filing a bond with the commissioner in an amount equal to the amount of assessment. Such bond shall be conditioned on the payment of the contribution at the proper time and be executed by sureties satisfactory to the commissioner, or a cash deposit may be accepted in lieu of such bond.

      Sec. 12.  The above-entitled act is further amended by adding thereto a new section to be known as section 14.2, which shall immediately follow section 14.1 of said act, and shall read as follows:

      Sec. 14.2.  Liens.  In the event of any distribution of an employer’s assets, either voluntarily or pursuant to an order of any court under the laws of this state, including any receivership, assignment for the benefit of creditors, adjudicated insolvency, composition, or similar proceeding, contributions then or thereafter due shall be a lien upon all of the assets of such employer, said lien to be prior to all other liens or claims except recorded liens, prior taxes and claims for remuneration for services of not more than $250 to each claimant, earned within six months of the commencement of the proceeding. The existence of a condition of insolvency, the execution of any assignment, or the institution of any judicial proceeding for legal dissolution or distribution of assets, at a time when the employer shall be in default in payment of contributions, shall cause such lien to attach without action on behalf of the commissioner; provided, that within 60 days thereafter the commissioner shall cause to be filed with the county recorder of the county in which property is situated a statement of claim of such lien setting forth a true statement of the demand, after deducting all just credits and offsets, and the default of such employer. The county recorder shall record such claims of lien in a book kept for that purpose, which record shall be indexed as are deeds and other instruments. The lien hereby created may be foreclosed by a suit in the district court in the manner provided by law for the foreclosure of other liens on real or personal property. Any lien, as provided in this section, may be released, compromised or satisfied by the commissioner, and the property against which a lien is claimed shall be released therefrom by filing a notice of such release or satisfaction with the county recorder of the county in which the notice of lien claimed was filed.

      Sec. 13.  The above-entitled act is further amended by adding thereto a new section to be known as section 14.3, which shall immediately follow section 14.2 of said act, and shall read as follows:

      Section 14.3.  Liability of Others.  (a) Every assignee, receiver, trustee in bankruptcy, liquidator, administrator, executor, sheriff, constable, or any other person who shall sell substantially all of: (1) the business, (2) the stock of goods, (3) the furniture or fixtures, (4) the machinery and equipment, (5) or the good will of any employing unit shall, not less than five days prior to the date of such sale, notify the division of the name and address of the person conducting such sale, the date, place, and the terms of such sale, and a description of the property to be sold.

Stay of collection

Liens

Liability of others

Duties of employer on sale of business

Waiver of rights void

receiver, trustee in bankruptcy, liquidator, administrator, executor, sheriff, constable, or any other person who shall sell substantially all of: (1) the business, (2) the stock of goods, (3) the furniture or fixtures, (4) the machinery and equipment, (5) or the good will of any employing unit shall, not less than five days prior to the date of such sale, notify the division of the name and address of the person conducting such sale, the date, place, and the terms of such sale, and a description of the property to be sold. Any assignee, receiver, trustee in bankruptcy, liquidator, administrator, executor, sheriff, constable or any other person who shall fail to observe the requirements of this section shall be personally responsible for all loss in contribution, interest or forfeit attributable to such failure to notify the division as herein provided.

      (b) Any employer who shall, outside the usual course of his business, sell substantially all or any one of the classes of assets hereinabove enumerated and shall quit business, shall within ten days after such sale file such reports as the commissioner may prescribe and pay the contributions, interest or forfeits required by this act with respect to wages for employment to the date of said sale. The purchaser shall withhold sufficient of the purchase money to cover the amount of all contributions and forfeits due and unpaid until such time as the seller shall produce a receipt from the commissioner showing that the contributions and forfeits have been paid or a certificate showing that no contributions or forfeits are due. If the seller shall fail, within said ten-day period, to produce such receipt or certificate, the purchaser shall pay the sum so withheld to the commissioner upon demand. If such purchaser shall fail to withhold purchase money as above provided and the contributions, interest and forfeits shall not be paid within the ten days specified above, such purchaser shall be personally liable for the payment of the contributions and forfeits accrued and unpaid on account of the operation of the business by the former owner.

      Sec. 14.  Section 15 of the above-entitled act, as amended by chapter 109 Statutes of 1939, is hereby amended to read as follows:

      Section 15.  (a) Waiver of Rights Void.  Any agreement by an individual to waive, release, or commute his rights to benefits or any other rights under this act shall be void. Any agreement by any individual in the employ of any person or concern to pay all or any portion of an employer’s contributions, required under this act from such employer, shall be void. No employer shall directly or indirectly make or require or accept any deduction from wages to finance the employer’s contributions required from him, or require or accept any waiver of any right hereunder by any individual in his employ.

or accept any waiver of any right hereunder by any individual in his employ. Any employer or officer or agent of an employer who violates any provision of this subsection shall, for each offense, be fined not less than $100 nor more than $500 or be imprisoned for not more than six months, or both.

      (b) Limitation of Fees.  No individual claiming benefits shall be charged fees of any kind in any proceeding under this act by the board of review, the commissioner or its or his representatives, or by any court or officer thereof. Any individual claiming benefits in any proceeding before the commissioner or the board of review, or his or its representatives, or a court, may be represented by counsel or other duly authorized agent, but no such counsel or agents shall either charge or receive for such services more than an amount approved by the board of review. Any person, firm, or corporation who shall exact or receive any remuneration or gratuity for any services rendered on behalf of a claimant except as allowed by this section and in an amount approved by the board of review shall be fined for each such offense not less than $50 nor more than $500, or imprisonment for not more than six months or both. Any person, firm, or corporation who shall solicit the business of appearing on behalf of a claimant or who shall make it a business to solicit employment for another in connection with any claim for benefits under the act shall be fined for each such offense not less than $50 nor more than $500, or imprisoned for not more than six months or both.

      (c) No Assignment of Benefits; Exemptions.  Any assignment, pledge, or encumbrance of any right to benefits which are or may become due or payable under this act shall be void; and such rights to benefits shall be exempt from levy, execution, attachment, or any other remedy whatsoever provided for the collection of debt; and benefits received by any individual, so long as they are not mingled with other funds of the recipient, shall be exempt from any remedy whatsoever for the collection of all debts except debts incurred for necessaries furnished to such individual or his spouse or dependents during the time when such individual was unemployed. Any other waiver of any exemption provided for in this subsection shall be void.

      Sec. 15.  Section 16 of the above-entitled act is hereby amended to read as follows:

      Section 16.  (a) (1) Whoever makes a false statement or representation knowing it to be false or knowingly fails to disclose a material fact, to obtain or increase any benefit or other payment under this act, either for himself or for any other person, shall be punished by a fine of not less than $50 nor more than $500 or by imprisonment in the county jail for not longer than six months, or by both such fine and imprisonment.

Limitation of fees

No assignment of benefits; exemption

Penalties for violation of act

Penalties for violation of act

jail for not longer than six months, or by both such fine and imprisonment.

      (2) Whenever two or more persons shall conspire to obtain or increase any benefit or other payment under this act, by a false statement or representation knowing it to be false, or by knowingly failing to disclose a material fact, or whenever any person makes a series of false statements or representations knowing them to be false, to obtain or increase benefit payments under this act over a period of more than one week, every such person shall be punished by a fine of not less than $100 nor more than $1,000 or by imprisonment in the county jail for not more than one year, or by both such fine and imprisonment.

      (b) Any employing unit or any officer or agent of an employing unit or any other person who makes a false statement or representation knowing it to be false, or who knowingly fails to disclose a material fact, to prevent or reduce the payment of benefits to any individual entitled thereto, or to avoid becoming or remaining subject hereto, or to avoid or reduce any contribution or other payment required from an employing unit under this act or who willfully fails or refuses to make any such contributions or other payment to furnish any reports required hereunder or to produce or permit the inspection or copying of records as required hereunder, shall be punished by a fine of not less than $50 nor more than $500 or by imprisonment in the county jail for not longer than six months, or by both such fine and imprisonment. Whenever two or more persons shall conspire to accomplish any of the objects provided in this subsection, every such person shall be punished by a fine of not less than $100 nor more than $1,000, or by imprisonment in the county jail for not more than one year, or by both such fine and imprisonment.

      (c) Any person who shall willfully violate any provision of this act or any order, rule, or regulation thereunder, the violation of which is made unlawful or the observance of which is required under the terms of this act, and for which a penalty is neither prescribed herein nor provided by any other applicable statute, shall be punished by a fine of not less than $50 nor more than $500, or by imprisonment for not longer than six months, or by both such fine and imprisonment.

      (d) Any person who, by reason of the nondisclosure or misrepresentation by him or by another, of a material fact (irrespective of whether such nondisclosure or misrepresentation was known or fraudulent) has received any sum as benefits under this act while any conditions for the receipt of benefits imposed by this act where not fulfilled in his case, or while he was disqualified from receiving benefits, shall, in the discretion of the commissioner, either be liable to have such sum deducted from any future benefits payable to him under this act or shall be liable to repay to the commissioner for the unemployment compensation fund, a sum equal to the amount so received by him, and such sum shall be collectible in the manner provided in section 14(b) of this act for the collection of past-due contributions.

or while he was disqualified from receiving benefits, shall, in the discretion of the commissioner, either be liable to have such sum deducted from any future benefits payable to him under this act or shall be liable to repay to the commissioner for the unemployment compensation fund, a sum equal to the amount so received by him, and such sum shall be collectible in the manner provided in section 14(b) of this act for the collection of past-due contributions. The commissioner may waive the recovery or adjustment of all or part of the amount of any such overpayment which he finds to be uncollectible or the recovery or adjustment of which he finds to be administratively impracticable.

      (e) Any employing unit or any officer or agent of any employing unit or any other person who shall fail to submit such reports as are prescribed and required by the commissioner within the time prescribed by the commissioner shall pay a forfeit of $5 for each such report. Any employing unit or any officer or agent of any employing unit or any other person who shall fail to submit any report of wages payable within ten days following the expiration of the time prescribed by the commissioner for filing such report, shall, in addition to the $5 forfeit herein specified, pay interest upon any contribution involved in such report of 5% for the balance of that month, and 5% for each month or portion of each month thereafter; provided, that the interest so accrued shall not exceed 25% of the amount of contribution; provided further, that when it shall appear to the satisfaction of the commissioner that the failure to file reports within the time limited was due to an act of God or other circumstance over which the employing unit, its officers or agent, had no control, then the commissioner may in his discretion waive the collection of all or any portion of such forfeit or interest. Forfeits and interest as provided in this subsection shall be paid into the unemployment compensation fund.

      Sec. 16.  The above-entitled act is further amended by adding thereto a new section to be known as section 18.1, which shall immediately follow section 18 of said act, and which shall read as follows:

      Section 18.1.  The commissioner is authorized to make such investigations, secure and transmit such information, make available such services and facilities and exercise such of the other powers made available to him with respect to the administration of this act as he deems necessary or appropriate to facilitate the administration of another state or federal unemployment compensation or public employment service law, and in like manner, to accept and utilize information, services and facilities made available to this state by the agency charged with the administration of any such other unemployment compensation or public employment service law.

Penalties for violation of act

Powers of commissioner

Powers of commissioner

Repeal

In effect

state by the agency charged with the administration of any such other unemployment compensation or public employment service law. To the extent permissible under the laws and constitution of the United States, the commissioner is authorized to enter into or cooperate in arrangements whereby facilities and services provided under this act and facilities and services provided under the unemployment compensation law of any foreign government, may be utilized for the taking of claims and the payment of benefits under the unemployment compensation law of this state or under a similar law of such government.

      Sec. 17.  Section 15 1/2 of the above-entitled act, as added by chapter 109 Statutes of 1939, is hereby repealed.

      Sec. 18.  This act shall be in full force and effect on and after July 1, 1941.

Contractors’ board created

Qualification of members

[Senate Bill No. 59–Senator Getchell]

Chap. 186–An Act to create a state contractors’ board; defining the powers and duties of said board; defining contractors and providing for the licensing of contractors; fixing the fees for such licenses; providing the method of suspension and cancelation of such licenses; prescribing a penalty for the violation of this act and other matters properly relating thereto.

[Approved March 31, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

ARTICLE I

Administration

      Section 1.  There is hereby created the state contractors’ board to consist of seven members to be appointed by the governor of the State of Nevada. The personnel of the first board shall be named by the governor within thirty days after the effective date of this act.

      Sec. 2.  All members of the board shall be contractors actively engaged in the contracting business and shall have been so engaged for a period of not less than five years preceding the date of their appointment. No one except the members of the first board appointed and those appointed to fill vacancies on said first board shall be eligible for appointment who does not at the time hold an unexpired license to operate as a contractor. Each member of the board shall have been a citizen and resident of the State of Nevada for at least five years next preceding his appointment.

      Sec. 3.  The terms of the members of the first board shall be for a period of four years each.

be for a period of four years each. Vacancies arising for any reason shall be filled by the governor by appointment for the unexpired term. Each member shall hold office after the expiration of his term until his successor has been duly appointed and qualified. All members of the board shall hold their offices at the pleasure of the governor and the governor shall have power to remove any member of the board with or without cause.

      Sec. 4.  Each member of the board shall receive a certificate of appointment from the governor and before entering upon the discharge of the duties of his office shall take the constitutional oath of office.

      Sec. 5.  The board shall hold such meetings as may be necessary for the purpose of transacting its business. Four members of the board may call a special meeting at any time and four members of the board shall constitute a quorum. Due notice of each meeting and of the time and place thereof shall be given each member in the manner provided by the bylaws. The board may appoint such committees and make such reasonable bylaws and rules and regulations as are necessary to carry out the provisions of this act. The board is vested with all of the functions and duties relating to the administration of this act.

      Sec. 6.  Any member of committee of the board may administer oaths and may take testimony and proofs concerning all matters within the jurisdiction of the board.

      Sec. 7.  The board shall adopt a seal for its own use, which shall have imprinted thereon the words “State Contractors Board, State of Nevada.” The care and custody of said seal shall be in the hands of the secretary of the board, hereinafter provided for.

      Sec. 8.  The board shall, thirty days prior to the meeting of the regular session of the legislature, submit to the governor a full and true report of its transactions during the preceding biennium, including a complete statement of the receipts and expenditures of the board during said period.

ARTICLE II

Application of Act

      Section 1.  “Person” as used in this act includes an individual, a firm, copartnership, corporation, association or other organization, or any combination of any thereof.

      Sec. 2.  The term contractor for the purposes of this act is synonymous with the term “builder” and, within the meaning of this act, a contractor is any person, except a licensed architect or a registered civil 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, or offers to undertake to, or 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.

Term of office

Governor to appoint

Meetings of board

May administer oaths

Seal of board

Board to submit biennial report to governor

Definition of terms

Contractor defined

Operations limited

When act not applicable

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.

      Sec. 3.  A contractor within the meaning of this act includes 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.

      Sec. 4.  It is unlawful for any two or more licensees, each of whom has been issued a license to engage separately in the business or to act separately in the capacity of a contractor within this state, to jointly submit a bid or otherwise act in the capacity of a contractor within this state without first having secured an additional license for acting in the capacity of such a joint venture or combination in accordance with the provisions of this act as provided for an individual, copartnership or corporation.

ARTICLE III

Exemptions

      Section 1.  This act does not apply to an authorized representative of the United States government, the State of Nevada, or any incorporated town, city, county, irrigation district, reclamation district or other municipal or political corporation or subdivision of this state.

      Sec. 2.  This act does not apply to officers of a court when they are acting within the scope of their office.

      Sec. 3.  This act does not apply to public utilities, operating under the regulations of the public service commission on construction, maintenance, and development work incidental to their own business.

      Sec. 4.  This act does not apply to owners of property, building or improving structures thereon for the occupancy of such owner and not intended for sale.

      Sec. 5.  This act does not apply to the sale or installation of any finished products, materials or articles of merchandise, which are not actually fabricated into and do not become a permanent fixed part of the structure.

      Sec. 6.  This act does not apply to any construction, alteration, improvement or repair of personal property.

      Sec. 7.  This act does not apply to any construction, alteration, improvement or repair carried on within the limits and boundaries of any site or reservation, the title of which rests in the federal government.

      Sec. 8.  This act does not apply to any work or operation on one undertaking or project by one or more contracts, the aggregate contract price for which for labor, materials, and all other items is less than three hundred dollars, such work or operations being considered as of casual, minor or inconsequential nature.

on one undertaking or project by one or more contracts, the aggregate contract price for which for labor, materials, and all other items is less than three hundred dollars, such work or operations being considered as of casual, minor or inconsequential nature.

      The exemption set forth in this section does not apply in any case wherein the work of construction is only a part of a larger or major operation, whether undertaken by the same or a different contractor, or in which a division of the operation is made in contracts of amounts less than three hundred dollars for the purpose of evasion of this act or otherwise.

      Sec. 9.  This act does not apply to any construction or repair of, or incidental to, any agricultural or farming project.

ARTICLE IV

Licensing

      Section 1.  Under reasonable rules and regulations adopted by the board, the board shall investigate and qualify applicants for contractors’ licenses, and is authorized to issue contractors’ licenses to qualified applicants.

      Sec. 2.  To obtain a license an applicant shall submit to the board an application in writing containing the statement that the applicant desires the issuance of a license under the terms of this act.

      The application shall be made on a form prescribed by the board in accordance with the rules and regulations adopted by the board and shall be accompanied by the fee fixed by this act.

      Sec. 3.  The board shall require an applicant to show such a degree of experience and such general knowledge of the building safety and health laws of the state and of the rudimentary principles of the contracting business as the board shall deem necessary for the safety and protection of the public.

      Sec. 4.  The board shall have power to either suspend or revoke licenses already issued and to refuse renewals of licenses when the applicant or license holder has been guilty of acts or conduct, harmful to either the safety or protection of the public, or who has been guilty of dishonesty, fraud and deceit whereby injury has been sustained by another, or who has failed to comply with and complete a contract, or who has been guilty of improper diversion of funds, misuse or misappropriation of funds, willful delay in completion of construction and the like.

      Sec. 5.  In any case, when the board refuses to issue a license or suspends or revokes a license, the applicant or accused shall have the opportunity extended to him of having a hearing before the board, at which time he may be represented by counsel. The hearing shall be public if request is made therefor.

When act not applicable

Requirements for license

May suspend licenses

Rights of applicant if license refused

Board to maintain office

Disposition of revenue received

Treasurer to be elected

Annual license fee

License necessary, penalty

request is made therefor. The applicant or accused shall also have full right of resort and appeal to the courts, but the action taken by the board shall in the courts be deemed prima facie lawful and regular.

ARTICLE V

Operations

      Section 1.  The board shall maintain an office in which there shall be at all times open to public inspection a complete record of applications, licenses issued, licenses renewed and all revocations, cancelations and suspensions of licenses.

      Sec. 2.  If and when moneys shall become available from the operations of this act and payments made for licenses, the board shall have power to pay therefrom the expenses of the operations of this act, including the maintenance of an office, the salary of a secretary of the board who shall be named by the board, and the reasonable expenses of the members of the board incidental to a discharge of their duties hereunder.

      Sec. 3.  The board shall elect one of their members as treasurer of the board. All funds received by said board shall be turned over to said treasurer who shall keep books of account and who is authorized to expend from the funds in his possession moneys necessary for the operation of the board under the terms of this act when said expenses have been approved by the board. All balances at any time in the possession of the treasurer shall be subject to legislative disposition.

ARTICLE VI

Revenue

      Section 1.  The board, in its discretion, is authorized to fix the annual license fee to be paid by recipients of licenses under the terms of this act, save and except that the fee to be charged for the year of 1941 shall not exceed ten dollars, and the fee to be charged for subsequent years shall not exceed fifteen dollars per year.

ARTICLE VII

Penalties

      Section 1.  It shall be unlawful for any person, firm, copartnership, corporation, association, or other organization, or any combination of any thereof, to engage in the business or act in the capacity of a contractor within this state without having a license therefor as herein provided, unless such person, firm, copartnership, corporation, association, or other organization, or any combination of any thereof is exempted as provided in this act.

      Sec. 2.  Any violation of this act shall constitute a misdemeanor.

ARTICLE VIII

Schedule

      Section 1.  This act does not apply when pursuant to any of the rules and regulations of the federal works agency the expressed judgment of either the secretary of agriculture or the commissioner of the federal works agency is that the procedure or requirement of this act is designed or may operate to prevent the submission of a bid by or the awarding of a contract to any responsible contractor.

      Sec. 2.  All persons who, in the State of Nevada, shall be engaged in the contracting business at the time this act becomes effective, shall be entitled, without examination, to a license upon the payment by him of the license fee set by the board if he makes application for such license within sixty days after the license fee for the year 1941 is fixed.

      Sec. 3.  This act shall not apply to contractors performing work or engaged in construction in cities and towns of this state having a population of less than one thousand persons.

      Sec. 4.  This act shall be in full force and effect from and after its passage and approval.

When act not to apply

License without examination, when

Population determining factor

In effect

[Senate Bill No. 84–Committee on Judiciary]

Chap. 187–An Act to amend section 3 of an act entitled “An act prohibiting the allowance of excessive claims against any fund, or of claims against any fund of this state, when there shall be insufficient or no funds in said fund, by any officer, commissioner, head of any department, or employee in the State of Nevada, providing a penalty for a violation thereof, and other matters properly connected therewith,” approved April 2, 1929, and to provide for the repair and protection of certain state property in cases of extreme emergency, and matters relating thereto.

[Approved March 31, 1941]

      Whereas, Section 3 of the above-entitled act expressly excepts from the prohibitory provisions thereof the “necessary expenses or costs to suppress insurrections, defending the state, or assisting in defending the United States in time of war, or great catastrophies, fires, storms, or acts of God,” but does not except therefrom the costs and expenses of preparing therefor or of preventing or preparing to prevent loss to the state incident thereto; and it is quite as important to make preparations in advance for these things or the prevention thereof as it is to take care of them after they have occurred, or to repair injuries done by them after they have occurred; now, therefore,

Preamble

Appropriation for emergency expenditures

Repeal

In effect

they have occurred, or to repair injuries done by them after they have occurred; now, therefore,

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 3 of the above-entitled act, being Nevada Compiled Laws 1929, section 7051, is hereby amended so as to read as follows:

      Section 3.  Nothing in this act shall be held to apply to necessary expenses or costs of suppressing insurrections, or of defending the state, or of assisting in defending the United States in time of war, or in preparing therefor, or for either thereof, or in repairing injury done to state property by catastrophies, fires, storms, or acts of God, or in preventing or preparing to prevent great and imminent danger thereof which has then arisen since the immediately preceding session of the legislature and could not have been anticipated during said session of the legislature by reasonable diligence and foresight, and for which said legislature made no sufficient appropriation. When the state board of examiners finds, after diligent inquiry and examination, that great necessity and extreme emergency exists for the expenditure of unappropriated money out of the state treasury on account of either or any of such events, said state board of examiners may then, and only then, declare the existence of such an emergency and great and immediate necessity for the expenditure of not to exceed $10,000 and set aside or allocate the same out of any unappropriated money in the general fund in the state treasury and pay for such necessary expenses or costs, claims for which shall be prepared, presented, and paid in the manner provided generally for the payment of claims against the state.

      Sec. 2.  All acts or parts of acts insofar as they are in conflict herewith are hereby repealed.

      Sec. 3.  This act shall be in full force and effect from and after its passage and approval.

[Senate Bill No. 124–Committee on Public Highways]

Chap. 188–An Act to amend an act entitled “An act declaring the purpose and policy of the legislature relative to use of the public highways of the state in the carrying of persons and property thereon in motor vehicles, defining such vehicles and public highways, providing for the licensing and regulating of certain carriers thereon by the public service commission of Nevada and providing and defining its duties in relation thereto, providing license fees for the operation of motor vehicles in carrier service for hire and other service on the public highways of the state, providing for official inspectors and salary and allowances therefor, providing penalties for the violation thereof and other civil actions for the recovery of license fees herein, providing for refund in certain cases, providing for filing of reports, providing for the weighing of motor vehicles for license purposes by public weighmasters, and repealing all acts and parts of acts and certain acts of the legislature in conflict herewith; and other matters properly connected therewith,” approved March 23, 1933, together with the acts amendatory thereof or supplemental thereto.

[Approved March 31, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

      Section 1.  Section 21 of the above-entitled act is hereby amended to read as follows:

      Section 21.  All moneys collected under the provisions of this act shall be paid over to the state treasurer by the public service commission of Nevada on or before the first Monday of each month. The state treasurer shall place such moneys in the state highway fund of Nevada for the construction, maintenance, and repair of the public highways of this state. The public service commission is hereby directed and authorized to deposit said moneys, while in its possession, in a reputable bank in this state; provided, such bank execute and deliver to said commission good and sufficient collateral security or depositary bond to be approved by the state board of examiners. All costs of administration of this act shall be paid from the Nevada state highway fund on claims presented by the commission, approved by the state board of examiners; provided, however, the amount of such claims shall not exceed fifteen percent (15%) of the amount collected under this act; provided further, that for the purposes of carrying out the provisions of this act, all moneys collected on and after January 1, 1941, under the provisions of this act, shall be construed to be the principal upon which the fifteen percent (15%) hereinafter stated shall apply.

Moneys collected to be paid over to state treasurer

Commission to employ inspectors

Inspectors to enforce act; no police powers

Repeal

In effect

      Sec. 2.  Section 22 of the above-entitled act is hereby amended to read as follows:

      Section 22.  The public service commission of Nevada is authorized to employ one chief official inspector and an assistant inspector and such other inspectors as it may deem necessary for the efficient administration of this act and such other duties as may be assigned to them by said commission; and one clerk, who shall also be a stenographer, for the purpose of expediting the administration of this act, and may fix their compensation and provide for their necessary expenses; provided, however, that no expenditure shall be made, or obligation incurred, under this act in excess of fifteen percent (15%) of the amount collected under this act.

      Sec. 3.  Section 26 of the above-entitled act is hereby amended to read as follows:

      Section 26.  The public service commission and its inspectors shall enforce all rules and regulations of the public service commission of Nevada pertaining to this act, and shall assist in the enforcement of all acts or parts of acts pertaining to the registration of motor vehicles, but shall not be given police power except for the enforcement of this act and acts pertaining to the registration of motor vehicles. The commission shall make reasonable rules and regulations for the enforcement thereof as to all motor vehicles coming within the terms of this act. The provisions of all laws pertaining to the safe operation of motor vehicles upon the public highways of this state are hereby declared applicable to all motor vehicles coming within the terms of this act. It shall be the duty of the district attorney of any county in this state to prosecute all violations of this act occurring in his county.

      Sec. 4.  All acts and parts of acts in conflict herewith are hereby repealed.

      Sec. 5.  This act shall become effective from and after its passage and approval.

[Senate Bill No. 31–Senator Wittenberg]

Chap. 189–An Act relating to insurance, defining certain words and terms, defining domestic companies, foreign or alien companies, unauthorized companies, and other companies, individuals, or corporations engaged in the business of insurance in the State of Nevada; providing for the regulation of insurance companies, insurance business, providing the manner in which insurance companies may operate and conduct business in the State of Nevada; designating the insurance commissioner of the State of Nevada, defining his powers and duties in respect to insurance companies and insurance business in the State of Nevada; defining the different forms of insurance, providing for consolidation thereof; providing for the licensing and qualification of agents of insurance companies, defining their powers, duties and limitations; providing for fees, costs, and expenses for the operation of insurance companies and their agents under the provisions of this act; providing penalties for the violation of the provisions of this act, repealing certain acts, and other matters properly connected herewith.

[Approved March 31, 1941]

The People of the State of Nevada, represented in Senate and

Assembly, do enact as follows:

ARTICLE I

Short Title, Definitions, and Classifications

      Section 1.  Short Title.  This act shall be known and may be cited as the “Nevada Insurance Act.”

      Sec. 2.  General Provisions.  (1) Division, part, article, and section headings contained herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning, or intent of the provisions of any division, part, article, or section hereof.

      (2) Whenever, by the provisions of this act, the power is granted to a public officer or a duty imposed upon such an officer, the power may be exercised or the duty performed by a deputy of the officer or by a person authorized pursuant to law by the officer, unless it is expressly otherwise provided.

      (3) Unless expressly otherwise provided, any notice required to be given to any person by any provision of this act may be given by mailing notice, postage prepaid, addressed to the person to be notified, at his residence or principal place of business in this state. The affidavit of the person who mails the notice, stating the facts of such mailing, is prima facie evidence that the notice was thus mailed.

Short title

General provisions

General definitions

Definition of admitted assets

      Sec. 3.  General Definitions.  In this act, unless the context otherwise requires:

      (a) “Commissioner,” means the state controller as ex officio insurance commissioner.

      (b) “Department,” means the department of insurance.

      (c) “State,” or “State of the United States,” includes the District of Columbia and a territory or possession of the United States.

      (d) “Country,” or “Foreign Country,” includes a state, province, or political subdivision thereof.

      (e) “Company,” means an insurance or surety company and shall be deemed to include a corporation, company, partnership, association, society, order, individual, or aggregation of individuals engaging in or proposing or attempting to engage in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations.

      (f) “Domestic Company,” means a company incorporated or organized under the laws of this state.

      (g) “Foreign Company,” means a company incorporated or organized under the laws of any state of the United States other than this state.

      (h) “Alien Company,” means a company incorporated or organized under the laws of any country other than the United States.

      (i) “Signature,” or “subscription,” includes mark when the signer or subscriber cannot write, such signer’s or subscriber’s name being written near the mark by a witness who writes his own name near the signer’s or subscriber’s name; but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two (2) witnesses so sign their own names thereto.

      (j) “Transact,” as applied to insurance includes any of the following: Solicitation; negotiations preliminary to execution; execution of a contract of insurance; and transaction of matters subsequent to execution of the contract and arising out of it.

      (k) “Insurance Contract,” has the meaning assigned to it by section 11, article 2.

      (l) “Doing an Insurance Business,” has the meaning assigned to it by section 11, article 2.

      Sec. 4.  Definition of Admitted Assets.  “Admitted Assets,” includes the investment, securities, properties, and loans authorized or permitted by this act and the income due or accrued thereon, and in addition thereto, only the following:

      (1) Cash, including legal tender or the equivalent thereof in the principal or any branch office of such company or in transit under the control of the company and including the true balance of any deposit in a solvent bank or trust company.

true balance of any deposit in a solvent bank or trust company.

      (2) Premium notes, policy loans, and other policy assets and liens on policies, contracts or certificates of a life insurance company or fraternal benefit society, in an amount not exceeding the legal reserve and other policy liabilities carried on each individual contract; the net amount of uncollected and deferred premiums, considerations, or assessments in the case of a life insurance company or of a fraternal benefit society which carries the full mean tabular reserve liability; and in the case of a fraternal benefit society which does not carry such full mean tabular reserve liability premiums or assessments actually collected by subordinate branches of such a society and not yet received by the home office.

      (3) Premiums in course of collection, other than life insurance premiums, not more than ninety (90) days past due, less commissions payable thereon.

      (4) Notes and like written obligations, not past due, taken for premiums other than life insurance premiums, on policies permitted to be issued on such basis, to the extent of the unearned premium reserves carried thereon except as otherwise prescribed by official regulation.

      (5) Reinsurance recoverable by a ceding company:

      (a) From a company authorized to transact such business in this state, the full amount thereof; or

      (b) From a company not authorized in this state, in an amount not exceeding the liabilities carried by the ceding company for amounts withheld under the reinsurance treaty with such unauthorized company as security for the payment of obligations thereunder if such funds are held subject to withdrawal by, and under the control of, the ceding company.

      (6) Amounts receivable by an assuming company for funds withheld by a ceding company under a reinsurance treaty, not exceeding the amounts carried by such assuming company as liabilities for unpaid losses and reserves under such contracts.

      (7) Deposits or equities recoverable from underwriting associations, syndicates and reinsurance funds, or from any suspended banking institutions, to the extent deemed by the commissioner available for the payment of losses and claims and at values to be determined by him.

      (8) Other assets, not inconsistent with the foregoing provisions, deemed by the commissioner available for the payment of losses and claims, at values to be determined by him.

      Admitted assets may be allowed as deductions from corresponding liabilities and liabilities may be charged as deductions from assets and deductions from assets may be charged as liabilities, in accordance with the form of annual statement applicable to such company as prescribed by the commissioner, or otherwise in his discretion.

Definition of admitted assets

Classes of insurance

Insurance, life

Accident and health

Accident and health

Motor vehicle and aircraft insurance

Liability

Burglary and theft

statement applicable to such company as prescribed by the commissioner, or otherwise in his discretion. The commissioner may make official regulations prescribing the application of the provisions of this section.

      Sec. 5.  Classes of Insurance.  Insurance and insurance business shall be classified as follows:

Class 1.  Life, Accident, and Health.

      (a) Life.  Insurance on the lives of persons and every insurance appertaining thereto or connected therewith and granting, purchasing, or disposing of annuities. Policies of life or endowment insurance or annuity contracts, or contracts supplemental thereto which contain provisions for additional benefits in case of death by accidental means, and provisions operating to safeguard such policies or contracts against lapse, or to give a special surrender value, or special benefit or an annuity, in the event that the insured or annuitant shall become totally and permanently disabled as defined by the policy or contract, shall be deemed to be policies of life or endowment insurance, or annuity contracts within the intent of this clause.

      (b) Accident and Health.  Insurance against bodily injury, disablement, or death by accident and against disablement resulting from sickness, and every insurance appertaining thereto.

Class 2.  Casualty, Fidelity, and Surety.

      (a) Accident and Health.  Insurance against bodily injury, disablement or death by accident and against disablement resulting from sickness and every insurance appertaining thereto.

      (b) Motor Vehicle and Aircraft Insurance.  Insurance against loss of or damage resulting from any cause to motor vehicles or aircraft and their equipment, and against legal liability of the insured for loss or damage to the property of another resulting from the ownership, maintenance, or use of motor vehicles or aircraft and against loss, damage, or expense incident to a claim of such liability.

      (c) Liability.  Insurance against the liability of the insured for the death, injury, or disability of an employee or other person, and insurance against the liability of the insured for damage to or destruction of another person’s property.

      (d) Burglary and Theft.  (1) Insurance against loss of or damage to any property resulting from burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation or wrongful conversion, disposal or concealment by any person or persons, or from any attempt at any of the foregoing, and (2) insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances, or any other valuable papers or documents, resulting from any cause, except while in the custody or possession of and being transported by any carrier for hire or in the mail.

resulting from any cause, except while in the custody or possession of and being transported by any carrier for hire or in the mail.

      (e) Glass.  Insurance against loss of or damage to glass and its appurtenances resulting from any cause.

      (f) Fidelity and Surety.  (a) Guaranteeing the fidelity of persons holding positions of public or private trust; (b) becoming surety on, or guaranteeing the performance of, any lawful contract except the following: (1) A contract of indebtedness secured by title to, or mortgage upon, or interest in, real or personal property; (2) a bond or undertaking of the kind specified in subparagraph (c); (3) any insurance contract except as authorized pursuant to section 72; (c) becoming surety on, or guaranteeing the performance of, bonds and undertakings required or permitted in all judicial proceedings or otherwise by law allowed, including surety bonds accepted by states and municipal authorities in lieu of deposits as security for the performance of insurance contracts; (d) guaranteeing contracts of indebtedness secured by any title to, or interest in, real property, only to the extent required for the purpose of refunding, extending, refinancing, liquidating, or salvaging obligations heretofore lawfully made and guaranteed; (e) indemnifying banks, bankers, brokers, financial, or moneyed corporations or associations against loss resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debts, deeds, mortgages, warehouse receipts, or other valuable papers, documents, money, precious metals and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semiprecious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation; also against loss or damage to such an insured’s premises, or to his furnishings, fixtures, equipment, safes and vaults therein, caused by burglary, robbery, theft, vandalism, or malicious mischief, or any attempt thereat.

      (g) Miscellaneous.  Insurance against loss or damage to property and any liability of the insured caused by accidents to boilers, pipes, pressure containers, machinery, and apparatus of any kind and any apparatus connected thereto, or used for creating, transmitting, or applying power, light, heat, steam, or refrigeration, making inspection of and issuing certificates of inspection upon elevators, boilers, machinery, and apparatus of any kind and all mechanical apparatus and appliances appertaining thereto; insurance against loss or damage by water entering through leaks or openings in buildings, or from the breakage or leakage of a sprinkler, pumps, water pipes, plumbing, and all tanks, apparatus, conduits, and containers designed to bring water into buildings or for its storage or utilization therein, or caused by the falling of a tank, tank platform, or supports, or against loss or damage from any cause (other than causes specifically enumerated under class 3 of this section) to such sprinkler, pumps, water pipes, plumbing, tanks, apparatus, conduits, or containers; insurance against loss or damage which may result from the failure of debtors to pay their obligations to the insured and insurance of the payment of money for personal services under contracts of hiring.

Glass

Fidelity and surety

Miscellaneous

Miscellaneous

Other casualty risks

Contingent losses

Workmen’s compensation and employer liability insurance

Fire insurance

Elements defined

War, riot and explosion

Marine and transportation

or for its storage or utilization therein, or caused by the falling of a tank, tank platform, or supports, or against loss or damage from any cause (other than causes specifically enumerated under class 3 of this section) to such sprinkler, pumps, water pipes, plumbing, tanks, apparatus, conduits, or containers; insurance against loss or damage which may result from the failure of debtors to pay their obligations to the insured and insurance of the payment of money for personal services under contracts of hiring.

      (h) Other Casualty Risks.  Insurance against any other casualty risk not otherwise specified under classes 1 or 3, which may lawfully be the subject of insurance and may properly be classified under class 2.

      (i) Contingent Losses.  Contingent, consequential, and indirect coverages wherein the proximate cause of the loss is attributable to any one of the causes enumerated under class 2. Such coverages shall, for the purpose of classification, be included in the specific grouping of the kinds of insurance wherein such cause is specified.

      (j) Workmen’s Compensation and Employer’s Liability Insurance.  Insurance against the legal liability, whether imposed by common law or by statute or assumed by contract, of any employer for the death or disablement of, or injury to, his or its employee.

Class 3.  Fire and Marine, Etc.

      (a) Fire.  Insurance against loss or damage by fire, smoke and smudge, lightning, or other similar disturbances.

      (b) Elements.  Insurance against loss or damage by earthquake, windstorm, cyclone, tornado, tempests, hail, frost, snow, ice, sleet, flood, rain, drought, or other weather or climatic conditions including excess or deficiency of moisture, rising of the waters of the ocean or its tributaries.

      (c) War, Riot and Explosion.  Insurance against loss or damage by bombardment, invasion, insurrection, riot, strikes, civil war or commotion, military or usurped power, or explosion.

      (d) Marine and Transportation.  Insurance against loss or damage to vessels, craft, aircraft, vehicles of every kind (excluding vehicles operating under their own power or while in storage not incidental to transportation), as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry, and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any or all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed, or similarly prepared for shipment or while awaiting the same or during any delays, storage, transshipment, or reshipment incident thereto, including marine builder’s risks and all personal property floater risks; and for loss or damage to persons or property in connection with or appertaining to marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either arising out of or in connection with the construction, repair, operation, maintenance, or use of the subject matter of such insurance (but not including life insurance or surety bonds); but, except as herein specified, shall not mean insurances against loss by reason of bodily injury to the person; and insurance against loss or damage to precious stones, jewels, jewelry, gold, silver and other precious metals whether used in business or trade or otherwise and whether the same be in course of transportation or otherwise, which shall include jewelers’ block insurance; and insurance against loss or damage to bridges, tunnels, and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and civil commotion are the only hazards to be covered; and to piers, wharves, docks, and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and civil commotion; and to other aids to navigation and transportation, including dry docks and marine railways, against all risk.

assembled, packed, crated, baled, compressed, or similarly prepared for shipment or while awaiting the same or during any delays, storage, transshipment, or reshipment incident thereto, including marine builder’s risks and all personal property floater risks; and for loss or damage to persons or property in connection with or appertaining to marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either arising out of or in connection with the construction, repair, operation, maintenance, or use of the subject matter of such insurance (but not including life insurance or surety bonds); but, except as herein specified, shall not mean insurances against loss by reason of bodily injury to the person; and insurance against loss or damage to precious stones, jewels, jewelry, gold, silver and other precious metals whether used in business or trade or otherwise and whether the same be in course of transportation or otherwise, which shall include jewelers’ block insurance; and insurance against loss or damage to bridges, tunnels, and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and civil commotion are the only hazards to be covered; and to piers, wharves, docks, and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and civil commotion; and to other aids to navigation and transportation, including dry docks and marine railways, against all risk.

      (e) Vehicle.  Insurance against loss or liability resulting from or incident to the ownership, maintenance, or use of any vehicle (motor or otherwise), draft animal, or aircraft, excluding the liability of the insured for the death, injury, or disability of another person.

      (f) Property Damage, Sprinkler Leakage and Crop.  Insurance against the liability of the insured for loss or damage to another person’s property or property interests from any cause enumerated in this class; insurance against loss or damage by water entering through leaks or openings in buildings, or from the breakage or leakage of a sprinkler, pumps, water pipes, plumbing and all tanks, apparatus, conduits and containers designed to bring water into buildings or for its storage or utilization therein, or caused by the falling of a tank, tank platform or supports or against loss or damage from any cause to such sprinklers, pumps, water pipes, plumbing, tanks, apparatus, conduits or containers; insurance against loss or damage from insects, diseases or other causes to trees, crops, or other products of the soil.

      (g) Other Fire and Marine Risks.  Insurance against any other property risk not otherwise specified under classes 1 or 2, which may lawfully be the subject of insurance and may properly be classified under class 3.

Marine and transportation

Vehicle

Property damage, sprinkler leakage and crop

Other fire and marine risks

Contingent losses

Classes of companies

Foreign companies, proviso

Scope of article

Name

Principal office and place of business

Authorized kinds of business

or 2, which may lawfully be the subject of insurance and may properly be classified under class 3.

      (h) Contingent Losses.  Contingent, consequential, and indirect coverages wherein the proximate cause of the loss is attributable to any of the causes enumerated under class 3. Such coverages shall, for the purposes of classification, be included in the specific grouping of the kinds of insurance wherein such cause is specified.

      Sec. 6.  Classes of Companies.  (1) All companies now or hereafter authorized to transact business in this state shall be classified according to their functions into three (3) classes corresponding to the classes of insurance enumerated in section 5.

      (2) No company shall be authorized to transact any kind or kinds of business other than those enumerated in its respective class, except as otherwise specifically provided in this act; provided, that any foreign insurance company which has been licensed to do the business of life insurance in this state prior to the effective date of this act may continue to be licensed, in the discretion of the commissioner, to do the kind or kinds of insurance business which it was authorized to do immediately prior to the taking effect of this act.

      (3) All insurance in this state is governed by the provisions of this act.

ARTICLE 2

Domestic Companies

      Sec. 7.  Scope of Article.  This article shall apply to all domestic companies, either stock or mutual, transacting or being organized to transact any of the kinds of insurance business enumerated in section 5.

      Sec. 8.  Name.  The corporate name of any company organized under this article shall not be the same as, or deceptively similar to, the name of any domestic company, or of any foreign or alien company authorized to transact business in this state.

      Sec. 9.  Principal Office and Place of Business.  The principal office and principal place of business of any company organized under this article shall be located in this state.

      Sec. 10.  Authorized Kinds of Business.  Companies may be organized under this article either for the purpose of transacting any of the kind or kinds of business enumerated in class 1 of section 5; or for the purpose of transacting any of the kind or kinds of business enumerated in classes 2 or 3 of said section.

      Sec. 11.  Meaning of “Insurance Contract,” and “Doing an Insurance Business.”  (1) The term “insurance contract,” as used in this act, shall, except as provided in subsection 2, be deemed to include any agreement or other transaction whereby one party, herein called the insurer, or company, is obligated to confer benefit of pecuniary value upon another party, herein called the insured or the beneficiary, dependent upon the happening of a fortuitous event in which the insured or beneficiary has, or is expected to have at the time of such happening, a material interest which will be adversely affected by the happening of such event.

as used in this act, shall, except as provided in subsection 2, be deemed to include any agreement or other transaction whereby one party, herein called the insurer, or company, is obligated to confer benefit of pecuniary value upon another party, herein called the insured or the beneficiary, dependent upon the happening of a fortuitous event in which the insured or beneficiary has, or is expected to have at the time of such happening, a material interest which will be adversely affected by the happening of such event. A fortuitous event is any occurrence or failure to occur which is, or is assumed by the parties to be, to a substantial extent beyond the control of either party.

      (2) A contract of guaranty to suretyship is an insurance contract, within the meaning of this act, only if made by a guarantor or surety who or which, as such, is doing an insurance business within the meaning of this act.

      (3) The term, “doing an insurance business,” within the meaning of this act, shall be deemed to include:

      (a) The making, as insurer, or proposition to make as an insurer, of any insurance contract; and

      (b) The making, as guarantor or surety, of any contract of guaranty or suretyship as a vocation and not as merely incidental to any other legitimate business or activity of the guarantor or surety; and

      (c) The doing of any kind of business, including a reinsurance business, specifically recognized as constituting the doing of an insurance business within the meaning of this act; and

      (d) The doing or proposing to do any business in substance equivalent to any of the provisions of this act.

      (4) In the application of this act the fact that no profit is derived from the making of insurance contracts, agreements or transactions, or that no separate or direct consideration is received therefor, shall not be deemed conclusively to show that the making thereof does not constitute the doing of an insurance business.

      Sec. 12.  Incorporation of Stock or Mutual Insurance Companies.  A company, empowered and authorized to do an insurance business in this state, may be organized and licensed in the manner prescribed in this article, and subject to the other requirements of this act. The successive steps shall be as follows:

      (1) The company shall incorporate under the general corporate laws of this state and file its articles in the office of the secretary of state as required by law.

      (2) Upon the execution of the articles of incorporation, there shall be delivered to the commissioner the following documents hereinafter mentioned:

Meaning of insurance contract, and doing an insurance business

Incorporation of stock or mutual insurance companies

Incorporation of stock or mutual insurance companies

      (a) Certified copy of the articles of incorporation;

      (b) A copy of the bylaws adopted by the incorporators;

      (c) Form of subscription agreement to be used by the company if a stock company, or if a mutual company, a form of application for membership proposed to be used in the organization of the company and all of the forms of policies for which subscriptions are to be taken;

      (d) An organization bond or the cash or securities provided for in subsection (3) following.

      (3) The incorporators or duly elected officers shall deliver to the commissioner a bond in favor of the State of Nevada, in the penalty of five thousand ($5,000) dollars, with the incorporators or duly elected officers as principals and a duly authorized surety company as surety. Such bond shall be for the use and benefit of subscribers, shareholders, and creditors, and shall be conditioned upon strict compliance with the provisions of this article and complete accounting for all funds and property coming into the possession of the incorporators or the possession of the company prior to issuance to it of a certificate of authority to do an insurance business.

      (a) In lieu of delivering the above bond, the incorporators or duly elected officers may deposit with the commissioner five thousand ($5,000) dollars in cash or securities of the United States Government or of the State of Nevada, having a market value of at least five thousand ($5,000) dollars. The cash or securities so deposited shall be held in trust by the commissioner until issuance of a license to the company, to indemnify the subscribers, shareholders, and creditors of the company for the complete accounting for all funds and property coming into the possession of the incorporators or officers and upon strict compliance with the provisions of this article.

      (4) If the commissioner finds the documents and papers so delivered comply with the provisions of this article, he shall place on file in his office the bylaws, form of subscription agreement, if a stock company, or application for policies and policy forms, if a mutual company, bond, or securities, and a certified copy of the articles of incorporation. The company then shall have the powers enumerated in subsection (5).

      (5) (a) A stock company shall have the power to open books, to receive subscriptions to its capital stock, to keep them open until the whole of such stocks, or so much thereof as may be necessary to satisfy the minimum capital requirements, has been subscribed for, to receive payments for such subscriptions to the capital stock, or to invest the moneys in the manner prescribed in this act and to expend money or to incur liabilities necessary or proper as organization expenses, to be paid out of the proceeds of subscriptions to capital stock, such expenses not to exceed the maximum amount prescribed in the permit hereinafter mentioned.

expenses, to be paid out of the proceeds of subscriptions to capital stock, such expenses not to exceed the maximum amount prescribed in the permit hereinafter mentioned.

      The company shall not solicit subscriptions to its capital stock until it has received a permit therefor from the commissioner. Such permit shall be issued on the following conditions:

      The company shall have submitted an estimate for the total amount to be expended for organization expenses, and the commissioner shall have approved the same. Such estimates shall be recited in the permit; it shall also fix the maximum amount which may be expended for organization expenses which shall in no event exceed twenty (20%) percent of the total amount paid in subscriptions.

      Such permit shall recite in bold type that the issuance thereof is permissive only and does not constitute a recommendation or endorsement of the securities permitted to be issued. Such permit shall expire at the end of two (2) years from its date.

      That the commissioner is satisfied, by such evidence as he may require or by such examination as he may deem expedient, that the company will hold in trust in some bank or trust company in this state all funds or securities received, less the amount allowed for organization expense. Such funds or securities shall not be withdrawn until the company has completed its organization and arranged for the deposit required by this article, or in the event that organization has not been completed within the time prescribed in this article, arrange to return the cash or securities received in payment, less the amount actually used for expenses within the limit prescribed in the permit issued, to the subscribers who have made such payment.

      Such company shall not enter into a contract with any person, firm, association, or corporation to act as agent or broker for the sale of its securities to the public unless such person, firm, association, or corporation obtain a permit from the commissioner to sell such securities subject to the provisions of this section.

      (b) A mutual company shall have the power to receive such moneys as are necessary to comply with the requirements of this article relative to the initial surplus fund of such a company and to borrow such money in accordance with the provisions of section 18, to open books to receive applications for insurance in such company from persons desiring and eligible to become members thereof, to keep them open until the minimum number and amount of such applications, together with the premium payments thereon as required by the provisions of this article, have been received, to invest the money so received in the manner prescribed in this act for the investment of the minimum surplus of a mutual insurance company, and to expend money or incur liabilities necessary or proper as organization expenses, such expenses not to exceed the maximum amount prescribed in the permit hereinafter mentioned.

Incorporation of stock or mutual insurance companies

Incorporation of stock or mutual insurance companies

prescribed in this act for the investment of the minimum surplus of a mutual insurance company, and to expend money or incur liabilities necessary or proper as organization expenses, such expenses not to exceed the maximum amount prescribed in the permit hereinafter mentioned.

      The company shall not solicit applications for insurance or receive premium payments thereon until it has received a permit therefor from the commissioner. Such permit shall be issued on the following conditions:

      If the commissioner is satisfied by such evidence as he may require or by such examination as he may deem expedient, that the company will hold in trust for prospective policyholders a fund in cash or securities acceptable to him, at least equal at all times to the amount received in premiums collected on applications for policies.

      The company shall agree to return all premiums received to the applicants who have made such payments in the event organization is not completed within the time prescribed in this article.

      The company shall have submitted an estimate for the total amount to be expended for organization expenses and the commissioner shall have approved the same. Such estimate shall be recited in the permit, which shall also fix the maximum amount which may be expended for organization expenses which in no event shall exceed twenty (20%) percent of the total amount paid in subscriptions. Such permit shall expire at the end of one (1) year from its date.

      (6) Before licensing any such company to do any insurance business the commissioner shall cause an examination to be made into the affairs of such company in accordance with the provisions of this act; and if it shall appear from the report upon such examination that the company has complied with all of the provisions required by law he shall file such report in his office and notify the company thereof. If the commissioner finds that any of the provisions of law have not been complied with he shall notify the company in what respect they have not complied with the law and if requested so to do shall grant the company a hearing.

      (7) The company upon receiving notice from the commissioner that it has complied with the foregoing requirements, shall thereupon deposit with the commissioner such moneys or securities as may be required by law.

      (8) Upon compliance with the foregoing and any other lawful prerequisite for the issuance of an insurer’s license, the commissioner shall issue a license to such company to do the kind or kinds of business specified in section 5.

      Sec. 13.  Minimum Capital and Surplus Requirements.  (1) A stock company organized under this article shall have and at all times maintain a paid-up capital of the amount set forth in its articles of incorporation, which amount shall not be less than the minimum capital requirement applicable to the class and clause or clauses of section 5 describing the kind or kinds of insurance which it is authorized to write, as set forth in the following table:

set forth in its articles of incorporation, which amount shall not be less than the minimum capital requirement applicable to the class and clause or clauses of section 5 describing the kind or kinds of insurance which it is authorized to write, as set forth in the following table:

Life, Accident, and Health

      (a) Class 1 (a) or (b) one hundred thousand ($100,000) dollars.

      (b) Class 1 (a) and (b) one hundred twenty-five thousand ($125,000) dollars.

Casualty, Fidelity, and Surety.

      (c) Class 2, all clauses except (f) and (j), one hundred thousand ($100,000) dollars.

      (d) Class 2, (f) or (j), one hundred thousand ($100,000) dollars.

      (e) Class 2 (c) and (j), one hundred thousand ($100,000) dollars.

      (f) Class 2, all clauses, two hundred thousand ($200,000) dollars.

Fire and Marine

      (g) Any or all clauses, one hundred thousand ($100,000) dollars.

      (2) A company in addition to the minimum capital required by subsection (1) shall have at the time of the issuance to it of a license, a paid-in surplus of not less than fifty (50%) percent of its required minimum capital.

      (3) No mutual company organized under this article shall receive a license from the commissioner to issue policies or contracts of insurance until it has complied with the following requirements in respect of original surplus and applications for insurance applicable to the class and clause or clauses of section 5, describing the kind or kinds of insurance it is organized to write, as set forth in the following table:

Life, Accident, and Health

      Class 1(a) and/or (b), bona fide applications, upon which there shall have been paid in cash by each applicant at least one-half (1/2) of the annual premium on the policy applied for, of at least two hundred fifty (250) members who are residents of this state for a death benefit for each member of not less than one thousand ($1,000) dollars if life insurance, or for an accident and health benefit of not less than ten ($10) dollars per week if accident and health insurance and a surplus of ten thousand ($10,000) dollars.

Casualty, Fidelity, and Surety

      Classes 2 (c) or (d) or (e) or (g) or (h), bona fide applications of at least twenty (20) members for the insurance of at least two hundred (200) risks located in this state upon which there shall have been paid in cash by each applicant at least one-half (1/2) of the annual premium on the policy applied for, and a surplus of twenty-five thousand ($25,000) dollars, or in lieu of these requirements, a surplus of one hundred thousand ($100,000) dollars.

Minimum capital and surplus requirements

Life, accident, and health

Casualty, fidelity, and surety

Fire and marine

Deposit

at least two hundred (200) risks located in this state upon which there shall have been paid in cash by each applicant at least one-half (1/2) of the annual premium on the policy applied for, and a surplus of twenty-five thousand ($25,000) dollars, or in lieu of these requirements, a surplus of one hundred thousand ($100,000) dollars.

      Class 2 (a), bona fide applications, upon which there shall have been paid in cash by each applicant at least one-half (1/2) of the annual premium on the policy applied for, from at least two hundred fifty (250) members who are residents of this state, and a surplus of ten thousand ($10,000) dollars.

      Class 2 (b), bona fide applications for insurance from at least forty (40) members for the insurance of at least four hundred (400) risks, upon which there shall have been paid in cash by each applicant at least one-half (1/2) of the annual premium on the policy applied for, and a surplus of at least fifty thousand ($50,000) dollars, or in lieu of these requirements, a surplus of at least one hundred thousand ($100,000) dollars.

      Class 2 (f), surplus of at least one hundred thousand ($100,000) dollars.

      Class 2 (j), bona fide applications for insurance from at least forty (40) members, upon which there shall have been paid in cash by each applicant at least one-half (1/2) of the annual premium on the policy applied for, and a surplus of at least fifty thousand ($50,000) dollars, or in lieu of these requirements, a surplus of at least one hundred thousand ($100,000) dollars.

      Class 2, more than one clause, the combined requirements applicable to all clauses describing kinds of insurance it is organized to write, or in lieu of these requirements a surplus of at least two hundred thousand ($200,000) dollars.

Fire and Marine

      Class 3, any or all clauses, bona fide applications for insurance covering not less than two hundred fifty (250) separate risks and not less than twenty-five (25) policies to be issued to not less than twenty-five (25) members, upon which there shall have been paid in cash by each applicant at least one-half (1/2) of the annual premium on the policy applied for, and a surplus of fifteen thousand ($15,000) dollars, or in lieu of these requirements, a surplus of one hundred thousand ($100,000) dollars.

      Sec. 14.  Deposit.  (1) In the case of a stock company a deposit of cash or securities which are authorized investments under section 51, in an amount equal to the minimum capital required by section 13, shall be made and maintained with the commissioner for the protection of all policyholders or policyholders and creditors of the company.

      (2) In the case of a mutual company a deposit of cash or securities which are authorized investments under section 51 shall be made and maintained with the commissioner for the protection of all policyholders and creditors of the company as follows:

      (a) In the case of a mutual legal reserve life company authorized to write either or both of the kinds of insurance described in clauses (a) or (b) of class 1 of section 5, ten thousand ($10,000) dollars.

      (b) In the case of a company authorized to write the kinds of insurance described in classes 2 or 3 of section 5, ten thousand ($10,000) dollars for each class.

      Sec. 15.  Dividends.  The board of directors of any company subject to the provisions of this article may declare and pay dividends subject to the following provisions:

      (a) No dividend shall be declared or paid at a time when the surplus of the company is less than the minimum original surplus required for the kind or kinds of business authorized to be transacted by such company, nor when the payment of such dividend would reduce its surplus to less than such minimum.

      Sec. 16.  Dealing in Shares of Company.  A stock company subject to the provisions of this article shall not purchase or acquire its own shares except for any of the following purposes:

      (a) Eliminating fractional shares;

      (b) Collecting or compromising claims of the company or securing any indebtedness to the company previously incurred;

      (c) Furthering a general savings and investment plan for employees of the company.

      Sec. 17.  Contingent Liability Policy Provisions for Mutual Companies.  (1) In cases where contingent liability of members is provided for, the provision therefor shall be plainly stated in each policy in type which shall not be smaller than ten (10) point. If a mutual company other than life shall have a surplus equal to the minimum capital and surplus required in section 13, for a stock company transacting the same kind or kinds of business, such company may issue policies without contingent liability. Any such mutual company which shall have issued policies without contingent liability after the acquisition of such surplus may continue to do so as long as it maintains a surplus equal to the capital of a stock company doing the same kind or kinds of business, but no company shall issue such policies except during such time as it shall continue to have such a surplus.

      (2) Issuance of policies without contingent liability shall be subject to the approval of the commissioner, who shall approve such policies when he has determined from the latest annual statement of such company that the surplus required by this section has been accumulated and such company has complied with the conditions set forth in this section.

Deposit

Dividends

Dealing in shares of company

Contingent liability policy provisions for mutual companies

Contingent liability for borrowings

Increase of capital of stock companies

Voluntary surrender of the articles of incorporation

annual statement of such company that the surplus required by this section has been accumulated and such company has complied with the conditions set forth in this section.

      Sec. 18.  Contingent Liability for Borrowings.  Any mutual or cooperative insurance company may, without pledging any of its assets, receive advances or borrow funds necessary for the purpose of its business or to enable it to comply with any surplus requirement or to make good any impairment or deficiency or other requirement of this article, or to defray the reasonable expenses of its organization, or to provide any fund to be voluntarily contributed to surplus, upon an agreement that such moneys and such interest thereon as may be agreed upon, not exceeding six (6%) percent per annum, shall be repaid only out of free and divisible surplus of such company with the approval of the commissioner whenever, in his judgment, the financial condition of such company warrants it. Any such sum or sums so advanced or so borrowed shall not form a part of the legal liabilities of such company and shall not be a basis of any set-off; but until repaid all statements published by such insurer or filed with the commissioner shall show, as a footnote thereto, the amount thereof then remaining unpaid.

      Sec. 19.  Increase of Capital of Stock Companies.  Upon the approval by the commissioner of any amendment to the articles of incorporation, providing for an increase in the capital of the company through the issuance and sale of additional shares, the commissioner shall issue a permit to the company authorizing it to solicit subscriptions for the additional shares. Said permit shall expire at the end of one (1) year from its date. All of the provisions of this act relative to the filing, terms, and effect of subscription agreements, payment for shares, the limitation of expenses, filing of bonds, holding in trust of funds received, return of funds in the event the payment for all of the additional shares is not completed, and qualification or registration shall apply to the same extent and effect as if the additional shares were shares representing the original capital of a company being organized under this article; and if the subscription agreement provides for payment in installments such installments shall not extend beyond one (1) year from the date of the permit of the commissioner.

      Sec. 20.  Voluntary Surrender of the Articles of Incorporation.  At any time prior to the issuance of a license to any company the articles of incorporation may be voluntarily surrendered and the company dissolved by written agreement filed with the commissioner, signed by a majority of the incorporators, and by subscribers representing at least two-thirds (2/3) of the shares or policies subscribed. Such surrender and dissolution shall become effective only upon the approval thereof by the commissioner.

approval thereof by the commissioner. The commissioner shall approve the surrender of such articles of incorporation if upon investigation he shall find that:

      (a) No insurance business has been transacted by the company; and

      (b) All sums of money or securities, if any, collected upon subscriptions, have been returned to the subscribers except the part thereof actually used for expenses within the limits prescribed in the subscription agreements; and

      (c) All obligations of the company have been paid or discharged.

      Sec. 21.  Life Insurance Companies to Maintain Legal Reserve.  Any company organized under this article and authorized to write any of the kind or kinds of insurance prescribed in clause (a) of class 1, section 5, shall maintain a reserve for each policy outstanding as specified in article 11.

      Sec. 22.  Procedure When Insufficient Assets Possessed by Company.  (1) Whenever the commissioner shall find from the financial statement made by any stock company subject to the provisions of this article or from a report of examination of any such company that the admitted assets of a stock company subject to the provisions of this article are less than the minimum capital required of such company by law and all other liabilities, he shall give written notice to the company of the amount of such impairment and shall require that the impairment be made good within such period, which shall be not less than thirty (30) nor more than ninety (90) days from the date of such notice, as he may designate. If such impairment of assets does not amount to more than ten (10) percent of the capital stock, and the commissioner is satisfied such impairment might be made good by an extension of time, the commissioner may extend the time limit to a period of not to exceed one (1) year. The commissioner shall have power to make such restriction of operations as he may deem necessary while the impairment exists.

      (2) Whenever the commissioner shall find, from a financial statement made by any mutual company subject to the provisions of this article or from a report on examination of any such company, that the admitted assets of such company are less than the aggregate of (a) its liabilities and (b) the initial minimum surplus required by section 13, he shall notify the company in writing of the amount of such deficit and require that such deficit shall be made good within such period, which shall not be less than thirty (30) nor more than ninety (90) days, as he may designate. The commissioner shall have power by service of written notice to require the company to discontinue the issuance of new policies, or make such provisions for impoundment of premium income on new policies as he may deem necessary, while such deficit exists.

Life insurance companies to maintain legal reserve

Procedure when insufficient assets possessed by company

Procedure when insufficient assets possessed by company

Companies that may be admitted to do business

exists. If the contracts issued by the company contain a provision for a contingent liability, the commissioner shall order the board of directors or trustees of the company to levy an assessment for the purpose of supplying such deficiency, against each member in accordance with the terms of his policy and only on account of losses and expenses incurred while his policy was in force. If the commissioner finds that the company will make good the deficit or a part thereof from sources other than an assessment, he may permit a reduction in the amount of the assessment to the extent of the sum so to be obtained. No member shall be liable for an assessment unless notified of the company’s claim therefor within one (1) year after the termination of the policy whether by expiration, cancelation, or otherwise.

      If such deficit does not exceed ten (10%) percent of the aggregate sum of its liabilities and the minimum initial surplus required by section 13, and the commissioner is satisfied that such deficit can be replaced within a reasonable time, he may extend the ninety (90) day period of grace provided herein to a period of not to exceed one (1) year, subject to such restrictions as to operating as he deems necessary.

      (3) If policies containing provisions for a contingent liability are outstanding, and the company fails to levy an assessment within twenty (20) days from the date of such order, or if such deficiency is not repaired within the period specified in the commissioner’s notice, the company shall be deemed insolvent and the commissioner may cancel such company’s certificate of authority and shall proceed against it in accordance with article 9.

      (4) If, while such deficit exists, any officer, director, or trustee of the company delivers, or knowingly permits a new policy to be delivered, either after notice is given by the commissioner to discontinue the issuance of new policies or after the expiration of the period within which such deficit is to be made good, such officer, director, or trustee shall be fined not less than two hundred ($200) dollars and not more than five thousand ($5,000) dollars for each offense.

ARTICLE 3

Foreign or Alien Companies

      Sec. 23.  Companies That May Be Admitted to Do Business.  (1) Upon complying with the provisions of this article, a foreign or alien company domiciled in any other state shall be permitted to enter this state; provided, that the qualifications for their admittance to do business in this state shall be equal to the present existing capital and/or surplus qualifications for a similar company entering the state in which such company is domiciled; and provided further, that the capital and/or surplus requirements of such company desiring to enter this state shall be at least equal to the capital and/or surplus requirements, if any, for similarly organized domestic companies under this act; and provided further, that a nonprofit hospital association may be admitted subject to the provisions of this act upon statement from the proper state official that such hospital association has properly qualified under the laws of its state of domicile.

capital and/or surplus requirements of such company desiring to enter this state shall be at least equal to the capital and/or surplus requirements, if any, for similarly organized domestic companies under this act; and provided further, that a nonprofit hospital association may be admitted subject to the provisions of this act upon statement from the proper state official that such hospital association has properly qualified under the laws of its state of domicile.

      (2) No company not incorporated in the United States shall be permitted to transact an insurance business in this state unless the same shall have deposited or invested for the benefit of its policyholders or policyholders and creditors in the United States, in at least one (1) state, the sum equal to two hundred thousand ($200,000) dollars, in excess of its liabilities in the United States.

      (3) No foreign or alien company shall transact in this state any insurance business not classified under section 5.

      Sec. 24.  Application for License.  (1) A foreign or alien company in order to procure a license to transact business in this state shall make application therefor to the commissioner. The application shall set forth:

      (a) The name of the company, and the state or country under the laws of which it is organized or authorized;

      (b) The title of the act under or by which it was incorporated or organized, the date of its incorporation or organization, and, if a corporation, the period of its duration;

      (c) The class or classes of insurance business, as provided in section 5, in which it proposes to engage in this state, and the kinds of insurance in each class it proposes to write in this state;

      (d) Such additional information as the commissioner may require to enable him to determine whether such company is entitled to a license to transact business in this State, and to determine and assess the taxes, fees, and charges payable as in this act prescribed.

      (2) Such application shall be made on forms prescribed and furnished by the commissioner and shall be executed by the company by its president or a vice president or executive officer corresponding thereto, and verified by such officer, and if a corporation, the corporate seal shall be thereto affixed, attested by its secretary or other proper officer.

      Sec. 25.  Delivery to Commissioner of Application and Documents.  There shall be delivered to the commissioner

      (a) The application of the company for a license;

      (b) The instrument authorizing service of process on the commissioner required by section 27;

      (c) A statement of its financial condition and business as of the end of the preceding calendar year complying as to form, content, and verification with the requirements of this act for annual statements, or a financial statement as of such later date as the commissioner may require;

Application for license