[Rev. 2/27/2019 2:01:21 PM]
κ1987 Statutes of Nevada, Page 1953 (CHAPTER 758, SB 284)κ
Sec. 221. NRS 671.110 is hereby amended to read as follows:
671.110 1. In lieu of any surety bond, or any portion of the principal sum thereof as required by this chapter, a licensee may deposit with the state treasurer or with any bank or trust company authorized to do business in this state as the licensee may select, with the approval of the [administrator:] commissioner:
(a) Interest-bearing stocks;
(b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or
(c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state or guaranteed by this state,
in an aggregate amount of, based upon principal amount or market value, whichever is lower, of not less than the amount of the required surety bond or portion thereof.
2. The securities must be held to secure the same obligation as would the surety bond, but the depositor may receive any interest or dividends and, with the approval of the [administrator,] commissioner, substitute other suitable securities for those deposited.
Sec. 222. NRS 671.120 is hereby amended to read as follows:
671.120 1. Except as provided in subsection 4, once each year the [administrator] commissioner shall examine the financial accounts of each licensee and any other documents relevant to the conduct of the licensees business, and the [administrator] commissioner may conduct [such] examinations at additional times.
2. For the purpose of the examinations, the [administrator] commissioner may enter upon any of the business premises of a licensee or his agents and obtain access to the relevant documents. Any obstruction or denial of [such an] that entry or access is a violation of this chapter.
3. For each examination the [administrator] commissioner shall charge and collect from the licensee a reasonable fee for each man-hour expended in conducting the examination and in preparing and typing the report.
4. The [administrator] commissioner may accept a report of an audit of the licensee which covers the most recent fiscal year in lieu of conducting an examination.
Sec. 223. NRS 671.150 is hereby amended to read as follows:
671.150 1. All money or credits received by an agent of a licensee from the sale and issuance of checks or for the purpose of transmission must be remitted to the licensee or deposited with a bank authorized to do business in this state for credit to an account of the licensee not later than the third business day following its receipt.
2. [Funds] Money received from the sale or issuance of checks or for the purpose of transmission must not be commingled with the other assets of the licensee or his agents.
3. If a license is suspended or terminated, the licensee shall immediately deposit in an account in the name of the [administrator,] commissioner, an amount which is sufficient to make the total [funds] money in the account equal to all outstanding checks in the State of Nevada sold or issued and money or credits received but not transmitted.
κ1987 Statutes of Nevada, Page 1954 (CHAPTER 758, SB 284)κ
amount which is sufficient to make the total [funds] money in the account equal to all outstanding checks in the State of Nevada sold or issued and money or credits received but not transmitted.
4. Each licensee shall at all times maintain liquid assets, government or municipal securities or other marketable securities having a value, computed in accordance with generally accepted accounting principles, equal to or more than the aggregate liability of the licensee with respect to checks sold and issued and money or credits received for transmission.
Sec. 224. NRS 671.160 is hereby amended to read as follows:
671.160 1. Within 5 days after a discontinuance of a licensees business, he shall inform the [administrator] commissioner of the discontinuance and shall surrender his license for cancellation.
2. If, as a result of any investigation, hearing, report or examination, the [administrator] commissioner finds that a licensee is insolvent or is conducting his business in such a manner as to render his further operations hazardous to the public, the [administrator] commissioner may, through an order served by registered or certified mail upon the licensee and any person possessing [funds] money of the licensee or his customers, require the immediate discontinuance of the disbursement of the [funds] money and the cessation of the licensees business. The order remains in effect until:
(a) It is set aside, in whole or in part, by the [administrator;] commissioner;
(b) The licensee has been adjudged a bankrupt; or
(c) A receiver for the licensee has been appointed by a court of competent jurisdiction.
3. If a court does not have jurisdiction over the licensee, the [administrator] commissioner may take possession of the licensees business and property until the licensee complies with the requirements of the [administrator] commissioner for resumption of business or the licensees affairs are finally liquidated.
4. Whenever the [administrator] commissioner takes possession of a licensees business and property, the [administrator] commissioner may petition the court for appointment of a receiver to liquidate the affairs of the licensee.
Sec. 225. NRS 671.170 is hereby amended to read as follows:
671.170 1. The [administrator] commissioner may conduct any necessary investigations and hearings to determine whether any licensee or other person has violated any of the provisions of this chapter or whether any licensee has conducted himself in a manner which requires the suspension, revocation or denial of renewal of his license.
2. In conducting any investigation or hearing pursuant to this chapter, the [administrator,] commissioner, or any person designated by him, may require the attendance and testimony of any person and compel the production of all relevant books, records, accounts and other documents. The cost of any examination or investigation, not to exceed $10 an hour, must be borne by the licensee.
κ1987 Statutes of Nevada, Page 1955 (CHAPTER 758, SB 284)κ
3. The [administrator] commissioner may require any licensee to submit such reports concerning his business as the [administrator] commissioner deems necessary for the enforcement of this chapter.
4. All reports of investigations and examinations and other reports rendered pursuant to this section, and all correspondence and memoranda relating to or arising therefrom, including any authenticated copies thereof in the possession of any licensee or the [administrator,] commissioner, are confidential communications, are not subject to any subpena, and must not be made public unless the [administrator] commissioner determines that justice and the public advantage will be served by their publication. This subsection does not preclude any party to an administrative or judicial proceeding from introducing into evidence any information or document otherwise available or admissible.
Sec. 226. NRS 671.180 is hereby amended to read as follows:
671.180 1. If the [administrator] commissioner has reason to believe that grounds exist for the suspension, revocation or denial of renewal of a license, he shall give 10 days written notice to the licensee, stating the grounds therefor, and shall set a date for a hearing, if a hearing is requested by the licensee. If the protection of the public so requires, the [administrator] commissioner may suspend the license at any time before the hearing.
2. At the conclusion of the hearing, the [administrator] commissioner shall enter a written order either dismissing the charges or suspending, revoking or denying the renewal of the license. The order must include a statement of the grounds for the action taken by the [administrator] commissioner and becomes effective 10 days after receipt of a copy of the order by the licensee at his principal place of business. The [administrator] commissioner may immediately suspend, revoke or deny the renewal of the license in a case where the licensee has failed to maintain in effect the required surety bond or insurance policy.
3. The grounds for suspension, revocation or denial of renewal of a license are:
(a) Failure to pay the annual license fee;
(b) Failure to maintain in effect the required bond or securities;
(c) Fraud, misrepresentation or omission of any material fact in any application, statement or report;
(d) Failure to pay any judgment arising from the licensees business within 30 days after the judgment becomes final or within 30 days after the expiration of a stay of execution on the judgment; or
(e) Violation of any provision of this chapter or any regulation adopted or order issued by the [administrator] commissioner pursuant to this chapter.
4. Any action taken by the [administrator] commissioner pursuant to this section is subject to judicial review in the first judicial district court.
Sec. 227. NRS 671.190 is hereby amended to read as follows:
671.190 1. Any person who:
(a) Violates any provision of this chapter, or any regulation adopted or order issued by the [administrator] commissioner pursuant to this chapter;
κ1987 Statutes of Nevada, Page 1956 (CHAPTER 758, SB 284)κ
(b) Knowingly makes any false or misleading statement of a material fact in any application, statement or report filed pursuant to this chapter;
(c) Knowingly omits to state any material fact necessary to provide the [administrator] commissioner with information lawfully required by him; or
(d) Refuses to permit or obstructs any lawful investigation, examination, entry or access by the [administrator,] commissioner,
is guilty of a misdemeanor.
2. Each day during which a violation continues constitutes a separate offense.
3. The imposition of any fine or term of imprisonment pursuant to subsection 1:
(a) Is in addition to any suspension, revocation or denial of renewal of a license which may result from the violation.
(b) Is not a bar to enforcement of this chapter by an injunction or other appropriate civil remedy.
Sec. 228. Chapter 673 of NRS is hereby amended by adding thereto a new section to read as follows:
Commissioner means the commissioner of financial institutions.
Sec. 229. NRS 673.001 is hereby amended to read as follows:
673.001 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS [673.0015] 673.002 to 673.034, inclusive, and section 228 of this act, have the meanings ascribed to them in those sections.
Sec. 230. NRS 673.0321 is hereby amended to read as follows:
673.0321 Service office means any office or other place of business in this state operated by one or more savings and loan associations other than the principal office or a branch of an association, where activities are confined to processing and storing data and records, accounting, printing, storing of supplies, and such other activities as the [administrator] commissioner approves which involve no personal contact with the public. At a service office, payment on account of savings or loan may be processed, but the association shall have all payments which are initially received at a service office, rather than at the principal office or branch of the association, made by mail only and directed to a post office box and not to the address or location of the service office. The [administrator] commissioner may require that an associations name not be displayed at or near a service office.
Sec. 231. NRS 673.035 is hereby amended to read as follows:
673.035 The [administrator] commissioner shall administer the provisions of this chapter, subject to administrative supervision by the director. He shall make the decisions, determinations and enter the consents and orders necessary or reasonably appropriate to accomplish the purposes of this chapter.
Sec. 232. NRS 673.039 is hereby amended to read as follows:
673.039 The [administrator] commissioner shall:
1. Keep in his office:
κ1987 Statutes of Nevada, Page 1957 (CHAPTER 758, SB 284)κ
(a) For no less than 5 years, every report made by an association.
(b) The original application of every association in a permanent file.
(c) Other administrative documents in the manner provided by law or by appropriate regulations.
2. Provide a complete stenographic record of every hearing and proceeding conducted by his office and maintain, for no less than 5 years, a transcript of [such] the hearing or proceeding, together with any regulation, order, decision, determination or consent entered in connection with [such] the hearing or proceeding.
Sec. 233. NRS 673.040 is hereby amended to read as follows:
673.040 The [administrator] commissioner shall supervise and make all policy with regard to all foreign and domestic associations, companies and corporations governed by this chapter and doing business in this state.
Sec. 234. NRS 673.042 is hereby amended to read as follows:
673.042 1. The [administrator] commissioner shall, before September 1 of each even-numbered year for the biennium ending June 30 of [such] that year, report to the governor. The report must:
(a) Show the condition of all associations reporting to or examined by the [administrator.] commissioner.
(b) Be accompanied by a detailed statement of all money received by the [administrator] commissioner since his last report and the disposition of that money.
2. Copies of the reports must be furnished to each association or company licensed under the provisions of this chapter.
Sec. 235. NRS 673.043 is hereby amended to read as follows:
673.043 1. The [administrator may establish] commissioner may adopt such regulations as may be reasonable or necessary to carry out the purposes of this chapter.
2. [Such] The regulations as originally drafted, and as amended from time to time, must be printed and distributed by the [administrator] commissioner to all associations, and [becomes] become effective not earlier than 30 days from the date of issuance, but before [such] the regulations become effective and within [such] that 30-day period any association may appeal to the director as to the reasonableness and necessity of any of or all of [such] the regulations.
Sec. 236. NRS 673.0435 is hereby amended to read as follows:
673.0435 The [administrator] commissioner may cause appropriate legal action to be taken in the district court of any county to secure an injunction or order restraining a violation of any provision of this chapter.
Sec. 237. NRS 673.044 is hereby amended to read as follows:
673.044 All notices must be in writing. All notices issued or required to be issued by the [administrator] commissioner must be sent by registered or certified mail and become effective upon their deposit in the mails.
Sec. 238. NRS 673.045 is hereby amended to read as follows:
673.045 The [administrator] commissioner may, for reasonable cause and upon 15 days notice, amend or alter any license issued by him, but the association may appeal the order of the [administrator] commissioner in the manner provided in this chapter.
κ1987 Statutes of Nevada, Page 1958 (CHAPTER 758, SB 284)κ
association may appeal the order of the [administrator] commissioner in the manner provided in this chapter.
Sec. 239. NRS 673.050 is hereby amended to read as follows:
673.050 A person affected by any order, ruling, proceeding, act or action of the [administrator] commissioner or any person acting on his behalf and at his instance, or the director or any person acting on his behalf and at his instance, may test the validity of the action in any court of competent jurisdiction through injunction, appeal, error or other proper process or proceeding, mandatory or otherwise.
Sec. 240. NRS 673.080 is hereby amended to read as follows:
673.080 1. The secretary of state shall not issue any certificate to an association or company authorizing it to do business until the articles of association, agreement or incorporation are approved by the [administrator.] commissioner.
2. No amendment to the articles of the organization may be filed by the secretary of state without the written approval of the articles by the [administrator.] commissioner.
3. No association may sell, offer for sale, negotiate for the sale of, take subscriptions for, or issue any of its common or preferred stock until it has first applied for and secured from the [administrator] commissioner approval of an application for permission to organize as provided for in this section.
4. Persons who desire to organize an association under this chapter shall first execute in triplicate an application, in the form prescribed by the [administrator,] commissioner, for permission to organize an association before taking any other action in connection with the organization. Upon execution of an application for permission to organize by seven responsible citizens, referred to in this section as applicants, the original and two copies of the application must be submitted to the [administrator.] commissioner. The applicants shall submit with their application the names and addresses of the applicants, the location of the proposed office, an itemized account of the financial condition of the proposed association and of the applicants, the amount and character of the proposed stock, statements, exhibits, maps and such additional information as the [administrator] commissioner may require, together with an affidavit that the representations made thereby are consistent with the facts to the best of the applicants information and belief. This data must be sufficiently detailed and comprehensive to enable the [administrator] commissioner to pass upon the application as to:
(a) The character and responsibility of the applicants;
(b) The need for the association in the community to be served;
(c) The reasonable probability of its usefulness and success; and
(d) Whether or not such an association can be established without undue injury to any properly conducted existing savings and loan institutions.
5. If the [administrator] commissioner approves the application he shall, within 30 days, notify all associations within 100 miles of the community where the applicant intends to establish an association. Any association so notified may, within 20 days, protest in writing the granting of the application.
κ1987 Statutes of Nevada, Page 1959 (CHAPTER 758, SB 284)κ
notified may, within 20 days, protest in writing the granting of the application. Within 30 days after receipt by the [administrator] commissioner of the written protest, the [administrator] commissioner shall fix a date for a hearing upon the protest, and the hearing must be held not earlier than 30 days nor more than 60 days from the date of receipt of written notice by registered or certified mail by the parties. The [administrator] commissioner shall approve or deny the application within 90 days from the date of the conclusion of the hearing and give all parties written notice of his decision on or before that date.
6. If the [administrator] commissioner approves the application, he shall establish as conditions to be met before the issuance of a charter requirements as to:
(a) The minimum number of shares of common or preferred stock to be subscribed to the associations permanent capital;
(b) The minimum amount of paid-in surplus;
(c) The minimum amount of investment certificates to be paid into the associations savings accounts upon issuance of a charter to it; and
(d) Such other requirements as he deems necessary or desirable.
At least 75 percent of the capital must be subscribed by bona fide residents of this state or a depository institution or holding company qualified pursuant to NRS 666.225 to 666.385, inclusive. Approval of an application for permission to organize an association does not in any manner obligate the [administrator] commissioner to issue a charter, except that when all requirements of this chapter and of the [administrator] commissioner have been fulfilled, he shall issue a charter.
7. The charter expires 180 days after issuance, unless, within that time, the association has obtained insurance of accounts from the Federal Savings and Loan Insurance Corporation. The [administrator] commissioner may, for good cause, extend the time of the conditional expiration of the charter for an additional period or periods not exceeding 360 days in the aggregate.
8. An association shall not sell or issue any of its permanent stock until it has first applied for and secured from the [administrator] commissioner a license authorizing it to operate as a savings and loan association under the laws of this state and until it has applied for and secured insurance of accounts under the regulations of the Federal Savings and Loan Insurance Corporation. This insurance of accounts must be maintained at all times.
9. The [administrator] commissioner may extend the time for any hearing provided for in this section, to the time agreed upon by the parties.
10. The filing fees are:
(a) For filing an original application, $2,000 for the principal office. The applicant shall also pay such additional expenses incurred in the process of investigation as the [administrator] commissioner deems necessary. All money received by the [administrator] commissioner pursuant to this paragraph must be placed in the investigative fund created by NRS 232.285.
(b) If the license is approved for issuance, $1,000 for the principal office before issuance.
κ1987 Statutes of Nevada, Page 1960 (CHAPTER 758, SB 284)κ
11. The [administrator] commissioner may impose conditions requiring the impoundment of proceeds from the sale of any stock, limiting the expense in connection with the sale of stock, and such other conditions as are reasonable and necessary or advisable to insure the disposition of the proceeds from the sale of the stock in the manner and for the purposes provided in the permission to organize.
12. Every permission to organize issued by the [administrator] commissioner must recite in bold type that its issuance is permissive only and does not constitute a recommendation or endorsement of the organization or of the stock permitted to be issued.
13. Any corporation making application under this section or authorized to organize or authorized to establish a savings and loan association shall provide for a minimum par value of its permanent capital stock of at least $1 in its articles of incorporation. Par value of permanent capital stock may not be reduced below $1 without written permission of the [administrator.] commissioner.
14. The removal of the home office or of any branch office of an association to any other location from its then existing location requires prior approval of the [administrator.] commissioner. An application seeking approval must be delivered to the [administrator,] commissioner, together with a fee to cover expenses attendant upon the investigation required for the approval, which must be in an amount, not less than $100, to be determined by the [administrator.] commissioner. All money received by the [administrator] commissioner pursuant to this subsection must be placed in the investigative fund created by NRS 232.285.
15. An association shall not pay any commissions or other compensation for the subscription to or sale of the original issue of its stock.
Sec. 241. NRS 673.110 is hereby amended to read as follows:
673.110 Any domestic association, which has the words savings and loan in its name, may, by filing with the [administrator] commissioner written notice thereof authorized by its board of directors and by complying otherwise with its articles of incorporation, remove the words and loan from its name.
Sec. 242. NRS 673.112 is hereby amended to read as follows:
673.112 1. A branch office is a legally established place of business of an association, other than the home office, which is authorized by the board of directors and approved by the [administrator] commissioner and at which any of the associations business may be conducted.
2. All branch offices are subject to direction from the home office.
3. No association may establish or maintain a branch office without prior written approval of the [administrator.] commissioner. Each application for approval of the establishment and maintenance of a branch office must:
(a) State the proposed location thereof, the need therefor, the functions to be performed therein, the estimated annual expense thereof and the mode of payment therefor.
κ1987 Statutes of Nevada, Page 1961 (CHAPTER 758, SB 284)κ
(b) Be accompanied by a budget of the association for the current semiannual period and for the next succeeding semiannual period, which reflects the estimated additional expense of the maintenance of [such] the branch office.
4. After receipt of an application the [administrator] commissioner shall determine:
(a) Whether the establishment and maintenance of the branch office will unduly injure any properly conducted existing association in the community where the branch office is proposed to be established or in any neighboring community; and
(b) Whether or not the establishment and maintenance of the branch office will serve the public interest.
5. Before issuance of a charter for a branch office, the [administrator] commissioner shall notify all associations doing business within a radius of 100 miles of the principal place of business of the applicant, and within a radius of 100 miles of the proposed branch office. Any association so notified may, within 20 days, protest in writing the granting of the application. Within 30 days after receipt by the [administrator of such] commissioner of a written protest, the [administrator] commissioner shall fix a date for a hearing upon the protest. The hearing must be held not earlier than 60 days nor more than 90 days after the date of receipt of written notice by registered or certified mail by the parties.
6. If the [administrator] commissioner finds that no undue injury is likely to result, that the establishment and maintenance of [such] the branch office is advisable and will serve the public interest, he may approve the application.
7. Approval of an associations application for a branch office charter permits the association to establish an operating office in a temporary or a permanent building, if the building is placed on or erected at the approved location within 12 months after the approval.
8. For good cause and after notice to the association, the [administrator] commissioner may revoke his approval for the maintenance of a branch office. Failure to establish a branch office in the manner and within the time permitted under this section constitutes a good cause for revocation, unless a prior, written request for a waiver of the time limitation is sought by the association and an extension, in writing, is granted by the [administrator.] commissioner.
9. An association which maintains one or more branch offices shall give each branch office a specific designation by name and include in the designation the word branch and shall prominently display the designation at the place of business of the branch. When an association is operating a branch office, all advertising of or by [any such] the branch office must state clearly the location of the principal office of the association.
10. The filing fees are:
(a) For filing an original application, $200 for each branch office. The applicant shall also pay such additional expenses incurred in the process of investigation as the [administrator] commissioner deems necessary.
κ1987 Statutes of Nevada, Page 1962 (CHAPTER 758, SB 284)κ
investigation as the [administrator] commissioner deems necessary. All money received by the [administrator] commissioner pursuant to this subsection must be placed in the investigative fund created by NRS 232.285.
(b) If the license is approved for issuance, $100 for each branch office before issuance.
Sec. 243. NRS 673.113 is hereby amended to read as follows:
673.113 1. Every association shall maintain bond coverage with a bonding company which is acceptable to the [administrator] commissioner and the Federal Savings and Loan Insurance Corporation for an amount to be determined by the [administrator] commissioner not to exceed 5 percent of the total assets of the association, nor for an amount greater than $3,000,000, covering all directors, officers, employees, agents, data processing service firms and all other operating hazards that are normally covered under [such a] the bond. The bond must be in the form known as Standard Form No. 22, its equivalent or some other form which may be acceptable to the Federal Savings and Loan Insurance Corporation and the [administrator.] commissioner. The bond coverage may allow for a deductible amount or provision adopted under Title 12, Code of Federal Regulations, Section 563.19(a), (b) and (c), and under any subsequent amendments thereto.
2. A true copy of the surety bond must be placed in the custody of the [administrator] commissioner and the original maintained in the office of the association at all times.
3. The surety bond must provide that a cancellation thereof, either by the surety company or by the insured, does not become effective until 10 days notice in writing is first given to the [administrator,] commissioner, or unless he earlier approves the cancellation in writing.
4. When requested by the [administrator,] commissioner, the association shall provide a duplicate copy of the invoice showing that the bond premium has been paid or satisfied.
5. The face amount of the surety bond must comply with the requirements of the Federal Savings and Loan Insurance Corporation.
Sec. 244. NRS 673.114 is hereby amended to read as follows:
673.114 1. No association may open, maintain or conduct a service office without approval from the [administrator.] commissioner.
2. For good cause, and after notice to the association, the [administrator] commissioner may revoke his approval for the maintenance of a service office.
Sec. 245. NRS 673.115 is hereby amended to read as follows:
673.115 1. An association shall not issue or publish, or cause or permit to be issued or published, any advertisement that it is doing or is permitted to do any business which is prohibited by law to an association, or which misrepresents the nature of its stock, investment certificates, savings deposits or the right of investors or depositors in respect thereto.
2. An association may set forth in any of its advertisements any of the purposes for which it is organized.
κ1987 Statutes of Nevada, Page 1963 (CHAPTER 758, SB 284)κ
3. An association shall not issue, circulate or publish any advertisement after notice in writing from the [administrator] commissioner that in his opinion the advertisement is unauthorized, false, misleading or likely to deceive the public.
4. An association shall not:
(a) State in any advertisement that it is under state supervision or control.
(b) Include in any advertisement or in any instrument used by it a replica of the great seal of the State of Nevada.
(c) State or imply in any advertisement that [funds] money may be invested with [such] the association at any place other than the principal office or branch of the association.
(d) Use the word deposit or deposits in any form of advertising, unless the use of [such] that word is authorized in the advertising of a federal savings and loan association pursuant to federal law.
5. No association may offer or deliver any gift or premium to any investor or saver of an investment certificate or to any savings depositor in excess of basic cost to the association of $2.50.
Sec. 246. NRS 673.208 is hereby amended to read as follows:
673.208 No person is eligible to serve as a director of an association without the written permission of the [administrator] commissioner if he:
1. Has been adjudicated a bankrupt or has taken the benefit of any assignment for the benefit of creditors or has suffered a judgment recovered against him for a sum of money to remain unsatisfied of record or not safeguarded by supersedeas bond on appeal for a period of more than 3 months.
2. Is a director, officer or employee of any other savings and loan association.
3. Is an officer or employee of a commercial bank in this state.
4. Is not an investor in [such] the association, owning in his own right or in a representative capacity as an executor, administrator, guardian or trustee stock in the association of the par value of at least $1,000, or full-paid investment certificates in the association of the value of at least $1,000. For the purpose of this chapter, a person who owns stock or investment certificates as a joint tenant with one other person shall be deemed to own, in his own right, one-half of [such] the stock or investment certificates.
5. Sells or hypothecates all the stock or investment certificates owned by him, or so much thereof that he ceases to be the owner, free from encumbrances, of the amount of stock or investment certificates required by subsection 4.
Sec. 247. NRS 673.209 is hereby amended to read as follows:
673.209 1. If the [administrator] commissioner notifies the board of directors of any association, in writing, that he has information that any director, officer or employee of the association is failing in the performance of his duties, the board of directors shall meet and consider the matter forthwith. The [administrator] commissioner must have notice of the time and place of [such] the meeting. If the board of directors finds the [administrators] commissioners objection to be well founded, the director, officer or employee shall be removed immediately.
κ1987 Statutes of Nevada, Page 1964 (CHAPTER 758, SB 284)κ
[administrators] commissioners objection to be well founded, the director, officer or employee shall be removed immediately.
Sec. 248. NRS 673.216 is hereby amended to read as follows:
673.216 Every official communication by the [administrator] commissioner directed to the board of directors of an association must be read at the next meeting of the board of directors and made a part of the minutes of [such] the meeting.
Sec. 249. NRS 673.2176 is hereby amended to read as follows:
673.2176 1. An association shall immediately notify the [administrator] commissioner of any change or proposed change in ownership of the associations stock which would result in any person, including a business trust, obtaining 5 percent or more of the associations outstanding capital stock.
2. An application must be submitted to the [administrator,] commissioner, pursuant to NRS 673.080, by a person who acquires:
(a) At least 25 percent of an associations outstanding stock; or
(b) Any outstanding stock of an association if the change will result in a change in the control of the association.
Except as provided in subsection 4, the [administrator] commissioner shall conduct an investigation to determine whether the character and responsibility of the applicant is such as to command the confidence of the community in which the association is located. If the [administrator] commissioner denies the application, he may forbid the applicant from participating in the business of the association.
3. The association with which the applicant is affiliated shall pay such a portion of the cost of the investigation as the [administrator] commissioner requires. All money received by the [administrator] commissioner pursuant to this section must be placed in the investigative fund created by NRS 232.285.
4. A savings and loan association may submit a written request to the [administrator] commissioner to waive an investigation pursuant to subsection 1. The [administrator] commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his employment with a financial institution.
Sec. 250. NRS 673.225 is hereby amended to read as follows:
673.225 1. Notwithstanding any other provision of this chapter, every company, association or corporation licensed under the provisions of this chapter whose accounts are insured by the Federal Savings and Loan Insurance Corporation or its successor, or which is a member of a Federal Home Loan Bank or its successor as an insured association, has the same rights, powers, privileges, immunities and exceptions which are possessed by any federally chartered association unless expressly denied by the [administrator.] commissioner.
2. Whenever additional rights, powers, privileges or exceptions are granted to any federally chartered association, every company, association or corporation licensed under the provisions of this chapter whose accounts are federally insured has those additional rights, powers, privileges or exceptions unless expressly denied by the [administrator.]
κ1987 Statutes of Nevada, Page 1965 (CHAPTER 758, SB 284)κ
federally insured has those additional rights, powers, privileges or exceptions unless expressly denied by the [administrator.] commissioner.
Sec. 251. NRS 673.227 is hereby amended to read as follows:
673.227 1. An association may purchase or lease property for its office buildings or construct its office buildings on property purchased or leased by it, if the total cost of land and improvements does not exceed 70 percent of the sum of the associations capital, surplus and reserves.
2. With the approval of the [administrator,] commissioner, senior capital notes of the Federal Savings and Loan Insurance Corporation may be included in capital for the purposes of this section.
Sec. 252. NRS 673.250 is hereby amended to read as follows:
673.250 1. No association may sell or issue any of its common or preferred stock until it has first applied for and secured from the [administrator] commissioner a license authorizing it so to do as provided in NRS 673.080.
2. Every license must recite in bold type that the issuance of the license is permissive only and does not constitute a recommendation or endorsement of the stock permitted to be issued.
3. Before the sale of, or option to buy, any additional authorized but unissued common or preferred stock, the association must have the written approval of the [administrator.] commissioner.
4. The [administrator] commissioner may impose conditions requiring the impoundment of the proceeds from the sale of any stock, limiting the expense in connection with the sale and such other conditions as are reasonable and necessary or advisable to ensure the disposition of the proceeds from the sale of the stock in the manner and for the purposes provided in the license.
Sec. 253. NRS 673.260 is hereby amended to read as follows:
673.260 1. The license mentioned in NRS 673.250 authorizes the company, association or corporation to whom it is issued to sell its approved securities and contracts within this state for the remainder of the fiscal year ending on June 30 next succeeding. Each license is renewable, under like restrictions, annually thereafter.
2. For the issuing of any license provided for in NRS 673.250 and for any renewal thereof, the fee of the [administrator] commissioner is:
(a) For each home office, $200 plus 15 cents for each $1,000 of total assets of the company, association or corporation as of December 31 of each year.
(b) For each branch office, $100.
3. The fees must accompany the license renewal application. A penalty of 10 percent of the fee payable must be charged for each month or part thereof that the fees are not paid after June 30 of each year.
4. All sums so received by the [administrator] commissioner must be forthwith delivered to the state treasurer and must be paid into the state general fund.
κ1987 Statutes of Nevada, Page 1966 (CHAPTER 758, SB 284)κ
Sec. 254. NRS 673.270 is hereby amended to read as follows:
673.270 1. No person may, as a soliciting agent, soliciting representative or employee of any [such] foreign or domestic company, association or corporation, or in any other capacity, sell or solicit sales for any securities such as investment certificates or savings accounts or contract for the sale of securities until he is first licensed as a salesman or solicitor for sales of [such] those securities by the [administrator.] commissioner.
2. No person may be licensed for a period of more than 1 year, and he may not be licensed until he has first satisfied the [administrator] commissioner as to his personal integrity.
3. For the issuing of any license provided for in this section and for any renewal thereof, the fee of the [administrator] commissioner is $5. All sums so received by the [administrator] commissioner must be delivered to the state treasurer and must be paid into the state general fund.
4. Tellers or other employees of an insured savings and loan association are exempt from [such] the licensing requirements unless their employment entails soliciting sales outside their respective offices as commission salesmen.
Sec. 255. NRS 673.273 is hereby amended to read as follows:
673.273 1. Except as permitted by subsection 6, the total common stock and any preferred stock subscribed and paid plus the total of the surplus, undivided profits and all reserves available for losses must not at any time be less than 5 percent of the aggregate certificate value of the outstanding investment certificates of the association after the 11th anniversary of the date of insurance of accounts. The stock surplus, undivided profits and reserves must be at least equal to the percentage of outstanding investment certificates on each prior anniversary as stated below:
Date of insurance of accounts......................................................... 3.00 percent
Second anniversary of date of insurance of accounts................. 3.20 percent
Third anniversary of date of insurance of accounts.................... 3.40 percent
Fourth anniversary of date of insurance of accounts.................. 3.60 percent
Fifth anniversary of date of insurance of accounts...................... 3.80 percent
Sixth anniversary of date of insurance of accounts..................... 4.00 percent
Seventh anniversary of date of insurance of accounts............... 4.20 percent
Eighth anniversary of date of insurance of accounts.................. 4.40 percent
Ninth anniversary of date of insurance of accounts.................... 4.60 percent
Tenth anniversary of date of insurance of accounts................... 4.80 percent
2. No dividends may be declared on common or preferred stock until the total of the common stock, preferred stock, surplus, undivided profits and all reserves available for losses is equal to the percentage required by subsection 1 of the outstanding investment certificates and if payment of those dividends would reduce the capital structure to an amount below that percentage.
3. Subject to the provisions of this chapter, common stock and any preferred stock is entitled to the rate of dividend, if earned, fixed by the board of directors.
κ1987 Statutes of Nevada, Page 1967 (CHAPTER 758, SB 284)κ
board of directors. Stock dividends may be declared by the board of directors at any time, payable only from otherwise unallocated surplus and undivided profits.
4. No stock dividend may be declared and paid for any period in which the association has not declared and paid interest upon its withdrawable accounts.
5. The liability of an association on account of any capital notes which are subordinated to all outstanding investment certificates shall be deemed a reserve available for losses for the purposes of subsection 1 and of NRS 673.274, but no dividends may be declared on common or preferred stock while [any such] the capital notes are outstanding, without the written permission of the [administrator.] commissioner.
6. The [administrator] commissioner may approve a lower ratio of the total common stock and any preferred stock, undivided profits and all reserves which must be available for losses to the aggregate of outstanding investment certificates. The [administrator] commissioner shall not approve any ratio which would impair the insurance of the associations accounts by the Federal Savings and Loan Insurance Corporation.
Sec. 256. NRS 673.274 is hereby amended to read as follows:
673.274 1. No association whose stock, surplus, undivided profits and reserves are less than the amount specified in NRS 673.273 or approved by the [administrator] commissioner may:
(a) Issue investment certificates or withdrawal accounts except in lieu of investment certificates or withdrawal accounts theretofore issued.
(b) Receive additional [funds] money upon investment certificates or withdrawal accounts other than installment investment certificates or installment withdrawal accounts.
2. The provisions of this section do not prohibit the association from crediting to investment certificates the interest earned thereon, or crediting to withdrawable accounts the interest thereon, if the payment of the interest is not otherwise prohibited by the provisions of this chapter.
Sec. 257. NRS 673.275 is hereby amended to read as follows:
673.275 1. If the [administrator,] commissioner, as a result of any examination or from any report made to him, finds that the common or preferred stock of any association is impaired, he shall notify the association that the impairment exists and shall require the association to make good the impairment within 90 days after the date of the notice.
2. If the amount of the impairment as determined by the [administrator] commissioner is questioned by the association, then upon application filed within 10 days after the notice from the [administrator] commissioner that the impairment exists, the association may have the value of the assets in question be determined by appraisals made by independent appraisers acceptable to the [administrator] commissioner and the association.
3. The directors of the association upon which the notice has been served shall levy a pro rata assessment upon the common and any preferred stock to make good the impairment. They shall cause notice of the requirement of the [administrator] commissioner and of the levy to be given in writing to each stockholder of the association, and the amount of assessment which he must pay for the purpose of making good the impairment.
κ1987 Statutes of Nevada, Page 1968 (CHAPTER 758, SB 284)κ
[administrator] commissioner and of the levy to be given in writing to each stockholder of the association, and the amount of assessment which he must pay for the purpose of making good the impairment. In lieu of making the assessment, the impairment may be made good, without the consent of the [administrator,] commissioner, by reduction of the common or preferred stock. Any stockholder who does not make payment under [such an] the assessment shall transfer sufficient stock to the association to pay his pro rata share of the assessment, and there is no further liability to the stockholder.
Sec. 258. NRS 673.2755 is hereby amended to read as follows:
673.2755 1. An association may issue investment certificates, with or without passbooks. The holders of investment certificates are not liable for debts or assessments, and are entitled upon liquidation of an association to receive payment in full before any payment or distribution is made to stockholders. The holders of investment certificates have no right to participate in the profits of the association.
2. Investment certificates may be issued as fully paid investment certificates, accumulative investment certificates, minimum term investment certificates or other types of certificates approved by the [administrator. The administrator] commissioner. The commissioner shall not approve any certificates whose issuance would impair the insurance of the associations accounts by the Federal Savings and Loan Insurance Corporation.
Sec. 259. NRS 673.2765 is hereby amended to read as follows:
673.2765 1. An association may invest in the capital stock, obligations or other securities of a related service corporation organized under the laws of this state, except a corporation organized for the underwriting or sale of insurance, subject to any regulations concerning the insurability of the associations accounts by the Federal Savings and Loan Insurance Corporation and to whatever regulations the [administrator] commissioner may impose in this regard, if the entire capital stock of the corporation is available for purchase by associations organized under the laws of this state only.
2. No association may make [any such] the investment if its aggregate, outstanding investments, pursuant to subsection 1, would then be in excess of 1 percent of its assets.
Sec. 260. NRS 673.2766 is hereby amended to read as follows:
673.2766 1. Any investment in real property for purposes of subdivision or for residential development must not exceed the market value or appraisal valuation as evidenced by an appraisal report prepared within 120 days of [such] the investment by a member of the American Institute of Real Estate Appraisers, the Society of Real Estate Appraisers, or the Independent Fee Appraisers Society, or by such other appraiser as may be approved by the [administrator.] commissioner.
2. Within 30 days after [such] the investment is made, the association shall provide the [administrator] commissioner with a certified copy of one or more appraisal reports on the real property involved and with a title insurance company report, reflecting the chain of title for a period of at least 3 years and the amount of consideration, as available, given for each title transfer that may have occurred during the reported period.
κ1987 Statutes of Nevada, Page 1969 (CHAPTER 758, SB 284)κ
insurance company report, reflecting the chain of title for a period of at least 3 years and the amount of consideration, as available, given for each title transfer that may have occurred during the reported period.
3. The [administrator] commissioner may require a statement from the association disclosing whether any director, officer or employee of the association has a direct or indirect interest in the real property involved or has had [any such] an interest at any time during the past 3 years. Stock ownership in an interested corporation may be considered the direct or indirect interest of the investor. Failure to make [any such] a required disclosure is unlawful.
Sec. 261. NRS 673.281 is hereby amended to read as follows:
673.281 1. No association may sell, exchange, transfer, pledge, hypothecate or otherwise dispose of or encumber any notes or other obligations held by it, evidencing any loan made or purchased by it, or the mortgages, trust deeds or other security therefor, that has been on the books of the association for 3 years or longer, without the approval of the [administrator.] commissioner. All loans sold must be sold without recourse and, if under a contract to service them, then on a basis to provide sufficient compensation to the association to reimburse it for expenses incurred under its service contract.
2. This section does not apply to loans sold in which the association retains a participating interest, nor to loans pledged as security for borrowing as provided in NRS 673.300 and 673.302.
Sec. 262. NRS 673.302 is hereby amended to read as follows:
673.302 The aggregate amount of all borrowings of any association in force at any one time, excluding borrowings from the Federal Home Loan Banks, the Federal Savings and Loan Insurance Corporation [,] or other similar federal agencies, must not exceed 5 percent of the total assets of the association without the approval of the [administrator. The administrator] commissioner. The commissioner shall not approve any borrowing which would impair the insurance of the associations accounts by the Federal Savings and Loan Insurance Corporation.
Sec. 263. NRS 673.316 is hereby amended to read as follows:
673.316 1. Nothing in this chapter requires any association to sell, transfer or dispose of any investment or loan made or purchased by the association before March 30, 1959. Any association may:
(a) Renew, extend the time of payment of, or rewrite any loan made before that date.
(b) Make additional advances or loans for the purpose of preserving the security of the loan or for the purpose of protecting the property securing the loan.
(c) Make any [such] renewal, extension, advance or loan to the borrower or to any successor in interest in the property securing the loan.
(d) Make loans on property sold by an association or extend credit thereon for the purpose of facilitating the sale of the property regardless of any other provision of this chapter.
κ1987 Statutes of Nevada, Page 1970 (CHAPTER 758, SB 284)κ
2. No advance or loan may be made under the provisions of this section if the advance or loan would increase the total liability to the association making the advance or loan to more than 2 percent of total assets, except with the approval of the [administrator.] commissioner.
3. For the purpose of preserving the security of any loan or of protecting the property securing any loan made in compliance with this chapter, an association may make additional advances or loans to the borrower or any successor in interest in the property securing the loan. Regardless of any other provision of this chapter an association may make loans or extend credit for the purpose of facilitating the sale of property acquired by repossession, foreclosure or conveyance in lieu of foreclosure if that activity conforms to generally accepted accounting practices.
Sec. 264. NRS 673.317 is hereby amended to read as follows:
673.317 No loan may be made upon the appraisement of, nor may compensation for any appraisement be paid to the appraiser, officer or member of any committee who has not been first approved in writing by the [administrator] commissioner for the association. The approval is subject to such limitations as the [administrator] commissioner provides, and may be revoked for cause by the administrator, after giving due notice to the appraiser and the association and holding a hearing. The association shall give notice in writing to the [administrator] commissioner of the termination of the services of any appraiser within 15 days of [such] the termination.
Sec. 265. NRS 673.318 is hereby amended to read as follows:
673.318 Every association shall appraise each parcel of real estate at the time of acquisition thereof. The report of each [such] appraisal must be submitted in writing to the board of directors and must be kept in the records of the association. The [administrator] commissioner may require the appraisal of real estate securing loans by an appraiser selected by the [administrator.] commissioner. The association whose securities are appraised under this section shall pay the expense of [such] the appraisal to the [administrator] commissioner upon demand. Money so received must be paid into the state general fund. Copies of appraisals must be furnished to the association.
Sec. 266. NRS 673.319 is hereby amended to read as follows:
673.319 1. The [administrator] commissioner may require each association to establish and maintain a specific loss reserve for the amount by which the book value of any asset exceeds the [administrators] commissioners appraisal of [such] the asset.
2. In determining the values of the security properties for a group of loans, the [administrator] commissioner may use his appraisal of each property or his estimate of the total value of [such] the properties based upon his appraisal of a reasonable sample thereof. If any association contests the validity of the estimate based upon a sample, it may have an appraisal, at its own expense, by an appraiser approved by the [administrator,] commissioner, of all the group from which the sample was drawn, or of a larger sample of the group than was recommended by the [administrator.] commissioner.
κ1987 Statutes of Nevada, Page 1971 (CHAPTER 758, SB 284)κ
3. If the [administrator] commissioner has directed an association to carry a specific loss reserve on its books, the amount so designated for this purpose by the [administrator] commissioner cannot be reduced or changed in any manner without his written approval.
4. The provisions of subsections 2 and 3 [shall be] are effective on July 1, 1967, but [shall] must not be applied retroactively.
Sec. 267. NRS 673.3244 is hereby amended to read as follows:
673.3244 1. No association may make any loans to a:
(a) Corporation if the majority of the stock is owned or controlled individually or collectively by any one or more of the directors, officers or majority stockholders of the association; or
(b) Partnership if the limited or general partner is a director, officer or the majority owner of the association,
unless the loan is expressly authorized by this chapter or by a resolution of the board of directors of the association. The resolution must be approved by a vote of at least two-thirds of all the disinterested directors of the association.
2. An association may make loans to any corporation or partnership in which a director or officer of the association is a minority stockholder or partner if the loan is authorized or confirmed, at a meeting held within 30 days after the loan is made, by the affirmative vote of all the disinterested directors of the association present at the meeting and if the affirmative vote constitutes a majority of all the directors of the association. The interested director or officer shall not vote or participate in any manner in the action of the board of directors upon the loan. The authorization or confirmation must be entered in the minutes of the association. The loan must in all other respects comply with the provisions covering the granting of loans.
3. If a loan is made to a corporation or partnership as set forth in subsection 2, and if the director or officer of the association owns more than 10 percent of the paid-in capital of the corporation, or if any two or more officers or directors own more than 20 percent of the paid-in capital of the corporation or if any one or more of the directors is a general partner, the association shall file reports with the [administrator] commissioner showing the following:
(a) The fact of making the loan.
(b) The names of the directors authorizing or confirming the loan.
(c) The corporate or partnership name of the borrower.
(d) The name of each director or officer of the association who is a stockholder, officer, director or partner of the corporation or partnership to which the loan was made.
(e) The amount of stock held by the officer or director in the corporation.
(f) The amount of the loan, the rate of interest thereon, the time when the loan becomes due, the amount, character and value of the security given therefor, and the fact of final payment when made.
4. All officers, directors or stockholders holding more than 10 percent of the paid-in capital of the association shall disclose annually to the [administrator] commissioner their investments in any partnership or corporation to which a loan is made.
κ1987 Statutes of Nevada, Page 1972 (CHAPTER 758, SB 284)κ
[administrator] commissioner their investments in any partnership or corporation to which a loan is made. If any changes in those investments occur, the [administrator] commissioner must be notified.
Sec. 268. NRS 673.3271 is hereby amended to read as follows:
673.3271 1. An association shall not make at one time loans to any one borrower, or under any one transaction, or applicable to any one project, or tract, if the loans in the aggregate are in excess of whichever of the following is the lesser:
(a) Ten percent of its total savings accounts, unless that requirement is waived by written approval of the [administrator.] commissioner.
(b) An amount equal to the sum of its capital, surplus, undivided profits, loan reserve, federal insurance reserve, capital notes and such other reserves as the [administrator] commissioner may prescribe.
2. For the purpose of this section, the term one borrower means:
(a) Any person or entity that is, or that upon the making of a loan will become, obligor on a loan.
(b) Nominees of the obligor.
(c) All persons, trusts, partnerships, syndicates and corporations of which the obligor is a nominee or a beneficiary, partner, member, or stockholder of record or beneficial interest stockholder owning 10 percent or more of the capital stock of any corporation.
(d) If [such] the obligor is a trust, partnership, syndicate or corporation, all trusts, partnerships, syndicates and corporations of which any beneficiary, partner, member, or stockholder of record or beneficial interest stockholder owning 10 percent or more of the capital stock is also a beneficiary, partner, member or stockholder of record or beneficial interest stockholder owning 10 percent or more of the capital stock of [such] the association.
3. For the purpose of this section, the term loans to any one borrower means the amount of the new loan plus the total balances of all outstanding loans owed to the association by [such] the borrower. Notwithstanding any other limitations of this section, [any such] the loan may be made if the new loan when added to the total balances of all outstanding loans owed to the association by [such] the borrower does not exceed $250,000.
4. For the purpose of this section, the term balances of all outstanding loans means the original amounts loaned by the association plus any additional advances and interest due and unpaid, less repayments and participating interests sold and exclusive of any loan on the security of real estate the title to which has been conveyed to a bona fide purchaser of the real estate.
5. If an association makes a loan to any one borrower in an amount which, when added to the total balances of all outstanding loans owed to the association by [such] the borrower, exceeds $250,000, the records of the association with respect to the loan must include documentation showing that the loan was made within the limitations of this chapter. For the purpose of [such] that documentation, the association may require, and may accept in good faith, a certification by the borrower identifying the persons, entities and interests described in the definition of one borrower in subsection 2.
κ1987 Statutes of Nevada, Page 1973 (CHAPTER 758, SB 284)κ
good faith, a certification by the borrower identifying the persons, entities and interests described in the definition of one borrower in subsection 2.
Sec. 269. NRS 673.332 is hereby amended to read as follows:
673.332 1. An association may hold, manage and convey real property, including apartments and other buildings:
(a) Acquired by foreclosure or a conveyance in lieu of foreclosure; or
(b) Developed or built by the association.
Unless the association has received a written waiver from the [administrator,] commissioner, the total of money which it has advanced or committed for property which it has developed or built may not exceed twice the sum of its capital, surplus, undivided profits, loan reserve, federal insurance reserve and any other reserves specified by the [administrator.] commissioner.
2. When an association acquires title to any real property pursuant to subsection 1, the document representing the transaction must be recorded immediately. This subsection does not require recordation of the evidences of any transfer of stock resulting from foreclosure of an interest in a cooperative housing corporation.
3. An appropriate real-estate-owned account must be set up for the property acquired and a separate subsidiary ledger or other appropriate record must be maintained therefor. The amount carried in the account must be the sum of the unpaid principal balance of the loan plus foreclosure costs, less any advance payments and any [funds] money held in the loans-in-process account at the time of acquisition, together with:
(a) Any amounts paid after acquisition for real property taxes which have accrued [prior to] before acquisition;
(b) Assessments due or delinquent at the time of acquisition; and
(c) Necessary acquisition costs and costs of insurance premiums.
4. The subsidiary ledger record or other appropriate record on each property acquired must indicate:
(a) The type and character of the property acquired.
(b) All capitalized items of investment with related costs.
(c) Former loan or contract of sale account numbers.
Sec. 270. NRS 673.333 is hereby amended to read as follows:
673.333 1. The apportionment of earnings or payment of interest by declaration of the board of directors must be made semiannually on June 30 and December 31 of each year, or quarterly on those dates, and on March 31 and September 30 of each year.
2. The percentage rate of the declaration must be determined by the board of directors as it deems expedient for the safety and security of all savings depositors, but if the percentage rate is excessive, unjust or inequitable, it is subject to disapproval of, and reduction by the [administrator.] commissioner. The association may appeal any disapproval or reduction by the [administrator] commissioner to the director.
3. No association may be required to pay or credit interest on accounts of $10 or less which show no entries of debit or credit for a period of 2 years, except for accumulated interest credits.
κ1987 Statutes of Nevada, Page 1974 (CHAPTER 758, SB 284)κ
4. Except as otherwise provided in this chapter, interest must be declared on the participation value of each account at the beginning of the interest period, plus payments on the account made during the interest period, less amounts withdrawn, which for interest purposes must be deducted from the latest previous payments on the account, computed at the rate for the time invested, determined as provided in this section.
5. The date of investment is the date of actual receipt by the association, except that the board of directors may fix a date, which may not be later than the 10th day of the month, for determining the date of investment on which interest is computed. A date later than the 10th may be set if it is permissible for federal associations. If permitted by federal regulations, as amended, the board of directors may permit investments to receive interest calculated from the date of actual receipt.
6. In addition to the classes of savings accounts provided for in this chapter, an association may, with the approval of its board of directors, authorize additional classes of savings accounts which will conform to those types or classes, which have been established by the Federal Home Loan Bank Board by regulation or which may be authorized by it.
7. Except when prescribed for all associations by federal regulation, any association which changes its method of calculating interest on its savings accounts so as to decrease the effective yield of that account shall notify each account holder affected by the change by mail within 15 days before the proposed effective date of the change.
Sec. 271. NRS 673.377 is hereby amended to read as follows:
673.377 1. Every association shall have on hand at all times in available [funds,] money, bank deposits, United States Government bonds, certificates of insured savings and loan associations, Federal Home Loan Bank evidences of indebtedness, time certificates of insured federal and state banks or of any indebtedness of any United States Government instrumentality which is by statute fully guaranteed, a sum not less than 5 percent of the aggregate of savings accounts and investment certificates to enable it to pay withdrawals in excess of receipts and to meet accruing expenses. The [administrator] commissioner may prescribe from time to time different amounts required for liquidity purposes, but the amounts must not be less than 4 percent or more than 8 percent.
2. A deposit in a bank or association under the control or the possession of appropriate supervisory authority must not be considered as cash. Except for deposits in a Federal Home Loan Bank, a time deposit established hereafter, whether or not time deposit-open account or deposit evidenced by a certificate of deposit, must not be considered as cash for such purposes unless:
(a) The member itself made the deposit in question;
(b) The deposit, together with all other time deposits of the association in the same bank, does not exceed the greater of one-quarter of 1 percent of the banks total deposits as of the banks last published statement of condition or $15,000; and
κ1987 Statutes of Nevada, Page 1975 (CHAPTER 758, SB 284)κ
(c) No consideration was received from a third party in connection with the making of the deposit.
3. An association [shall] must not make or purchase any loan, other than advances on the sole security of its savings accounts, at any time when its liquidity drops below the required level. For the purpose of this section, a loan is deemed to have been made as of the date the borrower executed the security instrument, and a loan is deemed to have been purchased as of the date of the payment therefor.
Sec. 272. NRS 673.390 is hereby amended to read as follows:
673.390 1. Except as provided in this section, withdrawals must be paid in the order of their filing, and no loans or investments may be made, except by permission of the [administrator,] commissioner, when any withdrawal request or order has remained on file unpaid for a period of more than 30 days. Any [such] foreign or domestic association, company or corporation may, without the necessity of obtaining permission of the [administrator,] commissioner, make or purchase loans or investments not exceeding the principal amount of money borrowed by [such] an association, company or corporation from a Federal Home Loan Bank or other federal loan agency. Any such request or order which is not legally payable for reasons other than the restrictions of this section [shall] may not be considered as on file.
2. Whenever applications for withdrawals reach such an amount that in the opinion of the [administrator,] commissioner, it would be inexpedient to pay such applications in the order of their filing, the, with the written permission of the [administrator] commissioner first obtained, so much as may be directed by the [administrator] commissioner of the money available to pay withdrawals may, each month, be prorated upon the amounts of all applications for withdrawals on file, irrespective of the order of filing.
Sec. 273. NRS 673.420 is hereby amended to read as follows:
673.420 Any such foreign or domestic association, company or corporation or its secretary or manager shall immediately notify the [administrator] commissioner of its inability to pay [any such] a withdrawal request or order which has been on file for a period of more than 60 days.
Sec. 274. NRS 673.430 is hereby amended to read as follows:
673.430 1. Each association doing business in this state shall file annually with the [administrator] commissioner on or before March 1, a sworn statement in two sections.
2. One section of the annual report must contain, in such form and detail as the [administrator] commissioner may prescribe, the following:
(a) The amount of authorized capital by classes and the par value of each class of stock.
(b) A statement of its assets, liabilities and capital accounts as of the immediately preceding December 31.
(c) Any other facts which the [administrator] commissioner may require.
This section must be furnished in duplicate, one certified copy to be returned, for publication at least two times in a newspaper having a general circulation in each county in which the association maintains an office.
κ1987 Statutes of Nevada, Page 1976 (CHAPTER 758, SB 284)κ
circulation in each county in which the association maintains an office. Publication must be completed on or before May 1, and proof of publication must be filed in the office of the [administrator.] commissioner.
3. One section of the annual report must contain such other information as the [administrator] commissioner may require to be furnished. This section need not be published and must be treated as confidential by the [administrator.] commissioner.
4. Every association shall pay to the [administrator] commissioner for supervision and examination:
(a) An annual fee of $200 for its home office, and $100 for each branch office open as of the immediately preceding December 31.
(b) An annual assessment computed as of the immediately preceding December 31 at the rate of 15 cents per $1,000 of total assets.
5. The [administrator] commissioner shall determine from the annual statement the amount due from each association and submit a bill to the association for the amount by March 15. A penalty of 10 percent of the fee payable must be charged for each month or part of a month that the fees are not paid after April 15 of each year.
6. All sums so received by the [administrator] commissioner must be delivered to the state treasurer and paid into the state general fund.
Sec. 275. NRS 673.440 is hereby amended to read as follows:
673.440 Each such foreign or domestic association, company or corporation shall cause to be supplied to the [administrator] commissioner at any time, upon his demand, any information which he may require as to its condition, affairs or methods.
Sec. 276. NRS 673.450 is hereby amended to read as follows:
673.450 1. The [administrator] commissioner may conduct or cause to be conducted such hearings, investigations or examinations of the books and records, wherever they may be, relating to the affairs of such organizations as he may deem expedient and in aid of the proper administration of the provisions of this chapter.
2. In connection with the conduct of any hearing, investigation or examination, the [administrator] commissioner or other person designated by him to conduct it may:
(a) Compel the attendance of any person by subpena.
(b) Administer oaths.
(c) Examine any person under oath concerning the business and conduct of affairs of any association subject to the provisions of this chapter, and require the production of any books, papers, records, money and securities relevant to the inquiry. Any willful false swearing is perjury and is punishable as such.
3. The [administrator] commissioner shall conduct at least once every 2 years an examination of the books and records of each association licensed under this chapter.
κ1987 Statutes of Nevada, Page 1977 (CHAPTER 758, SB 284)κ
Sec. 277. NRS 673.453 is hereby amended to read as follows:
673.453 1. In case of the refusal of any person to attend or testify or produce any papers required by the subpena directed to be served under the provision of NRS 673.450, the [administrator] commissioner may report to the district court in and for the county in which the examination, hearing or investigation is pending by petition, setting forth that:
(a) Due notice has been given of the time and place of attendance of [such] the person or the production of the books and papers;
(b) [Such] The person has been subpenaed in the manner prescribed in this chapter; and
(c) [Such] The person has failed and refused to attend or produce the papers required by subpena before the [administrator] commissioner in the examination, hearing or investigation named in the subpena, or has refused to answer questions propounded to him in the course of such examination, hearing or investigation,
and asking an order of the court compelling [such] the person to attend and testify or produce the books or papers before the [administrator.] commissioner.
2. The court, upon petition of the [administrator,] commissioner, shall enter an order directing [such] the person to appear before the court at a time and place to be fixed by the court in such order, the time to be not more than 10 days from the date of the order, and then and there show cause why he has not attended or testified or produced the books or papers before the [administrator.] commissioner. A certified copy of the order must be served upon [such] the person. If it appears to the court that the subpena was regularly issued by the [administrator,] commissioner, the court shall thereupon enter an order that [such] the person appear before the [administrator] commissioner at the time and place fixed in the order and testify or produce the required books or papers; and upon failure to obey the order [such] the person shall be dealt with as for contempt of court.
Sec. 278. NRS 673.455 is hereby amended to read as follows:
673.455 1. The [administrator] commissioner may, at the time of examining a savings and loan association, inspect the books, ledgers and minutes of any corporation which is registered or required to be registered under section 408 of the National Housing Act as a holding company whenever, in his discretion, he considers it advisable to ascertain facts which may relate to transactions between the holding company and the affiliated association. The provisions of NRS 673.450 apply to the examination of such corporation.
2. Upon making findings to that end, the [administrator] commissioner may order the discontinuance of borrowing or lending, selling or buying of assets, extending credit or guaranteeing obligations of the holding company which has been undertaken without the written approval of the [administrator.] commissioner.
3. No unreasonable supervisory fees may be imposed upon any association by a holding company which controls [such] an association.
κ1987 Statutes of Nevada, Page 1978 (CHAPTER 758, SB 284)κ
Sec. 279. NRS 673.460 is hereby amended to read as follows:
673.460 1. Whenever in connection with [such examinations] an examination it is necessary or expedient that the [administrator] commissioner or his deputy, or both, leave this state, there must be assessed against the organization under examination a fee of $25 per day for each [such] person while without the state in [such connection,] connection with an examination, together with all actual and necessary expenses.
2. The fee [so] charged must be remitted to the [administrator,] commissioner, who shall deliver it to the state treasurer . [forthwith, and such] The fees shall be paid into the state general fund.
Sec. 280. NRS 673.470 is hereby amended to read as follows:
673.470 In lieu of making any examination, the [administrator] commissioner may accept any examination of any association made by the Federal Home Loan Bank Board, any Federal Home Loan Bank, or the Federal Savings and Loan Insurance Corporation, or may examine any such institution in conjunction with the Federal Home Loan Bank Board, a Federal Home Loan Bank, or the Federal Savings and Loan Insurance Corporation.
Sec. 281. NRS 673.480 is hereby amended to read as follows:
673.480 The [administrator,] commissioner, his agents and employees may furnish to the Federal Home Loan Bank Board, or to any Federal Home Loan Bank, or to examiners appointed by the Federal Home Loan Bank Board or any Federal Home Loan Bank, or to any federal loan agency, copies of any instruments concerning, and may disclose any information with reference to, the conditions or affairs of any such foreign or domestic association, company or corporation.
Sec. 282. NRS 673.483 is hereby amended to read as follows:
673.483 1. Each association shall, at least once each year, cause its books and accounts to be audited at its own expense by a certified public accountant or firm of such accountants selected by the association and approved by the [administrator.] commissioner.
2. The [administrator] commissioner may prescribe the scope of the audit.
3. A certified copy of the audit, including the management and internal control letters relating to the audit, must be furnished to the [administrator.] commissioner.
Sec. 283. NRS 673.484 is hereby amended to read as follows:
673.484 The [administrator] commissioner may after notice and hearing suspend or revoke the charter of any association for repeated failure to abide by the provisions of this chapter or the regulations adopted thereunder.
Sec. 284. NRS 673.4845 is hereby amended to read as follows:
673.4845 1. An association may reorganize, merge or consolidate with another state or federal association, if the reorganization, merger or consolidation is based upon a plan which has been adopted by the board of directors and approved at a regular or special stockholders meeting which has been called to consider the action. [Such an] The approval must rest on a favorable vote of a majority of the voting power of the association as established by its articles.
κ1987 Statutes of Nevada, Page 1979 (CHAPTER 758, SB 284)κ
favorable vote of a majority of the voting power of the association as established by its articles.
2. Any such plan for reorganization, merger or consolidation must be approved by the [administrator,] commissioner, who shall satisfy himself that the plan, if approved, would be equitable for the stockholders of the affected association or associations and would not impair the usefulness or success of other properly conducted associations in the community. In submitting an application for approval of any such plan, each association proposing to reorganize, merge or consolidate must provide a comprehensive review of its present financial statement and a projected view of the financial statement of the reorganized, merged or consolidated association.
3. Unless its action is specifically authorized by or taken in conformity with this chapter, no association may, directly or indirectly:
(a) Reorganize, merge or consolidate.
(b) Assume liability to pay savings accounts or other liabilities of any financial institution or any other organization, person or entity.
(c) Transfer assets to any financial institution or any other organization, person or entity in consideration of the transferees assumption of liability for any portion of the transferors savings accounts, deposits or other liability.
(d) Acquire the assets of any financial institution or any other organization, person or entity.
4. Each application which is made under this section must be accompanied by a fee payment of $150. The responsibility for payment of the fee must be shared equally by the associations participating in each proposed plan.
Sec. 285. NRS 673.485 is hereby amended to read as follows:
673.485 1. If the [administrator] commissioner finds as the result of any examination or from any report made to him or to any association doing business in this state or from any report made to any of its investors that the association is violating the provisions of its articles of incorporation, charter, bylaws, or any law of this state, or is conducting its business in an unsafe or injurious manner, he may by an order addressed to such association direct a discontinuance of such violations or unsafe or injurious practices and a conformity with all the requirements of law.
2. If an association does not comply with such order, the [administrator] commissioner may order the corporate secretary to call a special directors meeting to consider the matter of noncompliance.
3. The meeting must be held no later than 60 days after issuance of the order to hold the meeting, unless otherwise restrained by court order or by the board. The business of the meeting must be limited to the matter of noncompliance and remedies therefor and the notice of such meeting must set forth in detail the [administrators] commissioners discontinuance order and order to call a directors meeting.
4. Action taken at the meeting is binding upon the officers of the association.
κ1987 Statutes of Nevada, Page 1980 (CHAPTER 758, SB 284)κ
Sec. 286. NRS 673.495 is hereby amended to read as follows:
673.495 1. The [administrator] commissioner may, with the prior approval of the board, appoint a conservator for [such] an association if any of the following occur:
(a) The association does not comply with any order given pursuant to NRS 673.485, within the time specified therein.
(b) It appears to the [administrator] commissioner that the association is in an unsafe condition or is conducting its business in an unsafe or injurious manner such as to render its further proceeding hazardous to the public or to any or all of its investors.
(c) The [administrator] commissioner finds that the associations assets are impaired to such an extent that, after deducting all liabilities other than to its investors they do not equal or exceed the sum of the value of its outstanding savings accounts and investment certificates and the par value of its outstanding stock.
(d) The association refuses to submit its books, papers and accounts to the inspection of the [administrator] commissioner or any of his examiners, deputies or assistants.
(e) Any officer of the association refuses to be examined upon oath concerning the affairs of the association.
(f) It appears to the [administrator] commissioner that false reports have been filed with his office.
2. The conservator may be the [administrator,] commissioner, his deputy or any person qualified for such appointment.
3. Immediately upon appointment, the conservator shall petition the district court of the county in which the home office of the association is located for confirmation of his appointment. The court has exclusive jurisdiction to determine the issues and all related matters and it shall give precedence to such conservatorship proceedings and expedite the proceedings in every way.
Sec. 287. NRS 673.497 is hereby amended to read as follows:
673.497 1. The conservator confirmed or appointed by the court has all the power expressed in the court order and the following:
(a) All the rights, powers and privileges possessed by the directors, officers and stockholders.
(b) The power to request the resignation of or remove any director, officer or employee for cause and upon written notice, which must show the [administrators] commissioners approval of [such] the action.
(c) The power to accept new savings accounts and additions to existing accounts, which must become segregated accounts and amounts, if the [administrator] commissioner so orders in writing, not subject to offset and not available for liquidating any indebtedness of an association existing at the time the conservator was appointed.
2. The conservator may not:
(a) Retain special counsel or other experts without prior approval of the court;
(b) Incur any expenses other than normal operating expenses; or
κ1987 Statutes of Nevada, Page 1981 (CHAPTER 758, SB 284)κ
(c) Liquidate assets except in the normal course of operations or for the preservation of existing asset values.
3. All expenses of the association during the conservatorship must be paid by the association.
4. The amount of compensation for the conservator must be determined by the court and paid by the association. When either the [administrator] commissioner or his deputy has been appointed conservator, the compensation must be paid to the state treasurer.
5. During the conservatorship, debtors to the association shall continue to make payments to the association as may be required under the terms of their respective contracts.
6. Savings account depositors may, with the approval of the conservator, withdraw all or any part of their savings accounts under the provisions of this chapter or under such regulations as the [administrator] commissioner may prescribe.
7. The conservator shall return the association to the board of directors if the conditions complained of by the [administrator] commissioner have been removed within 12 months after his appointment. If no [such] change has been effected within that time, a receiver may be appointed by the [administrator] commissioner as provided in this chapter.
Sec. 288. NRS 673.499 is hereby amended to read as follows:
673.499 1. If the [administrator] commissioner finds that any association:
(a) Is in an impaired condition;
(b) Is engaging in practices which threaten to result in an impaired condition; or
(c) Is in violation of an order or injunction, as provided in NRS 673.495, which has become final in that the time to appeal has expired without appeal or a final order entered from which there can be no appeal,
the [administrator] commissioner may appoint a receiver for such association, which may be the [administrator,] commissioner, his deputy or any other person, and upon such appointment shall apply immediately to a court of general jurisdiction in the county in which the home office of the association is located for confirmation of such appointment, and such court has exclusive jurisdiction to determine the issues and all related matters. Such proceedings must be given precedence over other cases pending in such court, and must in every way be expedited. Such court shall confirm such appointment if it finds that one or more [such] grounds exist, and a certified copy of the order of the court confirming such appointment is evidence thereof. In the case of an insured association, the appointment by the [administrator] commissioner of a receiver under this section constitutes an official determination of a public authority of this state pursuant to which a receiver is appointed for the purpose of liquidation as contemplated by and within the meaning of section 406 of the National Housing Act of 1934, as amended, if, within 10 days after the date the application of the [administrator] commissioner is filed, confirmation of such appointment or denial of confirmation has not been issued by the court.
κ1987 Statutes of Nevada, Page 1982 (CHAPTER 758, SB 284)κ
denial of confirmation has not been issued by the court. Such receiver has all the powers and authority of a conservator plus the power to liquidate, and has such other powers and authority as may be expressed in the order of the court. If the [administrator,] commissioner, or his deputy, or examiner is appointed receiver, he shall receive no additional compensation, but if another person is appointed, then the compensation of the receiver, as determined by the court, must be paid from the assets of the association.
2. If the association is an institution insured by the Federal Savings and Loan Insurance Corporation, the Federal Savings and Loan Insurance Corporation must be tendered appointment as receiver or coreceiver. If it accepts such appointment, it may, nevertheless, make loans on the security of or purchase at public or private sale any part or all of the assets of the association of which it is receiver or coreceiver, if the loan or purchase is approved by [such] the court.
3. The procedure in such receivership action must be in all other respects in accordance with the practice in such court, including all rights of appeal and review. The directors, officers and attorneys of an association in office at the time of the initiation of any proceeding under this section or under NRS 673.495 are expressly authorized to contest any such proceeding and must be reimbursed for reasonable expenses and attorney fees by the association or from its assets. Any court having any such proceeding before it shall allow and order paid reasonable expenses and attorney fees for such directors, officers and attorneys.
Sec. 289. NRS 673.515 is hereby amended to read as follows:
673.515 An appeal from a judgment enjoining the [administrator] commissioner from further proceedings and directing him to surrender the business, property and assets to the association does not operate as a stay of the judgment, unless the trial court in its discretion so orders. If an appeal from the judgment is taken by the [administrator] commissioner no bond need be given. If the judgment dismisses the action an appeal therefrom does not operate as a stay of the judgment but the court rendering such judgment may, in its discretion, enjoin the [administrator,] commissioner, pending the appeal, from further proceedings and direct him, pending the appeal, to surrender such business, property and assets to the association, if a bond is given in an amount not less than 10 percent of the cash on hand or on deposit.
Sec. 290. NRS 673.525 is hereby amended to read as follows:
673.525 Whenever the [administrator] commissioner demands possession of the property, business and assets of any association, pursuant to NRS 673.485 to 673.577, inclusive, the refusal of any officer, agent, employee or director of such association to comply with the demand is a misdemeanor.
Sec. 291. NRS 673.535 is hereby amended to read as follows:
673.535 If the demand of the [administrator] commissioner for the possession of the property, business and assets is not complied with within 24 hours after service of the demand, the [administrator] commissioner may call to his assistance the sheriff of the county in which the principal place of business of [such] an association is located, by giving the sheriff written demand.
κ1987 Statutes of Nevada, Page 1983 (CHAPTER 758, SB 284)κ
business of [such] an association is located, by giving the sheriff written demand. The sheriff shall enforce the demands of the [administrator.] commissioner.
Sec. 292. NRS 673.545 is hereby amended to read as follows:
673.545 When the [administrator] commissioner takes possession of the property, business and assets of any association, the president and secretary of [such] an association shall make a schedule of all its property, assets and collateral held by it as security for loans and make an oath that such schedule sets forth all such property, assets and collateral. The president and secretary shall deliver the schedule, and the possession of all property, assets and collateral not previously delivered to the [administrator. The administrator] commissioner. The commissioner may at any time examine under oath any president, secretary, officer, director, agent or employee of the association, to determine whether or not all [such] the property, assets or collateral have been transferred and delivered into his possession.
Sec. 293. NRS 673.555 is hereby amended to read as follows:
673.555 The [administrator] commissioner may issue subpenas and require the attendance of parties for examination.
Sec. 294. NRS 673.565 is hereby amended to read as follows:
673.565 When the [administrator] commissioner takes possession of the business, property and assets of an association, he may appoint a custodian. The [administrator] commissioner may require a good and sufficient bond from the custodian and place him in charge as his representative.
Sec. 295. NRS 673.575 is hereby amended to read as follows:
673.575 When the [administrator] commissioner takes possession of the property, business and assets of an association, he may collect all money due to such association and give receipt therefor. The [administrator] commissioner may do such other acts as are necessary or expedient to collect, conserve or protect the associations business, property and assets.
Sec. 296. NRS 673.576 is hereby amended to read as follows:
673.576 If the [administrator] commissioner is in possession of the business, property and assets of an association, whether or not he is liquidating the affairs of [such] the association, the [administrator] commissioner may:
1. Pay and discharge any secured claims against the association. No secured claim may be paid in an amount larger than the value of the security at the time of payment.
2. Pay administrative or current expenses incurred [prior to] before the taking of possession which are necessary or convenient to the orderly or economic liquidation or preservation of the assets, and pay all wages or salaries, in amounts not exceeding such amounts as are normally paid to officers and employees. No salary increases may be proposed or consented to by the [administrator,] commissioner, conservator or receiver. The number of staff members which are required or needed for the operation of the association must be determined by the [administrator.] commissioner.
κ1987 Statutes of Nevada, Page 1984 (CHAPTER 758, SB 284)κ
3. Disaffirm any executory contracts, including leases, to which the association is a party, and disaffirm any partially executed contracts, including leases, to the extent that they remain executory. The disaffirmance must be made within 6 months after obtaining knowledge of the existence of the contract or lease.
Sec. 297. NRS 673.577 is hereby amended to read as follows:
673.577 Claims for damages resulting from the disaffirmance of an executory contract or lease by the [administrator] commissioner may be filed and allowed. No claim of a landlord for damages resulting from the disaffirmance of an unexpired lease of real property or under any covenant of [such] the lease may be allowed in an amount exceeding the rent reserved by the lease, without acceleration, for the year succeeding the date of the surrender of the premises plus the amount of any unpaid accrued rent without acceleration. Any such claim must be filed within 30 days of the date of [such] the disaffirmance.
Sec. 298. NRS 673.580 is hereby amended to read as follows:
673.580 1. The [administrator] commissioner may, if he takes possession of any association whose savings accounts are to any extent insured by the Federal Savings and Loan Insurance Corporation, tender to the Federal Savings and Loan Insurance Corporation the appointment as statutory liquidator of the association. If he does not make a tender as sole statutory liquidator, he shall tender to the Federal Savings and Loan Insurance Corporation the appointment as statutory coliquidator to act jointly with the [administrator.] commissioner. The coliquidatorship shall not be for more than 1 year from the date of tender, at the expiration of which time the [administrator] commissioner shall become the sole liquidator except as otherwise provided by this section. The [administrator] commissioner shall tender to the Federal Savings and Loan Insurance Corporation the appointment as sole statutory liquidator of the association whenever the corporation has become subrogated to the rights of 90 percent of the liability of the association on savings accounts. If the Federal Savings and Loan Insurance Corporation becomes subrogated as to all the savings accounts in the association, it may then exercise all the powers and privileges conferred upon it by this chapter without court approval.
2. If the Federal Savings and Loan Insurance Corporation accepts the appointment as sole liquidator it possesses all the powers and privileges of the [administrator] commissioner as statutory liquidator of a possessed savings and loan association and is subject to all duties of the [administrator] commissioner as sole liquidator, except insofar as the powers and privileges or duties are in conflict with federal laws, and except as otherwise provided in this chapter, unless the association resumes business pursuant to the provisions of this chapter. If the Federal Savings and Loan Insurance Corporation accepts the appointment as coliquidator, it possesses [such] all the powers and privileges jointly with the [administrator] commissioner and is subject to the jointly with the [administrator.] commissioner.
κ1987 Statutes of Nevada, Page 1985 (CHAPTER 758, SB 284)κ
3. If the Federal Savings and Loan Insurance Corporation accepts the appointment as coliquidator or liquidator, it shall file its acceptance with the [administrator] commissioner and the clerk of the district court. The corporation may act without bond. Upon filing its acceptance of appointment as sole liquidator, the possession of and title to all the assets, business and property of the association vests in the Federal Savings and Loan Insurance Corporation without the execution of any conveyance, assignment, transfer or endorsement. Upon filing its acceptance of appointment as coliquidator, the possession and title vests in the [administrator] commissioner and the corporation jointly. If the Federal Savings and Loan Insurance Corporation does not qualify as sole liquidator at or before the time provided for the expiration of the coliquidatorship, the corporation must be wholly divested of the joint title and possession, and the sole title and possession vests in the [administrator.] commissioner. The vesting of title and possession of the property of the association does not render the property subject to any claims by the federal corporation, except those which are encumbered by it with respect to the association and its property. Whether or not it serves as liquidator or coliquidator, the corporation may make loans on the security of or may purchase with the approval of the court, except as otherwise provided in this chapter, all or any part of the assets of any association, the savings accounts of which are to any extent insured by it. In the event of a purchase, the corporation shall pay a reasonable price.
4. Whether or not the Federal Savings and Loan Insurance Corporation serves as liquidator, whenever it pays or makes available for payment the savings accounts of any association in liquidation which are insured by it, it is subrogated upon the surrender and transfer to it of the savings accounts. The surrender and transfer do not affect any right which the transferor has in any savings accounts which are not paid or made available for payment or any right to participate in the distribution of the net proceeds remaining from the disposition of the assets of the association. The rights of the investors and creditors of the association must be determined in accordance with the applicable provisions of the laws of this state.
Sec. 299. NRS 673.590 is hereby amended to read as follows:
673.590 1. Whenever, in the case of any association which has issued common or preferred stock, the [administrator] commissioner or the Federal Savings and Loan Insurance Corporation has fully liquidated all claims other than claims of the stockholders, and has made due provision for all known or unclaimed liabilities, excepting claims of stockholders, and has paid all expenses of liquidation, the [administrator] commissioner shall call a meeting of the stockholders of the savings and loan association.
2. Notice of the meeting must be given by:
(a) Five publications in a 30-day period in one or more newspapers published in the county in which the principal office of the association is located; and
(b) Letter to each stockholder mailed to his last known address.
κ1987 Statutes of Nevada, Page 1986 (CHAPTER 758, SB 284)κ
3. At the meeting the [administrator] commissioner shall deliver to the stockholders all the property and effects of the association remaining in his possession except its records, which must be retained by him as part of the records of his office. Upon transfer and delivery he is discharged from any further liability to the association or its creditors, and thereafter the association is in the same position as though it had never been authorized to transact a savings and loan business.
Sec. 300. NRS 673.597 is hereby amended to read as follows:
673.597 1. If any association, company or corporation organized or incorporated under the laws of any governing body other than the State of Nevada is doing business in this state under the provisions of this chapter, and the laws of [such] the other governing body conflict with any of the provisions of this chapter, the provisions of the laws of this governing body prevail as to each [such] conflict.
2. Whenever any [such] foreign organization follows a course or performs any act which is forbidden to any domestic organization under the terms of this chapter, it shall report to the [administrator] commissioner all of the facts relating thereto.
Sec. 301. NRS 673.620 is hereby amended to read as follows:
673.620 1. At a meeting of the stockholders held as provided in NRS 673.610, the stockholders may, by the affirmative vote of the majority of the stockholders present, in person or by proxy, declare by resolution the determination to convert the state company, association or corporation into a federal savings and loan association.
2. A copy of the minutes of [such] the meeting, verified by the affidavit of the president or vice president and the secretary of the meeting, must be filed in the office of the [administrator] commissioner within 10 days after the date of the meeting. The sworn copy of the proceedings of the meeting, when so filed, is presumptive evidence of the holding and the action of the meeting.
Sec. 302. NRS 673.630 is hereby amended to read as follows:
673.630 1. After the holding of the meeting of stockholders, the state company, association or corporation shall take such action, in the manner prescribed or authorized by the laws of the United States or the rules and regulations promulgated pursuant thereto, as shall make it a federal savings and loan association, and there shall thereupon be filed in the office of the [administrator] commissioner a copy of the charter of authorization issued to the association by the Federal Home Loan Bank Board or a certificate showing the organization of the association as a federal savings and loan association, certified by the Federal Home Loan Bank Board. Upon [such] filing with the [administrator,] commissioner, the association ceases to be a state savings and loan association, but retains all rights, privileges and exemptions of a domestic association of the same kind and character.
2. A fee of $20 must accompany the copy of the charter of authorization.
3. Federal associations so converted and their members are subject to the same form of taxation and on the same basis as state associations and their stockholders.
κ1987 Statutes of Nevada, Page 1987 (CHAPTER 758, SB 284)κ
Sec. 303. NRS 673.670 is hereby amended to read as follows:
673.670 Copies of the minutes of the proceedings of [such] the meeting, verified by the affidavit of the president or vice president and the secretary or an assistant secretary, must be filed in the office of the [administrator] commissioner and, in duplicate, with the Federal Home Loan Bank of which the association is a member, within 10 days after [such] the meeting.
Sec. 304. NRS 673.690 is hereby amended to read as follows:
673.690 1. After the meeting, the federal association shall take such action in the manner prescribed and authorized by the laws of this state as shall make it a savings and loan association of this state, and the directors elected at the meeting shall file such documents and follow such procedures as are required by the laws of this state in the case of the original incorporation of a savings and loan association.
2. A savings and loan association incorporated by conversion from a federal savings and loan association shall not be required to comply with any of the provisions of law or any regulation adopted by the [administrator] commissioner relating to the minimum amounts of capital required to the subscribed in connection with the original incorporation of a savings and loan association under the laws of this state.
Sec. 305. NRS 675.020 is hereby amended to read as follows:
675.020 As used in this chapter, unless the context otherwise requires:
1. [Administrator means the administrator of financial institutions.
2.] Amount of cash advance means the amount of cash or its equivalent actually received by a borrower or paid out at his direction or on his behalf.
[3.] 2. Amount of loan obligation means the amount of cash advance plus the aggregate of charges added thereto pursuant to authority of this chapter.
3. Commissioner means the commissioner of financial institutions.
4. Community means a contiguous area of the same economic unit or metropolitan area as determined by the [administrator,] commissioner, and may include all or part of a city or several towns or cities.
5. License means a license, issued under the authority of this chapter, to make loans in accordance with the provisions of this chapter, at a single place of business.
6. Licensee means a person to whom one or more licenses have been issued.
Sec. 306. NRS 675.060 is hereby amended to read as follows:
675.060 1. No person may engage in the business of lending without first having obtained a license from the [administrator.] commissioner.
2. For the purpose of this section, a person engages in the business of lending if he solicits loans in this state and, in connection therewith, makes loans to persons in this state, unless these are isolated, incidental or occasional transactions.
Sec. 307. NRS 675.090 is hereby amended to read as follows:
675.090 1. Application for a license must be in writing, under oath, and in the form prescribed by the [administrator.] commissioner.
κ1987 Statutes of Nevada, Page 1988 (CHAPTER 758, SB 284)κ
2. The application must:
(a) Give the general location where the business is to be conducted.
(b) Contain such further relevant information as the [administrator] commissioner may require, including the names and addresses of the partners, officers, directors or trustees, and of such of the principal owners or members as will provide the basis for the investigations and findings contemplated by NRS 675.110 and 675.120.
Sec. 308. NRS 675.100 is hereby amended to read as follows:
675.100 1. At the time of making the application, the applicant shall pay to the [administrator] commissioner a nonrefundable fee of $500 for the application and survey. The applicant shall also pay such additional expenses incurred in the process of investigation as the [administrator] commissioner deems necessary. In addition, a fee of not less than $100 nor more than $500, prorated on the basis of the licensing year as provided by the [administrator,] commissioner, must be paid at the time of making the application.
2. All money received by the [administrator] commissioner pursuant to this section must be placed in the investigative fund created by NRS 232.285.
Sec. 309. NRS 675.110 is hereby amended to read as follows:
675.110 1. Upon the filing of the application and the payment of the fees, the [administrator] commissioner shall investigate the facts concerning the application and the requirements provided in NRS 675.120.
2. At least 20 days before entering the order granting or denying the application, he shall mail a notice of the receipt of the application to each licensee having a place of business in the community where the applicant proposes to do business and he may mail such a notice to such other persons, associations and institutions as he may see fit.
3. The [administrator] commissioner may hold a hearing on the application at a time not less than 30 days from the date the application was filed nor more than 60 days from that date. The hearing must be held in the office of the [administrator] commissioner or such other place as he may designate. Notice in writing of the hearing must be sent to the applicant and to any licensee to which a notice of the application had been given and to such other persons as the [administrator] commissioner may see fit, at least 10 days before the date set for the hearing.
4. The [administrator] commissioner shall make his order granting or denying the application within 10 days from the date of the closing of the hearing, unless the period is extended by written agreement between the applicant and the [administrator.] commissioner.
Sec. 310. NRS 675.120 is hereby amended to read as follows:
675.120 If the [administrator] commissioner finds:
1. That the financial responsibility, experience, character and general fitness of the applicant are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honesty, fairly and efficiently, within the purposes of this chapter;
κ1987 Statutes of Nevada, Page 1989 (CHAPTER 758, SB 284)κ
2. That allowing the applicant to engage in business will promote the convenience and advantage of the community in which the licensed office is to be located; and
3. That the applicant, unless he will function solely as a loan broker, has available for the operation of the business at the specified location liquid assets of at least $50,000,
he shall thereupon enter an order granting the application, and file his findings of fact together with the transcript of any hearing held under this chapter, and forthwith issue and deliver a license to the applicant.
Sec. 311. NRS 675.140 is hereby amended to read as follows:
675.140 On or before December 20 of each year, each licensee shall pay to the [administrator] commissioner $500 for each license held by him as a license fee for the succeeding calendar year.
Sec. 312. NRS 675.150 is hereby amended to read as follows:
675.150 1. If the [administrator] commissioner finds that any applicant does not possess the requirements specified in this chapter, he shall enter an order denying the application and forthwith notify the applicant of the denial.
2. Within 10 days after the entry of such an order, he shall file his findings and a summary of the evidence supporting them and shall forthwith deliver a copy thereof to the applicant.
Sec. 313. NRS 675.170 is hereby amended to read as follows:
675.170 1. The [administrator] commissioner may adopt regulations and make orders for the administration and enforcement of this chapter, in addition hereto and not inconsistent herewith.
2. Every regulation must be promulgated by an order, and any ruling, demand, requirement or similar administrative act may be promulgated by an order.
3. Every order must be in writing, must state its effective date and the date of its promulgation, and must be entered in an indexed permanent book which is a public record.
4. A copy of every order promulgating a regulation and of every other order containing a requirement of general application must be mailed to each licensee at least 20 days before the effective date thereof.
Sec. 314. NRS 675.210 is hereby amended to read as follows:
675.210 Not more than one place of business may be maintained under the same license. The [administrator] commissioner may issue additional licenses to the same licensee for other business locations upon compliance with all the provisions of this chapter governing issuance of a single license. Nothing herein requires a license for any place of business devoted to accounting, recordkeeping or administrative purposes only.
Sec. 315. NRS 675.220 is hereby amended to read as follows:
675.220 1. No change in the place of business of a licensee to a location outside of the original city or town may be permitted under the same license.
κ1987 Statutes of Nevada, Page 1990 (CHAPTER 758, SB 284)κ
2. When a licensee wishes to change his place of business within the same city or town, he shall give written notice thereof to the [administrator,] commissioner, who shall investigate the facts. If the [administrator] commissioner finds:
(a) That allowing the licensee to engage in business in the proposed location is not detrimental to the convenience and advantage of the community; and
(b) That the proposed location is reasonably accessible to borrowers under existing loan contracts,
he shall enter an order permitting the change and shall amend the license accordingly.
3. If the [administrator] commissioner does not so find he shall enter an order denying the licensee such permission in the manner specified in and subject to the provisions of NRS 675.150.
Sec. 316. NRS 675.230 is hereby amended to read as follows:
675.230 No licensee may conduct the business of making loans under this chapter within any office, suite, room or place of business in which any other business is solicited or engaged in, except an insurance agency or notary public, or in association or conjunction with any other business, unless authority to do so is given by the [administrator.] commissioner.
Sec. 317. NRS 675.260 is hereby amended to read as follows:
675.260 1. Annually, on or before April 15, each licensee shall file with the [administrator] commissioner a report of operations of the licensed business for the preceding calendar year.
2. The report must be made under oath and must be in the form and contain information prescribed by the [administrator.] commissioner.
3. If any person or affiliated group holds more than one license in the state, it may file a composite annual report.
Sec. 318. NRS 675.380 is hereby amended to read as follows:
675.380 1. For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the [administrator] commissioner or his duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:
(a) Any licensee;
(b) Any other person engaged in the business described in NRS 675.060 or participating in such business as principal, agent, broker or otherwise; and
(c) Any person who the [administrator] commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter.
2. For the purpose of examination the [administrator] commissioner or his authorized representatives shall have and be given free access to the offices and places of business, files, safes and vaults of such persons.
κ1987 Statutes of Nevada, Page 1991 (CHAPTER 758, SB 284)κ
3. For the purposes of this section, any person who advertises for, solicits or holds himself out as willing to make loan transactions is presumed to be engaged in the business described in NRS 675.060.
Sec. 319. NRS 675.390 is hereby amended to read as follows:
675.390 The [administrator] commissioner may require the attendance of any person and examine him under oath relative to loans or business regulated by this chapter or to the subject matter of any examination, investigation or hearing, and may require the production of books, accounts, papers and records.
Sec. 320. NRS 675.400 is hereby amended to read as follows:
675.400 1. At least once each year, the [administrator] commissioner or his authorized representatives shall make an examination of the place of business of each licensee and of the loans, transactions, books, papers and records of the licensee so far as they pertain to the business licensed under this chapter.
2. For each examination the [administrator] commissioner shall charge and collect from the licensee a reasonable fee for each man-hour expended in conducting the examination and preparing and typing the examination report.
3. All money collected by the [administrator] commissioner pursuant to subsection 2 must be deposited in the state general fund.
Sec. 321. NRS 675.410 is hereby amended to read as follows:
675.410 If the [administrator] commissioner finds that probable cause for revocation of any license exists and that enforcement of this chapter requires immediate suspension of [such] a license pending investigation, he may, upon 5 days written notice and a hearing, enter an order suspending [such] a license for a period not exceeding 20 days, pending a hearing upon the revocation.
Sec. 322. NRS 675.420 is hereby amended to read as follows:
675.420 Any licensee may surrender any license by delivering it to the [administrator] commissioner with written notice of its surrender, but [such] a surrender does not affect his civil or criminal liability for acts committed prior thereto.
Sec. 323. NRS 675.430 is hereby amended to read as follows:
675.430 1. Whenever the [administrator] commissioner has reasonable cause to believe that any person is violating or is threatening to or intends to violate any provision of this chapter, he may, in addition to all actions provided for in this chapter and without prejudice thereto, enter an order requiring [such] a person to desist or to refrain from such violation.
2. An action may be brought on the relation of the attorney general and the [administrator] commissioner to enjoin [such] a person from engaging in or continuing [such] a violation or from doing any act or acts in furtherance thereof. In any such action, an order or judgment may be entered awarding [such] a preliminary or final injunction as may be deemed proper.
3. In addition to all other means provided by law for the enforcement of a restraining order or injunction, the court in which [such] an action is brought may impound, and appoint a receiver for, the property and business of the defendant, including books, papers, documents and records pertaining thereto, or so much thereof as the count may deem reasonably necessary to prevent violations of this chapter through or by means of the use of [such] property and business.
κ1987 Statutes of Nevada, Page 1992 (CHAPTER 758, SB 284)κ
brought may impound, and appoint a receiver for, the property and business of the defendant, including books, papers, documents and records pertaining thereto, or so much thereof as the count may deem reasonably necessary to prevent violations of this chapter through or by means of the use of [such] property and business. [Such] A receiver, when appointed and qualified, has such powers and duties as to custody, collection, administration, winding up and liquidation of such property and business as may from time to time be conferred upon him by the court.
Sec. 324. NRS 675.440 is hereby amended to read as follows:
675.440 1. If the [administrator] commissioner has reason to believe that grounds for revocation or suspension of a license exist, he shall give 20 days written notice to the licensee stating the contemplated action and, in general, the grounds therefor and set a date for a hearing.
2. At the conclusion of [such] a hearing, the [administrator] commissioner shall enter a written order either dismissing the charges, or revoking the license, or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. A copy of [such] the order must be sent by registered or certified mail to the licensee.
3. The grounds for revocation or suspension of a license are that:
(a) The licensee has failed to pay the annual license fee;
(b) The licensee, either knowingly or without any exercise of due care to prevent it, has violated any provision of this chapter or any lawful regulation adopted under it;
(c) Any fact or condition exists which would have justified the [administrator] commissioner in denying the licensees original application for a license hereunder; or
(d) The applicant failed to open an office for the conduct of the business authorized under this chapter within 120 days from the date the license was issued, or has failed to remain open for the conduct of such business for a period of 120 days without good cause therefor.
4. Any revocation or suspension shall apply only to the license granted to a person for the particular office for which grounds for revocation or suspension exist.
5. An order suspending or revoking a license shall become effective 5 days after being entered unless the order specifies otherwise or a stay is granted.
Sec. 325. NRS 676.015 is hereby amended to read as follows:
676.015 [Administrator] Commissioner means the [administrator] commissioner of financial institutions.
Sec. 326. NRS 676.110 is hereby amended to read as follows:
676.110 No person, firm, company or corporation may engage in the business of debt adjusting except as provided in and authorized by this chapter, and without first having obtained a license from the [administrator.] commissioner.
κ1987 Statutes of Nevada, Page 1993 (CHAPTER 758, SB 284)κ
Sec. 327. NRS 676.120 is hereby amended to read as follows:
676.120 1. Application for a license must be in writing, under oath and in the form prescribed by the [administrator.] commissioner.
2. The application shall:
(a) Give the business name, location of the office, names and addresses of all officers and directors, if a corporation or association, and names and addresses of partners, if a copartnership.
(b) Be accompanied by a copy of the fictitious name certificate or the articles of incorporation, where applicable.
(c) Contain such further relevant information as the [administrator] commissioner may require.
Sec. 328. NRS 676.130 is hereby amended to read as follows:
676.130 At the time of making the application, the applicant shall:
1. Pay to the [administrator] commissioner a nonrefundable fee of $250 for the application and survey. The applicant shall also pay such additional expenses incurred in the process of investigation as the [administrator] commissioner deems necessary. In addition, a fee of not less than $100 nor more than $200, prorated on the basis of the licensing year as provided by the [administrator,] commissioner, must be paid at the time of making the application. All money received by the [administrator] commissioner pursuant to this subsection must be placed in the investigative fund created by NRS 232.285.
2. Furnish and maintain in effect a satisfactory bond to the State of Nevada, executed by an admitted surety company approved by the [administrator] commissioner, in the amount of $10,000, or an appropriate substitute pursuant to NRS 676.135, conditioned upon the faithful accounting of all money collected upon accounts and entrusted to the licensee, or its employees or agents.
3. Provide a blank copy of the debt-adjustment contract which will be used by the licensee in its business.
Sec. 329. NRS 676.135 is hereby amended to read as follows:
676.135 1. An applicant for a license may deposit with any bank or trust company authorized to do business in this state, with the permission of the [administrator,] commissioner, as a substitute for the surety bond required by NRS 676.130:
(a) An obligation of a bank, savings and loan association, thrift company or credit union licensed to do business in this state;
(b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or
(c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state or guaranteed by this state, in an aggregate amount, based upon principal amount or market value, whichever is lower.
The deposit must be in a form approved by the [administrator.] commissioner.
κ1987 Statutes of Nevada, Page 1994 (CHAPTER 758, SB 284)κ
2. The obligations of a bank, savings and loan association, thrift company or credit union must be held to secure the same obligation as would the surety bond. With the approval of the [administrator,] commissioner, the depositor may substitute other suitable obligations for those deposited which must be assigned to the State of Nevada and are negotiable only upon approval by the [administrator.] commissioner.
3. Any interest or dividends earned on the deposit accrue to the account of the depositor.
4. The deposit must be an amount at least equal to the required surety bond and must state that the amount may not be withdrawn except by direct and sole order of the [administrator.] commissioner.
Sec. 330. NRS 676.140 is hereby amended to read as follows:
676.140 Upon the filing of the application and the payment of fees, the [administrator] commissioner shall investigate the facts concerning the application and the requirements provided for in NRS 676.150.
Sec. 331. NRS 676.150 is hereby amended to read as follows:
676.150 If the [administrator] commissioner finds that:
1. The financial responsibility, experience, character and general fitness of the applicant and of the associates, directors or officers thereof are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honesty, fairy and efficiently, within the purposes of this chapter; and
2. Allowing the applicant to engage in business will promote the convenience and advantage of the community in which the licensed office is to be located,
he shall issue and deliver a license to the applicant.
Sec. 332. NRS 676.160 is hereby amended to read as follows:
676.160 1. On or before December 1 of each year, each licensee may apply to the [administrator] commissioner for a renewal of its license.
2. The application must be on the form prescribed by the [administrator] commissioner and must be accompanied by a fee of $200 and a bond, as in the case of the original application.
3. Each license, as renewed, remains in force until surrendered, suspended or revoked as provided in this chapter.
Sec. 333. NRS 676.200 is hereby amended to read as follows:
676.200 Not more than one office may be maintained under the same license. The [administrator] commissioner may issue additional licenses to the same licensee for other offices upon compliance with the provisions of this chapter governing issuance of a single license.
Sec. 334. NRS 676.205 is hereby amended to read as follows:
676.205 1. A licensee shall immediately notify the [administrator] commissioner of any change in the ownership of 5 percent or more of the outstanding voting stock of the licensee.
2. An application must be submitted to the [administrator,] commissioner, pursuant to NRS 676.120, by a person who acquires:
(a) At least 25 percent of a licensees outstanding voting stock; or
κ1987 Statutes of Nevada, Page 1995 (CHAPTER 758, SB 284)κ
(b) Any outstanding voting stock of a licensee if the change will result in a change in the control of the licensee.
Except as provided in subsection 4, the [administrator] commissioner shall conduct an investigation to determine whether the financial responsibility, experience, character and general fitness of the applicant are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honestly, fairly and efficiently, within the purposes of this chapter. If the [administrator] commissioner denies the application, he may forbid the applicant from participating in the business of the licensee.
3. The licensee with which the applicant is affiliated shall pay such a portion of the cost of the investigation as the [administrator] commissioner requires. All money received by the [administrator] commissioner pursuant to this subsection must be placed in the investigative fund created by NRS 232.285.
4. A licensee may submit a written request to the [administrator] commissioner to waive an investigation pursuant to subsection 2. The [administrator] commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his employment with a financial institution.
Sec. 335. NRS 676.210 is hereby amended to read as follows:
676.210 Any licensee may surrender any license by delivering it to the [administrator] commissioner with written notice of its surrender, but [such] a surrender does not affect any civil or criminal liability for acts committed prior thereto.
Sec. 336. NRS 676.220 is hereby amended to read as follows:
676.220 Each licensee shall:
1. Open and maintain a separate trust account in a state bank or national bank doing business in this state. All money received from debtors for the benefit of creditors must be deposited in, and all payments to creditors must be disbursed from, this account.
2. Keep and use such books and accounting records as are in accord with sound and accepted accounting practices.
3. Maintain a separate record or ledger card for the account of each debtor, showing the amount of money received, from and disbursed on behalf of each debtor.
4. Maintain a separate record, in a form approved by the [administrator,] commissioner, or ledger card for each creditor, identifying the particular debtor-source of money and showing the amount of money disbursed in accordance with the appropriate debt-adjustment contract.
5. Preserve all [such] books and accounting records for at least 7 years after making the final entry therein.
Sec. 337. NRS 676.230 is hereby amended to read as follows:
676.230 1. Annually, on or before April 15, each licensee shall file with the [administrator] commissioner a report of operations of the licensed business for the preceding calendar year.
κ1987 Statutes of Nevada, Page 1996 (CHAPTER 758, SB 284)κ
2. [Such] A report must give information with respect to the financial operations of the licensee.
3. [Such reports] A report must be made under oath and must be in the form prescribed by the [administrator.] commissioner.
Sec. 338. NRS 676.260 is hereby amended to read as follows:
676.260 Each licensee shall:
1. Make remittances to creditors within 10 days after receipt of the monthly remittance from the debtor.
2. Furnish a written statement of account to the debtor at least once every 90 days. If the licensee has been doing business for more than 1 year, the [administrator] commissioner may waive the requirement of this subsection as he shall determine.
3. Provide account information to the debtor verbally when requested during normal business hours.
Sec. 339. NRS 676.270 is hereby amended to read as follows:
676.270 1. For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the [administrator] commissioner or his authorized representative may at any time and shall, at least once each year, investigate the business and examine the books, accounts, papers and records of any licensee.
2. For the purpose of examination the [administrator] commissioner or his authorized representatives must be allowed free access to the offices, files, safes and vaults of such licensees.
3. For each examination the [administrator] commissioner shall charge and collect from the licensee a reasonable fee for each man-hour expended in conducting the examination and in preparing and typing the examination report.
Sec. 340. NRS 676.280 is hereby amended to read as follows:
676.280 1. The [administrator] commissioner may require the attendance of any person and examine him under oath with regard to the debt adjustment business regulated by this chapter or the subject matter of any examination, investigation or hearing.
2. The [administrator] commissioner may require the production of books, accounts, papers and records in aid of any examination, investigation or hearing.
Sec. 341. NRS 676.290 is hereby amended to read as follows:
676.290 1. The [administrator] commissioner may, pursuant to the procedure provided in this chapter, deny, suspend or revoke any license for which application has been made or which has been issued under the provisions of this chapter if he finds, as to the licensee, its associates, directors or officers, grounds for [such] action.
2. Any one of the following grounds may provide the requisite grounds for [such] denial, suspension or revocation:
(a) Conviction of a felony or of a misdemeanor involving moral turpitude.
(b) Violation of any of the provisions of this chapter or regulations of the [administrator.] commissioner.
κ1987 Statutes of Nevada, Page 1997 (CHAPTER 758, SB 284)κ
(c) Fraud or deceit in procuring the issuance of the license.
(d) Continuous course of unfair conduct.
(e) Insolvency, filing in bankruptcy, receivership or assigning for the benefit of creditors by any licensee or applicant for a license under this chapter.
Sec. 342. NRS 676.300 is hereby amended to read as follows:
676.300 If the [administrator] commissioner finds that any one of the requisite grounds for denial, suspension or revocation of the license exists and that the enforcement of this chapter requires the immediate suspension of [such] a license, he may, upon 5 days written notice and a hearing, enter an order suspending [such] a license for a period not exceeding 20 days, pending the holding of a hearing as prescribed in NRS 676.310.
Sec. 343. NRS 676.310 is hereby amended to read as follows:
676.310 1. The [administrator] commissioner may, after notice and hearing, enter an order:
(a) Denying a license to any applicant who fails to establish, at [such] the hearing, its financial responsibility, experience, character and general fitness to engage in debt adjusting; or
(b) Revoking the license of a licensee who fails to overcome, at [such] the hearing, the probable cause for [such] the revocation found by the [administrator.] commissioner.
2. The denial, suspension or revocation of a license, as provided in this chapter, does not impair nor affect the obligation under any lawful debt-adjusting contract.
Sec. 344. Chapter 677 of NRS is hereby amended by adding thereto a new section to read as follows:
Commissioner means the commissioner of financial institutions.
Sec. 345. NRS 677.020 is hereby amended to read as follows:
677.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS [677.025] 677.030 to 677.140, inclusive, and section 344 of this act, have the meanings ascribed to them in those sections.
Sec. 346. NRS 677.070 is hereby amended to read as follows:
677.070 Community means a contiguous area of the same economic unit or metropolitan area, as determined by the [administrator,] commissioner, and may include all or part of a city or several towns or cities.
Sec. 347. NRS 677.150 is hereby amended to read as follows:
677.150 When authorized by the [administrator,] commissioner, as provided in this chapter, a corporation may be formed by three or more persons in accordance with the laws of this state to engage in business under this chapter.
Sec. 348. NRS 677.160 is hereby amended to read as follows:
677.160 1. The request for authority to engage in business under this chapter must be set forth in an application in such form and containing such information as the [administrator] commissioner may require.
κ1987 Statutes of Nevada, Page 1998 (CHAPTER 758, SB 284)κ
2. The filing fees are:
(a) For filing an original application, $1,000 for the principal office and $150 for each branch office. The applicant shall also pay such additional expenses incurred in the process of investigation as the [administrator] commissioner deems necessary. All money received by the [administrator] commissioner pursuant to this paragraph must be placed in the investigative fund created by NRS 232.285.
(b) If the license is approved for issuance, $500 for the principal office and $100 for each branch office before issuance.
Sec. 349. NRS 677.170 is hereby amended to read as follows:
677.170 A licensee which proposes to accept deposits shall file with the [administrator] commissioner a fidelity bond providing fidelity coverage on each officer, director and employee of at least $100,000. The fidelity bond may be either a bankers blanket bond or a finance companys blanket bond, but must be written by an insurer who has been approved by the [administrator.] commissioner.
Sec. 350. NRS 677.175 is hereby amended to read as follows:
677.175 If the [administrator] commissioner finds that a bond filed pursuant to NRS 677.170 is not sufficient to protect the interests of the public, he shall require the applicant to deposit an additional bond.
Sec. 351. NRS 677.180 is hereby amended to read as follows:
677.180 Upon the filing of an application, the [administrator] commissioner shall make or cause to be made a careful investigation and examination relative to the following:
1. Character, reputation and financial standing of the organizers or incorporators.
2. The need for a thrift company or an additional thrift company, as the case may be, in the community where the proposed licensee is to be located, giving particular consideration to the adequacy of existing thrift company services and the need for additional services of this kind in the community.
3. The ability of the community to support the proposed licensee, giving consideration to:
(a) The competition offered by existing licensees;
(b) Whether a thrift company has previously operated in the community; and
(c) The opportunities for profitable employment of the licensees [funds] money as indicated by the average demand for credit, the number of potential investors, the volume of transactions where the services of a thrift company would be appropriate, and the business and industries of the community with particular regard to their stability, diversification and size.
4. The character, banking, industrial loan, finance or thrift company or other experience and business qualifications of the proposed officers and managers of the licensee.
5. The character, financial responsibility, business experience and standing of the proposed stockholders and directors.
κ1987 Statutes of Nevada, Page 1999 (CHAPTER 758, SB 284)κ
6. [Such] Any other facts and circumstances bearing on the proposed licensee as in the opinion of the [administrator] commissioner may be relevant.
Sec. 352. NRS 677.190 is hereby amended to read as follows:
677.190 The [administrator] commissioner shall not approve the application unless he ascertains to his satisfaction:
1. That the public convenience and advantage will be promoted by the establishment of the proposed corporation.
2. That the corporation is being formed for no other purpose than the legitimate objectives contemplated by this chapter.
3. That the proposed capital structure is adequate.
4. That the financial responsibility, character and general fitness of the proposed officers, directors, shareholders and other investors are such as to command the confidence of the community and to warrant belief that the business will be operated honesty and fairly within the purpose of this chapter, and that the proposed officers and directors have sufficient banking, industrial loan or other experience, ability and standing to afford reasonable promise of successful operation.
5. That the applicant has complied with all the applicable provisions of this chapter.
Sec. 353. NRS 677.220 is hereby amended to read as follows:
677.220 If the [administrator] commissioner approves an application for authority to form a corporation to engage in business under this chapter, he shall issue a certificate in duplicate authorizing the organization of the corporation and the operation of a thrift company, specifying the date on which and the conditions under which its place of business may be opened, including the place where it will be located. The [administrator] commissioner shall deliver one copy to the applicant and retain the other copy.
Sec. 354. NRS 677.230 is hereby amended to read as follows:
677.230 The [administrator] commissioner may establish the basis upon which reasonable and adequate reserves must be created and maintained, which must be no less than 3 percent of the deposits, in cash and due from federally insured financial institutions in this state or any Federal Reserve Bank, and 5 percent of the deposits, in United States treasury bills or notes, short-term obligations of the federal or state government or money deposited in federally insured financial institutions in this state or any Federal Reserve Bank. For the purposes of this section, short-term means having a maturity of 2 years or less.
Sec. 355. NRS 677.240 is hereby amended to read as follows:
677.240 If a licensee desires to change its place of business to a street address other than that designated in its authorization, it shall give written notice to the [administrator] commissioner who shall issue his written authorization of [such] the change, if the [administrator] commissioner finds such change of place of business would not justify a negative finding.
κ1987 Statutes of Nevada, Page 2000 (CHAPTER 758, SB 284)κ
Sec. 356. NRS 677.241 is hereby amended to read as follows:
677.241 Subject to the prior approval of the [administrator,] commissioner, a licensee may, by a majority vote of its board of directors:
1. Enter into a contract, incur an obligation and perform other acts necessary to obtain a membership or other benefit that is available to a thrift company or its customers, stockholders, conservators, receivers or liquidators pursuant to the provisions of:
(a) The Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et seq.);
(b) The National Housing Act (12 U.S.C. §§ 1701 to 1743, inclusive); or
(c) A contract of insurance obtained by a licensee pursuant to paragraph (c) of subsection 1 of NRS 677.247.
2. Subscribe for and acquire any stock, debentures, bonds or other types of securities of the Federal Deposit Insurance Corporation.
Sec. 357. NRS 677.243 is hereby amended to read as follows:
677.243 1. Each licensee must maintain a record that includes for each employee:
(a) His full name;
(b) The address of each place at which he has resided during the previous 10 years;
(c) The name and address of each employer during the previous 10 years;
(d) A recent photograph of the employee measuring 3 by 5 inches; and
(e) Any alias used by the employee.
2. The information contained in this record must be provided to the [administrator] commissioner upon his request but is otherwise confidential.
Sec. 358. NRS 677.245 is hereby amended to read as follows:
677.245 1. Unless the licensee has received a written waiver from the [administrator,] commissioner, the total amount of money that it has advanced or committed for the real property that it has developed or constructed may not exceed twice the sum of its capital, surplus, undivided profits, reserve for loans, reserve for federal insurance and any other reserves specified by the [administrator.] commissioner.
2. If a licensee acquires title to any real property pursuant to the provisions of subsection 1 of NRS 677.630, the deed or other document representing the transaction must be recorded immediately.
3. An account must be established for the acquired property with a separate subsidiary ledger or other appropriate record. The amount carried in the account must be the sum of the unpaid principal balance of any loan made by the licensee that was secured by the foreclosed property plus the cost of the foreclosure less any advance payments held in the account for loans in progress at the time of acquisition, together with:
(a) Any amount paid after acquisition for taxes on the property that accrued before the acquisition;
(b) Assessments that are due or delinquent at the time of acquisition;
(c) Any other costs of acquisition; and
(d) The cost of insurance on the property.
4. The subsidiary ledger or other appropriate record must indicate as to each property:
κ1987 Statutes of Nevada, Page 2001 (CHAPTER 758, SB 284)κ
(a) The type and character of the property;
(b) All the capitalized items of investment and their cost; and
(c) The account number of the former loan or contract sale.
Sec. 359. NRS 677.247 is hereby amended to read as follows:
677.247 1. An applicant for an authorization to engage in the business regulated pursuant to this chapter must obtain:
(a) The insurance of deposits provided pursuant to the provisions of the Federal Deposit Insurance Act (12 U.S.C §§ 1811 et seq.);
(b) The insurance of deposits provided pursuant to the provisions of the National Housing Act (12 U.S.C §§ 1701 to 1743, inclusive); or
(c) A contract for the insurance of deposits which is issued by a private insurer approved by the [administrator] commissioner and the commissioner of insurance pursuant to NRS 677.249. Such a contract must be approved by the [administrator] commissioner and the [commissioner.] commissioner of insurance. The issuance of [such] a contract of insurance is not transacting insurance for the purposes of Title 57 of NRS.
2. An applicant must first attempt to obtain the insurance of deposits provided pursuant to the provisions of the Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et seq.) or the National Housing Act (12 U.S.C. §§ 1701 to 1743, inclusive) before obtaining a contract of insurance. The [administrator] commissioner and the commissioner of insurance shall not approve a contract of insurance for [such] an applicant unless they are satisfied that the reasons why the applicant has not obtained insurance under those provisions do not indicate that the protection intended to be afforded to the depositors by this act will be substantially impaired.
3. The [administrator] commissioner and the commissioner of insurance shall not approve a contract of insurance unless the protection afforded thereby to the depositors is substantially equivalent to the protection afforded by the Federal Deposit Insurance Corporation to the depositors of the accounts that it insures.
Sec. 360. NRS 677.249 is hereby amended to read as follows:
677.249 1. In determining whether a private insurer is acceptable to issue a contract for the insurance of deposits, the [administrator] commissioner and the commissioner of insurance must consider:
(a) The value of the insurers capital.
(b) The ratio of the insurers assets, including reinsurance, which are readily available to cover any losses incurred by depositors, to its insured deposits. This ratio must be adequate to reimburse depositors for any losses which they may incur and may not be less than the ratio maintained by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, whichever is greater.
(c) The qualifications of the directors, officers and managers of the insurance company.
(d) The insurers articles of incorporation and its bylaws and all amendments thereto.
(e) The insurers policies for investments.
κ1987 Statutes of Nevada, Page 2002 (CHAPTER 758, SB 284)κ
(f) The form of all insurance contracts entered into by the insurer, including contracts for reinsurance.
(g) The insurers requirements for premiums or deposits.
(h) The insurers policies for the management of risk.
(i) Such other considerations as the [administrator] commissioner may provide by regulation which are necessary to carry out the provisions of NRS 677.241 to 677.249, inclusive.
2. After a private insurer obtains the approval of the [administrator] commissioner and the [commissioner, the administrator,] commissioner of insurance, the commissioner, after consultation with the commissioner [,] of insurance, may, for cause, require the insurer to establish and maintain for such a time as the [administrator] commissioner may require, a reserve, in cash or United States treasury bills or notes, in an amount fixed by the [administrator.] commissioner. If required, the reserve must be kept in an account approved by the [administrator] commissioner in a federally insured financial institution located in this state.
Sec. 361. NRS 677.250 is hereby amended to read as follows:
677.250 When authorized by the [administrator] commissioner as provided in this chapter, a licensee, pursuant to a resolution of its board of directors, may establish and maintain one or more branch offices within the state.
Sec. 362. NRS 677.270 is hereby amended to read as follows:
677.270 1. The [administrator] commissioner shall not approve an application for a branch office until he has ascertained to his satisfaction that the facts set forth in the application are true and:
(a) That the public convenience and advantage will be promoted by the establishment of the proposed branch office.
(b) That the licensee has the capital required by this chapter.
2. The [administrator] commissioner must give his approval or denial for a branch application to the licensee within 45 days from the date of application to open a branch office unless the [administrator] commissioner gives notice within the original 45-day period that he is extending the period for decision for a term not to exceed an additional 45 days.
Sec. 363. NRS 677.290 is hereby amended to read as follows:
677.290 The failure of a licensee to open and operate a branch office within 6 months after the [administrator] commissioner approves the application therefor automatically terminates the right of the licensee to open the branch office.
Sec. 364. NRS 677.300 is hereby amended to read as follows:
677.300 When authorized by the [administrator,] commissioner, a licensee may change the location of a branch office from one location to another. The [administrator] commissioner must give his approval or denial to the licensee within 25 days from the date of application for a change in branch location unless the [administrator] commissioner gives notice within the original 25-day period that he is extending the period for decision for a term not to exceed an additional 25 days. Every licensee shall keep posted in a conspicuous place in each branch office the certificate issued by the [administrator] commissioner permitting the operating of the branch office.
κ1987 Statutes of Nevada, Page 2003 (CHAPTER 758, SB 284)κ
a conspicuous place in each branch office the certificate issued by the [administrator] commissioner permitting the operating of the branch office.
Sec. 365. NRS 677.320 is hereby amended to read as follows:
677.320 1. With the prior written approval of the [administrator,] commissioner, a licensee may close or discontinue the operation of any branch office if public notice thereof is given in such manner as the [administrator] commissioner directs at least 30 days before the date of closing or discontinuance.
2. After a branch office has been closed or discontinued it may not be reopened without the approval of the [administrator.] commissioner.
Sec. 366. NRS 677.330 is hereby amended to read as follows:
677.330 1. The [administrator] commissioner may authorize a licensee to operate a mobile office.
2. A mobile office must serve its designated area at least once each 30 days. Each mobile office must be licensed as a branch office.
3. Each application for authority to operate a mobile office must specify the permanent office of the licensee, either its main office or one of its branches, at which the records of the mobile office will be kept.
Sec. 367. NRS 677.360 is hereby amended to read as follows:
677.360 On or before December 20 of each year, each licensee shall pay to the [administrator] commissioner the sum of $500 for each license held by him as a license fee for the succeeding calendar year.
Sec. 368. NRS 677.370 is hereby amended to read as follows:
677.370 1. Each licensee shall conspicuously post each license in the place of business to which it pertains.
2. No license is transferable or assignable without the permission of the [administrator.] commissioner.
Sec. 369. NRS 677.380 is hereby amended to read as follows:
677.380 1. The [administrator] commissioner may adopt regulations and make orders for the administration and enforcement of this chapter, in addition to and not inconsistent with this chapter.
2. Any ruling, demand, requirement or similar administrative act may be promulgated by an order.
3. Every order must be in writing, must state its effective date and the date of its promulgation, and must be entered in an indexed permanent book which is a public record.
4. A copy of every order containing a requirement of general application must be mailed to each licensee at least 20 days before the effective date thereof.
Sec. 370. NRS 677.400 is hereby amended to read as follows:
677.400 1. Annually, on or before May 15, unless the [administrator] commissioner grants a written extension, each licensee shall file with the [administrator] commissioner a report of operations of the licensed business for the preceding calendar year.
2. The report must give information with respect to the financial condition of the licensee and include balance sheets at the beginning and end of the year, statement of income and expenses for the period, reconciliation of surplus or net worth with the balance sheets, schedule of assets used and useful in the licensed business, size of loans, analysis of charges, including monthly average number and amount of loans outstanding, analysis of delinquent accounts, court actions undertaken to effect collection, and any further statistical information reasonably prescribed by the [administrator.]
κ1987 Statutes of Nevada, Page 2004 (CHAPTER 758, SB 284)κ
of the year, statement of income and expenses for the period, reconciliation of surplus or net worth with the balance sheets, schedule of assets used and useful in the licensed business, size of loans, analysis of charges, including monthly average number and amount of loans outstanding, analysis of delinquent accounts, court actions undertaken to effect collection, and any further statistical information reasonably prescribed by the [administrator.] commissioner.
3. The report must be made under oath and be in the form prescribed by the [administrator.] commissioner.
4. If any person or affiliated group holds more than one license in the state, that person or group may file a composite annual report, if a short form of report applicable to each licensed office accompanies the report.
Sec. 371. NRS 677.410 is hereby amended to read as follows:
677.410 1. The annual reports and financial statements required by this chapter must be prepared in accordance with generally accepted accounting principles and must be accompanied by a report, certificate, or opinion of an independent certified public accountant or independent public accountant, and must contain such relevant information as the [administrator] commissioner may require. The audits must be conducted in accordance with generally accepted auditing standards and the regulations of the [administrator.] commissioner.
2. A licensee shall make other special reports to the [administrator] commissioner as the [administrator] commissioner may from time to time require.
3. For good cause and upon written request, the [administrator] commissioner may extend the time for compliance with the provisions of this chapter.
4. If the report, certificate or opinion of the independent accountant is in any way qualified, the [administrator] commissioner may require the company to take such action as he deems appropriate to permit an independent accountant to remove such qualification from the report, certificate or opinion.
Sec. 372. NRS 677.420 is hereby amended to read as follows:
677.420 1. A licensee shall immediately notify the [administrator] commissioner of any change in the ownership of 5 percent or more of the outstanding voting stock of the licensee.
2. An application for approval must be submitted to the [administrator] commissioner by a person who acquires:
(a) At least 25 percent of a licensees outstanding voting stock; or
(b) Any outstanding voting stock of a licensee if the change will result in a change in the control of the licensee.
Except as provided in subsection 4, the [administrator] commissioner shall conduct an investigation in accordance with NRS 677.180. If the [administrator] commissioner denies the application, he may forbid the applicant from participating in the business of the licensee.
κ1987 Statutes of Nevada, Page 2005 (CHAPTER 758, SB 284)κ
3. The licensee with which the applicant is affiliated shall pay such a portion of the cost of the investigation as the [administrator] commissioner requires. All money received by the [administrator] commissioner pursuant to this subsection must be placed in the investigative fund created by NRS 232.285.
4. A licensee may submit a written request to the [administrator] commissioner to waive an investigation pursuant to subsection 2. The [administrator] commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his employment with a financial institution.
Sec. 373. NRS 677.430 is hereby amended to read as follows:
677.430 1. At least once each year, the [administrator] commissioner or his authorized representatives shall make an examination of the place of business of each licensee and of the loans, transactions, books, papers and records of such licensee so far as they pertain to the business licensed under this chapter.
2. For each examination the [administrator] commissioner shall charge and collect from the licensee a reasonable fee for each man-hour expended in conducting the examination and preparing and typing the examination report.
Sec. 374. NRS 677.440 is hereby amended to read as follows:
677.440 1. For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the [administrator] commissioner or his authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:
(a) Any licensee;
(b) Any other person engaged in the business described in this chapter, participating in the business as a principal, agent, broker or otherwise;
(c) Any person who the [administrator] commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not that person claims to be within the authority or beyond the scope of this chapter; and
(d) Any company which is a subsidiary of, affiliated with or owned or controlled by a licensee.
2. For the purpose of examination, the [administrator] commissioner or his authorized representatives have and must be given free access to the offices and places of business, files, safes and vaults of the persons listed in subsection 1.
Sec. 375. NRS 677.450 is hereby amended to read as follows:
677.450 The [administrator] commissioner may require the attendance of any person and may examine him under oath relative to loans or business regulated by this chapter or the subject matter of any examination, investigation or hearing, and may require the production of books, accounts, papers and records.
κ1987 Statutes of Nevada, Page 2006 (CHAPTER 758, SB 284)κ
Sec. 376. NRS 677.460 is hereby amended to read as follows:
677.460 The [administrator] commissioner may provide by regulation or order for the charging off of assets considered to be of little or no value.
Sec. 377. NRS 677.470 is hereby amended to read as follows:
677.470 In addition to the annual fee provided by this chapter, the [administrator] commissioner shall assess and collect from each licensee the reasonable cost of auditing the books and records of [such] a licensee.
Sec. 378. NRS 677.480 is hereby amended to read as follows:
677.480 If it appears to the [administrator] commissioner any company is conducting business in an unsafe or injurious manner, he may by written order direct the discontinuance of any [such] unsafe or injurious practices.
Sec. 379. NRS 677.490 is hereby amended to read as follows:
677.490 Any licensee may surrender any license by delivering it to the [administrator] commissioner with written notice of its surrender, but [such] a surrender does not affect his civil or criminal liability for acts committed [prior to] before the surrender.
Sec. 380. NRS 677.500 is hereby amended to read as follows:
677.500 If the [administrator] commissioner finds that probable cause for revocation of any license exists and that enforcement of this chapter requires immediate suspension of [such] a license pending investigation, he may, upon 5 days written notice and without a hearing, enter an order suspending [such] a license for a period not exceeding 20 days pending the holding of a hearing.
Sec. 381. NRS 677.510 is hereby amended to read as follows:
677.510 1. If the [administrator] commissioner has reason to believe that grounds for revocation or suspension of a license exist, he shall give 20 days written notice to the licensee stating the contemplated action and, in general, the grounds therefor and set a date for a hearing.
2. At the conclusion of [such] a hearing, the [administrator] commissioner shall enter a written order either dismissing the charges, or revoking the license, or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. A copy of such order must be sent by registered or certified mail to the licensee.
3. The grounds for revocation or suspension of a license are that:
(a) The licensee has failed to pay the annual license fee;
(b) The licensee, either knowingly or without any exercise of due care to prevent it, has violated any provision of this chapter, or any lawful regulation promulgated under this chapter;
(c) Any fact or condition exists which would have justified the [administrator] commissioner in denying the licensees original application for a license hereunder; or
(d) The applicant failed to open an office for the conduct of the business authorized under this chapter within 120 days from the date the license was issued, or has failed to remain open for the conduct of [such] the business for a period of 120 days without good cause therefor.
κ1987 Statutes of Nevada, Page 2007 (CHAPTER 758, SB 284)κ
4. Any revocation or suspension applies only to the license granted to a person for the particular office for which grounds for revocation or suspension exist.
5. An order suspending or revoking a license becomes effective 5 days after being entered unless the order specifies otherwise or a stay is granted.
Sec. 382. NRS 677.530 is hereby amended to read as follows:
677.530 1. Whenever the [administrator] commissioner has reasonable cause to believe that any person is violating or is threatening to or intends to violate any provision of this chapter, he may, in addition to all actions provided for in this chapter and without prejudice thereto, enter an order requiring [such] the person to desist or to refrain from such violation.
2. An action may be brought on the relation of the attorney general and the [administrator] commissioner to enjoin [such] a person from engaging in or continuing [such] a violation or from doing any act or acts in furtherance thereof. In any such action, an order or judgment may be entered awarding such preliminary or final injunction as may be deemed proper.
3. In addition to all other means provided by law for the enforcement of a restraining order or injunction, the court in which [such] an action is brought may impound, and appoint a receiver for, the property and business of the defendant, including books, papers, documents and records pertaining thereto, or so much thereof as the court deems reasonably necessary to prevent violations of this chapter through or by means of the use of [such] the property and business. Such receiver, when appointed and qualified, has such powers and duties as to custody, collection, administration, winding up and liquidation of such property and business as are from time to time conferred upon him by the court.
Sec. 383. NRS 677.540 is hereby amended to read as follows:
677.540 Whenever it appears to the [administrator] commissioner that:
1. The capital of any licensee is impaired;
2. Any licensee has violated its articles of incorporation or any law of this state;
3. Any licensee is conducting its business in an unsafe or unauthorized manner;
4. Any licensee refuses to submit its books, papers and affairs to the inspection of any examiner;
5. Any officer of any licensee refuses to be examined upon oath touching the concerns of the licensee;
6. Any licensee has suspended payment of its obligations;
7. Any licensee is in [such] a condition that it is unsound or unsafe for it to transact business;
8. Any licensee neglects or refuses to observe any order of the [administrator] commissioner made pursuant to this chapter unless the enforcement of the order is restrained in a proceeding brought by the licensee;
9. Any licensee has accepted deposits in violation of the provisions of this chapter; or
κ1987 Statutes of Nevada, Page 2008 (CHAPTER 758, SB 284)κ
10. Any fact or condition exists which, if it had existed at the time of the original application for authority to organize and establish a corporation to engage in business under this chapter reasonably would have warranted the [administrator] commissioner in disapproving the application,
the [administrator] commissioner may forthwith take possession of the property and business of the licensee and retain possession until it resumes business or its affairs are finally liquidated as provided in this chapter. The licensee, with the consent of the [administrator,] commissioner, may resume business upon such conditions as he may prescribe.
Sec. 384. NRS 677.545 is hereby amended to read as follows:
677.545 1. Except as limited by subsection 2, if the [administrator] commissioner has taken possession of the property and business of a corporation licensed under this chapter pursuant to NRS 677.540, or a receiver, other than the state, has been appointed for and taken possession of the property and business of [such] a corporation, the [administrator] commissioner may solicit offers from and authorize or require the acquisition of the corporation by or its merger with another institution or company in the following order of priority:
(a) A corporation which is licensed pursuant to this chapter.
(b) Any other depository institution licensed under the laws of this state or of the United States if its principal office is located in this state, including institutions whose parent corporation has offices or operations in other states.
(c) A bank, savings and loan association or thrift company, or its parent corporation, licensed pursuant to the laws of the United States or of another state, whose operations are principally conducted within the states of Alaska, Arizona, Colorado, Hawaii, Idaho, Montana, New Mexico, Oregon, Utah, Washington or Wyoming.
(d) A bank, savings and loan association or thrift company, or its parent corporation, licensed pursuant to the laws of the United States or of another state, whether or not its principal place of business is in another state.
The [administrator] commissioner shall solicit written offers from all eligible institutions, regardless of the order of priority established by this subsection, and wait at least 30 days after solicitation before selecting the institution to be approved.
2. The selection of an institution must be made in accordance with the order of priority established in subsection 1 only if [such] a selection affords the greatest financial recovery by the corporations depositors of all offers received. The [administrator] commissioner may not accept any offer which affords the corporations depositors a smaller financial recovery than they would receive if the corporation were liquidated. If the [administrator] commissioner receives one or more acceptable offers he may negotiate with the institutions submitting acceptable offers, following that order of priority, and accept that offer which would afford the greatest financial recovery by the corporations depositors.
3. If a thrift company of which the [administrator] commissioner took possession before May 1, 1985, is acquired by or merged with any depository institution or its parent or affiliate, that thrift company, or the acquiring institution, or the institution which results from the merger has all the rights, powers and privileges of any other depository institution in this state of the same class.
κ1987 Statutes of Nevada, Page 2009 (CHAPTER 758, SB 284)κ
depository institution or its parent or affiliate, that thrift company, or the acquiring institution, or the institution which results from the merger has all the rights, powers and privileges of any other depository institution in this state of the same class. If the institution which acquires or merges with the thrift company does not own or operate a bank or a savings and loan association in this state it may acquire, establish or operate [one such] a bank or association. The legislature intends that this subsection authorize an institution or its parent or affiliate which is organized under the laws of another state or of the United States and which principally conducts its operations in another state to acquire, establish or operate a bank or savings and loan association in this state.
4. If the institution which acquires or merges with a thrift company pursuant to subsection 3, or a parent or affiliate of that institution, has acquired a bank located in Nevada pursuant to NRS 666.128, the limitations imposed by NRS 666.132 no longer apply to the operations of the institution or its parent or affiliate.
Sec. 385. NRS 677.550 is hereby amended to read as follows:
677.550 1. The [administrator] commissioner may order a licensee to suspend the payment of its liabilities or limit the payment of its liabilities in such manner as he prescribes, if it appears to the [administrator that such] commissioner that this action is necessary for the protection of the licensee, its depositors or creditors, or in the public interest. The order is effective upon receipt of notice by the licensee and continues in effect until rescinded or modified by the [administrator] commissioner in a writing delivered to the manager or executive officer of the licensee.
2. Subsection 1 does not affect the right of any licensee to pay its current operating expenses and liabilities incurred during the period of suspension of limitation.
3. After an order suspending or limiting the payment of liabilities is effective and until that order is rescinded, the licensee shall make no assignment or hypothecation of any indebtedness due to it from a depositor without first crediting thereon the liability of the licensee to the depositor.
4. The authority granted to the [administrator] commissioner by this section may be exercised by him in conjunction with all other powers granted by this chapter, or independently from them.
Sec. 386. NRS 677.560 is hereby amended to read as follows:
677.560 Whenever the [administrator] commissioner has taken possession of the property and business of any licensee, [such] a licensee, within 10 days after [such] a taking, if it deems itself aggrieved thereby, may apply to the district court in the county in which the main office of the licensee is located to enjoin further proceedings. The court, after citing the [administrator] commissioner to show cause why further proceedings should not be enjoined and after a hearing and a determination of the facts upon the merits may dismiss such application or enjoin the [administrator] commissioner from further proceedings and direct him to surrender the property and business to such licensee, or make such further order as may be just.
κ1987 Statutes of Nevada, Page 2010 (CHAPTER 758, SB 284)κ
Sec. 387. NRS 677.570 is hereby amended to read as follows:
677.570 When the [administrator] commissioner takes possession of the property and business of any company for the purpose of liquidation or conservation, he may liquidate or conserve the company. In such a liquidation or conservation the [administrator] commissioner has the same authority with reference to licensees as are vested in the [administrator] commissioner by Title 55 of NRS with reference to banks and in addition may deposit money coming into his hands in the course of liquidation in one or more state or national banks.
Sec. 388. NRS 677.620 is hereby amended to read as follows:
677.620 1. A licensee shall not have at any time deposits in an aggregate sum in excess of 10 times the aggregate amount of its paid-up and unimpaired capital and unimpaired surplus.
2. If a licensee has operated under this chapter for 1 year or more and during its most recent fiscal year has been profitable, the [administrator] commissioner may increase the ratio of deposits to paid-up and unimpaired capital and unimpaired surplus prescribed in subsection 1 to not more than the greatest net worth to savings ratio permitted for any savings and loan association operating in this state. The [administrator] commissioner shall give his approval or denial of the application for an increased ratio to the licensee in writing with supporting reasons within 30 days after the date of application by the licensee unless the [administrator] commissioner gives notice within the original 30-day period that he is extending the period for decision for a term not to exceed an additional 30 days. The [administrator] commissioner may, for reasonable cause, decrease the ratio permitted under this subsection at any time, but not below the ratio prescribed in subsection 1.
3. No licensee may have total borrowings, exclusive of deposits, which exceed the larger of:
(a) Five times its capital and surplus; or
(b) The face amount of total deposits at the time a borrowing is made.
4. Except as otherwise provided in subsection 5, each licensee shall establish a liquidity reserve immediately upon beginning business, as a special account with an initial balance of $50,000. Money cannot be withdrawn from the reserve or the account put to any other use without the permission of the [administrator.] commissioner. Money in the reserve may be invested only in obligations of the United States, this or any other state, or federally insured financial institutions in this state or any Federal Reserve Bank. At least annually, but no later than at the end of each fiscal year of the licensee, an amount equal to 1 percent of the licensees deposits must be added to the reserve until its balance reaches 1.5 percent of the net deposits. Interest earned on the principal of the reserve must not be withdrawn except as permitted for other money of the reserve, but may be credited against the required addition.
5. If the deposits of a licensee are insured pursuant to the provisions of NRS 677.247, the licensee need not maintain a liquidity reserve.
κ1987 Statutes of Nevada, Page 2011 (CHAPTER 758, SB 284)κ
Sec. 389. NRS 677.630 is hereby amended to read as follows:
677.630 1. A licensee may purchase, hold, develop and convey real property, including apartments and other buildings, for the following purposes only:
(a) Real property conveyed to it in satisfaction of debts contracted in the course of its business.
(b) Real property purchased at sale under judgments, decrees or mortgage foreclosures or foreclosures of or trustees sales under deeds of trust under securities held by it. A licensee shall not bid against its debtor at any such sale in a larger amount than is necessary to satisfy its debt and costs.
(c) Real property necessary as premises for the transaction of its business. A licensee shall not invest directly or indirectly an amount exceeding one-third of its paid-up capital and surplus in the lot and building in which the business of the company is carried on, furniture and fixtures, and vaults, necessary and proper to carry on its business.
(d) Real property purchased or held for the purpose of development. An investment for this purpose must not exceed the market value of the property as evidenced by an appraisal prepared within 120 days before the investment by a member of the American Institute of Real Estate Appraisers, the Society of Real Estate Appraisers or the Independent Fee Appraisers Society, or by an appraiser approved by the [administrator.] commissioner. Before the investment is made:
(1) The licensee shall provide the [administrator] commissioner with a certified copy of one or more appraisal reports and a report from a title insurer which shows the chain of title and the amount of consideration for which the title was transferred, if that information is available, for at least 3 years.
(2) The [administrator] commissioner may require a statement from the licensee disclosing whether or not any director, officer or employee of the licensee has, or has had within the last 3 years, any direct or indirect interest in the property. For the purposes of this paragraph, interest includes ownership of stock in a corporation which has an interest in the property.
If the total amount to be invested in real property for residential development exceeds its capital accounts or 10 percent of the total deposits of the licensee, whichever is less, the investment may not be made without the written approval of the [administrator.] commissioner. Any person who fails to make a disclosure required by this section is guilty of a misdemeanor.
2. No real estate acquired pursuant to paragraph (a) or (b) of subsection 1 may be held for a longer period than 5 years unless it has been improved by the license and is producing a fair income based upon the appraised value.
Sec. 390. NRS 677.640 is hereby amended to read as follows:
677.640 A licensee shall not make loans or accept deposits under this chapter:
κ1987 Statutes of Nevada, Page 2012 (CHAPTER 758, SB 284)κ
1. Within any office, suite, room or place of business in which any other business is solicited or engaged in, except an insurance agency or notary public, or in association or conjunction with any other business unless authority to do so is given by the [administrator.] commissioner.
2. Under any name or at any place other than that stated in the license.
This section does not prevent the making of loans by mail or prohibit accommodations to individual borrowers when necessitated by hours of employment, sickness or other emergency situations.
Sec. 391. NRS 677.810 is hereby amended to read as follows:
677.810 Any director, officer or employee of a licensee who:
1. Asks for or receives or consents or agrees to receive any commission, emolument or gratuity or any money, property or thing of value for procuring or endeavoring to procure for any person any loan from the licensee, or the purchase or discount of any note, contract or other obligation or property by the licensee;
2. Knowingly receives or possesses himself of any of its property otherwise than in payment of a just demand, or with intent to defraud omits to make or cause to be made a full and true entry thereof in its books and accounts or concurs in omitting to make any material entry thereof;
3. Knowingly makes or concurs in making or publishing any false entry in its books or records, any written report, exhibit or statement of its affairs or pecuniary condition containing any material statement which is false, or having the custody of its books willfully refuses or neglects to make any proper entry in [such] the books as required by law, or to exhibit or allow them to be inspected or extracts to be taken therefrom by the [administrator] commissioner or his deputies or investigators, or alters, conceals, destroys or removes any book or record;
4. Embezzles, abstracts or willfully misapplies the money, securities or credits of a licensee, or who, with the intent to injure or defraud the licensee or a customer of the licensee:
(a) Issues or puts forth a deposit;
(b) Draws a draft, bill of exchange or mortgage; or
(c) Otherwise uses his position or employment with a licensee; or
5. Knowingly aids or abets the commission of an act prohibited by this section,
shall be punished by imprisonment in the state prison for not less than 1 year nor more than 10 years, or by a fine of not more than $50,000, or by both fine and imprisonment.
Sec. 392. NRS 677.850 is hereby amended to read as follows:
677.850 Every officer or employee of any company who accepts deposits knowing:
1. That the company is insolvent; or
2. That the acceptance violates any provision of this chapter or any order or regulation of the [administrator,] commissioner,
shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.
κ1987 Statutes of Nevada, Page 2013 (CHAPTER 758, SB 284)κ
Sec. 393. Chapter 678 of NRS is hereby amended by adding thereto a new section to read as follows:
Commissioner means the commissioner of financial institutions.
Sec. 394. NRS 678.010 is hereby amended to read as follows:
678.010 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 678.020 to 678.240, inclusive, and section 393 of this act, have the meanings ascribed to them in those sections.
Sec. 395. NRS 678.250 is hereby amended to read as follows:
678.250 The [administrator] commissioner shall administer the provisions of this chapter, subject to administrative supervision by the director and the credit union advisory council. He shall make the decisions and determinations and adopt regulations which are necessary or reasonably appropriate to accomplish the purposes of this chapter.
Sec. 396. NRS 678.260 is hereby amended to read as follows:
678.260 The [administrator] commissioner shall:
1. Adopt a regulation establishing the minimum surety bond required of credit unions in relation to the amount of property under their control.
2. Maintain the original application of every credit union in a permanent file.
3. Maintain for at least 6 years, every report filed by a credit union with the division of financial institutions.
4. Except as otherwise provided in NRS 678.800 and 678.810, deposit all fees, charges for expenses, assessments and other money which is collected pursuant to the provisions of this chapter or any regulation adopted thereunder, in the state treasury.
5. Prepare copies of articles of incorporation and bylaws consistent with the provisions of this chapter which may be used by persons interested in organizing a credit union.
Sec. 397. NRS 678.270 is hereby amended to read as follows:
678.270 The [administrator] commissioner may:
1. Adopt regulations, subject to the advice and consent of the credit union advisory council, establishing chartering, supervisory and examination fees; and
2. Cause appropriate legal action to be taken in the district court of any county to secure an injunction or order restraining a violation of this chapter.
Sec. 398. NRS 678.290 is hereby amended to read as follows:
678.290 1. The credit union advisory council, consisting of five members appointed by the governor, is hereby credited to consult with, advise and make recommendations to the [administrator] commissioner in all matters pertaining to credit unions.
2. The governor shall appoint members who have tested credit union experience from a list of recommended names submitted by the Nevada Credit Union League.
3. After the initial terms, members serve terms of 4 years, except when appointed to fill unexpired terms.
κ1987 Statutes of Nevada, Page 2014 (CHAPTER 758, SB 284)κ
4. The chairman of the advisory council must be elected annually by and from the members thereof.
5. The meetings of the advisory council may be held at such times and places as the chairman or [administrator] commissioner determines and may be held regularly at least once every 6 months.
6. Council members are entitled to receive a salary of $60 for each days attendance at a meeting of the council.
Sec. 399. NRS 678.300 is hereby amended to read as follows:
678.300 1. Except for a credit union organized under the Federal Credit Union Act or a foreign credit union which has been issued a certificate of authority by the [administrator,] commissioner, any credit union whose principal business is to borrow, loan and invest money on behalf of its members and which issues membership certificates must be incorporated under the provisions of this chapter. For that purpose, the provisions of NRS 81.410 to 81.540, inclusive, which are not in conflict with the provisions of this chapter, apply to such corporations and to the officers and stockholders thereof, except as otherwise provided in NRS 678.342 to 678.347, inclusive.
2. A credit union organized under the provisions of this chapter has perpetual existence, subject to dissolution as provided in this chapter.
Sec. 400. NRS 678.310 is hereby amended to read as follows:
678.310 1. The secretary of state shall not issue any certificate of incorporation to any credit union authorizing it to do business in this state under the articles of incorporation are approved by the [administrator.] commissioner.
2. An amendment to [such] the articles of incorporation may not be filed by the secretary of state without the written approval of the [administrator.] commissioner.
3. Not less than seven persons who are residents of Nevada, have a common bond and are of legal age who desire to organize a credit union under this chapter shall first execute in triplicate an application, upon forms to be issued by the [administrator,] commissioner, for permission to organize [such] an association. The applicants shall submit with or include in their application:
(a) A copy of the articles of incorporation which must comply with the provisions of NRS 81.440 except where those provisions conflict with the provisions of this chapter.
(b) The par value of the shares, which must be $5 or some multiple thereof.
(c) The names and addresses of the applicants and an itemized account of the financial condition of the applicants and the proposed credit union.
(d) The name, which must include the words credit union, and the principal place of business.
(e) Any additional information which the [administrator] commissioner may require to determine the character and responsibility of the applicants and the need for a credit union in the community to be served.
κ1987 Statutes of Nevada, Page 2015 (CHAPTER 758, SB 284)κ
The incorporators shall submit a set of proposed bylaws to the [administrator] commissioner with their application and the bylaws when approved by the [administrator] commissioner are effective upon filing the articles of incorporation. The [administrator] commissioner shall approve or disapprove the application within 30 days following its receipt.
4. Every application for permission to organize, as provided for in this section, must be accompanied by an application fee and a fee payment to cover expenses attendant upon the investigation required for approval. The amount of the fees must be established by regulation adopted by the [administrator.] commissioner.
5. The subscribers for a credit union charter shall not transact any business until formal approval of the charter has been received.
Sec. 401. NRS 678.320 is hereby amended to read as follows:
678.320 1. The articles of incorporation or bylaws may be amended as provided in the bylaws. Any amendment to the articles of incorporation or bylaws do not become effective until approved in writing by the [administrator.] commissioner.
2. The [administrator] commissioner shall not charge any fee for approving amendments to the articles of incorporation or bylaws of any credit union organized pursuant to this chapter.
Sec. 402. NRS 678.330 is hereby amended to read as follows:
678.330 1. A credit union may maintain, with the approval of the [administrator,] commissioner, offices at locations other than its main office if the maintenance of [such] the offices is reasonably necessary to furnish service to its members.
2. A credit union may change its principal place of business within this state upon providing written notice to the division of financial institutions.
3. A credit union may share office space with one or more credit unions and contract with a corporation to provide facilities or personnel.
Sec. 403. NRS 678.342 is hereby amended to read as follows:
678.342 No credit union organized under the laws of another state may commence or transact any business or maintain an office in this state without first obtaining a certificate of authority from the [administrator.] commissioner.
Sec. 404. NRS 678.343 is hereby amended to read as follows:
678.343 Each application for an initial certificate of authority submitted by a foreign credit union must be filed with the [administrator] commissioner on a form prescribed by him and must include:
1. A copy of the instrument or authority by which the credit union was created and a copy of its bylaws.
2. A statement of its membership, if not contained in its bylaws.
3. A copy of the most recent report submitted by the credit union to the authorized officer of the state in which it was organized.
4. Any other information required by the [administrator.] commissioner.
Sec. 405. NRS 678.344 is hereby amended to read as follows:
678.344 The [administrator] commissioner shall issue a certificate of authority to a foreign credit union if he is satisfied that:
κ1987 Statutes of Nevada, Page 2016 (CHAPTER 758, SB 284)κ
1. The members of the credit union to be served in this state are adequately protected by any form of security which is comparable to that required of credit unions organized under the provisions of this chapter.
2. The officer who supervises the credit union in the state in which it was organized has authorized it to do business in Nevada and agrees to furnish, upon request, copies of reports relating to the credit union.
3. The members to be served in this state have a need for the service and adequate service is not available through existing credit unions.
4. A resident agent has been designated.
5. The state in which the credit union was organized issues comparable authorization to credit unions organized under the provisions of this chapter.
Sec. 406. NRS 678.345 is hereby amended to read as follows:
678.345 A foreign credit union which has been issued a certificate of authority shall:
1. Serve its members in this state in accordance with its bylaws and the laws of the state in which it was organized, except where those laws conflict with the provisions of this chapter.
2. File with the [administrator] commissioner a copy of its annual report at the time it files a similar report with the officer of the state in which it was organized.
Sec. 407. NRS 678.346 is hereby amended to read as follows:
678.346 The [administrator] commissioner may:
1. Examine the records of any foreign credit union which holds a certificate of authority issued by the [administrator] commissioner at any time he deems necessary.
2. Revoke a certificate of authority issued to [such] a credit union if he finds that the credit union has violated any provision of this chapter or the regulations of the [administrator.] commissioner.
Sec. 408. NRS 678.370 is hereby amended to read as follows:
678.370 The directors of a credit union shall:
1. Purchase a blanket fidelity bond in accordance with the regulations of the [administrator] commissioner which provides the credit union with protection against losses from misappropriation, defalcation in breach of trust, negligence, acts of God or nature, fire, burglary, robbery or other cause over which the bonded officers, employers and agents had no control;
2. Declare dividends in the manner prescribed in the bylaws;
3. Determine the interest rate to be charged on loans and paid on deposits;
4. Limit the number of shares and the amount of deposits which may be owned by any member;
5. Establish the compensation of all employees and officers;
6. Establish the maximum secured and unsecured loan which may be made to any one member;
7. Designate a depository or depositories for the [funds] money of the credit union;
8. Suspend or remove any member who fails to perform or negligently performs his assigned duties;
κ1987 Statutes of Nevada, Page 2017 (CHAPTER 758, SB 284)κ
9. Establish compensation to be paid any employee, officer or other persons performing services on behalf of the credit union;
10. Determine from time to time the interest rate, consistent with the provisions of this chapter, which will be charged on loans; and
11. Authorize interest refunds to members from income earned and received in proportion to interest paid by them on such classes of loans. Such refunds are subject to conditions imposed by the board.
Sec. 409. NRS 678.390 is hereby amended to read as follows:
678.390 1. The board may appoint an audit committee to make an annual audit of the financial records of the credit union and any interim audits as may be deemed necessary by the board or as may be directed by the [administrator.] commissioner. A copy of the report must be submitted to the board and the [administrator] commissioner and a summary presented to the members at the next annual meeting.
2. The audit committee may by unanimous vote suspend any director, officer or member of the credit union following an audit, for any violation of this chapter, the charter or bylaws or for any other practice which the audit committee deems to be unsafe or unauthorized. In such cases, the audit committee shall call a special meeting of the members not less than 7 nor more than 21 days following the suspension and the suspension must be ratified or overturned by the members.
3. Any member of the audit committee may be suspended by the board for the same reasons and in the same manner as provided in subsection 2.
4. The audit committee may by a majority vote call a special meeting of the members to consider any violation of this chapter, the charter or bylaws or any practice of the credit union deemed by the audit committee to be unsafe or unauthorized.
5. The board of directors or the audit committee may employ the services of a certified public accountant or a registered public accountant to complete the necessary audit of the records of the credit union.
Sec. 410. NRS 678.410 is hereby amended to read as follows:
678.410 If the [administrator] commissioner notifies the board in writing that he has information that any director, officer or employee of [such] a credit union is failing in the performance of his duties, the board shall meet and consider such matter forthwith. The [administrator shall] commissioner must have notice of the time and place of [such] the meeting. If the board of directors finds the [administrators] commissioners objection to be well founded, such director, officer or employee shall be removed immediately.
Sec. 411. NRS 678.420 is hereby amended to read as follows:
678.420 1. At the organizational meeting and within 30 days following each annual meeting, the directors shall elect, from their own number, the executive officers of the corporation. [Such] The officers must be designated as:
(a) Chairman of the board;
(b) Vice chairman of the board;
(c) Treasurer; and
κ1987 Statutes of Nevada, Page 2018 (CHAPTER 758, SB 284)κ
(d) Secretary.
The treasurer and secretary may be the same person.
2. The treasurer or general manager shall give a fidelity bond with good and sufficient surety in an amount and character to be determined by the board in compliance with regulations prescribed by the [administrator.] commissioner.
3. Each officer shall serve a term of 1 year or until such time as successors are chosen and have qualified.
4. The duties of each office must be as prescribed in the bylaws of the credit union.
Sec. 412. NRS 678.430 is hereby amended to read as follows:
678.430 Within 30 days following the election of the executive officers, the secretary shall submit to the [administrator] commissioner a list of the names and addresses of the directors, officers and committee members who have been elected or appointed.
Sec. 413. NRS 678.470 is hereby amended to read as follows:
678.470 A credit union may, subject to the regulations or approval of the [administrator:] commissioner:
1. Receive from its members or from the members of another credit union deposits which are payable on demand and honor requests for withdrawals in the form of checks or drafts.
2. Receive deposits from the state treasurer which are payable on demand pursuant to the provisions of chapter 356 of NRS.
3. Borrow from any source in accordance with the policy established by the board of directors and discount and sell any eligible obligations.
4. Sell all or any part of its assets or purchase all or any part of the assets of another credit union.
Sec. 414. NRS 678.670 is hereby amended to read as follows:
678.670 1. [Prior to] Before the payment of any dividend, the gross earnings of the credit union must be determined. From the gross earnings a regular reserve against losses must be set aside according to the following schedule:
(a) Until the regular reserve equals 7.5 percent of the outstanding loans and risk assets, all credit unions with assets of $500,000 or less shall withhold 10 percent of the gross earnings. Thereafter, 5 percent of the gross income must be withheld until the regular reserve reaches 10 percent of the outstanding loans and risk assets.
(b) Whenever a credit union has assets of more than $500,000 and has been in operation for at least 4 years, it shall maintain its regular reserve as follows:
(1) Until the regular reserve equals 4 percent of the outstanding loans and risk assets, the credit union shall withhold 10 percent of its gross earnings.
(2) Thereafter, until the regular reserve equals 6 percent of its outstanding loan and risk assets, the credit union shall withhold 5 percent of its gross earnings.
κ1987 Statutes of Nevada, Page 2019 (CHAPTER 758, SB 284)κ
(c) Whenever the regular reserve falls below the required levels, it must be replenished by regular contributions sufficient to maintain the regular reserve at the levels required by paragraphs (a) and (b).
2. The regular reserve belongs to the credit union and must not be distributed except on liquidation of the credit union or in accordance with a plan approved by the [administrator.] commissioner.
Sec. 415. NRS 678.680 is hereby amended to read as follows:
678.680 In addition to regular reserve, special reserves to protect the interest of members must be established when:
1. Required by regulations issued by the [administrator;] commissioner; or
2. Directed by the board of the credit union.
Sec. 416. NRS 678.750 is hereby amended to read as follows:
678.750 1. A credit union may purchase insurance on the lives of its members in an amount equal to their respective shares, deposits and balances on a loan or any of them.
2. A credit union may enter into cooperative marketing arrangements for its members covering such services as group life insurance, coverage for temporary disability, plans for health and accident and such other programs which are demonstrated to be in the interest of improving the economic and social conditions of the credit unions members.
3. A credit union must apply to the [administrator] commissioner for approval of a plan of insurance for members accounts, either pursuant to the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.), or under a contract of insurance issued by an insurer, which must be approved by the [administrator] commissioner and the commissioner of insurance pursuant to NRS 678.755. The issuance of such a contract is not transacting insurance under Title 57 of NRS.
4. The [administrator] commissioner shall make available reports of the financial condition of credit unions, reports of examinations made pursuant to NRS 678.790 and any other reports that may be required by the insurer and deemed appropriate by the [administrator.] commissioner. If a credit union is closed because of bankruptcy or insolvency, the [administrator] commissioner may appoint a liquidating agent.
Sec. 417. NRS 678.755 is hereby amended to read as follows:
678.755 1. In determining whether a private insurer is acceptable to issue a contract for the insurance of deposits, the [administrator] commissioner and the commissioner of insurance must consider:
(a) The value of the insurers capital.
(b) The ratio of the insurers assets, including reinsurance, which are readily available to cover any losses incurred by depositors, to its insured deposits. This ratio must be adequate to reimburse depositors for any losses which they may incur and may not be less than the ratio maintained by the share insurance fund established under the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.).
(c) The qualifications of the directors, officers and managers of the insurance company.
κ1987 Statutes of Nevada, Page 2020 (CHAPTER 758, SB 284)κ
(d) The insurers articles of incorporation and its bylaws and all amendments thereto.
(e) The insurers policies for investments.
(f) The form of all insurance contracts entered into by the insurer, including contracts for reinsurance.
(g) The insurers requirements for premiums or deposits.
(h) The insurers policies for the management of risk.
(i) Such other considerations as the [administrator] commissioner may provide by regulation which are necessary to carry out the provisions of this act.
2. The [administrator] commissioner and the commissioner of insurance shall not approve a contract of insurance unless the protection afforded thereby to the depositors is substantially equivalent to the protection afforded by the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.) to the depositors.
3. After a private insurer obtains the approval of the [administrator] commissioner and the commissioner [, the administrator,] of insurance, the commissioner, after consultation with the commissioner [,] of insurance may, for cause, require the insurer to establish and maintain for such a time as the [administrator] commissioner may require, a reserve, in cash or United States treasury bills or notes, in an amount fixed by the [administrator.] commissioner. If required, the reserve must be kept in an account approved by the [administrator] commissioner in a federally insured financial institution located in this state.
Sec. 418. NRS 678.760 is hereby amended to read as follows:
678.760 [Funds] Money not used in loans to members may be invested in:
1. Securities, obligations, participations or other instruments of or issued by or fully guaranteed as to principal and interest by the United States of America or any agency thereof or in any trust or trusts established for investing directly or collectively in these instruments;
2. Obligations of this state or any political subdivision thereof;
3. Certificates of deposit or passbook type accounts issued by a state or national bank, mutual savings bank or savings and loan association;
4. Loans to or shares or deposits of other credit unions as permitted by the bylaws;
5. Capital shares, obligations or preferred stock issues of any agency or association organized either as a stock company, mutual association or membership corporation if the membership or stockholdings, as the case may be, of the agency or association are confined or restricted to credit unions or organizations of credit unions, and the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations;
6. Shares of a cooperative society organized under the laws of this state or the United States in a total amount not exceeding 10 percent of the shares, deposits and surplus of the credit union;
κ1987 Statutes of Nevada, Page 2021 (CHAPTER 758, SB 284)κ
7. Capital stock and other securities of a corporation for economic revitalization and diversification organized under the provisions of chapter 670A of NRS, if the credit union is a member of the corporation, and to the extent of its loan limit established under NRS 670A.200;
8. Stocks and bonds of United States corporations to a maximum of 5 percent of members shares, except that such an investment must be limited to stocks or bonds yielding income which are approved by the [administrator;] commissioner; and
9. Loans to any credit union association, national or state, of which the credit union is a member, except that such an investment must be limited to 1 percent of the shares, capital deposits and unimpaired surplus of the credit union.
Sec. 419. NRS 678.765 is hereby amended to read as follows:
678.765 A credit union must not invest in fixed assets without the prior approval of the [administrator] commissioner if the aggregate value of the credit unions existing fixed assets exceeds 7 percent of its total assets.
Sec. 420. NRS 678.780 is hereby amended to read as follows:
678.780 Every credit union organized under this chapter shall submit an annual financial report for the calendar year to the [administrator] commissioner on or before the 1st day of February on forms supplied by him for that purpose.
Sec. 421. NRS 678.800 is hereby amended to read as follows:
678.800 1. Any credit union may, with the approval of the [administrator,] commissioner, merge with another credit union under the existing charter of the other credit union, pursuant to any plan agreed upon by the majority of the board of each credit union joining in the merger and approved by the affirmative vote of:
(a) A majority of the members of the merging credit union present at a meeting called for that purpose; or
(b) A majority of the members of the merging credit union voting by mail on the question.
2. After agreement by the directors of each credit union and approval by the members of the merging credit union, the chairman and secretary of each credit union shall execute a certificate of merger, which must set forth:
(a) The time and place of the meeting of the board of directors at which the plan was agreed upon;
(b) The vote in favor of adoption of the plan;
(c) A copy of the resolution or other action by which the plan was agreed upon;
(d) The circumstances of the vote in which the members approved the plan agreed upon, if a vote was required; and
(e) The vote by which the plan was approved by the members, if a vote was required.
3. A copy of each of the certificates executed pursuant to subsection 2 and a copy of the plan of merger agreed upon by the credit unions joining in the merger must be forwarded to the division of financial institutions for certification and returned to the credit unions within 30 days.
κ1987 Statutes of Nevada, Page 2022 (CHAPTER 758, SB 284)κ
4. After a merger is effected, all property, property rights and interest of the merged credit union vests in the surviving credit union without deed, endorsement or other instrument of transfer, and all debts, obligations and liabilities of the merged credit union [shall be] are deemed to [have been] be assumed by the surviving credit union under whose charter the merger was effected.
5. If the surviving credit union is to be a credit union chartered under the laws of this state, the application for approval of the merger must be accompanied by an application fee in an amount prescribed by regulation of the [administrator.] commissioner. The applicant shall also pay such additional expenses incurred in the process of investigation as the [administrator] commissioner deems necessary. All money received by the [administrator] commissioner pursuant to this subsection must be placed in the investigative fund created by NRS 232.285.
6. The [administrator] commissioner shall adopt regulations under which he may order any credit union chartered under the provisions of this chapter to merge with:
(a) Another credit union chartered under the provisions of this chapter; or
(b) A credit union chartered under the laws of another state or of the United States, if a majority of the board of that credit union approves the merger,
when he determines that the merger is in the best interest of the members of the merging credit union.
7. This section is to be liberally construed to permit a credit union chartered under this chapter to merge with a credit union chartered under this chapter or any other provisions of law.
Sec. 422. NRS 678.810 is hereby amended to read as follows:
678.810 1. A credit union chartered under the laws of this state may be converted to a credit union chartered under the laws of any other state or under the laws of the United States, subject to regulations adopted by the [administrator.] commissioner.
2. A credit union chartered under the laws of the United States or of any other state may convert to a credit union chartered under the laws of this state. To effect such a conversion, a credit union must comply with all the requirements of the authority under which it was originally chartered and the requirements of the requirements of the [administrator] commissioner and file proof of such compliance with the [administrator.] commissioner.
3. Every application for permission to convert to a credit union chartered under the laws of this state must be accompanied by an application fee in an amount prescribed by regulation of the [administrator.] commissioner. The applicant shall also pay such additional expenses incurred in the process of investigation as the [administrator] commissioner deems necessary. All money received by the [administrator] commissioner pursuant to this subsection must be placed in the investigative fund created by NRS 232.285.
Sec. 423. Section 24.5 of chapter 656, Statutes of Nevada 1985, is hereby amended to read as follows:
κ1987 Statutes of Nevada, Page 2023 (CHAPTER 758, SB 284)κ
Sec. 24.5. NRS 666.205 is hereby amended to read as follows:
666.205 1. The commissioner may apply to the district court for an order compelling compliance with any provision of NRS 666.065 to 666.195, inclusive. The court may award the administrator the costs of bringing the action and attorneys fees.
2. The administrator may bring an action against a person who violates a court order or injunction issued pursuant to this section or NRS 666.065 to 666.195, inclusive, to recover a civil penalty of not more than $10,000 for each violation.
3. The commissioner may bring an action to require a [bank] holding company for a depository institution which acquired a [bank] depository institution in Nevada [pursuant to NRS 666.132] to divest itself of all interest in the acquired [bank] institution if the [bank] holding company violates:
(a) An order to cease and desist issued pursuant to NRS 666.175; or
(b) A court order or injunction issued pursuant to this section or NRS 666.065 to 666.195, inclusive.
Sec. 424. Section 35 of chapter 656, Statutes of Nevada 1985, is hereby amended to read as follows:
Sec. 35. Section 17 of Senate Bill No. 26 of the 63rd session of the legislature is hereby amended to read as follows:
Sec. 17. The administrator may examine and supervise any foreign depository institution or holding company which has been authorized to do business in this state. Such institutions and holding companies are subject to regulation in the same manner as institutions and holding companies organized under the laws of this state and must pay the same fees for supervision and examination.
Sec. 425. Section 35.3 of chapter 656, Statutes of Nevada 1985, is hereby amended to read as follows:
Sec. 35.3. Section 20 of Senate Bill No. 26 of the 63rd session of the legislature is hereby amended to read as follows:
Sec. 20. 1. If the commissioner considers it necessary to protect depositors, creditors and other customers of a failing depository institution or a failing holding company which controls a depository institution, he may solicit offers from and authorize or require the acquisition of the institution or company by or its merger with another institution or company in the following order of priority:
(a) A depository institution of the same class organized under the laws of this state or a holding company whose subsidiaries are of the same class and whose operations are principally conducted in this state.
(b) Any other depository institution licensed under the laws of this state or of the United States if its principal office is located in this state, including institutions which have offices in other states.
κ1987 Statutes of Nevada, Page 2024 (CHAPTER 758, SB 284)κ
(c) [A depository institution licensed under the laws of another state or of the United States whose operations are principally conducted in a reciprocal state, or a holding company for such an institution.
(d)] A depository institution licensed under the laws of another state or of the United States [which does not meet the requirements of paragraph (a), (b) or (c),]or a holding company for such an institution.
The commissioner shall solicit written offers from all eligible institutions, regardless of the order of priority established by this subsection, and wait at least 30 days after solicitation before selecting the institution to be approved.
2. The selection of an institution must be made in accordance with the order of priority established in subsection 1 only if such a selection affords the greatest financial recovery by the failing institutions depositors of all offers received. If it does not, the commissioner may negotiate with the institutions submitting offers, following that order of priority, and accept that offer which would afford the greatest financial recovery by the failing institutions depositors.
Sec. 426. Section 2 of Senate Bill No. 527 of this session is hereby amended to read respectively as follows:
Sec. 2. A licensee may, with the approval of the [administrator,] commissioner, exercise any authority, right, power and privilege, and perform any act and enjoy the same immunities as banks licensed pursuant to chapter 659 of NRS.
Sec. 427. NRS 657.011, 673.0015, 677.025 and 678.025 are hereby repealed.
Sec. 428. The legislative counsel shall, in preparing the supplement to Nevada Revised Statutes with respect to any section which is not amended by this act or is further amended by another act:
1. Appropriately change any reference to the administrator of financial institutions to commissioner of financial institutions.
2. If an internal reference is made to a section repealed by this act, delete the reference or correct it by reference to the superseding section, if any.
Sec. 429. Sections 1, 9, 11, 12, 69, 100, 102, 147, 188, 306, 310, 318, 389, 404 and 426 become effective at 12:01 a.m., July 1, 1987.
________
κ1987 Statutes of Nevada, Page 2025κ
Assembly Bill No. 889Committee on Ways and Means
CHAPTER 759
AN ACT making an appropriation to the Commission on Economic Development for costs of operating the International Trade Office; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Commission on Economic Development for the costs of operating the International Trade Office:
For the fiscal year 1987-88........................................................................ $50,000
For the fiscal year 1988-89........................................................................ 50,000
Sec. 2. Any balance of the sums appropriated by section 1 of this act remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 and reverts to the state general fund as soon as all payments of money committed have been made.
________
Assembly Bill No. 129Assemblymen Dini and Sader
CHAPTER 760
AN ACT relating to the rights of the defendant; authorizing the use of closed-circuit television for certain judicial proceedings; revising provisions regarding the defendants absence at certain judicial proceedings; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 178.388 is hereby amended to read as follows:
178.388 1. [The defendant shall] Except as otherwise provided in this Title, the defendant must be present at the arraignment, at every stage of the trial including the impaneling of the jury and the return of the verdict, and at the imposition of sentence . [, except as otherwise provided by this Title.] A corporation may appear by counsel for all purposes.
2. In prosecutions for offenses not punishable by death, the defendants voluntary absence after the trial has been commenced in his presence [shall] must not prevent continuing the trail to and including the return of the verdict.
3. In prosecutions for offenses punishable by fine or by imprisonment for not more than 1 year , or both, the court, with the written consent of the defendant, may permit arraignment, plea, trial and imposition of sentence in the defendants absence [.]
κ1987 Statutes of Nevada, Page 2026 (CHAPTER 760, AB 129)κ
defendant, may permit arraignment, plea, trial and imposition of sentence in the defendants absence [.] , if the court determines that the defendant was fully aware of his applicable constitutional rights when he gave his consent.
4. The presence of the defendant is not required at the arraignment or any preceding stage if the court has provided for the use of a closed-circuit television to facilitate communication between the court and the defendant during the proceeding. If closed-circuit television is provided for, members of the news media may observe and record the proceeding from both locations unless the court specifically provides otherwise.
5. The defendants presence is not required at the settling of jury instructions.
________
Assembly Bill No. 829Assemblymen Sedway, Sader, Spinello, Myrna Williams, Callister, Porter, Jeffrey, Thompson, Nevin, May, Price, Brookman, Fay, Banner, Bergevin, Wisdom, Schofield, Dini, Arberry, Evans, Garner, Adler and Triggs
CHAPTER 761
AN ACT making an appropriation to the State Board of Education to provide matching money for the student financial aid grant program; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. Except as otherwise provided in subsection 2, there is hereby appropriated from the estate tax account in the state general fund created pursuant to section 4 of chapter 21, Statutes of Nevada 1987, to the State Board of Education to match a grant received from the Federal Government pursuant to the State Student Incentive Grant Program the sum of:
For the fiscal year 1987-1988.................................................................. $225,000
For the fiscal year 1988-1989.................................................................. 225,000
2. If Senate Bill No. 23 of this session is passed and approved and creates an estate tax account for the endowment of the University of Nevada System, the amounts appropriated by subsection 1 must be appropriated from the estate tax account for the endowment of the University of Nevada System.
3. A sum of not more than $21,000 per year must be allocated to the department of education from the amounts appropriated by subsection 1 or 2 for administration of the program.
κ1987 Statutes of Nevada, Page 2027 (CHAPTER 761, AB 829)κ
4. The balance of the amounts appropriated by subsection 1 or 2 must be used to provide grants to undergraduate and graduate students who have been determined as having financial need and who are enrolled at least half time in approved public institutions of postsecondary education.
5. Any balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 and reverts to the estate tax account in the state general fund as soon as all payments of money committed have been made.
________
Assembly Bill No. 550Assemblymen DuBois, Thomas, Wisdom, Fay, Lambert, Tebbs, Nicholas, McGaughey, Triggs and Kerns
CHAPTER 762
AN ACT relating to acquired immune deficiency syndrome; making certain acts of prostitution unlawful; requiring testing of certain persons for exposure to the virus which causes the syndrome; making a person who tests positive for the virus and later engages in prostitution guilty of a felony; making certain owners of houses of prostitution and their agents liable for damages if they employ as a prostitute a person who has tested positive; providing a penalty; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 201 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. 1. It is unlawful for any person to engage in prostitution or solicitation therefor, except in a house of prostitution licensed pursuant to NRS 244.345.
2. Any person who violates subsection 1 is guilty of a misdemeanor.
Sec. 3. 1. Any person who is arrested for a violation of section 2 of this act must submit to a test, approved by regulation of the state board of health, to detect exposure to the human immunodeficiency virus. If the person is convicted of a violation of section 2 of this act, he shall pay the sum of $100 for the cost of the test.
2. If the results of the test are positive, the person performing the test shall immediately transmit the results of the test to the arresting law enforcement agency. That agency shall:
(a) Mail the results by certified mail to the person arrested, at his last known address; or
(b) If the person arrested is in the custody of the agency, personally deliver the results to him.
Sec. 4. Any person who:
1. Violates section 2 of this act; or
2. Works as a prostitute in a licensed house of prostitution, after testing positive in a test approved by the state board of health and receiving written notice of that fact is guilty of a felony and shall be punished by imprisonment in the state prison for not less than 1 year nor more than 20 years, or by fine of not more than $10,000, or by both fine and imprisonment.
κ1987 Statutes of Nevada, Page 2028 (CHAPTER 762, AB 550)κ
after testing positive in a test approved by the state board of health and receiving written notice of that fact is guilty of a felony and shall be punished by imprisonment in the state prison for not less than 1 year nor more than 20 years, or by fine of not more than $10,000, or by both fine and imprisonment.
Sec. 5. NRS 201.295 is hereby amended to read as follows:
201.295 As used in NRS [201.300] 201.295 to 201.440, inclusive, and sections 2, 3 and 4 of this act, unless the content otherwise requires:
1. Prostitute means a male or female person who for a fee engages in sexual intercourse, oral-genital contact or any touching of the sexual organs or other intimate parts of a person for the purpose of arousing or gratifying the sexual desire of either person.
2. Prostitution means engaging in sexual conduct for a fee.
3. Sexual conduct means any of the acts enumerated in subsection 1.
Sec. 6. Chapter 41 of NRS is hereby amended by adding thereto a new section to read as follows:
Except as otherwise provided in subsection 2, an owner of a house of prostitution, the person who operates the house or his agent who employs or continues to employ a prostitute after he knows or should know that the prostitute has tested positive in a test approved by regulation of the state board of health for exposure to the human immunodeficiency virus, is liable for any damages caused to a person exposed to the virus as a result of the employment.
Sec. 7. Chapter 439 of NRS is hereby amended by adding thereto a new section to read as follows:
The state board of health shall evaluate and approve, by regulation, tests to detect exposure to the human immunodeficiency virus. The board shall not approve any series of tests, the results of which are not considered by the medical community to be reliable at least 95 percent of the time.
________
Senate Bill No. 235Committee on Commerce and Labor
CHAPTER 763
AN ACT relating to insurance; increasing certain fees; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 680B.010 is hereby amended to read as follows:
680B.010 The commissioner shall collect in advance and receipt for, and persons so served must pay to the commissioner, fees and miscellaneous charges as follows:
κ1987 Statutes of Nevada, Page 2029 (CHAPTER 763, SB 235)κ
1. Insurers certificate of authority:
(a) Filing initial application and making related examination ....................... $500
(b) Issuance of certificate : [, and each annual continuation:]
(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive [250]................................................................................................................. 283
(2) For two or more kinds of insurance as so defined ............................ 500
(3) For a reinsurer ......................................................................................... 250
(c) Each annual continuation of a certificate:
(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive ...................................................................................................................... 250
(2) For two or more kinds of insurance as so defined ......................... 578
(d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwise required.
[(d)] (e) Registration of additional title pursuant to NRS 680A.240 ......... 50
Annual renewal ....................................................................................... 25
2. Charter documents, other than those filed with application for certificate of authority. Filing amendments to articles of incorporation, charter, bylaws, power of attorney and other constituent documents of the insurer, each document ....................................... $10
3. Annual statement or report. For filing annual statement or report ...... $25
4. Service of process:
(a) Filing of power of attorney ......................................................................... $5
(b) Acceptance of service of process ............................................................. 5
5. Agents licenses, appointments and renewals:
(a) Resident agents and nonresident agents qualifying under subsection 3 of NRS 683A.340:
(1) Application and license ................................................................ [$45] $78
(2) Appointment by each insurer .............................................................. 5
(3) Triennial renewal of each license .................................................. [45] 78
(4) Temporary license .................................................................................. 10
(b) Other nonresident agents:
(1) Application and license ................................................................ [105] 138
(2) Appointment by each insurer .............................................................. 25
(3) Triennial renewal of each license ................................................ [105] 138
6. Brokers licenses and renewals:
(a) Resident brokers and nonresident brokers qualifying under subsection 4 of NRS 683A.340:
(1) Application and license ................................................................ [$45] $78
(2) Triennial renewal of each license .................................................. [45] 78
(b) Other nonresident brokers:
(1) Application and license ................................................................ [225] 258
(2) Triennial renewal of each license ................................................ [225] 258
κ1987 Statutes of Nevada, Page 2030 (CHAPTER 763, SB 235)κ
(c) Surplus lines brokers:
(1) Application and license .................................................................. [45] $78
(2) Triennial renewal of each license .................................................. [45] 78
7. Solicitors licenses, appointments and renewals:
(a) Application and license ...................................................................... [$45] $78
(b) Triennial renewal of each license ........................................................ [45] 78
(c) Initial appointment ....................................................................................... 5
8. Managing general agents licenses, appointments and renewals:
(a) Resident managing general agents:
(1) Application and license ................................................................ [$45] $78
(2) Initial appointment, each insurer ......................................................... 5
(3) Triennial renewal of each license .................................................. [45] 78
(b) Nonresident managing general agents:
(1) Application an license .................................................................. [105] 138
(2) Initial appointment, each insurer ......................................................... 25
(3) Triennial renewal of each license ................................................ [105] 138
9. Adjusters licenses and renewals:
(a) Independent and public adjusters:
(1) Application and license ................................................................ [$45] $78
(2) Triennial renewal of each license .................................................. [45] 78
(b) Associate adjusters:
(1) Application and license .................................................................. [45] 78
(2) Initial appointment ................................................................................. 5
(3) Triennial renewal of each license .................................................. [45] 78
10. Licenses and renewals for appraisers of physical damage to motor vehicles:
(a) Application and license ...................................................................... [$45] $78
(b) Triennial renewal of each license ........................................................ [45] 78
11. Additional title and property insurers pursuant to NRS 680A.240:
(a) Original registration ..................................................................................... $25
(b) Annual renewal ............................................................................................ 25
12. Insurance vending machines:
(a) Application and license, for each machine ...................................... [$45] $78
(b) Triennial renewal of each license ........................................................ [45] 78
13. Permit for solicitation for securities:
(a) Application for permit .................................................................................. $100
(b) Extension of permit ...................................................................................... 50
14. Securities salesmen for domestic insurers:
(a) Application and license ............................................................................... $25
(b) Annual renewal of license .......................................................................... 15
15. Rating organizations:
(a) Application and license ............................................................................... $100
(b) Annual renewal ............................................................................................ 100
κ1987 Statutes of Nevada, Page 2031 (CHAPTER 763, SB 235)κ
16. Certificates and renewals for administrators licensed pursuant to chapter 683A of NRS:
(a) Resident administrators:
(1) Application and certificate of registration ................................. [$45] $78
(2) Triennial renewal ............................................................................. [45] 78
(b) Nonresident administrators:
(1) Application and certificate of registration ................................. [105] 138
(2) Triennial renewal ........................................................................... [105] 138
17. For copies of the insurance laws of Nevada, a fee which is not less than the cost of producing the copies.
18. Certified copies of certificates of authority and licenses issued pursuant to the insurance code ........................................................................................................... $10
19. For copies and amendments of documents on file in the division, a reasonable charge fixed by the commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.
20. Letter of clearance for an agent or broker .............................................. $5
21. Certificate of status as a licensed agent or broker ................................ $5
22. Licenses, appointments and renewals for bail agents:
(a) Application and license ...................................................................... [$45] $78
(b) Initial appointment by each surety insurer .............................................. 5
(c) Triennial renewal of each license ........................................................ [45] 78
23. Licenses and renewals for property bondsmen:
(a) Application and license ...................................................................... [$45] $78
(b) Triennial renewal of each license ........................................................ [45] 78
24. Licenses, appointments and renewals for general bail agents:
(a) Application and license ...................................................................... [$45] $78
(b) Initial appointment by each insurer ........................................................... 5
(c) Triennial renewal of each license ........................................................ [45] 78
25. Licenses and renewals for bail solicitors:
(a) Application and license ...................................................................... [$45] $78
(b) Triennial renewal of each license ........................................................ [45] 78
26. Licenses and renewals for title agents and escrow officers:
(a) Resident title agents and escrow officers:
(1) Application and license ................................................................ [$45] $78
(2) Triennial renewal of each license .................................................. [45] 78
(b) Nonresident title agents and escrow officers:
(1) Application and license ................................................................ [105] 138
(2) Triennial renewal of each license ................................................ [105] 138
(c) Change in name or location of business or in association .................... 10
27. Certificate of authority and renewal for a seller of prepaid funeral contracts [$45] $78
28. Licenses and renewals for agents for prepaid funeral contracts:
κ1987 Statutes of Nevada, Page 2032 (CHAPTER 763, SB 235)κ
(a) Resident agents:
(1) Application and license ................................................................ [$45] $78
(2) Triennial renewal of each license .................................................. [45] 78
(b) Nonresident agents:
(1) Application and license ................................................................ [105] 138
(2) Triennial renewal of each license ................................................ [105] 138
29. Licenses, appointments and renewals for agents for fraternal benefit societies:
(a) Resident agents:
(1) Application and license ................................................................ [$45] $78
(2) Appointment ........................................................................................... 5
(3) Triennial renewal of each license .................................................. [45] 78
(b) Nonresident agents:
(1) Application and license ................................................................ [105] 138
(2) Triennial renewal of each license ................................................ [105] 138
30. Surplus lines:
(a) Filing of affidavit pursuant to NRS 685A.050 .......................................... $25
(b) Filing of memorandum pursuant to NRS 685A.060 ................................. 25
(c) Filing of amendment to the memorandum when additional premium is reported 10
31. Agents for and sellers of prepaid burial contracts:
(a) Resident agents and sellers:
(1) Application and certificate or license ......................................... [$45] $78
(2) Triennial renewal ............................................................................. [45] 78
(b) Nonresident agents and sellers:
(1) Application and certificate or license ......................................... [105] 138
(2) Triennial renewal ........................................................................... [105] 138
32. Required filing of forms:
(a) For rates and policies ................................................................................... $25
(b) For riders and endorsements ...................................................................... 10
Sec. 2. This act becomes effective at 12:03 a.m. on July 1, 1987.
________
κ1987 Statutes of Nevada, Page 2033κ
Assembly Bill No. 645Committee on Taxation
CHAPTER 764
AN ACT relating to local financial administration; increasing the maximum allowable annual increase in revenue for a local government from taxes ad valorem; increasing the maximum allowable combined revenue of a local government for the fiscal year 1987-1988; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 354 of NRS is hereby amended by adding thereto a new section to read as follows:
1. For the fiscal year 1987-1988, the maximum allowable combined revenue and the combined revenue of each local government from the supplemental city-county relief tax and taxes ad valorem otherwise allowable pursuant to NRS 354.59805, 354.59811 and 354.59816 and subsection 3 of NRS 354.5982 must be increased by 5 percent.
2. For each fiscal year after the fiscal year 1987-1988, any increase authorized in subsection 1, must be included in determining the local governments maximum allowable revenue from taxes ad valorem and maximum allowable combined revenue from the supplemental city-county relief tax and taxes ad valorem.
3. For the purposes of subsections 1 and 2, in a county whose population is less than 100,000, a city whose actual tax rate, for purposes other than debt service, was zero per $100 of assessed valuation is entitled to the use of a rate not greater than 15 cents per $100 of assessed valuation.
4. Any local governing body which proposes to raise its tax rate pursuant to the provisions of subsections 1 and 2 shall provide notice of that fact to the residents of the area it governs.
5. The notice required by subsection 4 must:
(a) State that the governing body proposes to raise the ad valorem tax rate pursuant to the provisions of this section.
(b) Be published in a newspaper of general circulation in the county at least once before the meeting in which the proposal will be considered. The notice must be set in boldface type and at least one quarter of the newspapers page in size.
6. Any additional revenue from ad valorem taxes which a local government is authorized to receive as a result of the application of this section must be reduced in the fiscal year 1987-1988 by the revenue generated from any special ad valorem levies for operating expenses authorized by the voters or by special act of the legislature between January 1, 1987, and July 1, 1987. The revenue generated from those levies must be added to the revenue which a local government is authorized to receive beginning with the fiscal year 1988-1989.
κ1987 Statutes of Nevada, Page 2034 (CHAPTER 764, AB 645)κ
Sec. 2. NRS 354.59811 is hereby amended to read as follows:
354.59811 For each fiscal year beginning on or after July 1, 1983, the revenue of the local government from taxes ad valorem, except those levied for debt service, must not exceed the amount calculated as follows:
1. The rate must be set so that when applied to the current fiscal years assessed valuation of all property which was on the preceding fiscal years assessment roll, excluding net proceeds of mines, it will produce [104.5] 106 percent of the maximum revenue allowable from taxes ad valorem for the preceding fiscal year.
2. This rate must then be applied to the total assessed valuation, excluding net proceeds of mines but including new real property, possessory interests and mobile homes, for the current fiscal year.
Sec. 3. NRS 354.59816 is hereby amended to read as follows:
354.59816 1. For the fiscal years beginning on and after July 1, 1984, the maximum allowable revenue from the supplemental city-county relief tax and taxes ad valorem, combined, but excluding any tax levied ad valorem for debt service, must be calculated as follows:
(a) Assessed valuation for the preceding fiscal year, excluding net proceeds of mines, is added to an amount equal to the product of that assessed valuation multiplied by [80 percent of] the proportionate increase in the Consumer Price Index for the preceding calendar year. To this sum must be added the assessed value of the new real property, possessory interests and mobile homes added to the assessment rolls in the past year for that local government.
(b) The percentage increase that the total calculated pursuant to paragraph (a) represents over the assessed valuation, excluding net proceeds of mines, for the preceding year is the maximum percentage by which the combined amount allowable from the supplemental city-county relief tax and taxes ad valorem may increase over the amount allowed for the preceding year.
2. If the local government levies a tax ad valorem for debt service upon an obligation which has previously been repaid from another source, the combined amount which it may receive pursuant to this section is reduced by the amount of that tax ad valorem.
3. If a board of county commissioners which during the fiscal year ending on June 30, 1981, distributed all or part of the state gaming license fees received pursuant to paragraph (b) of subsection 2 of NRS 463.320 to other local governments thereafter reduces or discontinues that distribution, the amount that the county may receive from the supplemental city-county relief tax is reduced by an equal amount.
Sec. 4. This act becomes effective upon passage and approval.
________
κ1987 Statutes of Nevada, Page 2035κ
Assembly Bill No. 397Assemblymen Sedway, Dini, Nevin, Evans, Wendell Williams, Wisdom, Porter, Haller, Myrna Williams, Price, Triggs, Kissam, Callister, Spinello, Craddock, Arberry, Freeman, Swain, Thompson, Gaston, Bergevin, Thomas, Nicholas, DuBois, McGaughey, Getto, Lambert, Marvel, Humke and Tebbs
CHAPTER 765
AN ACT relating to governmental financing; requiring an interim study of the fiscal affairs of the state and local governments in Nevada; making an appropriation; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The legislative commission shall contract with consultants to conduct an interim study of the fiscal affairs of the state and local governments in Nevada.
Sec. 2. 1. The study must include an analysis of existing revenues and possible new revenue sources.
2. The legislative commission shall:
(a) Define the scope of the study.
(b) Establish a schedule for completion of the study.
(c) Select the consultants and negotiate the terms of the contract.
(d) Require scheduled progress reports form the consultants to ensure that the consultants are adhering to the scope of the study as established by the legislative commission.
3. The study must be completed and submitted to the governor and legislative commission on or before September 1, 1988.
Sec. 3. The governor shall appoint a broad-based committee of no more than 15 persons composed of representatives of business, industry, gaming, mining, agriculture, education, labor, local governments and the general public. The committee shall review the report submitted by the consultants and, before November 30, 1988, submit findings and recommendations to the legislative commission.
Sec. 4. The legislative commission shall submit a report, including the findings and recommendations of the governors review committee, of the study and any recommended legislation to the 65th session of the legislature.
Sec. 5. 1. There is hereby appropriated from the state general fund to the legislative fund the sum of $250,000 for the support of the interim study conducted pursuant to section 1 of this act.
2. If the cost of the study exceeds the amount appropriated pursuant to subsection 1, the interim finance committee shall approve for expenditure an amount sufficient to complete the study, not to exceed an additional $250,000, which amount is hereby contingently appropriated from the state general fund to the legislative fund.
3. Any remaining balance of the appropriations made by subsections 1 and 2 must not be committed for expenditure after June 30, 1989, and reverts to the state general fund as soon as all payments of money committed have been made.
κ1987 Statutes of Nevada, Page 2036 (CHAPTER 765, AB 397)κ
and 2 must not be committed for expenditure after June 30, 1989, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 6. This act becomes effective upon passage and approval.
________
Assembly Bill No. 399Assemblymen Sedway, Dini, Jeffrey, Thompson, Sader, Brookman, May, Arberry, Nevin, Evans, Porter, Wisdom, Haller, Myrna Williams, Garner, Price, Kissam, Callister, Spinello, Craddock, Freeman, Swain, Schofield, Gaston, Bergevin, Thomas, Nicholas, DuBois, McGaughey, Carpenter, Getto, Kerns, Lambert, Tebbs and Humke
CHAPTER 766
AN ACT relating to state finances; requiring the state board of examiners to issue general obligation bonds to finance the design of new buildings for the supreme court and the state library and the completion of the south fork Reservoir; requiring Elko County to repay to the state a portion of the amount of the bonds issued to complete the reservoir; authorizing an increase in the limit on revenue that Elko County may receive from taxes ad valorem to discharge that obligation; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. The state board of examiners shall issue general obligation bonds of the State of Nevada to provide the money necessary for:
(a) The architectural design of a new Supreme Court building, in a face amount of not more than $956,543.
(b) The architectural design of a new building to house the State Library and Archives, in a face amount of not more than $748,941.
2. The bonds may be issued at one time or from time to time.
3. The provisions of the State Securities Law, contained in chapter 349 of NRS, apply to the issuance of bonds pursuant to this section.
Sec. 2. 1. The state board of examiners shall issue general obligation bonds of the State of Nevada to provide the money necessary for the completion of the design and construction of the dam and park begun pursuant to chapter 479, Statutes of Nevada 1983, in a face amount of not more than $5,800,000.
2. The bonds may be issued at one time or from time to time.
3. The provisions of the State Securities Law, contained in chapter 349 of NRS, apply to the issuance of bonds pursuant to this section.
4. The legislature finds and declares that the issuance of bonds pursuant to this section is necessary for the protection and preservation of the natural resources of this state and for the purpose of obtaining the benefits thereof, and constitutes an exercise of the authority conferred by the second paragraph of section 3 of article 9 of the constitution of the State of Nevada.
κ1987 Statutes of Nevada, Page 2037 (CHAPTER 766, AB 399)κ
and constitutes an exercise of the authority conferred by the second paragraph of section 3 of article 9 of the constitution of the State of Nevada.
Sec. 3. The board of county commissioners of Elko County shall pay to the state a sum equal to 25 percent of the amount of the bonds issued pursuant to section 2 of this act. The amount must be paid in equal installments by July 1 of each year for 16 years. The state treasurer shall credit the interest earned on money paid pursuant to this section to the sinking fund for the redemption of those bonds.
Sec. 4. 1. The board of county commissioners of Elko County may add an amount determined by the board, not to exceed the following amounts, to the amount of revenue from taxes ad valorem otherwise allowable to Elko County pursuant to NRS 354.58905, 354.59811 and 354.59816, to discharge its obligation pursuant to section 3 of this act:
For the fiscal year 1987-88 ................................................................... $255,000
For each of the following 15 fiscal years ........................................... 76,334
2. The amounts received from increases in taxes ad valorem that are authorized by subsection 1 must not be included in the determination of maximum allowable combined revenue for the purpose of distribution of the supplemental city-county relief tax.
Sec. 5. This act becomes effective upon passage and approval.
________
Senate Bill No. 514Committee on Finance
CHAPTER 767
AN ACT making an appropriation to the Western Interstate Commission on Higher Education for the cost of collecting delinquent debts; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Western Interstate Commission on Higher Education the sum of $20,000 for the cost of collecting debts owed to the Western Interstate Commission on Higher Education.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 1989, and reverts to the state general fund as soon as all payments of money committed have been made.
κ1987 Statutes of Nevada, Page 2038 (CHAPTER 767, SB 514)κ
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 884Committee on Taxation
CHAPTER 768
AN ACT relating to governmental finances; imposing a fee upon depository institutions; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. The administrator of financial institutions shall collect a fee in the fiscal years 1987-1988 and 1988-1989 for the privilege of doing business in this state from each depository institution doing business in this state on or before July 1 of the calendar years 1987 and 1988, respectively. The fee must be imposed at a rate calculated by the administrator to generate $1,000,000, plus or minus $10,000, in each fiscal year. Each institutions fee must be the same portion of $1,000,000 as its total assets in the state bears to the total assets of all depository institutions doing business in this state.
2. Each depository institution subject to the fee imposed pursuant to subsection 1 shall, on or before October 1, 1987, and October 1, 1988, submit to the administrator a statement of the dollar value of its total assets in the state as of July 1, 1987, and July 1, 1988, respectively. The administrator shall determine each institutions fee and notify the institution in writing of the fee on or before November 1 of the respective years. One-half of the fee is due on January 1 of the following year and the remainder is due on June 30.
3. If a depository institution fails to submit the statement required by subsection 2, the administrator shall require an audit of the institution by an independent accountant. The auditor shall determine:
(a) The dollar value of the total assets of the institution in this state on July 1 of the appropriate year; and
(b) The fee the institution would have been required to pay had it submitted the statement as required.
The institution shall pay the cost of the audit, the fee that the auditor determined the institution should have paid, a penalty of 10 percent of that fee, and interest at the rate of 1 percent per month from the date the fee should have been paid until the date the fee is actually paid.
4. If the administrator has reasonable grounds for believing that a statement submitted pursuant to subsection 2 is inaccurate, he may require an audit of the depository institution by an independent accountant. If the auditor determines that the institution should have paid a larger fee, the institution shall pay the additional fee and the penalty and interest required pursuant to subsection 3 on the additional amount.
κ1987 Statutes of Nevada, Page 2039 (CHAPTER 768, AB 884)κ
pursuant to subsection 3 on the additional amount. If the auditor determines that the amount indicated in the statement was less than the actual total assets of the institution in this state by more than 10 percent, the institution shall pay the cost of the audit. If the auditor determines that the institution paid more than it should have, the institution is entitled to a refund of the excess payment.
5. If an additional payment is made pursuant to subsection 3 or 4, the administrator shall refund the amount by which the total fees paid in the year exceeds $1,000,000, excluding amounts paid to pay the cost of an audit or as a penalty or interest, to the other depository institutions which have paid the fee imposed pursuant to subsection 1, in proportion to the amounts they have actually paid. The administrator is not required to make a refund pursuant to this subsection if the excess is less than $10,000.
6. If a depository institution is delinquent in the payment of the fee imposed pursuant to subsection 1, it shall pay a penalty of 10 percent of the fee and interest on the fee at the rate of 1 percent per month until the fee is paid. Any fee remaining unpaid 30 days after it is due constitutes a lien against the assets upon which the fee is based.
7. The administrator shall deposit all payments received pursuant to this section in the state treasury for credit to the state general fund.
8. The administrator may adopt such regulations as he deems necessary to carry out the provisions of this section.
9. As used in this section:
(a) Administrator means the administrator of financial institutions.
(b) Depository institution means any bank, savings and loan association, savings bank, thrift company, credit union or other institution which:
(1) Holds or receives deposits, savings or share accounts;
(2) Issues certificates of deposit; or
(3) Provides to its customers other depository accounts which are subject to withdrawal by checks, drafts or other instruments or by electronic means to effect payment to a third party.
Sec. 2. This act becomes effective upon passage and approval.
________
κ1987 Statutes of Nevada, Page 2040κ
Senate Bill No. 597Committee on Finance
CHAPTER 769
AN ACT relating to public employees; making appropriations from the state general fund and the state highway fund to the state board of examiners for increases in the salaries of certain employees of the State of Nevada; increasing the salaries of certain employees; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. Except as otherwise provided in this act, to effect increases in salaries of approximately 3 percent, there is hereby appropriated from the state general fund to the state board of examiners for the fiscal periods beginning July 1, 1987, and ending June 30, 1988, and beginning July 1, 1988, and ending June 30, 1989, the sums of $3,555,512 and $3,661,817, respectively, for the purpose of meeting any deficiencies which may be created between the appropriated money of the respective departments, commissions and agencies of the State of Nevada, including the judicial branch of government, as fixed by the 64th session of the legislature and the requirements for salaries of the classified personnel of those departments, commissions and agencies necessary under an adjusted pay plan, except those employees whose salaries have been retained, to become effective on July 1, 1987.
2. The state board of examiners, upon the recommendation of the director of the department of administration, may allocate and disburse to the various departments, commissions and agencies of the State of Nevada, including the judicial branch of government, out of the money appropriated by this section such sums of money as may from time to time be required, which when added to the money otherwise appropriated or available equals the amount of money required to pay the salaries of the classified employees of the respective departments, commissions and agencies under the adjusted pay plan.
Sec. 2. 1. To effect increases in salaries of approximately 3 percent, there is hereby appropriated from the state highway fund to the state board of examiners for the fiscal periods beginning July 1, 1987, and ending June 30, 1988, and beginning July 1, 1988, and ending June 30, 1989, the sums of $458,439 and $472,620, respectively, for the purpose of meeting any deficiencies which may exist between the appropriated money of the department of motor vehicles and public safety, the public service commission of Nevada and the attorney generals office as fixed by the 64rd session of the legislature and the requirements for salaries of classified personnel of the department of motor vehicles and public safety, the public service commission of Nevada and the attorney generals office necessary under an adjusted pay plan, except those employees whose salaries have been retained, to become effective July 1, 1987.
κ1987 Statutes of Nevada, Page 2041 (CHAPTER 769, SB 597)κ
2. The state board of examiners, upon the recommendation of the director of the department of administration, may allocate and disburse to the department of motor vehicles and public safety, the public service commission of Nevada and the attorney generals office out of the money appropriated by this section such sums of money as may from time to time be required, which when added to the money otherwise appropriated or available equals the amount of money required to meet and pay the salaries of the classified employees of the department of motor vehicles and public safety, the public service commission of Nevada and the attorney generals office under the adjusted pay plan.
Sec. 3. 1. To effect increases in salaries of approximately 3 percent, there is hereby appropriated from the state general fund to the state board of examiners for the fiscal periods beginning July 1, 1987, and ending June 30, 1988, and beginning July 1, 1988, and ending June 30, 1989, the sum of $760,695 and $795,699, respectively, for the purpose of meeting any deficiencies which may be created between the appropriated money of the University of Nevada System as fixed by the 64th session of the legislature and the requirements for salaries of the classified personnel of the University of Nevada System necessary under the adjusted pay plan, except those employees whose salaries have been retained, to become effective July 1, 1987.
2. There is hereby appropriated from the state general fund to the University of Nevada System for the fiscal years beginning July 1, 1987, and ending June 30, 1988, and beginning July 1, 1988, and ending June 30, 1989, the sums of $2,159,475 and $2,245,962, respectively, for the purpose of increasing the salaries of the professional employees of the University of Nevada System, except those employees whose salaries have been retained, to become effective July 1, 1987.
3. The state board of examiners, upon the recommendation of the director of the department of administration, may allocate and disburse to the University of Nevada System out of the money appropriated by subsection 1 such sums of money as may from time to time be required, which when added to the money otherwise appropriated or available equals the amount of money required to pay the salaries of the classified employees of the University of Nevada System under the adjusted pay plan.
Sec. 4. The money appropriated for fiscal years 1987-88 and 1988-89, in sections 1, 2 and 3 of this act is available for both fiscal years 1987-88 and 1988-89, and may be transferred from one fiscal year to the other with the approval of the governor upon the recommendation of the chief of the budget division of the department of administration. Any balance of that money must not be committed for expenditure after June 30, 1989, and reverts to the fund from which it was appropriated as soon as all payments of money committed have been made.
Sec. 5. 1. To effect increases in salaries of approximately 3 percent, there is hereby appropriated from the state general fund to the legislative fund for the fiscal years beginning July 1, 1987, and ending June 30, 1988, and beginning July 1, 1988, and ending June 30, 1989, the sums $90,693 and $91,885, respectively, for the purpose of meeting any deficiencies which may be created between the appropriated money as fixed by the 64th session of the legislature and the requirements for salaries of the employees of the legislative counsel bureau and of interim legislative operations, except those employees whose salaries have been retained, to become effective July 1, 1987.
κ1987 Statutes of Nevada, Page 2042 (CHAPTER 769, SB 597)κ
and beginning July 1, 1988, and ending June 30, 1989, the sums $90,693 and $91,885, respectively, for the purpose of meeting any deficiencies which may be created between the appropriated money as fixed by the 64th session of the legislature and the requirements for salaries of the employees of the legislative counsel bureau and of interim legislative operations, except those employees whose salaries have been retained, to become effective July 1, 1987.
2. The money appropriated for fiscal years 1987-88 and 1988-89, in this section is available for both fiscal years 1987-88 and 1988-89, and may be transferred from one fiscal year to the other. Any balance of the money appropriated in this section must be carried forward for use in the next legislative session and does not revert to the state general fund.
Sec. 6. 1. To effect an increase in salaries and for any increased cost of retirement contributions, there is hereby appropriated from the state general fund to the state distributive school account in the state general fund for the fiscal periods beginning July 1, 1987, and ending June 30, 1988, and beginning July 1, 1988, and ending June 30, 1989, the sums of $12,893,040 and $13,611,836, respectively.
2. The sums appropriated by this section must be apportioned by the department of education based on the number of pupils in each county school district as other money in the state distributive school account is apportioned. The allocations provided by this section are in addition to any other allocations based on the number of pupils in each county school district provided by the legislature for fiscal years 1987-88 and 1988-89.
Sec. 7. On or before May 31, 1988, the state board of examiners shall project the unappropriated balance of the state general fund, including any amount designated as reserved for stabilizing the budget, and the state distributive school account in the state general fund, as of June 30, 1988, using all relevant information known to it. The results of the projections of the state general fund and the state distributive school account must be combined to form a single projection.
Sec. 8. 1. Based on the projection required by section 7 of this act, the following amounts are hereby contingently appropriated from the respective funds to provide increases in salaries and any additional cost of retirement contributions for the respective groups of employees, for the fiscal year 1988-89:
(a) If the projected balance is at least $57,000,000 but less than $60,500,000:
(1) To effect a salary increase of approximately 1 percent:
(I) From the state general fund to the state board of examiners for:
Classified employees of the state ....................................................... $1,257,224
Unclassified employees of the state .................................................. 192,184
Classified and professional employees of the University of Nevada 1,044,303
(II) From the state highway fund to the state board of examiners for positions in the department of motor vehicles and public safety, public service commission of Nevada and attorney generals office which are supported from that fund:
κ1987 Statutes of Nevada, Page 2043 (CHAPTER 769, SB 597)κ
service commission of Nevada and attorney generals office which are supported from that fund:
Classified employees ............................................................................ $157,540
Unclassified employees ....................................................................... 11,762
(III) From the state general fund to the legislative fund for employees of the legislative counsel bureau and interim legislative operations .................... $48,017
(2) From the state general fund to the state distributive school account in the state general fund............................................................................................... $4,673,397
This additional appropriation, if any, must be apportioned in the same proportions per pupil as established by the department of education for the various county school districts for fiscal year 1988-89.
(b) If the projected balance is at least $60,500,000 but less than $64,000,000:
(1) To effect increases in salaries of approximately 1 1/2 percent:
(I) From the state general fund to the state board of examiners for:
Classified employees of the state ....................................................... $1,885,835
Unclassified employees of the state .................................................. 288,277
Classified and professional employees of the University of Nevada System 1,556,454
(II) From the state highway fund to the state board of examiners for positions in the department of motor vehicles and public safety, public service commission of Nevada and attorney generals office which are supported from that fund:
Classified employees ............................................................................ $236,310
Unclassified employees ....................................................................... 17,643
(III) From the state general fund to the legislative counsel bureau for employees of the legislative counsel bureau and interim legislative operations ......... $72,025
(2) From the state general fund to the state distributive school account in the state general fund .............................................................................................. 7,010,095
This additional appropriation, if any, must be apportioned in the same proportions per pupil as established by the department of education for the various county school districts for fiscal year 1988-1989.
(c) If the projected balance is $64,000,000 but less than $67,500,000:
(1) To effect increases in salaries of approximately 2 percent:
(I) From the state general fund to the state board of examiners for:
Classified employees of the state ....................................................... $2,514,447
Unclassified employees of the state .................................................. 384,369
Classified and professional employees of the University of Nevada System 2,088,606
(II) From the state highway fund to the state board of examiners for positions in the department of motor vehicles and public safety, public service commission of Nevada and attorney generals office which are supported from that fund:
κ1987 Statutes of Nevada, Page 2044 (CHAPTER 769, SB 597)κ
Classified employees ............................................................................ $315,080
Unclassified employees ....................................................................... 23,524
(III) From the state general fund to the legislative counsel bureau for employees of the legislative counsel bureau and interim legislative operations ......... $96,034
(2) From the state general fund to the state distributive school account in the state general fund .............................................................................................. 9,346,794
This additional appropriation, if any, must be apportioned in the same proportions per pupil as established by the department of education for the various county school districts for fiscal year 1988-1989.
(d) If the projected balance is $67,500,000 but less than $71,000,000:
(1) To effect increases in salaries of approximately 2 1/2 percent:
(I) From the state general fund to the state board of examiners for:
Classified employees of the state ....................................................... $3,143,059
Unclassified employees of the state .................................................. 480,462
Classified and professional employees of the University of Nevada System 2,610,757
(II) From the state highway fund to the state board of examiners for positions in the department of motor vehicles and public safety, public service commission of Nevada and attorney generals office which are supported from that fund:
Classified employees ............................................................................ $393,850
Unclassified employees ....................................................................... 29,405
(III) From the state general fund to the legislative counsel bureau for employees of the legislative counsel bureau and interim legislative operations ......... $120,042
(2) From the state general fund to the state distributive school account in the state general fund .............................................................................................. 11,683,492
The additional appropriation, if any, must be apportioned in the same proportions per pupil as established by the department of education for the various county school districts for fiscal year 1988-1989.
(e) If the projected balance is at least $71,000,000:
(1) To effect increases in salaries of approximately 3 percent:
(I) From the state general fund to the state board of examiners for:
Classified employees of the state ....................................................... $3,771,671
Unclassified employees of the state .................................................. 576,555
Classified and professional employees of the University of Nevada System 3,132,909
(II) From the state highway fund to the state board of examiners for positions in the department of motor vehicles and public safety, public service commission of Nevada and attorney generals office which are supported from that fund:
Classified employees ............................................................................ $472,620
Unclassified employees ....................................................................... 35,286
(III) From the state general fund to the legislative counsel bureau for employees of the legislative counsel bureau and interim legislative operations ......... $144,051
κ1987 Statutes of Nevada, Page 2045 (CHAPTER 769, SB 597)κ
(2) From the state general fund to the state distributive school account in the state general fund .............................................................................................. $14,020,191
The additional appropriation, if any, must be apportioned in the same proportions per pupil as established by the department of education for the various county school districts for fiscal year 1988-1989.
2. The state board of examiners shall allocate the appropriations made to it, if any, among the respective departments, commissions and agencies of the state, including the judicial branch of government, in such proportion as to enable each to pay to its classified, professional and unclassified employees, except any whose salaries have been retained, the percentage of increase, if any, in their respective salaries specified in this section.
3. If the total appropriations are not sufficient to provide the specified increase, the appropriations must be prorated and the increases in salaries reduced proportionately.
4. Any balance of the contingent appropriations made by this section must not be committed for expenditure after June 30, 1989, and reverts to the fund from which it was appropriated as soon as all payments of money committed have been made, except that any balance of the money appropriated to the legislative fund must be carried forward for use in the next legislative session and does not revert to the state general fund.
Sec. 9. 1. Employees filling the following positions in the classified service may receive annual salaries not to exceed the following specified amounts, effective July 1, 1987:
Approximate
Annual
Title or Position Salary
Senior physician (Range A) .................................................................. $62,337
Senior physician (Range B) ................................................................... 68,459
Senior physician (Range C) ................................................................... 71,319
Senior psychiatrist (Range A) ............................................................... 68,459
Senior psychiatrist (Range B) ............................................................... 71,318
Senior psychiatrist (Range C) ............................................................... 82,400
State health officer (Range A) ............................................................... 71,318
State health officer (Range B) ............................................................... 72,840
State health officer (Range C) ............................................................... 74,364
State institutional dentist (Range A) ................................................... 54,185
State institutional dentist (Range B) .................................................... 62,382
Medical director - prison ........................................................................ 82,092
As used in this section a senior psychiatrist (Range B) is a psychiatrist eligible for certification by the American Board of Psychiatry. A senior psychiatrist (Range C) is a psychiatrist certified by the American Board of Psychiatry. A senior psychiatrist (Range A) is a Psychiatrist not so certified or eligible.
2. The employees filling the positions listed in subsection 1, except those whose salaries have been retained, may receive an adjustment of salary effective July 1, 1988 if the projected unappropriated balance in the state general fund, including any amount designated as reserved for stabilizing the budget, and the state distributive school account in the state general fund projected by the state board of examiners results in:
κ1987 Statutes of Nevada, Page 2046 (CHAPTER 769, SB 597)κ
effective July 1, 1988 if the projected unappropriated balance in the state general fund, including any amount designated as reserved for stabilizing the budget, and the state distributive school account in the state general fund projected by the state board of examiners results in:
(a) A projected balance of at least $57,000,000 but less than $60,500,000, 1 percent.
(b) A projected balance of at least $60,500,000 but less than $64,000,000, 1 1/2 percent.
(c) A projected balance of at least $64,000,000 but less than $67,500,000, 2 percent.
(d) A projected balance of at least $67,500,000 but less than $71,000,000, 2 1/2 percent.
(e) A projected balance of at least $71,000,000, 3 percent.
________
Assembly Bill No. 882Committee on Taxation
CHAPTER 770
AN ACT relating to property taxes; delaying the setting of tax rates by the Nevada tax commission and the due date of the taxes and the first quarterly installments for fiscal year 1987-1988; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Notwithstanding the provisions of NRS 361.455, for fiscal year 1987-1988 the Nevada tax commission shall meet on or before July 2, 1987, to set the tax rates for the next succeeding year for all local governments whose rates would have been set on June 25 but for the provisions of this section.
Sec. 2. Notwithstanding the provisions of NRS 361.483, for fiscal year 1987-1988:
1. The taxes assessed upon the real property tax roll and upon mobile homes as defined in NRS 361.561 are due on August 10, 1987; and
2. If a person elects to pay in quarterly installments, the first installment is due on August 10, 1987.
Sec. 3. This act becomes effective upon passage and approval.
________
κ1987 Statutes of Nevada, Page 2047κ
Assembly Bill No. 804Committee on Labor and Management
CHAPTER 771
AN ACT relating to industrial insurance; establishing a deemed wage for members of the Nevada legislature and for employees of certain sole proprietors and partnerships for the purpose of industrial insurance; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 616 of NRS is hereby amended by adding thereto a new section to read as follows:
A member of the Nevada legislature shall be deemed for the purposes of this chapter to be an employee of the state during his term of office at the wage of $2,000 per month and is entitled to the benefits of this chapter.
Sec. 2. NRS 616.015 is hereby amended to read as follows:
616.015 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 616.020 to 616.120, inclusive, [and] sections 7 and 8 of [this act,] Assembly Bill No. 130 of this session, and sections 2 and 3 of this act, have the meanings ascribed to them in those sections.
Sec. 3. NRS 616.085 is hereby amended to read as follows:
616.085 1. Subcontractors and their employees shall be deemed to be employees of the principal contractor.
2. If the subcontractor is a sole proprietor or partnership licensed pursuant to chapter 624 of NRS, the sole proprietor or partner shall be deemed to receive a wage of $500 per month for the purposes of this chapter.
Sec. 4. Section 2 of this act becomes effective at 12:01 a.m. on July 1, 1987.
________
Assembly Bill No. 796Committee on Elections
CHAPTER 772
AN ACT relating to elections; revising the provisions governing absent ballots and registration to vote for certain persons in the service of the United States or who reside outside the United States; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 293 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
κ1987 Statutes of Nevada, Page 2048 (CHAPTER 772, AB 796)κ
Sec. 2. Notwithstanding any other provisions of Title 24 of NRS:
1. Any registered voter of this state who resides outside the United States, its territories or possessions may use the form provided by the Federal Government as a special absent ballot for a general election if the voter:
(a) Requests an absent ballot and the request is received by the county clerk not later than 30 days before the election; and
(b) Does not receive the absent ballot.
2. The special absent ballot must be used only for the offices of President and Vice President of the United States, United States Senator and Representative in Congress. The ballot must allow the registered voter to vote by writing in his choice of a political party for each office, the name of a candidate for each office, or the name of the person whom the voter prefers for each office.
3. The special absent ballot must not be counted if:
(a) It is submitted from any location within the United States, its territories or possessions;
(b) The county clerk receives the request for an absent ballot less than 30 days before the general election; or
(c) The county clerk receives the absent ballot on or before the date of the general election.
Sec. 3. Notwithstanding any other provisions of Title 24 of NRS:
1. Any elector of this state who resides outside the United States, its territories or possessions may use the form provided by the Federal Government to register to vote in this state.
2. The county clerk shall not register a voter who submits the form provided by the Federal Government from any location within the United States, its territories or possessions.
________
Senate Bill No. 272Committee on Judiciary
CHAPTER 773
AN ACT relating to adoption; revising various requirements relating to adoption; authorizing the grant of a right of visitation to certain relatives of an adopted child; prohibiting the payment of money to a natural parent in return for the adoption of the child under certain circumstances; declaring invalid any consent to adoption signed by a mother within 72 hours after birth of a child; making technical and administrative changes; providing penalties; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 127 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 7, inclusive, of this act.
κ1987 Statutes of Nevada, Page 2049 (CHAPTER 773, SB 272)κ
Sec. 2. Notice of the filing of a petition for the adoption of a child must be provided to the legal custodian or guardian of the child if that custodian or guardian is a person other than the natural parent of the child.
Sec. 3. The petitioners shall file with the court, within 15 days after the petition is filed or 5 months after the child begins to live in their home, whichever is later, an affidavit executed by them and their attorney setting forth all fees, donations and expenses paid by them in furtherance of the adoption. A copy of the affidavit must be sent to the welfare division of the department of human resources. If one petitioner or the spouse of a petitioner is related to the child within the third degree of consanguinity, the court may waive the filing of the affidavit.
Sec. 4. 1. In a proceeding for the adoption of a child, the court may grant a reasonable right to visit to certain relatives of the child only if a similar right had been granted previously pursuant to NRS 123.123.
2. The court may not grant a right to visit the child to any person other than as specified in subsection 1.
Sec. 5. (Deleted by amendment.)
Sec. 6. 1. Except as otherwise provided in subsection 3, it is unlawful for any person to pay or offer to pay money or anything of value to the natural parent of a child in return for the natural parents placement of the child for adoption or consent to or cooperation in the adoption of the child.
2. It is unlawful for any person to receive payment for medical and other necessary expenses related to the birth of a child from a prospective adoptive parent with the intent of not consenting to or completing the adoption of the child.
3. A person may pay the medical and other necessary living expenses related to the birth of a child of another as an act of charity so long as the payment is not contingent upon the natural parents placement of the child for adoption or consent to or cooperation in the adoption of the child.
4. This section does not prohibit a natural parent from refusing to place a child for adoption after its birth.
5. The provisions of this section do not apply if a woman enters into a lawful contract to act as a surrogate, be inseminated and give birth to the child of a man who is not her husband.
Sec. 7. Any person who violates the provisions of:
1. Subsection 1 of section 6 of this act shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.
2. Subsection 2 of section 6 of this act is guilty of a gross misdemeanor.
Sec. 8. NRS 127.005 is hereby amended to read as follows:
127.005 The provisions of NRS 127.010 to 127.186, inclusive, and sections 2, 3 and 4 of this act, govern the adoption of minor children, and the provisions of NRS 127.190 to 127.210, inclusive, and the provisions of NRS 127.010 to 127.186, inclusive, and sections 2, 3 and 4 of this act, where not inconsistent with the provisions of NRS 127.190 to 127.210, inclusive, govern the adoption of [adult persons.] adults.
κ1987 Statutes of Nevada, Page 2050 (CHAPTER 773, SB 272)κ
Sec. 9. NRS 127.053 is hereby amended to read as follows:
127.053 No consent to a specific adoption executed in this state, or executed outside this state for use in this state, [shall be] is valid unless it:
1. Identifies the child to be adopted by name, if any, gender and date of birth.
2. Is in writing and signed by the person [or persons] consenting to the adoption as required in this chapter.
[2.] 3. Is acknowledged by the person [or persons] consenting and signing the same in the manner and form [as] required for conveyances of real property by NRS 111.240 to 111.305, inclusive.
[3.] 4. Contains, at the time of execution, the name [or names] of the person [or persons] to whom consent to adopt the child is given.
[4.] 5. Is attested by at least two competent, disinterested witnesses who subscribe their names to the consent in the presence of the person [or persons] consenting. If neither the petitioner or the spouse of a petitioner is related to the child within the third degree of consanguinity, then one of the witnesses must be a social worker employed by:
(a) The welfare division of the department of human resources;
(b) An agency licensed in this state to place children for adoption; or
(c) A comparable state or county agency of another state.
Sec. 10. NRS 127.057 is hereby amended to read as follows:
127.057 1. Any person to whom a consent to adoption executed in this state or executed outside this state for use in this state is delivered shall, within 48 hours after receipt of [such] the executed consent to adoption, furnish a true copy thereof to the welfare division of the department of human resources, together with a report of the permanent address of the person [or persons] in whose favor [such] the consent was executed.
2. Any person recommending in his professional or occupational capacity, the placement of a child for adoption in this state shall immediately notify the welfare division of the impending adoption.
3. All information received by the welfare division pursuant to the provisions of this section [shall be confidential information, and shall] is confidential and must be protected from disclosure in the same manner that information concerning recipients of public assistance is protected under NRS 422.290.
[3.] 4. Any person who violates any of the provisions of this section is guilty of a misdemeanor.
Sec. 11. NRS 127.070 is hereby amended to read as follows:
127.070 1. All releases for and consents to adoption executed by the mother before the birth of a child or within 72 hours after the birth of a child are invalid.
2. A release for or consent to adoption may be executed by the father before the birth of the child if the father is not married to the mother. A release executed by the father becomes invalid if:
(a) The father of the child marries the mother of the child before the child is born;
κ1987 Statutes of Nevada, Page 2051 (CHAPTER 773, SB 272)κ
(b) The mother of the child does not execute a release for or consent to adoption of the child within 6 months after the birth of the child; or
(c) No petition for adoption of the child has been filed within 2 years after the birth of the child.
Sec. 12. NRS 127.110 is hereby amended to read as follows:
127.110 1. A petition for adoption of a child who currently resides in the home of the petitioners may be filed at any time after the child has lived in the home [of the petitioners for a period of] for 30 days.
2. The petition for adoption [shall] must state, in substance, the following:
(a) The full name and age of the petitioners and the period [of time] the petitioners have resided in the State of Nevada [prior to] before the filing of the petition.
(b) The age of the child sought to be adopted and the period [of time] that the child has lived in the home of petitioners [prior to] before the filing of the petition.
(c) That it is the desire of the petitioners that the relationship of parent and child be established between them and [such] the child.
(d) Their desire that the name of the child be changed, together with the new name desired.
(e) That the petitioners are fit and proper persons to have the care and custody of the child.
(f) That they are financially able to provide for the child.
(g) That there has been a full compliance with the law in regard to consent to adoption.
(h) That there has been a full compliance with NRS 127.220 to 127.310, inclusive.
3. No order of adoption [shall] may be entered unless there has been full compliance with the provisions of NRS 127.220 to 127.310, inclusive . [, has been fully complied with.]
Sec. 13. NRS 127.220 is hereby amended to read as follows:
127.220 As used in NRS 127.230 to 127.310, inclusive, [person] and sections 6 and 7 of this act, unless the context otherwise requires:
1. Arrange the placement of a child means to make preparations for or bring about any agreement or understanding concerning the adoption of a child.
2. Child-placing agency means the welfare division of the department of human resources or a nonprofit corporation organized under NRS 81.290 to 81.340, inclusive, and licensed by the welfare division to place children for adoption or permanent free care.
3. Person includes a hospital.
4. Recommend the placement of a child means to suggest to a licensed child-placing agency that a prospective adoptive parent be allowed to adopt a specific child, born or in utero.
Sec. 14. NRS 127.230 is hereby amended to read as follows:
127.230 1. The welfare division of the department of human resources, with the approval of the state welfare board, shall:
κ1987 Statutes of Nevada, Page 2052 (CHAPTER 773, SB 272)κ
(a) Establish reasonable minimum standards for child-placing agencies.
(b) Prescribe rules for the regulation of child-placing agencies.
(c) Adopt regulations establishing the procedure to be used in placing children for adoption, including adoptions in which the natural parent or parents have limited knowledge of the prospective adoptive parent or parents.
2. All licensed child-placing agencies shall conform to the standards established and the rules prescribed pursuant to subsection 1.
Sec. 15. NRS 127.280 is hereby amended to read as follows:
127.280 1. [No child may] A child may not be placed in the home of prospective adoptive parents for the 30-day residence in that home which is required before the filing of a petition for adoption, except where a child and one of the prospective adoptive parents are related within the third degree of consanguinity, unless the welfare division of the department of human resources first receives written notice of the proposed placement from:
(a) The prospective adoptive parents of the child;
(b) The person recommending the placement; or
(c) A [licensed] child-placing agency,
and the investigation required by the provisions of this section has been completed.
2. If the placement is to be made by a [licensed] child-placing agency, the welfare division shall make no investigation and shall retain the written notice for informational purposes only.
3. If the placement is recommended by a person other than a [licensed] child-placing agency, the welfare division shall, within 60 days after receipt of the written notice, complete an investigation of the medical, mental, financial and moral backgrounds of the prospective adoptive parents to determine the suitability of the home for placement of the child for adoption. The investigation must also embrace any other relevant factor relating to the qualifications of the prospective adoptive parents and may be a substitute for the investigation required to be conducted by the welfare division on behalf of the court when a petition for adoption is pending, if the petition for adoption is filed within 6 months after the completion of the investigation required by this subsection.
4. Pending completion of the required investigation, the child must be [retained] :
(a) Retained by the natural parent [or parents] ; or
(b) Voluntarily placed by the natural parent with the welfare division or relinquished to the welfare division and placed by the welfare division in a foster home licensed by it ,
until a determination is made by the welfare division concerning the suitability of the prospective adoptive parents.
5. Upon completion of the investigation, the welfare division shall forthwith inform the person recommending the placement and the prospective adoptive parents of the welfare divisions decision to approve or deny the placement.
κ1987 Statutes of Nevada, Page 2053 (CHAPTER 773, SB 272)κ
deny the placement. If, in the opinion of the welfare division, the prospective adoptive home is:
(a) Suitable, [the child must be relinquished to the welfare division, if not] the natural parent must execute a consent to a specific adoption pursuant to NRS 127.053, if not previously executed and if the child has not been relinquished pursuant to the provisions of subsection 4, [for placement and adoption] and then the child may be placed in the home of the prospective adoptive parents [.] for the purposes of adoption.
(b) Unsuitable or detrimental to the interest of the child, the welfare division shall file an application in the district court for an order prohibiting the placement. If the court determines that the placement should be prohibited, the court may nullify the written consent [or consents] to the specific adoption and order the return of the child to care and control of the parent [or parents] who executed the consent, but if the parental rights of the parent [or parents] have been terminated by a relinquishment or a final order of a court of competent jurisdiction or if the parent [or parents do] does not wish to accept the child, then the court may order the placement of the child with the welfare division or with any licensed child-placement agency for adoption.
6. Whenever the welfare division believes that anyone has violated or is about to violate any of the provisions of this chapter, in addition to any other penalty or remedy provided:
(a) The welfare division may petition the appropriate district court for an order to restrain and enjoin the violation or threatened violation of any of the provisions of this chapter, or to compel compliance with the provisions of this chapter; and
(b) The court [, thereupon,] shall, if a child has been or was about to be placed in a prospective adoptive home in violation of the provisions of this chapter:
(1) Prohibit the placement if the child was about to be so placed, or order the removal of the child if the child was so placed within 6 months before the filing of the welfare divisions petition, and proceed pursuant to [the discretionary placement power of] paragraph (b) of subsection 5; or
(2) Proceed pursuant to [the discretionary placement power of] paragraph (b) of subsection 5 in all other cases if the court determines that it is in the best interest of the child that the child should be removed.
7. Whenever the welfare division believes that a person has received for the purposes of adoption or permanent free care a child not related by blood, and when the written notice required by subsection 1 has not been received, and the welfare division does not proceed pursuant to subsection 6, the welfare division shall make an investigation. Upon completion of the investigation, if the home is found suitable for the child, the prospective adoptive parents must be allowed 6 months from the date of completion of the investigation to file a petition for adoption. If a petition for adoption is not filed within that time a license as a foster home [license] must thereafter be issued by the welfare division if the home meets established standards. If, in the opinion of the welfare division, the placement is detrimental to the interest of the child, the welfare division shall file an application with the district court for an order for the removal of the child from the home.
κ1987 Statutes of Nevada, Page 2054 (CHAPTER 773, SB 272)κ
in the opinion of the welfare division, the placement is detrimental to the interest of the child, the welfare division shall file an application with the district court for an order for the removal of the child from the home. If the court determines that the child should be removed, the court shall proceed pursuant to [the discretionary placement power of] paragraph (b) of subsection 5.
8. Any person who places, accepts placements of, or aids, abets or counsels the placement of any child in violation of [the placement provisions of] this section is guilty of a gross misdemeanor.
________
Senate Bill No. 341Senator OConnell
CHAPTER 774
AN ACT relating to the administration of public finances; requiring the director of the department of administration to establish a uniform system of internal accounting and administrative control for certain state agencies and officers; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. The legislature declares that the purpose of this act is to:
(a) Establish effective controls on the internal finances of this state;
(b) Establish a means of monitoring those controls;
(c) Inhibit the waste of state resources; and
(d) Increase the financial assets of the state.
2. The legislature intends the provisions of this act to be implemented with existing resources and appropriations.
Sec. 2. Title 31 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 3 to 6, inclusive, of this act.
Sec. 3. As used in this chapter, unless the context otherwise requires:
1. Agency means every agency, department, division, board, commission or similar body, or elected officer, of the executive branch of the state, except:
(a) A board or commission created by the provisions of chapters 623 to 625, inclusive, 628 to 644, inclusive, 654 and 656 of NRS.
(b) The University of Nevada.
(c) The public employees retirement system.
(d) The state industrial insurance system.
(e) The housing division of the department of commerce.
(f) The Colorado river commission.
2. Director means the director of the department of administration.
κ1987 Statutes of Nevada, Page 2055 (CHAPTER 774, SB 341)κ
3. Internal accounting and administrative control means a method through which agencies can safeguard assets, check the accuracy and reliability of their accounting information, promote efficient operations and encourage adherence to prescribed managerial policies.
Sec. 4. 1. The director, in consultation with the state controller and legislative auditor, shall adopt a uniform system of internal accounting and administrative control for agencies. The elements of the system must include, without limitation:
(a) A plan of organization which provides for a segregation of duties appropriate to safeguard the assets of the agency;
(b) A plan which limits access to assets of the agency to persons who need the assets to perform their assigned duties;
(c) Procedures for authorizations and recordkeeping which effectively control accounting of assets, liabilities, revenues and expenses;
(d) A system of practices to be followed in the performance of the duties and functions of each agency; and
(e) An effective system of internal review.
2. The director, in consultation with the state controller and legislative auditor, may modify the system whenever he considers it necessary.
3. Each agency shall develop written procedures to carry out the system of internal accounting and administrative control adopted pursuant to this section.
Sec. 5. NRS 218.830 is hereby amended to read as follows:
218.830 1. The legislative auditor shall prepare a biennial report for the governor and members of the legislature, and submit the report before December 31 of each even-numbered year. Copies of the report must be filed in the office of the secretary of state.
2. The biennial report must contain, among other things:
(a) Copies of, or the substance of, reports made to the various agencies of the state and a summary of changes made in the system of accounts and records thereof ; [.]
(b) A list of those agencies on which audit reports were issued during the biennium which had not carried out a system of internal accounting and administrative control pursuant to section 4 of this act; and
(c) Specific recommendations to the legislature for the amendment of existing laws or the enactment of new laws designed to improve the functioning of the agencies of the state.
Sec. 6. NRS 353.325 is hereby amended to read as follows:
353.325 Each state agency, within 10 days after receiving an audit report pertaining to [such] that agency, including a management letter and the agencys reply, shall submit one copy of [such] the audit report to:
1. The chief of the budget division of the department of administration.
2. The state controller.
3. The legislative auditor.
κ1987 Statutes of Nevada, Page 2056 (CHAPTER 774, SB 341)κ
Sec. 7. The director of the department of administration shall adopt an initial system of internal accounting and administrative control and transmit copies to the affected state agencies on or before January 1, 1988.
________
Senate Bill No. 134Committee on Commerce and Labor
CHAPTER 775
AN ACT relating to homeopathic medicine; making various changes relating to the practice of homeopathic medicine; providing a penalty; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. (Deleted by amendment.)
Secs. 2-9. (Deleted by amendment.)
Sec. 10. NRS 630A.040 is hereby amended to read as follows:
630A.040 Homeopathic medicine or homeopathy means a system of medicine employing substances of animal, vegetable, chemical or mineral origin, including nosodes and sarcodes, which are:
1. Given in micro-dosage, except that sarcodes may be given in macro-dosage; [and]
2. Prepared according to homeopathic pharmacology by which the formulation of homeopathic preparations is accomplished by the methods of Hahnemannian dilution and succussion, magnetically energized geometric patterns , [(] applicable in potencies above 30X as defined in the official Homeopathic Pharmacopoeia of the United States , [)] or Korsakoffian [,] ; and
3. Prescribed by homeopathic physicians according to the medicines and dosages in the Homeopathic Pharmacopoeia of the United States,
in accordance with the principle that a substance which produces symptoms in a healthy person can eliminate those symptoms in an ill person, resulting in the elimination and prevention of illness utilizing classical methodology and noninvasive electrodiagnosis.
Sec. 11. NRS 630A.050 is hereby amended to read as follows:
630A.050 Homeopathic physician means a person who [:
1. Is a graduate of an academic program approved by the board or is qualified to perform homeopathic medical services by reason of general education, practical training and experience determined by the board to be satisfactory;] has:
1. Complied with all of the requirements set forth in this chapter and the regulations adopted by the board for the practice of homeopathic medicine; and
κ1987 Statutes of Nevada, Page 2057 (CHAPTER 775, SB 134)κ
2. [Has received] Received from the board a license to practice homeopathic medicine.
Sec. 11.5. NRS 630A.090 is hereby amended to read as follows:
630A.090 1. This chapter does not apply to:
(a) The practice of dentistry, chiropractic, traditional Oriental medicine, podiatry, optometry, faith or Christian Science healing, nursing, veterinary medicine or hearing aid fitting.
(b) A medical officer of the armed services or a medical officer of any division or department of the United States in the discharge of his official duties.
(c) Licensed nurses in the discharge of their duties as nurses.
(d) Homeopathic physicians who are called into this state, other than on a regular basis, for consultation or assistance to any physician licensed in this state, and who are legally qualified to practice in the state or country where they reside.
2. This chapter does not repeal or affect any statute of Nevada regulating or affecting any other healing art.
3. This chapter does not prohibit:
(a) Gratuitous services of a person in case of emergency.
(b) The domestic administration of family remedies.
4. Nothing in this chapter shall be construed as authorizing a homeopathic physician to practice medicine, including allopathic medicine, except as provided in NRS 630A.040.
Sec. 12. NRS 630A.110 is hereby amended to read as follows:
630A.110 1. Four members of the board must be persons who are licensed to practice allopathic or osteopathic medicine in any state or country, the District of Columbia or a territory or possession of the United States , [who] have been engaged in the practice of homeopathic medicine in this state for a period of more than 2 years preceding their respective appointments, are actually engaged in the practice of homeopathic medicine in this state and are residents of the state.
2. The remaining members must be [residents of Nevada] persons who:
(a) Are not licensed in any state to practice any healing art;
(b) Are not actively engaged in the administration of any medical facility or facility for the dependent as defined in chapter 449 of NRS; [and]
(c) Do not have a pecuniary interest in any matter pertaining to such a facility, except as a patient or potential patient [.] ; and
(d) Have resided in this state for at least 5 years.
3. The members of the board must be selected without regard to their individual political beliefs.
4. As used in this section, healing art means any system, treatment, operation, diagnosis, prescription or practice for the ascertainment, cure, relief, palliation, adjustment or correction of any human disease, ailment, deformity, injury, or unhealthy or abnormal physical or mental condition for the practice of which long periods of specialized education and training and a degree of specialized knowledge of an intellectual as well as physical nature are required.
κ1987 Statutes of Nevada, Page 2058 (CHAPTER 775, SB 134)κ
Sec. 13. NRS 630A.120 is hereby amended to read as follows:
630A.120 1. Upon expiration of his term of office, a member shall continue to serve until a person qualified under this chapter is appointed as his successor.
2. [If a member fails to attend meetings of the board or a member fails to attend to the business of the board, as determined necessary in the discretion of the board, the board shall so notify the governor, and the] A member of the board may be removed by the governor for good cause. The governor shall appoint a person qualified under this chapter to replace [the] a removed member for the remainder of the unexpired term.
Sec. 14. NRS 630A.130 is hereby amended to read as follows:
630A.130 Before entering upon the duties of his office, each member of the board shall take:
1. The constitutional oath or affirmation of office [.] ; and
2. An oath or affirmation that he is legally qualified to serve on the board.
Sec. 15. NRS 630A.140 is hereby amended to read as follows:
630A.140 1. The board shall elect from its members a president, a vice president and a secretary-treasurer. The officers of the board [shall] hold their respective offices during its pleasure.
2. The board shall receive through its [secretary] secretary-treasurer applications for the certificates issued under this chapter.
3. The secretary-treasurer [shall] is entitled to receive a salary, in addition to the salary paid pursuant to NRS 630A.160, the amount of which must be determined by the board.
Sec. 16. NRS 630A.160 is hereby amended to read as follows:
630A.160 1. Out of the money coming into the possession of the board, each member of the board is entitled to receive:
(a) A salary of not more than $60 per day, as fixed by the board, while engaged in the business of the board.
(b) Reimbursement for his actual and necessary expenses incurred in the performance of his duties.
2. Expenses of the board and the expenses and salaries of the members of the board must be paid from the fees received by the board under the provisions of this chapter, and no part of the salaries or expenses of the members of the board may be paid out of the state general fund.
3. All money received by the board must be deposited in [banks and savings and loan associations in this state, and must be paid out on its order for its expenses and the expenses of the members.] financial institutions in this state which are federally insured.
Sec. 17. NRS 630A.190 is hereby amended to read as follows:
630A.190 The board may:
1. Maintain offices in as many localities in the state as it finds necessary to carry out the provisions of this chapter.
2. Employ attorneys, investigators [and other professional] , hearing officers, experts, administrators, consultants and clerical personnel necessary to the discharge of its duties.
κ1987 Statutes of Nevada, Page 2059 (CHAPTER 775, SB 134)κ
Sec. 18. NRS 630A.210 is hereby amended to read as follows:
630A.210 1. The board may hold hearings and conduct investigations relating to its duties under this chapter and take evidence on any matter under inquiry before the board. The secretary-treasurer of the board or, in his absence, any member of the board may administer oaths to any witness appearing before the board. The [secretary] secretary-treasurer or president of the board may issue subpenas to compel the attendance of witnesses and the production of books [and papers.] , medical records, X-ray photographs and other papers. The secretary-treasurer, president or other officer of the board shall sign the subpena on behalf of the board.
2. If any [witness refuses to attend or testify or produce any books and papers as required by the subpena, the secretary] person fails to comply with a subpena issued by the board, the secretary-treasurer or president of the board may [report to the district court by petition, setting forth that:
(a) Due notice has been given to the time and place of attendance of the witness or the production of the books and papers;
(b) The witness has been subpenaed by the board pursuant to this section; and
(c) The witness has failed or refused to attend or produce the books and papers required by the subpena before the board which is named in the subpena, or has refused to answer questions propounded to him,
and asking] petition the district court for an order of the court compelling [the witness to attend and testify or produce the books and papers before the board.] compliance with the subpena.
3. Upon such a petition, the court shall enter an order directing the [witness] person subpenaed to appear before the court at a time and place to be fixed by the court in its order, the time to be not more than 10 days from the date of the order, and then and there show cause why he has not [attended or testified or produced the books or papers before the board.] complied with the subpena. A certified copy of the order must be served upon [the witness.] that person.
4. If it appears to be the court that the subpena was regularly issued by the board, the court shall enter an order [that the witness appear before the board at the time and place fixed in the order and testify or produce the required books or papers,] compelling compliance with the subpena, and upon failure to obey the order the [witness shall] person must be dealt with as for contempt of court.
Sec. 19. NRS 630A.230 is hereby amended to read as follows:
630A.230 1. Every person desiring to practice homeopathic medicine [shall,] must, before beginning to practice, procure from the board a license authorizing such practice.
2. A license may be issued to any person who:
(a) Is a citizen of the United States or is lawfully entitled to remain and work in the United States;
(b) Has received the degree of Doctor of Medicine or Doctor of Osteopathic Medicine from the school he attended during the 2 years immediately preceding the granting of the degree;
κ1987 Statutes of Nevada, Page 2060 (CHAPTER 775, SB 134)κ
(c) Is licensed to practice allopathic or osteopathic medicine in any state or country, the District of Columbia or a territory or possession of the United States;
[(c)] (d) Has completed [6 months] 1 year of postgraduate training in allopathic or osteopathic medicine approved by the board; [and
(d)] (e) Has passed all oral or written examinations required by the board or this chapter; and
(f) Meets additional requirements established by the board.
Sec. 20. NRS 630A.240 is hereby amended to read as follows:
630A.240 1. [The] An applicant for a license to practice homeopathic medicine who is a graduate of a medical school located in the United States or Canada shall submit to the board, through its [secretary:
(a) Proof of graduation from a medical school recognized as reputable by the board.
(b) An affidavit that the applicant is the person named in the proof of graduation and that it was procured without fraud or misrepresentation of any kind.
(c) A certificate or other document proving a period of 6 months of postgraduate training, which training must be approved by the board.] secretary-treasurer, proof that he has received:
(a) The degree of Doctor of Medicine from a medical school which at the time of his graduation was accredited by the Liaison Committee on Medical Education or the Committee for the Accreditation of Canadian Medical Schools, or the degree of Doctor of Osteopathic Medicine from an osteopathic school which at the time of his graduation was accredited by the Bureau of Professional Education of the American Osteopathic Association;
(b) One year of postgraduate training in allopathic or osteopathic medicine approved by the board; and
(c) Six months of postgraduate training in allopathic or osteopathic medicine approved by the board; and
2. In addition to the [affidavits of] proofs required by subsection 1, the board may take such further evidence and require such other documents or proof of qualification as in its discretion may be deemed proper.
3. If it appears that the applicant is not of good moral character or reputation or that any credential submitted is false, the applicant may be rejected.
Sec. 21. NRS 630A.250 is hereby amended to read as follows:
630A.250 1. [Before issuance of] If required by the board, an applicant for a license to practice homeopathic medicine [, the applicant who is otherwise eligible for licensure in this state and has paid the fee and presented the credentials specified in NRS 630A.240] shall appear personally and pass [a satisfactory written examination as to qualifications therefor.
2. The examination must be fair and impartial, practical in character and the questions must be designed to discover the applicants fitness.
3.] an oral examination.
2. The board may employ specialists and other [professional] consultants or examining services in conducting [the examination.] any examination required by the board.
κ1987 Statutes of Nevada, Page 2061 (CHAPTER 775, SB 134)κ
Sec. 22. NRS 630A.260 is hereby amended to read as follows:
630A.260 1. If an applicant fails in a first examination, he may be re-examined after not less than 6 months.
2. If he fails in a second examination, he [is not thereafter entitled to another examination] may not be re-examined within less than 1 year after the date of the second examination . [, and prior thereto] Before taking a third examination, he shall furnish proof [to the board of further postgraduate training following the second examination] satisfactory to the board [.] of 1 year of additional training in homeopathy after the second examination.
3. If an applicant fails three consecutive examinations, he must show the board by clear and convincing evidence that extraordinary circumstances justify permitting him to be re-examined again.
Sec. 23. NRS 630A.270 is hereby amended to read as follows:
630A.270 1. [The] An applicant for a license to practice homeopathic medicine who is a graduate of a foreign medical school shall submit to the board through its [secretary] secretary-treasurer proof that he:
(a) Is a citizen of the United States, or that he is lawfully entitled to remain and work in the United States;
(b) Has received the degree of Doctor of [Homeopathic] Medicine or its equivalent, as determined by the board, from a foreign medical school recognized by the Educational Commission for Foreign Medical Graduates;
(c) Has completed 3 years of postgraduate training satisfactory to the board; [and]
(d) Has [passed, with a grade acceptable to the board, an examination designated by the board.] completed an additional 6 months of postgraduate training in homeopathic medicine;
(e) Has received the standard certificate of the Educational Commission for Foreign Medical Graduates; and
(f) Has passed all parts of the Federation Licensing Examination, or has received a written statement from the Educational Commission for Foreign Medical Graduates that he has passed the examination given by the Commission.
2. In addition to the proofs required by subsection 1, the board may take such further evidence and require such further proof of the professional and moral qualifications of the applicant as in its discretion may be deemed proper.
3. If the applicant is a diplomate of an approved specialty board recognized by this board, the requirements of paragraph (c) and (d) of subsection 1 may be waived by the board.
4. Before issuance of a license to practice homeopathic medicine, the applicant who presents the proof required by subsection 1 shall appear personally before the board and satisfactorily pass a written or oral examination, or both, as to his qualifications to practice homeopathic medicine.
κ1987 Statutes of Nevada, Page 2062 (CHAPTER 775, SB 134)κ
Sec. 24. NRS 630A.290 is hereby amended to read as follows:
630A.290 1. The board may deny an application for a license to practice homeopathic medicine for any violation of the provisions of this chapter or the regulations adopted by the board.
2. The board shall notify an applicant of any deficiency which prevents any further action on his application or results in the denial of the application. The applicant may respond in writing to the board concerning any deficiency and, if he does so, the board shall respond in writing to the contentions of the applicant.
3. An unsuccessful applicant may appeal to the district court to review the action of the board within 30 days after the date of the rejection of his application by the board. Upon appeal the applicant has the burden to show that the action of the board is erroneous or unlawful.
4. The board shall maintain records pertaining to applicants to whom licenses have been issued or denied. The records must be open to the public and must contain:
[1.] (a) The name [and address] of each applicant.
[2.] (b) The name of the school granting the diploma.
[3.] (c) The date of the diploma.
[4.] (d) The date of issuance or denial of the license.
[5. Any other information required by the board.]
(e) The business address of the applicant.
Sec. 25. NRS 630A.300 is hereby amended to read as follows:
630A.300 All licenses issued by the board must bear its seal and the signatures of its president and [secretary. A license authorizes the person to whom it is issued to practice homeopathic medicine.] secretary-treasurer.
Sec. 26. NRS 630A.310 is hereby amended to read as follows:
630A.310 1. The board may:
[1.] (a) Issue a temporary license, to be effective not more than 6 months after issuance, to any homeopathic physician who is eligible for a permanent license in this state and who also is of good moral character and reputation. The purpose of the temporary license is to enable an eligible homeopathic physician to serve as a substitute for some other homeopathic physician who is licensed to practice homeopathic medicine in this state, and who is absent from his practice for reasons deemed sufficient by the board. A temporary license issued under the provisions of this [subsection] paragraph is not renewable . [and may be revoked at any time for reasons deemed sufficient by the board.
2.] (b) Issue a special license to a licensed homeopathic physician of [an adjoining] another state to come into Nevada to care for or assist in the treatment of his own patients in association with a physician licensed in this state . [who must have the primary care of the patients.] A special license issued under the provisions of this [subsection may be revoked at any time for reasons deemed sufficient by the board.] paragraph is limited to the care of a specific patient.
(c) Issue a restricted license for a specified period if the board determines the applicant needs supervision or restriction.
κ1987 Statutes of Nevada, Page 2063 (CHAPTER 775, SB 134)κ
2. A person who is licensed pursuant to paragraph (a), (b) or (c) of subsection 1 shall be deemed to have given his consent to the revocation of the license at any time by the board for any of the grounds provided in NRS 630A.340 to 630A.380, inclusive.
Sec. 27. NRS 630A.320 is hereby amended to read as follows:
630A.320 1. The board may issue to a qualified applicant a limited license to practice homeopathic medicine as a resident homeopathic physician in a postgraduate program of clinical training if:
(a) The applicant is a graduate of an accredited medical school in the United States or Canada or is a graduate of a foreign medical school recognized by the Educational Commission for Foreign Medical Graduates and:
(1) Is a citizen of the United States or is lawfully entitled to remain and work in the United States; and
(2) Has completed 1 year of supervised clinical training approved by the board.
(b) The board approves the program of clinical training, and if the medical school or other institution sponsoring the program provides the board with written confirmation that the applicant has been appointed to a position in the program.
2. In addition to the requirements of subsection 1, an applicant who is a graduate of a foreign medical school must have received the standard certificate of the Educational Commission for Foreign Medical Graduates.
3. The board may issue this limited license for not more than 1 year, but may renew the license.
4. The holder of this limited license may practice homeopathic medicine only in connection with his duties as a resident physician and shall not engage in the private practice of homeopathic medicine.
5. A limited license granted under this section may be revoked by the board at any time for any of the grounds set forth in NRS 630A.340 [.] to 630A.380, inclusive.
Sec. 28. NRS 630A.330 is hereby amended to read as follows:
630A.330 1. Except as provided in subsection 4, each applicant for a license to practice homeopathic medicine must:
(a) Pay a fee of $300; and
(b) Pay the cost of obtaining such further evidence and proof of qualifications as the board may require pursuant to subsection 2 of NRS 630A.240.
2. Each applicant who fails an examination and who is permitted to be re-examined must pay a fee not to exceed $200 for each re-examination.
3. If an applicant does not appear for examination, for any reason deemed sufficient by the board, the board may, upon request, refund a portion of the application fee not to exceed [$100.] 50 percent of the fee. There must be no refund of the application fee if an applicant appears for examination.
4. Each applicant for a license issued under the provisions of NRS 630A.310 or 630A.320 [,] must pay a fee not to exceed $75, as determined by the board, and must pay a fee of $25 for each renewal of the license.
κ1987 Statutes of Nevada, Page 2064 (CHAPTER 775, SB 134)κ
630A.310 or 630A.320 [,] must pay a fee not to exceed $75, as determined by the board, and must pay a fee of $25 for each renewal of the license.
5. The fee for the renewal of a license, as determined by the board, must not exceed $200 per year and must be collected for the year in which a [homeopathic] physician is licensed.
6. The fee for the restoration of a suspended license is twice the amount of the fee for the renewal of a license at the time of the restoration of the license.
Sec. 29. NRS 630A.340 is hereby amended to read as follows:
630A.340 The following acts, among others, constitute grounds for initiating disciplinary action [under this chapter:] or denying the issuance of a license:
1. Unprofessional conduct.
2. Conviction of:
(a) A violation of any federal or state law regulating the possession, distribution or use of any controlled substance as defined in chapter 453 of NRS or dangerous drug as defined in chapter 454 of NRS ; [.]
(b) A felony ; [.]
(c) Any offense involving moral turpitude [.] ; or
(d) Any offense relating to the practice of homeopathic medicine or the ability to practice homeopathic medicine.
A plea of nolo contendere to any offense listed in paragraph (a), (b), (c) or (d) shall be deemed a conviction.
3. Suspension , [or] revocation , modification or limitation of [the] a license to practice any type of medicine by any other jurisdiction.
4. Surrender of a license to practice any type of medicine or the discontinuance of the practice of medicine while under investigation by any licensing authority, medical facility, facility for the dependent, branch of the Armed Forces of the United States, insurance company, agency of the Federal Government or employer.
5. Gross or repeated malpractice, which may be evidenced by claims of malpractice settled against a practitioner.
[5.] 6. Professional incompetence.
Sec. 30. NRS 630A.350 is hereby amended to read as follows:
630A.350 The following acts, among others, constitute [unprofessional conduct:] grounds for initiating disciplinary action or denying the issuance of a license:
1. Willfully making a false or fraudulent statement or submitting a forged or false document in applying for a license to practice homeopathic medicine.
2. Willfully representing with the purpose of obtaining compensation or other advantages for himself or for any other person that a manifestly incurable disease or injury or other manifestly incurable condition can be permanently cured.
3. Obtaining, maintaining or renewing, or attempting to obtain, maintain or renew a license to practice homeopathic medicine by bribery, fraud or misrepresentation or by any false, misleading, inaccurate or incomplete statement.
κ1987 Statutes of Nevada, Page 2065 (CHAPTER 775, SB 134)κ
misrepresentation or by any false, misleading, inaccurate or incomplete statement.
4. Advertising the practice of homeopathic medicine in a false, deceptive or misleading manner . [which does not conform to guidelines established by regulations of the board.]
5. Practicing or attempting to practice homeopathic medicine under a name other than the name under which he is licensed.
6. Signing a blank prescription form.
7. Influencing a patient in order to engage in sexual activity with the patient or another person.
8. Attempting directly or indirectly, by way of intimidation, coercion or deception, to obtain or retain a patient or to discourage a patient from obtaining a second opinion.
9. Terminating the medical care of a patient without giving adequate notice or making other arrangements for the continued care of the patient.
Sec. 31. NRS 630A.360 is hereby amended to read as follows:
630A.360 [1.] The following acts, among others, constitute [unprofessional conduct:
(a)] grounds for initiating disciplinary action or denying the issuance of a license:
1. Directly or indirectly [giving to or] receiving from any person [, corporation or other business organization] any fee, commission, rebate or other form of compensation [for sending, referring or otherwise inducing a person to communicate with a homeopathic physician in his professional capacity or for any professional services not actually and personally rendered, except as provided in subsection 2.
(b)] which tends or is intended to influence the physicians objective evaluation or treatment of a patient.
2. Dividing a fee between homeopathic physicians, unless the patient is informed of the division of fees and the division is made in proportion to the services personally performed and the responsibility assumed by each homeopathic physician.
3. Charging for visits to the homeopathic physicians office which did not occur or for services which were not rendered or documented in the records of the patient.
4. Employing, directly or indirectly, any suspended or unlicensed person in the practice of homeopathic medicine, or the aiding , [or] abetting or assisting of any unlicensed person to practice homeopathic medicine [.
2. It is not unprofessional conduct:
(a) For persons holding valid licenses under this chapter to practice homeopathic medicine in partnership under a partnership agreement or in a corporation or an association authorized by law, or to pool, share, divide or apportion the fees and money received by them or by the partnership, corporation or association in accordance with the partnership agreement or the policies of the board of directors of the corporation or association.
κ1987 Statutes of Nevada, Page 2066 (CHAPTER 775, SB 134)κ
(b) For two or more persons holding valid licenses under this chapter to receive adequate compensation for concurrently rendering professional care to a patient and dividing a fee, if the patient has full knowledge of this division and if the division is made in proportion to the services performed and the responsibility assumed by each.] contrary to the provisions of this chapter or the regulations adopted by the board.
5. Advertising the services of an unlicensed person in the practice of homeopathic medicine.
6. Delegating responsibility for the care of a patient to a person whom the homeopathic physician knows, or has reason to know, is not qualified to undertake that responsibility.
7. Failing to disclose to a patient any financial or other conflict of interest affecting the care of the patient.
Sec. 32. NRS 630A.370 is hereby amended to read as follows:
630A.370 The following acts, among others, constitute [unprofessional conduct:
1. Habitual drunkenness or habitual addiction to the use of a controlled substance as defined in chapter 453 of NRS.] grounds for initiating disciplinary action or denying the issuance of a license:
1. Inability to practice homeopathic medicine with reasonable skill and safety because of an illness, a mental or physical condition or the use of alcohol, drugs, narcotics or any other addictive substance.
2. Engaging in any:
(a) Professional conduct which is intended to deceive or which the board by regulation has determined is unethical.
(b) Medical practice harmful to the public or any conduct detrimental to the public health, safety or morals which does not constitute gross or repeated malpractice or professional incompetence.
3. Administering, dispensing or prescribing any controlled substance , as defined in chapter 453 of NRS, [or any dangerous drug as defined in chapter 454 of NRS, other than in the course of legitimate professional practice or] except as authorized by law.
4. Performing, assisting or advising an unlawful abortion or in the injection of any liquid substance into the human body for the purpose of causing an abortion.
5. Practicing or offering to practice beyond the scope permitted by law, or performing services which the homeopathic physician knows or has reason to know he is not competent to perform.
6. Performing any procedure without first obtaining the informed consent of the patient or his family or prescribing any therapy which by the current standards of the practice of homeopathic medicine is experimental.
7. Continued failure to exercise the skill or diligence or use the methods ordinarily exercised under the same circumstances by physicians in good standing who practice homeopathy and electrodiagnosis.
Sec. 33. NRS 630A.380 is hereby amended to read as follows:
630A.380 The following acts, among others, constitute [unprofessional conduct.]
κ1987 Statutes of Nevada, Page 2067 (CHAPTER 775, SB 134)κ
conduct.] grounds for initiating disciplinary action or denying the issuance of a license:
1. Willful disclosure of a communication privileged under a statute or court order.
2. Willful [disobedience of the regulations of the state board of health or of the board of homeopathic medical examiners.
3. Violating or attempting to violate, directly or indirectly, or assisting in or abetting the violation of or conspiring to violate any prohibition made in this chapter.] failure to comply with any provision of this chapter, regulation, subpena or order of the board or with any court order relating to this chapter.
3. Willful failure to perform any statutory or other legal obligation imposed upon a licensed homeopathic physician.
Sec. 34. NRS 630A.390 is hereby amended to read as follows:
630A.390 [The board or any of its members, any medical review panel of a hospital or medical society which becomes aware that any one or combination of the grounds for initiating disciplinary action may exist as to a person practicing homeopathic medicine in this state shall, and any other person who is so aware may, file a written complaint specifying the relevant facts with the board or with the medical society of the county in which the person charged has his office if there is a medical society in the county.]
1. Any person who becomes aware that a person practicing medicine in this state has, is or is about to become engaged in conduct which constitutes grounds for initiating disciplinary action may file a written complaint with the board.
2. Any medical society or medical facility or facility for the dependent licensed in this state shall report to the board the initiation and outcome of any disciplinary action against any homeopathic physician concerning the care of a patient or the competency of the physician.
3. The clerk of every court shall report to the board any finding, judgment or other determination of the court that a homeopathic physician:
(a) Is mentally ill;
(b) Is mentally incompetent;
(c) Has been convicted of a felony or any law relating to controlled substances or dangerous drugs;
(d) Is guilty of abuse or fraud under any state or federal program providing medical assistance; or
(e) Is liable for damages for malpractice or negligence.
Sec. 35. NRS 630A.400 is hereby amended to read as follows:
630A.400 1. [When a complaint is filed:
(a) With the board, it shall be reviewed by the board.
(b) With a county medical society, the society shall forward a copy of the complaint to the board for review.] The board or a committee of its members designated by the board shall review every complaint filed with the board and conduct an investigation to determine whether there is a reasonable basis for compelling a homeopathic physician to take a mental or physical examination or an examination of his competence to practice homeopathic medicine.
κ1987 Statutes of Nevada, Page 2068 (CHAPTER 775, SB 134)κ
examination or an examination of his competence to practice homeopathic medicine.
2. If a committee is designated, it must be composed of at least three members of the board, at least one of whom is a licensed homeopathic physician.
3. If, from the complaint or from other official records, it appears that the complaint is not frivolous and the complaint charges [:
(a) Unprofessional conduct, a conviction or the suspension or revocation of a license to practice homeopathic medicine, the board shall proceed with appropriate disciplinary action.
(b) Gross] gross or repeated malpractice , [or professional incompetence,] the board shall transmit the original complaint, along with further facts or information derived from its own review, to the attorney general.
4. Following the investigation, the committee shall present its evaluation and recommendations to the board. The board shall review the committees findings to determine whether to take any further action, but a member of the board who participated in the investigation may not participate in this review or in any subsequent hearing or action taken by the board.
Sec. 36. NRS 630A.420 is hereby amended to read as follows:
630A.420 1. If the board [determines that a complaint is not frivolous, the board may require the person charged in the complaint to submit to a mental or physical examination by physicians designated by the board.] or its investigative committee has reason to believe that the conduct of any homeopathic physician has raised a reasonable question as to his competence to practice medicine with reasonable skill and safety to patients, it may order the homeopathic physician to undergo:
(a) A mental or physical examination; or
(b) An examination of his competence to practice homeopathic medicine,
by physicians or others designated by the board to assist the board in determining the fitness of the homeopathic physician to practice homeopathic medicine.
2. For the purposes of this section:
(a) Every homeopathic physician who applies for a license or is licensed under this chapter [who accepts the privilege of practicing homeopathic medicine in this state] shall be deemed to have given his consent to submit to a mental or physical examination or an examination of his competence to practice homeopathic medicine when directed to do so in writing by the board [.] or an investigative committee of the board.
(b) The testimony or [examination] reports of the examining physicians are not privileged communications.
3. Except in extraordinary circumstances, as determined by the board, the failure of a homeopathic physician licensed under this chapter to submit to an examination when directed as provided in this section constitutes an admission of the charges against him.
Sec. 37. NRS 630A.430 is hereby amended to read as follows:
630A.430 If the board has reason to believe that the conduct of any homeopathic physician has raised a reasonable question as to his competence to practice homeopathic medicine with reasonable skill and safety to patients, the board may [cause a medical competency] order an examination of the homeopathic physician [for the purposes of determining] to determine his fitness to practice homeopathic medicine.
κ1987 Statutes of Nevada, Page 2069 (CHAPTER 775, SB 134)κ
to practice homeopathic medicine with reasonable skill and safety to patients, the board may [cause a medical competency] order an examination of the homeopathic physician [for the purposes of determining] to determine his fitness to practice homeopathic medicine. When such action is taken, the reasons for the action must be documented and must be available to the homeopathic physician being examined.
Sec. 38. NRS 630A.440 is hereby amended to read as follows:
630A.440 If the board issues an order summarily suspending the license of a homeopathic physician pending proceedings for disciplinary action and requires the homeopathic physician to submit to a mental or physical examination or [a medical competency examination,] an examination of his competence to practice homeopathic medicine, the examination must be conducted and the results obtained not later than 60 days after the board issues its order.
Sec. 39. NRS 630A.450 is hereby amended to read as follows:
630A.450 If the board issues an order summarily suspending the license of a homeopathic physician pending proceedings for disciplinary action, the court shall not stay that order . [unless the board fails to institute and determine those proceedings as promptly as the requirements for investigation of the case reasonably allow.]
Sec. 40. NRS 630A.460 is hereby amended to read as follows:
630A.460 1. In addition to any other remedy provided by law, the board, through its president or [secretary] secretary-treasurer or the attorney general, may apply to any court of competent jurisdiction to [enjoin any unprofessional] :
(a) Enjoin any prohibited act or other conduct of a homeopathic physician which is harmful to the public [or to limit the] ;
(b) Enjoin any person who is not licensed under this chapter from practicing homeopathic medicine; or
(c) Limit a homeopathic physicians practice or suspend his license to practice homeopathic medicine . [as provided in this section.]
2. The court in a proper case may issue a temporary restraining order or a preliminary injunction for [such purposes:] the purposes of subsection 1:
(a) Without proof of actual damages sustained by any person ; [, this provision being a preventive as well as punitive measure.]
(b) Without relieving any person from criminal prosecution for engaging in the practice of homeopathic medicine without a license; and
(c) Pending proceedings for disciplinary action by the board. [Those proceedings must be instituted and determined as promptly as the requirements for investigation of the case reasonably allow.]
Sec. 41. (Deleted by amendment.)
Sec. 42. NRS 630A.480 is hereby amended to read as follows:
630A.480 1. If [:
1. A complaint charging unprofessional conduct, a conviction or the suspension or revocation of a license to practice homeopathic medicine is not frivolous; or
κ1987 Statutes of Nevada, Page 2070 (CHAPTER 775, SB 134)κ
2. With respect to a complaint reported by the attorney general, the board has determined to proceed with disciplinary action,
the secretary of the board shall] , after an investigation by a committee or on its own initiative, the board decides to proceed with disciplinary action, it shall bring charges against a licensed homeopathic physician and fix a time and place for a formal hearing . [and cause a notice of the hearing and a formal complaint prepared by the board to be served on the person charged at least 20 days before the date fixed for the hearing.] The board shall notify the homeopathic physician of the charges brought against him, including the time and place set for the hearing, and of the sanctions authorized in NRS 630A.510.
2. The board, a hearing officer or a committee of the members of the board shall hold the formal hearing on the charges at the time and place designated in the notification. If the hearing is before a committee, at least one member of the board who is not a physician must participate in the hearing and in the final recommendation of the committee to the board.
Sec. 43. NRS 630A.490 is hereby amended to read as follows:
630A.490 1. Service of process made under this chapter must be either personal or by registered or certified mail with return receipt requested, addressed to the homeopathic physician at his last known address . [, as indicated on the records of the board, if possible.] If personal service cannot be made and if notice by mail is returned undelivered, the [secretary] secretary-treasurer of the board shall cause notice [of hearing] to be published once a week for 4 consecutive weeks in a newspaper published in the county of the homeopathic physicians last known address or, if no newspaper is published in that county, then in a newspaper widely distributed in that county.
2. Proof of service of process or publication of notice made under this chapter must be filed with the [secretary of the] board and [must be] recorded in the minutes of the board.
Sec. 44. NRS 630A.500 is hereby amended to read as follows:
630A.500 In any disciplinary [proceeding before the board:] hearing:
1. The board, a panel of the members of the board or a hearing officer is not bound by formal rules of evidence.
2. Proof of actual injury need not be established . [where the complaint charges deceptive or unethical professional conduct or medical practice harmful to the public.
2.] 3. A certified copy of the record of a court or a licensing agency showing a conviction or plea of nolo contendere or the suspension , [or] revocation , limitation, modification, denial or surrender of a license to practice homeopathic medicine is conclusive evidence of its occurrence.
Sec. 45. NRS 630A.510 is hereby amended to read as follows:
630A.510 1. [The person charged is entitled to a hearing before the board, but the failure of the person charged to attend his hearing or his failure to defend himself does not serve to delay or void the proceedings. The board may, for good cause shown, continue any hearing from time to time.]
κ1987 Statutes of Nevada, Page 2071 (CHAPTER 775, SB 134)κ
time.] Any member of the board who was not a member of the investigative committee, if one was appointed, may participate in the final order of the board. If the board, after a formal hearing, determines that a violation of the provisions of this chapter or the regulations adopted by the board has occurred, it shall issue and serve on the person charged an order, in writing, containing its findings and any sanctions imposed by the board. If the board determines that no violation has occurred, it shall dismiss the charges, in writing, and notify the person that the charges have been dismissed.
2. If the board finds [the person guilty as charged in the complaint,] that a violation has occurred, it may by order:
(a) Place the person on probation for a specified period [or until further order of the board.] on any of the conditions specified in the order.
(b) Administer to the person a public [or private] reprimand.
(c) Limit the practice of the person [as the board deems fit.] or execute a method of treatment from the scope of his practice.
(d) Suspend the license of the person [to practice homeopathic medicine] for a specified period or until further order of the board.
(e) Revoke the license of the person to practice homeopathic medicine.
[The order of the board may contain such other terms, provisions or conditions as the board deems proper which are not inconsistent with law.]
(f) Require the person to participate in a program to correct a dependence upon alcohol or a controlled substance, as defined in chapter 453 of NRS, or any other impairment.
(g) Require supervision of the persons practice.
(h) Impose a fine not to exceed $5,000.
(i) Require the person to perform public service without compensation.
(j) Require the person to take a physical or mental examination or an examination of his competence to practice homeopathic medicine.
(k) Require the person to fulfill certain training or educational requirements.
Sec. 46. NRS 630A.520 is hereby amended to read as follows:
630A.520 1. Any person [who has been placed on probation or whose license has been limited, suspended or revoked by] aggrieved by a final order of the board is entitled to judicial review of the boards order.
2. Every order of the board which limits the practice of homeopathic medicine or suspends or revokes a license is effective from the date the [secretary] secretary-treasurer of the board certifies the order until the date the order is modified or reversed by a final judgment of the court. The court shall not stay the order of the board [unless the board has failed to comply with the procedural requirements provided for in NRS 233B.140.] pending a final determination by the court.
3. The district court shall give a petition for judicial review of the boards order priority over other civil matters which are not expressly given priority by law.
Sec. 47. NRS 630A.530 is hereby amended to read as follows:
630A.530 1. Any person:
κ1987 Statutes of Nevada, Page 2072 (CHAPTER 775, SB 134)κ
(a) Whose practice of homeopathic medicine has been limited; or
(b) Whose license to practice homeopathic medicine has been:
(1) Suspended until further order; or
(2) Revoked,
by an order of the board may apply to the board [after a reasonable period] for removal of the limitation or restoration of his license.
2. In hearing the application, the board [:] or a committee of members of the board:
(a) May require the [person] applicant to submit to a mental or physical examination or an examination of his competence to practice homeopathic medicine by physicians or other persons whom it designates and submit such other evidence of changed conditions and of fitness as it deems proper.
(b) Shall determine whether under all the circumstances the time of the application is reasonable.
(c) May deny the application or modify or rescind its order as it deems the evidence and the public safety warrants.
3. The applicant has the burden of proving by clear and convincing evidence that the requirements for restoration of the license or removal of the limitation have been met.
4. The board shall not restore a license unless it is satisfied that the applicant has complied with all of the terms and conditions set forth in the final order of the board and that he is capable of practicing homeopathic medicine with reasonable skill and safety to patients.
5. To restore a license that has been revoked by the board, a person must apply for a license and take an examination as though he had never been licensed under this chapter.
Sec. 48. NRS 630A.540 is hereby amended to read as follows:
630A.540 [The board of homeopathic medical examiners, a medical review panel of a hospital, a medical society, or any person who or other organization which initiates or assists in any lawful investigation or proceeding concerning the discipline of a homeopathic physician for gross malpractice, repeated malpractice, professional incompetence or unprofessional conduct]
1. Any person who furnishes information to the board, in good faith and without malicious intent in accordance with the provisions of this chapter, concerning a person who is licensed or applies for a license under this chapter is immune from [any civil action for that initiation or assistance or any consequential damages, if the person or organization acted without malicious intent.] civil liability for furnishing that information.
2. The board and its members, staff, counsel, investigators, experts, committees, panels, hearing officers and consultants are immune from civil liability for any decision or action taken in good faith and without malicious intent in response to information received by the board.
3. The board and any of its members are immune from civil liability for disseminating information concerning a person who is licensed or applies for a license under this chapter to the attorney general or any board or agency of the state, hospital, medical society, insurer, employer, patient or his family or law enforcement agency.
κ1987 Statutes of Nevada, Page 2073 (CHAPTER 775, SB 134)κ
of the state, hospital, medical society, insurer, employer, patient or his family or law enforcement agency.
Sec. 49. NRS 630A.580 is hereby amended to read as follows:
630A.580 In [charging] seeking injunctive relief against any person [with a] for an alleged violation of this chapter by practicing homeopathic medicine without a license, it is sufficient to [charge] allege that he did, upon a certain day, and in a certain county of this state, engage in the practice of homeopathic medicine [, he not] without having a license to do so, without [averring] alleging any further or more particular facts concerning the matter.
Sec. 50. NRS 630A.590 is hereby amended to read as follows:
630A.590 Any person who:
1. Presents to the board as his own the diploma, license or credentials of another;
2. Gives either false or forged evidence of any kind to the board ; [or any member thereof, in connection with an application for a license to practice homeopathic medicine; or]
3. Practices homeopathic medicine under a false or assumed name [or falsely personates another licensee of a like or different name,] ; or
4. Practices homeopathic medicine without being licensed under this chapter,
shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, and may be further punished by a fine of not more than $5,000.
Sec. 51. NRS 630A.470 is hereby repealed.
________
Assembly Bill No. 763Committee on Commerce
CHAPTER 776
AN ACT relating to repossession; removing the requirement that the notice of intent to sell a vehicle or construction equipment include a specific statement concerning the potential liability of the debtor; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 482.516 is hereby amended to read as follows:
482.516 1. Any provision in any security agreement for the sale of a vehicle to the contrary notwithstanding, at least 10 days written notice of intent to sell a repossessed vehicle must be given to all persons liable on the security agreement. The notice [shall] must be given in person or [shall be] sent by mail directed to the address of the persons shown on the security agreement, unless such persons have notified the holder in writing of a different address.
κ1987 Statutes of Nevada, Page 2074 (CHAPTER 776, AB 763)κ
sent by mail directed to the address of the persons shown on the security agreement, unless such persons have notified the holder in writing of a different address.
2. The notice:
(a) [Shall] Must set forth that there is a right to redeem the vehicle and the total amount required as of the date of the notice to redeem;
(b) May inform such persons of their privilege of reinstatement of the security agreement, if the holder extends such a privilege;
(c) [Shall] Must give notice of the holders intent to resell the vehicle at the expiration of 10 days from the date of giving or mailing the notice;
(d) [Shall] Must disclose the place at which the vehicle will be returned to the buyer upon redemption or reinstatement; and
(e) [Shall] Must designate the name and address of the person to whom payment [shall] must be made.
3. During the period provided under the notice, the person or persons liable on the security agreement may pay in full the indebtedness evidenced by the security agreement. Such persons [shall be] are liable for any deficiency after sale of the repossessed vehicle only if the notice prescribed by this section is given within 60 days [of] after repossession and includes [the following:
(a) A notice, in at least eight-point bold type if the notice is printed, reading as follows: Notice: You are subject to suit and liability if the amount obtained upon sale of the vehicle is insufficient to pay the balance and any other amounts due.
(b) An] an itemization of the balance and of any costs or fees for delinquency, collection or repossession . [costs and fees.] In addition, the notice [shall] must either set forth the computation or estimate of the amount of any credit for unearned finance charges or canceled insurance as of the date of the notice or [shall] state that such a credit may be available against the amount due.
________
Assembly Bill No. 291Committee on Taxation
CHAPTER 777
AN ACT relating to property tax; revising the definition of full cash value; requiring the appraisal of single parcels to determine the taxable value of certain property; providing a penalty; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 360.250 is hereby amended to read as follows:
360.250 1. The Nevada tax commission [shall have the power:
1. To confer] may:
κ1987 Statutes of Nevada, Page 2075 (CHAPTER 777, AB 291)κ
(a) Confer with, advise and direct county assessors, sheriffs as ex officio collectors of licenses and all other county officers having to do with the preparation of the assessment roll or collection of taxes or other revenues as to their duties.
[2. To establish]
(b) Establish and prescribe general and uniform [rules and] regulations governing the assessment of property by the county assessors of the various counties, not in conflict with law.
[3. To prescribe]
(c) Prescribe the form and manner in which assessment rolls or tax lists [shall] must be kept by county assessors.
[4. To prescribe]
(d) Prescribe the form of the statements of property owners in making returns of their property.
[5. To require]
(e) Require county assessors, sheriffs as ex officio collectors of licenses and all other county officers having to do with the preparation of the assessment roll or collection of taxes or other revenues, to furnish such information in relation to assessments, licenses or the equalization of property valuations, and in such form as the Nevada tax commission may demand.
2. Each assessor and any other such officer shall certify under penalty of perjury that in assessing property or furnishing other information required pursuant to this section he has complied with the regulations of the Nevada tax commission. This certificate must be appended to each assessment roll and any other information furnished.
3. A county assessor or other county officer whose certificate is knowingly falsified is guilty of a misdemeanor. If the Nevada tax commission finds that a county assessor or other county officer has knowingly violated its regulations and thereby has caused less revenue to be collected from taxes, it shall deduct the amount of the undercollection from the money otherwise payable to the county from the proceeds of the supplemental city-county relief tax.
Sec. 2. NRS 361.025 is hereby amended to read as follows:
361.025 Full cash value means the [amount at which the property would be appraised if taken in payment of a just debt due from a solvent debtor.] most probable price which property would bring in a competitive and open market under all conditions requisite to a fair sale.
Sec. 3. NRS 361.227 is hereby amended to read as follows:
361.227 1. Any person determining the taxable value of real property shall appraise:
(a) The full cash value of:
(1) Vacant land by considering the uses to which it may lawfully be put, any legal or physical restrictions upon those uses, the character of the terrain, and the uses of other land in the vicinity.
(2) Improved land consistently with the use to which the improvements are being put.
κ1987 Statutes of Nevada, Page 2076 (CHAPTER 777, AB 291)κ
(b) Any improvements made on the land by subtracting from the cost of replacement of the improvements all applicable depreciation and obsolescence.
2. The unit of appraisal must be a single parcel unless:
(a) The location of the improvements causes two or more parcels to function as a single parcel; or
(b) The parcel is one of a group of contiguous parcels which qualifies for valuation as a subdivision pursuant to the regulations of the Nevada tax commission.
3. The taxable value of a possessory interest for the purpose of NRS 361.157 or 361.159 may be determined:
(a) By subtracting from the cost of replacement of the improvements all applicable depreciation and obsolescence; or
(b) By capitalizing the fair economic income expectancy.
[3.] 4. The taxable value of other taxable personal property, except mobile homes, must be determined by subtracting from the cost of replacement of the property all applicable depreciation and obsolescence.
[4.] 5. The computed taxable value of any property must not exceed its full cash value. Each person determining the taxable value of property shall reduce it if necessary to comply with this requirement. A person determining whether taxable value exceeds full cash value or whether obsolescence is a factor in valuation may consider:
(a) Comparative sales, based on prices actually paid in market transactions.
(b) A summation of the estimated full cash value of the land and contributory value of the improvements.
(c) Capitalization of the fair economic income expectancy or fair economic rent.
A county assessor is required to make a reduction prescribed in this subsection only if the owner calls to his attention the facts warranting it , but may make it if he is otherwise aware of those facts.
[5.] 6. The Nevada tax commission shall by regulation establish:
(a) Standards for determining the cost of replacement of improvements of various kinds.
(b) Schedules of depreciation for personal property based on its estimated life. Depreciation of an improvement made on real property must be calculated at 1.5 percent of the cost of replacement for each year of adjusted actual age of the improvement, up to a maximum of 50 years.
(c) Criteria for the valuation of two or more parcels as a subdivision.
[6.] 7. The county assessor shall, upon the request of the owner, furnish within 15 days to the owner a copy of the most recent appraisal of the property.
8. The provisions of this section do not apply to property which is assessed pursuant to NRS 361.320.
κ1987 Statutes of Nevada, Page 2077 (CHAPTER 777, AB 291)κ
Sec. 4. Section 3 of this act becomes effective on January 1, 1988, and first applies to assessments made for inclusion on the 1989 tax roll.
________
Senate Bill No. 353Committee on Transportation
CHAPTER 778
AN ACT relating to motor vehicles; requiring that certain persons engaged in the business of transporting motor vehicles obtain a license from the department of motor vehicles and public safety; authorizing the issuance of special license plates to those persons; providing a penalty; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 482 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 11, inclusive, of this act.
Sec. 2. The purpose of licensing vehicle transporters is to protect the public health and safety and the general welfare of the people of this state. Any license issued pursuant to sections 3 to 10, inclusive, of this act is a revocable privilege and a holder of such a license does not acquire thereby any vested right.
Sec. 3. Vehicle transporter means a person who engages in the business of transporting motor vehicles in which he has no ownership interest and which are otherwise required to be registered pursuant to this chapter by operating them, singly or in combination, upon the highway under their own motive power.
Sec. 4. 1. A person shall not operate as a vehicle transporter in this state without a license issued by the department.
2. The provisions of sections 3 to 10, inclusive, of this act, do not apply to a:
(a) Manufacturer, distributor, dealer or rebuilder licensed pursuant to NRS 482.318 to 482.363, inclusive.
(b) Person required to be licensed as a motor convoy carrier pursuant to NRS 706.526.
Sec. 5. 1. An application for a license as a vehicle transporter must be accompanied by a fee of $100 and be submitted on forms supplied by the department. The application must contain:
(a) The applicants name and address; and
(b) Such other information as the department requires.
2. Upon receipt of the application and when satisfied that the applicant is entitled thereto, the department shall issue to the applicant a license as a vehicle transporter.
3. A license issued pursuant to this section expires on December 31 of each year. Before December 31 of each year, a licensee must submit to the department, on forms supplied by the department and in the manner specified by the department, an application for renewal accompanied by an annual fee for renewal of $50.
κ1987 Statutes of Nevada, Page 2078 (CHAPTER 778, SB 353)κ
department, on forms supplied by the department and in the manner specified by the department, an application for renewal accompanied by an annual fee for renewal of $50.
Sec. 6. A vehicle transporter licensed pursuant to section 5 of this act may operate on the highways of this state any motor vehicle otherwise required to be registered pursuant to this chapter if there is displayed on the vehicle a special plate assigned to the vehicle transporter pursuant to section 7 of this act.
Sec. 7. 1. Upon issuance of a license as a vehicle transporter pursuant to section 5 of this act, the department shall assign to the vehicle transporter one or more registration certificates and special license plates for use on motor vehicles being delivered in this state. Each plate must have displayed upon it suitable characters, as determined by the department, to identify the vehicle as being operated by a vehicle transporter. The vehicle transporters plates may be used interchangeably on transported vehicles.
2. The department may issue to each vehicle transporter a reasonable number of registration certificates and license plates.
Sec. 8. 1. A vehicle transporter shall not operate any motor vehicle being transported by him on the highways of this state, or permit to be so operated, unless a license plate assigned to him is attached thereto in the manner specified in this chapter.
2. A vehicle transporter shall not:
(a) Loan the license plates assigned to him to any other person;
(b) Permit those license plates to be used by any other person or for a purpose other than permitted by sections 3 to 10, inclusive, of this act; or
(c) Use those license plates on any vehicle in which he has any ownership interest.
Sec. 9. 1. Before any license as a vehicle transporter is issued or special license plate is assigned, the applicant shall procure and file with the department a good and sufficient bond in the amount of $100,000 with a corporate surety thereon, licensed to do business within the State of Nevada, approved as to form by the attorney general, and conditioned that the applicant shall conduct his business as a vehicle transporter without fraud or fraudulent representation, and without violation of the provisions of this chapter.
2. The bond must be continuous in form and the total aggregate liability on the bond must be limited to the payment of the total amount of the bond, but in no case may the amount of any judgment in an action on such a bond exceed the retail value of any vehicle in connection with which the action was brought.
3. The undertaking on the bond includes any fraud or fraudulent representation or violation of any of the provisions of this chapter by any employee of the licensee on his behalf and within the scope of his employment.
4. The bond must provide that any person injured by the action of the licensee or his employee in violation of any provisions of this chapter may bring an action on the bond.
κ1987 Statutes of Nevada, Page 2079 (CHAPTER 778, SB 353)κ
5. In lieu of the bond required by this section, an applicant may make a deposit with the department that satisfies the requirements of NRS 482.346.
Sec. 10. 1. The department may refuse to issue or suspend or revoke a license as a vehicle transporter upon any of the following grounds:
(a) Conviction of a felony in the State of Nevada or any other state, territory or nation.
(b) Material misstatement in the application for a license.
(c) Evidence of unfitness of the applicant or licensee.
(d) Willful failure to comply with the provisions of this chapter or the regulations adopted pursuant thereto, or any law relating to the operation of a motor vehicle.
(e) Failure or refusal to furnish and keep in force any bond.
(f) Failure of the licensee to maintain any other license required by any political subdivision of this state.
(g) Knowingly having possession of a stolen motor vehicle or a motor vehicle with a defaced, altered or obliterated manufacturers identification number or other distinguishing number or identification mark.
(h) Loaning or permitting the improper use of any special license plate assigned to him.
2. Any person whose application is denied or license is suspended or revoked pursuant to this section is entitled to a hearing as provided in NRS 482.353.
Sec. 11. Each person who applies for a special license plate as a vehicle transporter shall pay at the time of application, in addition to any other fees specified in this chapter, a fee of $25 for each plate.
Sec. 12. NRS 482.010 is hereby amended to read as follows:
482.010 As used in this chapter unless the context otherwise requires, the words and terms defined in NRS 482.011 to 482.135, inclusive, and section 3 of this act, have the meanings ascribed to them in those sections.
Sec. 13. NRS 482.275 is hereby amended to read as follows:
482.275 1. The license plates for a motor vehicle other than a motorcycle , [or] power cycle or motor vehicle being transported by a licensed vehicle transporter must be attached thereto, one in the front and the other in the rear. The license plate issued for all other vehicles required to be registered must be attached to the rear of the vehicle. The license plates must be so displayed during the current calendar year or registration period.
2. Every license plate must at all times be securely fastened to the vehicle to which it is assigned so as to prevent the plate from swinging and at a height not less than 12 inches from the ground, measuring from the bottom of such plate, in a place and position to be clearly visible, and must be maintained free from foreign materials and in a condition to be clearly legible.
3. Any license plate which is issued to a vehicle transporter or a dealer, rebuilder or manufacturer may be attached to a vehicle owned or controlled by that person by a secure means. No license plate may be displayed loosely in a window or by any other unsecured method in any motor vehicle.
κ1987 Statutes of Nevada, Page 2080 (CHAPTER 778, SB 353)κ
Sec. 14. NRS 482.545 is hereby amended to read as follows:
482.545 It is unlawful for any person to commit any of the following acts:
1. To operate, or for the owner thereof knowingly to permit the operation of, upon a highway any motor vehicle, trailer or semitrailer which is not registered or which does not have attached thereto and displayed thereon the number of plate or plates assigned thereto by the department for the current period of registration or calendar year, subject to the exemption allowed in NRS 482.320 to 482.363, inclusive, 482.385 to 482.396, inclusive, [and 482.420.] 482.420 and sections 3 to 10, inclusive, of this act.
2. To move upon a highway any slide-in camper that does not have affixed on it the tax plate or sticker provided in NRS 361.5643, when the movement is by a vehicle not subject to the exemption allowed in NRS 482.320 to 482.363, inclusive, 482.385 to 482.396, inclusive, [and 482.420.] 482.420 and sections 3 to 10, inclusive, of this act.
3. To display, cause or permit to be displayed or to have in possession any certificate of registration, license plate, certificate of ownership or other document of title knowing it to be fictitious or to have been canceled, revoked, suspended or altered.
4. To lend to or knowingly permit the use of by one not entitled thereto any registration card or plate issued to the person so lending or permitting the use thereof.
5. To fail or to refuse to surrender to the department, upon demand, any registration card or plate which has been suspended, canceled or revoked as provided in this chapter.
6. To use a false or fictitious name or address in any application for the registration of any vehicle or for any renewal or duplicate thereof, or knowingly to make a false statement or knowingly to conceal a material fact or otherwise commit a fraud in [any such] an application. A violation of this subsection is a gross misdemeanor.
7. Knowingly to operate a vehicle which has an altered vehicle identification number, serial number, motor number, other distinguishing number or identification mark required for registration.
Sec. 15. NRS 706.741 is hereby amended to read as follows:
706.741 1. Notwithstanding the provisions of NRS 482.320 and the provisions of NRS 706.091, 706.521 and 706.526, it is lawful for any [manufacturer,] :
(a) Vehicle transporter licensed pursuant to section 5 of this act; or
(b) Manufacturer, distributor or dealer in or rebuilder of motor vehicles having an established place of business in this state ,
to operate, drive or tow any motor vehicles over and along the highways of this state when the motor vehicles are to be sold, exchanged or stored for the purpose of sale or exchange, without first securing from the department the license and paying the motor convoy fee therefor.
2. A vehicle transporter or a manufacturer, distributor, dealer or rebuilder shall not operate, drive or tow any such motor vehicle unless there are attached thereto the license plates required by law of all vehicle transporters, manufacturers, dealers or rebuilders, or a permit from the department pursuant to NRS 482.3212.
κ1987 Statutes of Nevada, Page 2081 (CHAPTER 778, SB 353)κ
are attached thereto the license plates required by law of all vehicle transporters, manufacturers, dealers or rebuilders, or a permit from the department pursuant to NRS 482.3212.
Sec. 16. Section 15 of this act becomes effective at 12:01 a.m. on July 1, 1987.
________
Senate Bill No. 410Committee on Commerce and Labor
CHAPTER 779
AN ACT relating to psychologists; revising the educational requirements for a license as a psychologist; requiring the board of psychological examiners to administer a certain written examination; changing the passing grade for the examination; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 641.170 is hereby amended to read as follows:
641.170 Each applicant shall furnish evidence satisfactory to the board that he:
1. Is at least 21 years of age.
2. Is of good moral character.
3. Is a citizen of the United States, or is lawfully entitled to remain and work in the United States.
4. Has [received] earned a doctorate in psychology from an accredited educational institution approved by the board, or has [training] other doctorate-level training from an accredited educational institution deemed equivalent by the board in both subject matter and extent of training.
5. Has at least 1 year of postdoctoral experience satisfactory to the board.
Sec. 2. NRS 641.180 is hereby amended to read as follows:
641.180 1. The board shall [give] administer to each applicant for a certificate a written examination on his knowledge of psychology. The examination administered must be the Examination for the Professional Practice of Psychology in the form most recently provided by the Professional Examination Service before January 1, 1987. In addition, the board may require an oral examination [.] in whatever applied or theoretical fields it deems appropriate.
2. The examination must be given at least once a year, and may be given more often if deemed necessary by the board. The examination must be given at a time a place, and under such supervision, as the board may determine. A grade of [75] 70 percent is a passing grade. [The board may examine in whatever applied or theoretical fields it deems appropriate.]
κ1987 Statutes of Nevada, Page 2082 (CHAPTER 779, SB 410)κ
3. The board shall notify each applicant of the results of his written examination and supply him with a copy of all material information about those results provided to the board by the Professional Examination Service.
________
Assembly Bill No. 892Committee on Ways and Means
CHAPTER 780
AN ACT relating to public schools; apportioning the state distributive school account in the state general fund for the biennium 1987-89; making an appropriation; authorizing certain expenditures; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The basic support guarantee per pupil for the respective school districts of the state for the fiscal year 1987-88 is:
Carson City................................................................................................... $2,685
Churchill County.......................................................................................... 2,767
Clark County................................................................................................. 2,368
Douglas County........................................................................................... 2,408
Elko County.................................................................................................. 2,769
Esmeralda County........................................................................................ 4,118
Eureka County.............................................................................................. 3,436
Humboldt County........................................................................................ 2,711
Lander County.............................................................................................. 2,874
Lincoln County............................................................................................. 4,320
Lyon County................................................................................................. 3,019
Mineral County............................................................................................ 2,928
Nye County................................................................................................... 2,891
Pershing County.......................................................................................... 2,874
Storey County.............................................................................................. 3,929
Washoe County........................................................................................... 2,254
White Pine County...................................................................................... 3,286
Sec. 2. 1. The basic support guarantee for school districts for operating purposes for the fiscal year 1988-89 is an aggregate weighted average of $2,489 per pupil.
2. The department of taxation on or before April 1, 1988, shall provide a certified estimate of the assessed valuation for each school district for the fiscal year 1988-89. The assessed valuation for each school district must be that which is taxable for purposes of providing revenue to school districts, including net proceeds of mines.
κ1987 Statutes of Nevada, Page 2083 (CHAPTER 780, AB 892)κ
3. For purposes of establishing the basic support guarantee, the estimated basic support guarantees for each school district for the fiscal year 1988-89 for operating purposes are:
Estimated
Basic Basic
Support Support
Guarantee Estimated Guarantee
Before Ad Valorem as
Adjustment Adjustment Adjusted
Carson City School District.......................... 2,641 104............................................................. 2,745
Churchill County School District................. 2,633 202............................................................. 2,835
Clark County School District........................ 2,394 27............................................................. 2,421
Douglas County School District.................. 2,735 (254)............................................................. 2,481
Elko County School District......................... 2,756 95............................................................. 2,851
Esmeralda County School District............... 4,411 (180)............................................................. 4,231
Eureka County School District..................... 5,453............................................................. (1,889) 3,564
Humboldt County School District............... 2,738 56............................................................. 2,794
Lander County School District.................... 2,868 95............................................................. 2,963
Lincoln County School District................... 4,177 344............................................................. 4,521
Lyon County School District....................... 2,976 175............................................................. 3,151
Mineral County School District................... 2,827 172............................................................. 2,999
Nye County School District......................... 2,998 (83)............................................................. 2,915
Pershing County School District................. 2,984 (40)............................................................. 2,944
Storey County School District..................... 4,009 (20)............................................................. 3,989
Washoe County School District.................. 2,399 (125)............................................................. 2,274
White Pine County School District............. 3,132 250............................................................. 3,382
4. The ad valorem adjustment may be made only to take account of the difference in the value of taxable property in the school district between the amount estimated as of May 25, 1987, and the amount estimated as of April 1, 1988, for the fiscal year 1988-89.
5. Upon receipt of the certified estimates of assessed valuations as of April 1, 1988, from the department of taxation, the department of education must recalculate the amount of ad valorem adjustment and the basic support guarantee for operating purposes for fiscal year 1988-89 by April 25, 1988. The basic support guarantee for each school district for the fiscal year 1988-89 is the amount which is recalculated for the fiscal year 1988-89 pursuant to this section.
Sec. 3. 1. The basic support guarantee for each special education program unit which is maintained and operated for at least 9 months of a school year is $24,000 for each of the fiscal years 1987-88 and 1988-89, except as limited by subsection 2.
2. The maximum number of units and amount of basic support for special education program units within each of the school districts, before any reallocation pursuant to NRS 387.1221, for the fiscal years 1987-88 and 1988-89 are:
κ1987 Statutes of Nevada, Page 2084 (CHAPTER 780, AB 892)κ
1987-88 1988-89
Location of School
District Units Amount Units Amount
Carson City..................................... 36 $864,000.......................................................... 38 $912,000
Churchill County............................ 20 480,000.......................................................... 20 480,000
Clark County................................... 618 14,832,000.......................................................... 643 15,432,000
Douglas County............................. 29 696,000.......................................................... 30 720,000
Elko County.................................... 31 744,000.......................................................... 32 768,000
Esmeralda County.......................... 2 48,000.......................................................... 2 48,000
Eureka County................................ 2 48,000.......................................................... 2 48,000
Humboldt County.......................... 14 336,000.......................................................... 15 360,000
Lander County................................ 7 168,000.......................................................... 7 168,000
Lincoln County............................... 7 168,000.......................................................... 7 168,000
Lyon County................................... 22 528,000.......................................................... 23 552,000
Mineral County.............................. 9 216,000.......................................................... 9 216,000
Nye County..................................... 17 408,000.......................................................... 18 432,000
Pershing County............................ 5 120,000.......................................................... 5 120,000
Storey County................................ 2 48,000.......................................................... 2 48,000
Washoe County............................. 219 5,256,000.......................................................... 227 5,448,000
White Pine County........................ 10 240,000.......................................................... 10 240,000
Subtotal........................................... 1050 25,200,000.......................................................... 1090 26,160,000
Reserved by State Board of Education 25............................................. 600,000 25............................................. 600,000
Total....................................................... 1075................................................................. $25,800,000 1115................................................................. $26,760,000
3. The state board of education shall reserve 25 special education program units for each of the fiscal years 1987-88 and 1988-89, to be allocated to school districts by the state board of education to meet additional needs that cannot be met by the allocations provided in subsection 2 for that fiscal year. These needs must be evaluated by the department of education.
Sec. 4. 1. There is hereby appropriated from the state general fund to the state distributive school account in the state general fund created pursuant to NRS 387.030:
For the fiscal year 1987-88.......................................................... $207,322,231
For the fiscal year 1988-89.......................................................... $214,227,022
2. The money appropriated by subsection 1 must be:
(a) Expended in accordance with NRS 353.150 to 353.245, inclusive, concerning the allotment, transfer, work program and budget; and
(b) Work-programmed for the 2 separate fiscal years, 1987-88 and 1988-89, as required by NRS 353.215. Work programs may be revised with the approval of the governor upon the recommendation of the chief of the budget division of the department of administration.
3. Transfers to and from allotments must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate consideration of the merits of each request.
κ1987 Statutes of Nevada, Page 2085 (CHAPTER 780, AB 892)κ
4. The sums appropriated by subsection 1 are available for either fiscal year. Money may be transferred from one fiscal year to the other with the approval of the governor upon the recommendation of the chief of the budget division of the department of administration.
5. Any remaining balance of the appropriation made by subsection 1 for the fiscal year 1987-88 must be transferred and added to the money appropriated for the fiscal year 1988-89 and may be expended as that money is expended.
6. Any remaining balance of the appropriation made by subsection 1 for the fiscal year 1988-89, including any money added thereto pursuant to the provisions of subsection 5, must not be committed for expenditure after June 30, 1989, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 5. 1. Expenditure of $35,278,000 by the department of education from money in the state distributive school account which was not appropriated from the state general fund is hereby authorized during the fiscal year beginning July 1, 1987.
2. Expenditure of $36,823,000 by the department of education from money in the state distributive school account which was not appropriated from the state general fund is hereby authorized during the fiscal year beginning July 1, 1988.
3. For purposes of accounting and reporting, the sums authorized for expenditure in subsections 1 and 2 are considered to be expended before any appropriation is made to the state distributive school account from the state general fund.
4. The money authorized to be expended by subsections 1 and 2 must be expended in accordance with NRS 353.150 to 353.245, inclusive, concerning the allotment, transfer, work program and budget. Transfers to and from allotments must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate consideration of the merits of each request.
5. The chief of the budget division of the department of administration may, with the approval of the governor, authorize the augmentation of the amounts authorized for expenditure by the department of education, in subsections 1 and 2, for the purpose of meeting obligations of the state incurred under chapter 387 of NRS with amounts from any other state agency, from any agency of local government, from any agency of the Federal Government or from any other source which he determines is in excess of the amount taken into consideration by this act. The chief of the budget division of the department of administration shall reduce any authorization whenever he determines that money to be received will be less than the amount authorized in subsections 1 and 2.
Sec. 6. Of the sums appropriated from the state general fund in section 4 of this act, up to $600,000 in each of the fiscal years 1987-88 and 1988-89 may be used to meet the states matching requirement under the Child Nutrition Act.
κ1987 Statutes of Nevada, Page 2086 (CHAPTER 780, AB 892)κ
Sec. 7. During each of the fiscal years 1987-88 and 1988-89, whenever the state controller finds that current claims against the state distributive school account in the state general fund exceed the amount available in the account to pay those claims, he may advance temporarily from the state general fund to the state distributive school account the amount required to pay the claims, but no more than the amount expected to be received in the current fiscal year from any source authorized for the state distributive school account. No amount may be transferred unless requested by the chief of the budget division of the department of administration.
Sec. 8. This act becomes effective at 12:01 a.m. on July 1, 1987.
________
Senate Bill No. 588Committee on Natural Resources
CHAPTER 781
AN ACT relating to trespassing; authorizing the use of a painted post, structure or natural object as a notice against trespassing or warning of danger; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 207.200 is hereby amended to read as follows:
207.200 1. [Every] Any person who [goes] :
(a) Goes upon the land or into any building of another with intent to vex or annoy the owner or occupant thereof, or to commit any unlawful act [, or willfully] ; or
(b) Willfully goes or remains upon any land or in any building after having been warned by the owner or occupant thereof not to trespass,
is guilty of a misdemeanor. The meaning of this subsection is not limited by subsections 2 and 4.
2. [Every owner or other occupant of any land is deemed to have given a] A sufficient warning against trespassing, within the meaning of this section, [who:
(a) Posts in a conspicuous manner on each side thereof, upon or near the boundary, at intervals of not more than 700 feet, signs, legibly printed or painted in the English language, warning persons not to trespass; or
(b) Fences] is given by either of the following methods:
(a) Painting, at intervals of not more than 200 feet on each side of the land, upon or near the boundary, a post, structure or natural object with not less than 50 square inches of fluorescent orange paint or, if the post is a metal fence post, painting the entire post with such paint.
(b) Fencing the area.
κ1987 Statutes of Nevada, Page 2087 (CHAPTER 781, SB 588)κ
3. Is a prima facie evidence of trespass for any person to be found on private or public property which is posted or fenced as provided in subsection 2 without lawful business with the owner or occupant of the property.
4. An entryman on land under the laws of the United States is an owner within the meaning of this section.
5. As used in this section, fence means a barrier sufficient to indicate an intent to restrict the area to human ingress, including, but not limited to, a wall, hedge or chain link or wire mesh fence.
Sec. 2. Chapter 41 of NRS is hereby amended by adding thereto a new section to read as follows:
In any case where there is a duty to warn a trespasser against a dangerous condition of the premises, that duty is discharged by painting, at intervals of not more than 200 feet on each side of the premises, upon or near the boundary, a post, structure or natural object with not less than 50 square inches of fluorescent orange paint or, if the post is a metal fence post, painting the entire post with such paint.
________
Assembly Bill No. 775Assemblymen DuBois, Schofield, Nicholas, Sedway, Brookman, Porter, May, Thomas, McGaughey, Jeffrey, Lambert, Thompson, Adler, Myrna Williams, Wisdom, Fay, Swain, Arberry, Evans, Garner, Humke, Wendell Williams, Tebbs, Callister, Gaston, Kissam and Price
CHAPTER 782
AN ACT relating to manufactured homes; prohibiting dealers from requiring that financing be obtained from a specific source as a condition to the sale of a mobile or manufactured home; requiring the licensing of repossessors and liquidators; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 489 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. The division shall adopt regulations for the issuance and renewal of a limited dealers license authorizing a person other than a bank, savings and loan association, credit union, thrift company or other financial institution to act as a repossessor or liquidator concerning manufactured homes, mobile homes or commercial coaches.
Sec. 3. 1. A dealer shall not require a person to obtain a loan or financing from him or any other person as a condition to the purchase, sale or exchange of a manufactured home, mobile home or commercial coach.
2. A dealer shall disclose the substance of subsection 1 to each person with whom it agrees to purchase, sell or exchange a manufactured home, mobile home or commercial coach.
κ1987 Statutes of Nevada, Page 2088 (CHAPTER 782, AB 775)κ
with whom it agrees to purchase, sell or exchange a manufactured home, mobile home or commercial coach. The division may adopt regulations concerning the form and manner of the disclosure.
Sec. 4. NRS 489.076 is hereby amended to read as follows:
489.076 1. Dealer means any person who:
(a) For compensation, money or other things of value, sells, exchanges, buys or offers for sale, negotiates or attempts to negotiate a sale or exchange of an interest in a manufactured home, mobile home or commercial coach subject to the requirements [under] of this chapter , or induces or attempts to induce any person to buy or exchange an interest in a manufactured home, mobile home or commercial coach;
(b) Receives or expects to receive a commission, money, brokerage fees, profit or any other thing of value from either the seller or purchaser of any manufactured home, mobile home or commercial coach; [or]
(c) Is engaged wholly or in part in the business of selling manufactured homes, mobile homes or commercial coaches, or buying or taking them in trade for the purpose of resale, selling, or offering for sale or consignment to be sold , or otherwise dealing in manufacture homes, mobile homes or commercial coaches [,] ; or
(d) Acts as a repossessor or liquidator concerning manufactured homes, mobile homes or commercial coaches,
whether or not they are owned by such persons.
2. The term does not include:
(a) Receivers, trustees, administrators, executors, guardians or other persons appointed by or acting under the order of any court;
(b) Public officers while performing their official duties;
(c) Banks , savings and loan associations, credit unions, thrift companies or other financial institutions proceeding as repossessors or liquidators [;] of their own security; or
(d) An owner selling his private residence.
Sec. 5. NRS 489.4971 is hereby amended to read as follows:
489.4971 1. The fund for education and recovery relating to manufactured housing is hereby created as a special revenue fund [for the purpose of satisfying] to satisfy claims against persons licensed under this chapter. Any balance in the fund over $300,000 at the end of any fiscal year must be set aside and used by the administrator for education respecting manufactured homes, mobile homes, travel trailers or commercial coaches.
2. Upon issuance or renewal of the following licenses by the division, the licensee must pay in addition to the original or renewal license fee, a fee:
(a) For a dealers or manufacturers original license, or an original limited dealers license issued pursuant to section 2 of this act, of $300.
(b) For a dealers or manufacturers renewal license, or a renewal limited dealers license issued pursuant to section 2 of this act, of $150.
(c) For an original or renewal license for:
(1) A serviceman, rebuilder or installer, of $50.
(2) A salesman, of $25.
κ1987 Statutes of Nevada, Page 2089 (CHAPTER 782, AB 775)κ
(3) A responsible managing employee, of $50.
Fees collected pursuant to this section must be deposited in the state treasury for credit to the fund.
3. Payments from the fund must be made only upon an appropriate court order.
________
Assembly Bill No. 344Assemblymen Nicholas, Kissam and Bergevin
CHAPTER 783
AN ACT relating to public safety; adopting comprehensive requirements for the respective responsibilities of skiers and operators of areas for skiing; providing a penalty; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Title 40 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 23, inclusive, of this act.
Sec. 2. This chapter may be cited as the Skier Safety Act.
Sec. 3. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 5 to 12, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 4. (Deleted by amendment.)
Sec. 5. Passenger means a person who utilizes a ski lift for transportation.
Sec. 6. (Deleted by amendment.)
Sec. 7. Ski area means the slopes, trails, runs and other areas under the control of a skiing operator that are intended to be used for skiing or for the observation of the sport.
Sec. 8. Ski lift means a device, except for an elevator, that carries, pulls or pushes a person along a level or inclined path to, from or within a ski area by means of a rope, cable or other flexible element that is driven by an essentially stationary source of power.
Sec. 9. Ski patrol means agents or employees of a skiing operator who patrol the ski area.
Sec. 10. Skier means a person who skis in a ski area.
Sec. 11. Skiing operator means a person, or a governmental agency or political subdivision of this state, who controls or operates an area where persons ski.
Sec. 12. Surface lift means a ski lift designed for skiers to remain in contact with the ground or snowy surface during transportation.
Sec. 13. A skier shall not:
1. Embark upon a ski lift:
κ1987 Statutes of Nevada, Page 2090 (CHAPTER 783, AB 344)κ
(a) When he knows that he has insufficient knowledge or physical ability to use the ski lift safely; or
(b) That is posted as closed or not in operation;
2. Purposefully embark upon or disembark from a ski lift, except at an area designated for such a purpose or at the direction and under the direct supervision of an authorized agent or employee of a skiing operator;
3. Toss, throw or cast or intentionally drop, expel or eject an object from a ski lift;
4. Toss, throw or cast an object in the direction of a ski lift;
5. Fail or refuse to comply with:
(a) Reasonable instructions given to him by an authorized agent or employee of a skiing operator regarding the use of a ski lift; or
(b) A sign posted pursuant to sections 16 or 17 of this act;
6. Place any object in the uphill path of a surface lift;
7. Conduct himself in a manner that interferes with the safe operation of a ski lift or with the safety of a passenger or skier; or
8. Ski in an area within the ski area which is posted, as provided in NRS 207.200, as closed.
Sec. 14. A skier shall, to the extent that the matter is within his control:
1. Locate and ascertain the meaning of signs in his vicinity posted pursuant to sections 16 or 17 of this act;
2. Heed warnings and other information posted by a skiing operator;
3. Remain a safe distance from vehicles, signs and equipment for grooming snow or for transportation;
4. Avoid skiers in motion when entering a ski slope, run or trail, and when commencing to ski from a stationary position;
5. Maintain a proper lookout and control of his speed to avoid downhill objects and skiers to the best of his ability; and
6. Conduct himself in such a manner as to avoid injury to persons and property in a ski area.
Sec. 15. A skier shall not:
1. Use a ski unless it is attached to the skier by a strap or equipped with a device capable of stopping the movement of the ski when not attached to the skier;
2. Cross the uphill path of a surface lift, except at locations designated by a skiing operator; or
3. Willfully stop where he obstructs a ski slope, run or trail, or where he is not safely visible to uphill skiers.
Sec. 16. 1. A skiing operator shall prominently post and maintain signs in simple and concise language:
(a) By each ski lift, with information for the protection and instruction of passengers; and
(b) At or near the points where passengers are loaded on a ski lift, directing persons who are not familiar with the operation of the ski lift to ask an authorized agent or employee of the skiing operator for assistance and instruction.
κ1987 Statutes of Nevada, Page 2091 (CHAPTER 783, AB 344)κ
2. A skiing operator shall prominently post and maintain signs with the following inscriptions at all ski lifts in the locations indicated:
(a) Remove pole straps from wrists at an area for loading skiers;
(b) Safety gate where applicable;
(c) Stay on tracks where applicable;
(d) Keep ski tips up ahead of any point where skis can regain contact with the ground or snowy surface after a passenger departs from an area for loading skiers;
(e) Prepare to unload and check for loose clothing and equipment not less than 50 feet from an area for unloading skiers; and
(f) Unload here at the area for unloading skiers.
3. A skiing operator shall inspect a ski area for the presence and visibility of the signs required to be posted by this section each day before opening the ski area for business.
Sec. 17. 1. A skiing operator shall post and maintain a system of signs:
(a) At the entrances to an established ski slope, run or trail to indicate:
(1) Whether any portion of the ski slope, run or trail is closed; and
(2) The relative degree of difficulty of the ski slope, run or trail;
(b) To indicate the boundary of the ski area, except in heavily wooded areas or other terrain that cannot be skied readily; and
(c) To warn of each area within the boundary of the ski area where there is a danger of avalanche by posting signs stating Warning: Avalanche Danger Area.
2. A skiing operator shall equip vehicles it uses on or in the vicinity of a ski slope, run or trail with a light visible to skiers when the vehicle is in motion.
Sec. 18. A sign required to be posted pursuant to sections 16 and 17 of this act must be adequately illuminated at night, if the ski area is open to the public at night, and be readable and recognizable under ordinary conditions of visibility.
Sec. 19. 1. A skier who sustains a personal injury shall notify the skiing operator or a member of the ski patrol of the injury as soon as reasonably possible after discovery of the injury.
2. A skiing operator is not liable for the death or injury of a person or damages to property caused or sustained by a skier who knowingly enters an area which is not designated for skiing or which is outside the boundary of a ski area.
3. A skiing operator shall take reasonable steps to minimize dangers and conditions within his control.
Sec. 20. (Deleted by amendment.)
Sec. 21. 1. A skier shall not ski, or embark on a ski lift that is proceeding predominantly uphill, while intoxicated or under the influence of a controlled substance as defined in chapter 453 of NRS, unless in accordance with a prescription issued to the person by a physician, podiatrist or dentist.
2. A skier who is involved in a collision in which another person is injured shall provide his name and current address to the injured person, the skiing operator or a member of the ski patrol:
κ1987 Statutes of Nevada, Page 2092 (CHAPTER 783, AB 344)κ
injured shall provide his name and current address to the injured person, the skiing operator or a member of the ski patrol:
(a) Before he leaves the vicinity of the collision; or
(b) As soon as reasonably possible after leaving the vicinity of the collision to secure aid for the injured person.
3. A person who violates a provision of this section is guilty of a misdemeanor.
Sec. 22. A skiing operator may revoke the license or privilege to ski of a person in a ski area who violates any of the provisions of sections 13, 14, 15 and 21 of this act.
Sec. 23. This chapter does not prohibit a county, city or unincorporated town from enacting an ordinance, not in conflict with the provisions of this chapter, regulating skiers or skiing operators.
________
Senate Bill No. 589Committee on Finance
CHAPTER 784
AN ACT relating to public employees retirement; making technical corrections to Senate Bill No. 586 of this session; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Section 1 of Senate Bill No. 586 of this session is hereby amended to read as follows:
Section 1. 1. In lieu of the increases required by NRS 286.465 for the fiscal years 1987-1988 and 1988-1989, the total rate of contribution to both the public employees retirement fund and the police and firemens retirement fund must be increased by one-quarter of 1 percent, cumulatively, on:
(a) July 1, 1987;
(b) October 1, 1987;
(c) January 1, 1988;
(d) April 1, 1988;
(e) July 1, 1988;
(f) October 1, 1988;
(g) January 1, 1989; and
(h) April 1, 1989.
2. The increases required pursuant to subsection [2] 1 must be implemented beginning with the first day of the [next succeeding] first regularly scheduled pay period which begins on or after the date of the increase.
κ1987 Statutes of Nevada, Page 2093 (CHAPTER 784, SB 589)κ
Sec. 2. This act becomes effective upon passage and approval.
________
Senate Bill No. 57Committee on Government Affairs
CHAPTER 785
AN ACT relating to ethics in government; providing a period of retention for statements of financial disclosure; clarifying the definition of public officer; authorizing the commission on ethics to render opinions involving past and present conduct; revising the requirements for filing statements of financial disclosure by certain public officers; clarifying the provision which prohibits a legislator from having an interest in a contract authorized by the legislature; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 281 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 2, statements of financial disclosure required by the provisions of NRS 281.561 and 281.571 must be retained by the secretary of state for 6 years after the date of filing.
2. For public officers who serve more than one term in either the same public office or more than one public office, the period prescribed in subsection 1 begins on the date of the filing of the last statement of financial disclosure for the last public office held.
Sec. 2. NRS 281.4365 is hereby amended to read as follows:
281.4365 1. Public office means a person elected or appointed to a position which is established by the constitution of the State of Nevada, a statute of this state or an ordinance of any of its counties or incorporated cities and which involves the exercise of a public power, trust or duty . [, except:
1.] As used in this section, the exercise of a public power, trust or duty includes:
(a) Actions taken in an official capacity which involve a substantial and material exercise of administrative discretion in the formation of public policy;
(b) The expenditure of public money; and
(c) The enforcement of laws and rules of the state, a county or a city.
2. Public officer does not include:
(a) Any justice, judge or other officer of the court system;
[2.] (b) A commissioner of deeds; [and
3.] (c) Any member of a board, commission or other body whose function is advisory [.] ; or
(d) Any member of a board of trustees for a general improvement district or special district whose official duties do not include the formulation of a budget for the district or the authorization of the expenditure of the districts money.
κ1987 Statutes of Nevada, Page 2094 (CHAPTER 785, SB 57)κ
or special district whose official duties do not include the formulation of a budget for the district or the authorization of the expenditure of the districts money.
Sec. 3. NRS 281.461 is hereby amended to read as follows:
281.461 1. The commission shall:
(a) At its first meeting and annually thereafter elect a chairman from among its members.
(b) Meet regularly at least once in each calendar quarter , unless there are no requests made for an opinion pursuant to NRS 281.511, and at other times upon the call of the chairman.
2. Members of the commission are entitled to receive a salary of $60 per day while engaged in the business of the commission.
3. The secretary of state shall designate a member of his staff to assist the commission in performing the clerical functions related to the review of statements of financial disclosure pursuant to NRS 281.561, including the keeping of all necessary records related thereto.
4. The commission may, within the limits of legislative appropriation:
(a) Employ such persons as are necessary to carry out any of its duties relating to the administration of its affairs, other than those relating to the review of statements of financial disclosure; and
(b) Maintain such facilities as are required to carry out its functions.
Sec. 4. NRS 281.481 is hereby amended to read as follows:
281.481 A code of ethical standards is hereby established as a guide for the conduct of public officers and employees:
1. No public officer or employee may seek or accept any gift, service, favor, employment, engagement, emolument or economic opportunity which would tend improperly to influence a reasonable person in his position to depart from the faithful and impartial discharge of his public duties.
2. No public officer or employee may use his position in government to secure or grant unwarranted privileges, preferences, exemptions or advantages for himself, any member of his household, any business entity in which he has a [financial] significant pecuniary interest, or any other person.
3. No public officer or employee may approve, disapprove, vote, abstain from voting, or otherwise act upon any matter in which he has a [financial] significant pecuniary interest without disclosing the full nature and extent of his interest. Such a disclosure [shall] must be made before the time when he is to perform his duty or concurrently with that performance. If the officer or employee is a member of a body which makes decisions, he shall make disclosure to the chairman and other members of the body. If the officer or employee is not a member of such a body and holds an appointive office, he shall make disclosure to the supervisory head of his organization or if he holds an elective office, to the general public in the area from which he is elected.
4. No public officer or employee may participate as an agent of government in the negotiation or execution of a contract between the government and any private business in which he has a [financial] significant pecuniary interest.
κ1987 Statutes of Nevada, Page 2095 (CHAPTER 785, SB 57)κ
government and any private business in which he has a [financial] significant pecuniary interest. Unless specifically prohibited by law, a public officer or employee, as such, is not precluded from making a bid on a government contract if the contracting process is controlled by rules of open competitive bidding, the sources of supply are limited, he has not taken part in developing the contract plans or specifications and he will not be personally involved in opening, considering or accepting offers.
5. No public officer or employee may accept any salary, retainer, augmentation, expense allowance or other compensation from any private source for the performance of his duties as a public officer or employee.
6. If a public officer or employee acquires, through his public duties or relationships, any information which by law or practice is not at the time available to people generally, he may not use the information to further the [economic] pecuniary interest of himself or any other person or business entity.
7. No public officer or employee may suppress any governmental report or other document because it might tend to affect unfavorably his [private financial] pecuniary interests.
Sec. 5. NRS 281.501 is hereby amended to read as follows:
281.501 1. In addition to the general requirements of the code of ethical standards, a member of the legislative branch should not vote upon but may otherwise participate in the consideration of a matter with respect to which the independence of judgment of a reasonable person in his situation would be materially affected by:
(a) His acceptance of a gift or loan;
(b) His [private financial] pecuniary interest; or
(c) His commitment in a private capacity to the interests of others.
2. A member of the legislative branch may vote upon a matter if the benefit or detriment accruing to him as a result of the decision either individually or in a representative capacity as a member of a business profession, occupation or group, is not greater than that accruing to any other member of the business, profession, occupation or group.
3. If a member of the legislative branch declares to the legislative body or committee in which the vote is to be taken that he will abstain from voting because of the requirements of this section, the necessary quorum to act upon and the number of votes necessary to act upon the matter, as fixed by any statute, ordinance or rule of a board of county commissioners or governing body of a city, is reduced as though the member abstaining were not a member of the body or committee.
Sec. 6. NRS 281.511 is hereby amended to read as follows:
281.511 1. The commission shall render an opinion interpreting the statutory ethical standards and apply the standards to a given set of facts and circumstances upon request from a public officer or employee who is seeking guidance on questions which directly relate to the propriety of his own past, present or future conduct as an officer or employee.
2. The commission may render an opinion interpreting the statutory ethical standards and apply the standards to a given set of facts and circumstances:
κ1987 Statutes of Nevada, Page 2096 (CHAPTER 785, SB 57)κ
ethical standards and apply the standards to a given set of facts and circumstances:
(a) Upon request from a specialized or local ethics committee; or
(b) Upon the commissions own motion regarding the propriety of conduct by a public officer or employee, if the commission first determines in an adopted motion that there is just and sufficient cause to render an opinion concerning the conduct of that public officer or employee,
on the condition that any public officer or employee about whom an opinion is requested or authorized must be notified immediately by certified mail that an opinion has been requested or authorized and that he has a right to appear before the commission and present evidence and argument.
3. The commission shall render the opinion requested pursuant to this section as expeditiously as possible in light of the circumstances of the public officer or employee about whom the opinion is requested, so as to minimize any adverse consequences to him that may result from any delay in issuing the opinion.
4. Each opinion rendered by the commission and any motion relating to the opinion is confidential unless:
(a) The public officer or employee acts in contravention of the opinion, in which case the commission may disclose the contents of the opinion and any motion related thereto;
(b) It is an opinion requested pursuant to subsection 1 and the requester discloses the content of the opinion;
(c) It is an opinion requested or issued pursuant to paragraph (b) of subsection 2 and the person about whom the opinion was requested discloses the content of the opinion, the request or any motion or action related thereto; or
(d) It is an opinion requested pursuant to subsection 2, the commission determines that there is insufficient basis to render an opinion and the person about whom the opinion was requested has asked the commission to make public the reasons for not rendering the opinion.
5. If an opinion is requested pursuant to paragraph (b) of subsection 2 and a motion that there is just and sufficient cause to render an opinion has been adopted by the commission, the commission shall:
(a) Notify the person about whom the opinion was requested of the place and time of the commissions hearing on the matter;
(b) Allow him to be represented by counsel; and
(c) Allow him to hear the evidence presented to the commission and to respond and present evidence on his own behalf.
The commissions hearing may be held no sooner than 2 weeks after the notice is given.
6. If any person requesting an opinion pursuant to subsection 1 or 2 does not:
(a) Submit all necessary information to the commission; and
(b) Declare by oath or affirmation that he will testify truthfully,
the commission may decline to render an opinion.
κ1987 Statutes of Nevada, Page 2097 (CHAPTER 785, SB 57)κ
7. For the purposes of NRS 41.032, the members of the commission and its employees shall be deemed to be exercising or performing a discretionary function or duty when taking any action related to the rendering of an opinion pursuant to this section.
8. The commission shall publish hypothetical opinions which are abstracted from the opinions rendered under subsection 1 or 2, for the future guidance of all persons concerned with ethical standards in government.
9. [Any] A meeting held by the commission to receive information concerning the propriety of the conduct of any public officer or employee is not subject to the provision of chapter 241 of NRS.
Sec. 7. NRS 281.521 is hereby amended to read as follows:
281.521 1. The commissions opinions may include guidance to a public officer or employee on questions whether:
[1.] (a) A conflict exists between his personal interest and his official duty.
[2.] (b) His official duties involve the use of discretionary judgment whose exercise in the particular matter would have a significant effect upon the disposition of the matter.
[3.] (c) The conflict would materially affect the independence of the judgment of a reasonable person in his situation.
[4.] (d) He possesses special knowledge which is an indispensable asset of his public agency and is needed by it to reach a sound decision.
[5.] (e) It would be appropriate for him to withdraw or abstain from participation, disclose the nature of his conflicting personal interest or pursue some other designated course of action in the matter.
2. The commissions opinions may not include guidance to a public officer or employee on questions regarding the provisions of chapter 294A of NRS.
Sec. 8. NRS 281.551 is hereby amended to read as follows:
281.551 NRS 281.481 to 281.541, inclusive, are intended to be directory and preventive rather than punitive. These sections do not abrogate or decrease the effect of any of the provisions of the Nevada Revised Statutes which define crimes or prescribe punishments with respect to the conduct of public officers or employees.
Sec. 9. NRS 281.561 is hereby amended to read as follows:
281.561 Every candidate for public office and every public officer shall file with the secretary of state, for review by the commission, a statement of financial disclosure, as follows:
1. A candidate for nomination , [or] election or reelection shall file a statement of financial disclosure no later than the 10th day after the last day to qualify as a candidate for the office.
2. A public officer appointed to fill the unexpired term of an elected public officer shall file a statement of financial disclosure within 6 months after his appointment.
κ1987 Statutes of Nevada, Page 2098 (CHAPTER 785, SB 57)κ
3. A public officer who holds an elective office and is not running for election to a public office shall file a statement of financial disclosure [within 6 months] during the sixth month before the expiration of his term.
4. A public officer who holds an appointive office shall file statements of financial disclosure:
(a) Within 6 months after his appointment; and
(b) [Within 6 months] During the sixth month before the expiration of his term, or if he serves at the pleasure of the appointing authority, [within 6 months] during the sixth month before the expiration of the term of the appointing authority, or if the appointing authority has no fixed term, within such period as the commission prescribes.
Sec. 10. NRS 281.575 is hereby amended to read as follows:
281.575 The secretary of state and each county or city clerk who receives a declaration of candidacy, acceptance of candidacy , [or] affidavit of candidacy or certificate of candidacy shall give to the candidate the form prescribed by the commission for the making of a statement of financial disclosure, accompanied by instructions on how to complete the form, where it must be filed and the time by which it must be filed.
Sec. 11. NRS 218.605 is hereby amended to read as follows:
218.605 1. Except as otherwise provided in subsection 2, it is unlawful for any member of the legislature to:
(a) Become a contractor under any contract or order for supplies or any other kind of contract paid for in whole or in part by money appropriated by the legislature of which he is a member for the state or any of its departments, or the legislature or either of its houses, or to be interested, directly or indirectly, as principal, in any kind of contract so paid.
(b) Be interested in any contract made by the legislature of which he is a member, or be a purchaser or interested in any purchase or sale made by the legislature of which he is a member.
2. Any member of the legislature may:
(a) Sell or enter into a contract to sell, to the state or any of its departments any item [or] , commodity , service or capital improvement, if [he is the only source of supply of that item or commodity within the state.] :
(1) The sources of supply for the item, commodity, service or capital improvement are limited;
(2) The contracting process is controlled by rules of open competitive bidding;
(3) He has not taken part in developing the plans or specifications for the sale or contract; and
(4) He will not be personally involved in opening, considering or accepting any bids for the sale or contract.
(b) Receive, as direct salary or wages, compensation for which the original source was a legislative appropriation to any governmental entity or a private entity not owned or controlled by the legislator.
(c) Receive, for services as an instructor or teacher from any county school district or the University of Nevada System, compensation for which the original source was a legislative appropriation to any governmental entity or a private entity not owned or controlled by the legislator.
κ1987 Statutes of Nevada, Page 2099 (CHAPTER 785, SB 57)κ
the original source was a legislative appropriation to any governmental entity or a private entity not owned or controlled by the legislator.
3. Any contract made in violation of subsection 1 may be declared void at the instance of the state or of any other person interested in the contract except the member of the legislature prohibited in subsection 1 from making or being interested in the contract.
4. Any person violating subsection 1 is guilty of a gross misdemeanor and [shall forfeit] forfeits his office.
Sec. 12. NRS 281.4335 is hereby repealed.
________
Senate Bill No. 23Senators Mello, Raggio, Gibson, Redelsperger, Wagner, Horn, Vergiels, Townsend, Joerg, Jacobsen, Hickey, Beyer, Coffin, Rawson, Shaffer, Rhoads, Neal, Malone, Jones, OConnell and ODonnell
CHAPTER 786
AN ACT relating to taxation; making various changes concerning the collection and distribution of the tax on the transfer of estates of decedents; adopting the Uniform Act on Interstate Arbitration of Death Taxes and the Uniform Act on Interstate Compromise of Death Taxes; creating advisory committees to make recommendations for expenditure of the proceeds of the tax on the transfer of estates of decedents; providing a penalty; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The new chapter added to Title 32 of NRS by chapter 21, Statutes of Nevada 1987, is hereby amended by adding thereto the provisions set forth as sections 2 to 93, inclusive, of this act.
Sec. 2. As used in sections 2 to 39, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 12, inclusive, of this act, have the meanings ascribed to them in those sections.
Sec. 3. Decedent or transferor means any person by or from whom a transfer is made, and includes any testator, interstate, grantor, bargainor, vendor, assignor, donor, joint tenant or insured.
Sec. 4. Estate or property means the real or personal property or interest therein of a decedent or transferor, and includes:
1. All intangible personal property of a resident decedent within or outside this state or subject to the jurisdiction of this state; and
2. All intangible personal property in Nevada belonging to a deceased nonresident of the United States, including all stock of a corporation organized under the laws of Nevada or which has its principal place of business or does the major part of its business in Nevada or of a federal corporation or national bank which has its principal place of business or does the major part of its business in Nevada, except:
κ1987 Statutes of Nevada, Page 2100 (CHAPTER 786, SB 23)κ
corporation or national bank which has its principal place of business or does the major part of its business in Nevada, except:
(a) Savings accounts in savings and loan associations operating under the authority of the division of financial institutions of the department of commerce or the Federal Home Loan Bank; and
(b) Bank deposits, unless those deposits are held and used in connection with a business conducted or operated, in whole or in part, in Nevada.
Sec. 5. Federal credit means the maximum amount of the credit against the federal estate tax for state death taxes allowed by 26 U.S.C. § 2011, in respect to a decedents taxable estate.
Sec. 6. Gross estate has the meaning ascribed to gross estate in 26 U.S.C. § 2031.
Sec. 7. Nonresident or nonresident decedent means a decedent who was domiciled outside of Nevada at the time of his death.
Sec. 8. Personal representative means the personal representative of the decedent or, if there is no personal representative appointed, qualified and acting within this state, any person who is in actual or constructive possession of any property included in the gross estate of the decedent.
Sec. 9. Resident or resident decedent means decedent who was domiciled in Nevada at the time of his death.
Sec. 10. Taxable estate means the taxable estate as defined in 26 U.S.C. § 2051.
Sec. 11. Transfer includes the passage of any property, or any interest therein or income therefrom, in possession or enjoyment, present or future, in trust or otherwise.
Sec. 12. Transferee means any person to whom a transfer is made, and includes any legatee, devisee, heir, next of kin, grantee, donee, vendee, assignee, successor, survivor or beneficiary.
Sec. 13. If a decedent leaves property having a situs in this state, and leaves other property having a situs in another state, the portion of the federal credit which is attributable to the property having a situs in Nevada must be determined in the following manner:
1. For the purpose of apportioning the federal credit, the gross value of the property must be that value finally determined for the purposes of the federal estate tax.
2. The federal credit must be multiplied by the percentage which the gross value of property having a situs in Nevada bears to the gross value of the entire estate subject to federal estate tax.
3. The product determined pursuant to subsection 2 must be the portion of the federal credit which is attributable to property having a situs in Nevada.
Sec. 14. 1. The personal representative of every estate subject to the tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, who is required to file a federal estate tax return shall file with the department on or before the federal estate tax return is required to be filed, any documentation concerning the amount due which is required by the department.
κ1987 Statutes of Nevada, Page 2101 (CHAPTER 786, SB 23)κ
2. The department shall adopt regulations to require sufficient documentation of the amount due pursuant to this chapter.
Sec. 15. If the personal representative has obtained an extension of time for filing the federal estate tax return, the filing required by section 14 of this act must be similarly extended until the end of the period granted in the extension of time for the federal estate tax return. A true copy of the federal extension must be filed with the department.
Sec. 16. If the personal representative files an amended federal estate tax return, he shall immediately file with the department an amended return with a true copy of the amended federal estate tax return. If the personal representative is required to pay an additional tax under section 2 of chapter 21, Statutes of Nevada 1987, pursuant to the amended return, he shall pay that additional tax, together with any interest as provided in section 25 of this act at the same time the amended return is filed.
Sec. 17. Upon final determination of the federal estate tax due, the personal representative shall, within 60 days after that determination, give written notice of it to the department. If any additional tax is due under section 2 of chapter 21, Statutes of Nevada 1987, by reason of this determination, the personal representative shall pay the tax, together with interest as provided in section 25 of this act, at the same time he files the notice.
Sec. 18. If the return provided for in section 14 of this act is not filed within the time specified in that section or the extension specified in section 15 of this act, then the personal representative shall pay, in addition to the interest provided in section 25 of this act, a penalty equal to 5 percent of the tax due, as finally determined, for each month or portion of a month during which that failure to file continues, not exceeding 25 percent in the aggregate, unless it is shown that there was reasonable cause for the failure to file. If a similar penalty for failure to file timely the federal estate tax return is waived, that waiver shall be deemed to constitute reasonable cause for purposes of this section.
Sec. 19. 1. In a case not involving a false or fraudulent return or failure to file a return, if the department determines at any time after the tax is due, but not later than 4 years after the return is filed, that the tax disclosed in any return required to be filed by sections 3 to 39, inclusive, of this act, is less than the tax disclosed by its examination, a deficiency must be determined. That determination may also be made within such time after the expiration of the 4-year period as may be agreed upon in writing between the department and the personal representative.
2. For purposes of this section, a return filed before the last day prescribed by law for filing that return must be considered as filed on that last day.
Sec. 20. In the case of a false or fraudulent return or failure to file a return, the department may determine the tax at any time.
Sec. 21. If a deficiency has been determined in an erroneous amount, the department may, within 3 years after the erroneous determination was made, set aside the determination or issue an amended determination in the correct amount.
κ1987 Statutes of Nevada, Page 2102 (CHAPTER 786, SB 23)κ
set aside the determination or issue an amended determination in the correct amount.
Sec. 22. The department shall give notice of the deficiency determined, together with any penalty for failure to file a return, by personal service or by mail to the person filing the return at the address stated in the return, or, if no return is filed, to the person liable for the tax. Copies of the notice of deficiency may in the same manner be given to such other persons as the department deems advisable.
Sec. 23. If it is claimed that a deficiency has been determined in an erroneous amount, any person who is liable for the tax may, within 3 years after the determination was made, bring an action against the State of Nevada in the district court having jurisdiction over the estate to have the tax modified in whole or in part.
Sec. 24. The tax imposed by section 2 of chapter 21, Statutes of Nevada 1987:
1. Must be paid by the personal representative to the extent of assets subject to his control. Liability for payment of the tax continues until the tax is paid.
2. Is due on the date of the decedents death.
3. Is delinquent at the expiration of 9 months from the date on which it becomes due, if not paid within that time.
Sec. 25. 1. The tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, does not bear interest if it is paid before the date on which it otherwise becomes delinquent. If the tax is paid after that date, the tax bears interest at the rate set by the executive director, from the date it become delinquent until it is paid.
2. The executive director shall set and maintain the rate of interest for late payments at the highest rate permissible pursuant to section 4 of article 10 of the Nevada constitution.
Sec. 26. Every payment received by the department on the tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, must be applied:
1. To any interest due on the tax;
2. To any penalty; and
3. If there is any balance, to the tax itself,
in that order.
Sec. 27. 1. If any personal representative fails to pay any tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, for which he is liable before the date the tax becomes delinquent, he must, on motion of the department, be required by the district court having jurisdiction over the estate to execute a bond to the State of Nevada in an amount equal to twice the amount of the tax, with such sureties as the court may approve, conditioned for the payment of the tax, plus interest on the tax at the rate of interest set by the executive director pursuant to section 25 of this act commencing on the date the tax became delinquent, within a certain time to be fixed by the court and specified in the bond.
2. The bond must be filed in the office of the clerk of the court, and a certified copy must be immediately transmitted to the department.
κ1987 Statutes of Nevada, Page 2103 (CHAPTER 786, SB 23)κ
3. If the bond is not filed within 20 days after the date of the filing of the order requiring it, the letters of the personal representative affected must be revoked upon motion of the department.
Sec. 28. 1. Whenever the department determines that an overpayment of the tax due under section 2 of chapter 21, Statutes of Nevada 1987, has been made, the person making payment is entitled to a refund of the amount erroneously paid on presentation of proof satisfactory to the department that he is entitled to a refund.
2. An application for the refund must be made to the department within 1 year after the date the federal estate tax has been finally determined.
3. On proof satisfactory to the department that the applicant is entitled to a refund, the department shall refund that amount plus interest as provided by section 29 of this act.
4. The amount of the refund must be paid from the estate tax account in the state general fund.
Sec. 29. Interest must be paid upon any overpayment of the tax due under section 2 of chapter 21, Statutes of Nevada 1987, at the rate of interest set by the executive director pursuant to section 25 of this act. That interest must be allowed from the date on which payment of the tax would have become delinquent, if not paid, or the date of actual payment, whichever is later, to a date preceding the date of the refund by not more than 30 days, as determined by the department.
Sec. 30. The state may enforce its claim for any tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, and enforce the lien of the tax by a civil action in any court of competent jurisdiction against any person liable for the tax or against any property subject to the lien.
Sec. 31. 1. If any personal representative fails to pay any tax, interest or penalty at the time that it becomes due, the amount thereof, including penalties and interest, together with any costs in addition thereto, is a perfected and enforceable lien for taxes. Except as otherwise provided in subsections 2 to 5, inclusive, the provisions of NRS 360.420 to 360.560, inclusive, apply to the lien.
2. If the lien is not extinguished pursuant to subsection 3, 4 or 5, or otherwise released or discharged, it expires 10 years from the time a determination of deficiency is issued if, within that period, no notice of the lien has been recorded or filed as provided in NRS 360.450.
3. If suit or a proceeding for collection of the tax has not been instituted within 5 years after the tax becomes due, the lien ceases as to any bona fide purchaser, mortgagee or lessee of the property subject to the lien.
4. If property subject to the lien is sold, exchanged or otherwise transferred pursuant to the laws of this state relating to wills and the estates of deceased persons, the lien ceases as to the property and attaches to the proceeds or other consideration received.
5. If property subject to the lien is mortgaged, hypothecated or leased pursuant to the laws of this state relating to wills and the estates of deceased persons, the lien becomes subject to and subordinate to the rights and interest of the mortgagee, lessee or other person so secured or created, and attaches to the proceeds of the mortgage, hypothecation or lease.
κ1987 Statutes of Nevada, Page 2104 (CHAPTER 786, SB 23)κ
interest of the mortgagee, lessee or other person so secured or created, and attaches to the proceeds of the mortgage, hypothecation or lease.
Sec. 32. At any time within 10 years after a person is delinquent in the payment of any tax, interest or penalty, or within 10 years after the last recording or filing of a notice of a lien for taxes, the department may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the state. The warrant must be directed to any sheriff and has the same effect as a writ of execution. The warrant must be levied and sale made pursuant to it in the same manner and with the same effect as a levy of and sale pursuant to a writ of execution.
Sec. 33. 1. The department may pay or advance to the sheriff the same fees, commissions and expenses for his services as are provided by law for similar services pursuant to a writ of execution. The department, and not the court, shall approve the fees for publication in a newspaper.
2. The fees, commissions and expenses are obligations of the person required to pay the tax, interest or penalty and may be collected from him by virtue of the warrant or in any manner provided for the collection of the tax.
Sec. 34. 1. At any time after a tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, is delinquent, the department may have a writ of execution issued for the enforcement of any judgment rendered in respect to the tax.
2. The writ must be executed against any property of the person liable for payment of the tax, or against any property subject to the lien for the tax.
3. The department must not be charged a fee for the issuance of execution of the writ.
Sec. 35. Proceedings for the collection of any tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, may be commenced at any time after the tax is due and within 10 years from the time a determination of delinquency is issued.
Sec. 36. In any proceeding for the enforcement of the tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, a certificate by the department showing the amount due is prima facie evidence of:
1. The imposition of the tax;
2. The fact that it is due; and
3. Compliance by the department with all the provisions of this chapter in relation to the computation and determination of the tax.
Sec. 37. No injunction or other legal or equitable process must issue in any suit, action or proceeding in any court against this state or any officer of this state to prevent or enjoin the collection of any tax imposed by section 2 of chapter 21, Statutes of Nevada 1987.
Sec. 38. The department may bring suits in the courts of other states to collect taxes payable under this chapter. An official of another state which extends a like comity to this state may sue for the collection of similar taxes in the courts of this state. A certificate by the secretary of state of another state, under the great seal of that state, that an official thereof has authority to collect its estate or other transfer taxes is conclusive evidence of the authority of that official in any suit for the collection of those taxes in any court of this state.
κ1987 Statutes of Nevada, Page 2105 (CHAPTER 786, SB 23)κ
to collect its estate or other transfer taxes is conclusive evidence of the authority of that official in any suit for the collection of those taxes in any court of this state.
Sec. 39. The remedies of the state for the enforcement of the tax imposed by section 2 of chapter 21, Statutes of Nevada 1987, are cumulative, and no action taken by the department or any other state officer or agency constitutes an election by the state or any of its officers to pursue any remedy to the exclusion of any other remedy for which provision is made.
Sec. 40. Sections 40 to 44, inclusive, of this act, may be cited as the Uniform Act on Interstate Compromise of Death Taxes.
Sec. 41. As used in sections 42, 43 and 44 of this act, unless the context otherwise requires, state means any state, territory or possession of the United States, and the District of Columbia.
Sec. 42. The department may compromise with the personal representative the tax, including any interest and penalty thereon, payable on the estate of any decedent who it is claimed was not a resident of this state at the time of his death.
Sec. 43. If the department claims that a decedent was domiciled in this state at the time of his death and the taxing authorities of another state or states make a like claim on behalf of their state or states, the department may enter into a written agreement of compromise with the other taxing authorities and the executor or administrator that a certain sum will be accepted in full satisfaction of any and all death taxes imposed by this state, including any interest to the date of filing the agreement. The agreement must also fix the amount to be accepted by the other states in full satisfaction of death taxes. The executor or administrator is hereby authorized to make that agreement. Either the department or the executor or administrator shall file the agreement, or a duplicate, with the department. The tax shall be deemed conclusively fixed as provided in the agreement. Unless the tax is paid within 90 days after filing the agreement, interest accrues upon the amount fixed in the agreement but the time between the decedents death and the filing must not be included in computing the interest.
Sec. 44. Sections 40 to 44, inclusive, of this act, must be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.
Sec. 45. Sections 45 to 57, inclusive, of this act, may be cited as the Uniform Act on Interstate Arbitration of Death Taxes.
Sec. 46. As used in sections 46 to 57, inclusive, of this act, unless the context otherwise requires:
1. Board means the board of arbitrators selected pursuant to section 47 of this act.
2. State means any state, territory or possession of the United States, and the District of Columbia.
Sec. 47. If the department claims that a decedent was domiciled in this state at the time of his death and the taxing authorities of another state or states make a like claim on behalf of their state or states, the department may enter into a written agreement with the other taxing authorities and with the executor or administrator to submit the controversy to the decision of a board consisting of one or any uneven number of arbitrators.
κ1987 Statutes of Nevada, Page 2106 (CHAPTER 786, SB 23)κ
states make a like claim on behalf of their state or states, the department may enter into a written agreement with the other taxing authorities and with the executor or administrator to submit the controversy to the decision of a board consisting of one or any uneven number of arbitrators. The executor or administrator is hereby authorized to make the agreement. The parties to the agreement shall select the arbitrator or arbitrators.
Sec. 48. The board shall hold hearings at such times and places as it may determine, upon reasonable notice to the parties to the agreement, all of whom are entitled to be heard, to present evidence and to examine and cross-examine witnesses.
Sec. 49. The board may administer oaths, take testimony, subpena and require the attendance of witnesses and the production of books, papers and documents and issue commissions to take testimony. Subpenas may be signed by any member of the board. In case of failure to obey a subpena, any judge of a court of record of this state, upon application by the board, may make an order requiring compliance with the subpena, and the court may punish failure to obey the order as a contempt.
Sec. 50. The board shall, by majority vote, determine the domicile of the decedent at the time of his death. This determination is final for purposes of imposing and collecting death taxes but for no other purpose.
Sec. 51. Except as provided in section 49 of this act in respect of the issuance of subpenas, all questions arising in the course of the proceeding must be determined by majority vote of the board.
Sec. 52. The department, the board or the executor or administrator shall file the determination of the board as to domicile, the record of the boards proceedings and the agreement or a duplicate of the agreement entered into pursuant to section 47 of this act, with the authority having jurisdiction to determine the death taxes in the state determined to be the domicile, and shall file copies of all of those documents with the authorities that would have been empowered to determine the death taxes in each of the other states involved.
Sec. 53. If it is determined by the board that the decedent died domiciled in this state, interest, if otherwise imposed by law, for nonpayment of death taxes between the date of the agreement and of filing of the determination of the board as to domicile, must not exceed 12 percent per annum.
Sec. 54. The provisions of sections 45 to 57, inclusive, of this act, do not prevent a written compromise at any time, if otherwise lawful, by all parties to the agreement made pursuant to section 47 of this act, fixing the amounts to be accepted by this and any other state involved in full satisfaction of death taxes.
Sec. 55. The compensation and expenses of the members of the board and its employees may be agreed upon among those members and the executor or administrator, and if they cannot agree shall be fixed by the probate court of the state determined by the board to be the domicile of the decedent. The amounts so agreed upon or fixed shall be deemed an expense of administration and are payable by the executor or administrator.
κ1987 Statutes of Nevada, Page 2107 (CHAPTER 786, SB 23)κ
Sec. 56. Sections 45 to 57, inclusive, of this act, apply only to cases in which each of the states involved has a law identical with or substantially similar to sections 45 to 57, inclusive, of this act.
Sec. 57. Sections 45 to 57, inclusive, of this act, must be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.
Sec. 58. As used in sections 58 to 76, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 59 to 64, inclusive, of this act, have the meanings ascribed to them in those sections.
Sec. 59. Board means a board of arbitration appointed pursuant to section 68 of this act.
Sec. 60. Death tax means any tax levied by a state on account of the transfer or shifting of economic benefits in property at death, or in contemplation thereof, or intended to take effect in possession or enjoyment at or after death, whether denominated an inheritance tax, transfer tax, succession tax, estate tax, death duty, death dues or otherwise.
Sec. 61. Executor means an executor of the will or administrator of the estate of the decedent, but does not include an ancillary administrator or administrator with the will annexed if an executor named in the will has been appointed and has qualified in another state.
Sec. 62. Interested person means any person who may be entitled to receive, or who has received, any property or interest which may be required to be considered in computing the death tax of any state involved.
Sec. 63. State means any state, territory or possession of the United States, or the District of Columbia.
Sec. 64. Taxing official means the department or the designated taxing authority of a reciprocal state.
Sec. 65. 1. If this state and one or more other states each claims that it was the domicile of a decedent at his death, at any time before the commencement of legal action for determination of domicile within this state or within 60 days thereafter, any executor, or the taxing official of any such state, may elect to invoke the provisions of sections 58 to 76, inclusive, of this act. The executor or taxing official shall send a notice of that election by registered mail, return receipt requested, to the taxing official of each such state and to each executor, ancillary administrator and interested person.
2. Within 40 days after the receipt of the notice of election, any executor may reject that election by sending a notice, by registered mail, return receipt requested, to all persons originally required to be sent a notice of election. When an election has been rejected by an executor, no further proceedings must be had under sections 58 to 76, inclusive, of this act. If the election is not rejected within the 40-day period, the dispute as to death taxes must be determined solely as provided in sections 58 to 76, inclusive, of this act. No other proceedings to determine or assess those death taxes must thereafter be maintained in any court of this state or any other state.
κ1987 Statutes of Nevada, Page 2108 (CHAPTER 786, SB 23)κ
Sec. 66. If an election is made and not rejected, the department may enter into a written agreement with the other taxing officials involved and with the executors to accept a certain sum in full payment of any death taxes, together with interest and penalties, that may be due this state. This agreement must fix the amount to be paid the other states involved in the dispute.
Sec. 67. If it appears that an agreement cannot be reached, as provided in section 66 of this act, or if 1 year has elapsed from the date of the election without an agreement having been reached, the domicile of the decedent at the time of his death must be determined solely for the purposes of death taxes as provided in sections 58 to 76, inclusive, of this act.
Sec. 68. If only this state and one other state are involved, the department and the taxing official of the other state shall each appoint a member of a board of arbitration, and these members shall appoint the third member of the board. If this state and more than one other state are involved, the taxing officials thereof shall agree upon the authorities charged with the duty of administering the laws relating to death taxes in three states not involved in the dispute and each of these authorities shall appoint a member of the board of arbitration. The board shall select one of its members as chairman.
Sec. 69. The board shall hold hearings at such places as are deemed necessary, upon reasonable notice to the executors, ancillary administrators, all other interested persons and the taxing official of the states involved, all of whom are entitled to be heard.
Sec. 70. The board may administer oaths, take testimony, subpena witnesses and require their attendance, require the production of books, papers and documents and issue commissions to take testimony. Subpenas may be issued by any member of the board. Failure to obey a subpena may be punished by any court of record in the same manner as if the subpena had been issued by that court.
Sec. 71. Whenever practicable the board shall apply the rules of evidence then prevailing in the federal courts under the Federal Rules of Civil Procedure.
Sec. 72. The board shall determine the domicile of the decedent at the time of his death. This determination is final and conclusive and binds this state, and all of its judicial and administrative officials on all questions concerning the domicile of the decedent for the purpose of death taxes. If the board does not render a determination within 1 year from the time that it is fully constituted, all authority of the board ceases and the bar to court proceedings set forth in section 65 of this act no longer exists.
Sec. 73. The reasonable compensation and expenses of the members of the board and its employees must be agreed upon among those members, the taxing officials involved and the executors. If an agreement cannot be reached, compensation and expenses must be determined by those taxing officials or, if they cannot agree, by the appropriate probate court of the state determined to be the domicile. That amount must be borne by the estate and shall be deemed an expense of administration.
κ1987 Statutes of Nevada, Page 2109 (CHAPTER 786, SB 23)κ
Sec. 74. The determination of the board and the record of its proceedings must be filed with the authority having jurisdiction to assess the death tax in the state determined to be the domicile of the decedent and with the authorities which would have had jurisdiction to assess the death tax in each of the other states involved if the decedent had been found to be domiciled therein.
Sec. 75. Notwithstanding the commencement of a legal action for determination of domicile within this state or the commencement of an arbitration proceeding, the department may in any case enter into a written agreement with the other taxing officials involved and with the executors to accept a certain sum in full payment of any death tax, together with interest and penalties, that may be due this state at any time before that proceeding is concluded. The agreement shall be deemed to fix the amount to be paid the other states involved in the dispute. Upon the filing of the agreement with the department, an assessment must be made as provided in that agreement. The assessment finally and conclusively fixes the amount of death tax due this state. If the aggregate amount payable under the agreement or under an agreement made in accordance with the provisions of section 66 of this act to the states involved in less than the minimum credit allowable to the estate against the federal estate tax, the executor shall also pay to this state the same percentage of the difference between that aggregate amount and the amount of the credit as the amount payable to this state under the agreement bears to the aggregate amount.
Sec. 76. If the board determines that a decedent dies domiciled in this state, the total amount of interest and penalties for nonpayment of the tax, between the date of the election and the final determination of the board, must not exceed the rate of interest set by the executive director pursuant to section 25 of this act of the amount of the taxes.
Sec. 77. The district court which has jurisdiction in probate of the estate of any decedent shall hear and determine all questions relative to any tax imposed by this chapter, whether or not the property listed in the estate tax return, or any portion thereof, is in the estate.
Sec. 78. In the case of a decedent who was not a resident of this state at the time of his death, the district court of the county in which the decedents real property is situated, or, if he had no real property in this state, the district court of the county in which any of his personal property is situated, has jurisdiction to hear and determine all questions relative to any tax imposed by this chapter. If the decedent leaves property in more than one county, the district court of the county whose jurisdiction is first invoked has exclusive jurisdiction.
Sec. 79. The department must not be charged a fee for filing, recording or certifying any petition, lis pendens, decree or order for taking any oath or acknowledgment, in any proceedings under this chapter. No undertaking may be required from the department or the state in any such proceeding.
Sec. 80. The department may adopt regulations relating to the administration and enforcement of this chapter, and may prescribe the extent, if any, to which any regulation is applied to an estate without retroactive effect.
κ1987 Statutes of Nevada, Page 2110 (CHAPTER 786, SB 23)κ
extent, if any, to which any regulation is applied to an estate without retroactive effect.
Sec. 81. The department shall, without charge, distribute a copy of this chapter to any person who requests it.
Sec. 82. Whenever the department is cited as a party to any proceeding or action to determine any tax imposed by this chapter, or whenever the department deems it necessary for the better enforcement of this chapter to secure evidence of the evasion of, or to commence or appear in any proceeding or action to determine, any such tax, the department may, with the consent and approval of the attorney general:
1. Employ any attorney or other person to act for or represent the department on the states behalf.
2. Incur any reasonable and necessary expense for and incident to that employment.
Sec. 83. The department may conduct a hearing at any time or place to determine whether a tax is due under this chapter.
Sec. 84. For purposes of a hearing pursuant to section 83 of this act, the department has:
1. Jurisdiction to require the attendance of any person who the department may have reason to believe possesses knowledge of any facts that will aid the department in the determination of the tax; and
2. All the powers of a master of the district court.
Sec. 85. The department may issue subpenas to:
1. Compel the attendance of any person or the production of books and papers.
2. Determine the amount of any tax due under this chapter.
Sec. 86. On the filing by the department of a petition asking the court to do so, the district court of the county in which a hearing is held may compel compliance with any subpena issued by the department.
Sec. 87. The department may examine and take the testimony under oath of any person at a hearing concerning the determination of any tax due under this chapter.
Sec. 88. Any person compelled to attend a hearing before the department is entitled to fees for attendance in an amount to be determined by the department and to his expenses of attendance. The fees and expenses are a part of the cost of administering this chapter.
Sec. 89. All information and records acquired by the department or any of its employees pursuant to this chapter are confidential in nature, and except insofar as may be necessary for the enforcement of this chapter or as may be permitted by this chapter, must not be disclosed.
Sec. 90. 1. All money received by the board of regents of the University of Nevada pursuant to paragraph (b) of subsection 1 of section 4 of chapter 21, Statutes of Nevada 1987, must be accounted for separately in the University of Nevada System Endowment Fund.
2. The money in the account must be invested pursuant to the same investment policies as the other money in the endowment fund is invested.
κ1987 Statutes of Nevada, Page 2111 (CHAPTER 786, SB 23)κ
All interest and income earned on the money in the account must be credited to the account.
3. The money in the account must only be expended as follows:
(a) The board of regents may spend $2,500,000 of the money in the account each year.
(b) Until the principal in the account is sufficient to yield income of $2,500,000 per year, all revenue deposited in the account in excess of the $2,500,000 allocated pursuant to paragraph (a) must remain in the account.
(c) In addition to the amount allowed pursuant to paragraph (a), the board of regents may spend any money in the account which is not part of the principal necessary to yield income of $2,500,000 per year.
(d) Any money expended pursuant to the provisions of paragraph (a) or (c) must be approved by the legislature when in regular session or by the interim finance committee when the legislature is not in regular session.
Sec. 91. 1. There is hereby created in the state treasury a trust fund for the education of pupils. The superintendent of public instruction is responsible for the administration of the trust fund. All money held by the state treasurer or received by the superintendent of public instruction for that purpose must be deposited in the trust fund.
2. The money in the trust fund must be invested as the money in other state funds is invested. All interest earned on the deposit or investment of the money in the trust fund must be credited to the trust fund.
3. The superintendent of public instruction may only expend in any year an amount equal to the balance of the trust fund at the end of the preceding calendar year, if approved by the legislature when in regular session or by the interim finance committee when the legislature is not in regular session. Claims against the fund must be paid as other claims against the state are paid.
4. Money in the trust fund must only be used to enhance actual instruction in the classroom of pupils in kindergarten through grade 12. Money in the trust fund must not be used to:
(a) Pay the salaries of personnel.
(b) Settle or arbitrate disputes between a recognized organization of employees of a school district and the school district.
(c) Reduce the amount of money which would otherwise be made available for elementary and secondary education in the absence of this act.
Sec. 92. 1. There is hereby created the committee on the estate tax account for the endowment of the University of Nevada System, composed of:
(a) Two members of the board of regents of the University of Nevada System, appointed by the chairman of the board with the approval of the other members.
(b) Two members who are administrators of the University of Nevada System, appointed by the chancellor of the University of Nevada System.
(c) Two members who are members of the faculty of the University of Nevada System, appointed by the faculty.
(d) One member who is a student, appointed by the student governments of the University of Nevada System.
κ1987 Statutes of Nevada, Page 2112 (CHAPTER 786, SB 23)κ
2. If any authority having the power to appoint a member of the committee ceases to exist, the governor shall exercise that power in a manner consistent with the intent of this section.
3. The member of the committee who is appointed pursuant to paragraph (d) of subsection 1 shall serve a term of 1 year. All other members of the committee shall serve terms of 3 years.
4. The committee shall make recommendations to the board of regents concerning the expenditure of the money in the estate tax account in the endowment fund.
Sec. 93. 1. There is hereby created the committee on the trust fund for the education of pupils, composed of:
(a) Three members of the state board of education.
(b) Two members who are certificated teachers currently employed by a school district in this state, appointed by the governor from a list submitted to him by a professional organization of teachers in this state.
(c) One member of a school board, appointed by the governor from a list submitted to him by the Nevada Association of School Boards.
(d) One member who is a school administrator appointed by the governor from a list submitted to him by the Nevada Association of School Administrators.
2. The committee shall make recommendations to the legislature when in regular session or the interim finance committee when the legislature is not in regular session on the expenditure of the money in the trust fund for the education of pupils.
3. The recommendations of the committee must include a plan for the establishment of an endowment made up from a portion of the money deposited in the trust fund for the education of pupils. The plan must provide for an endowment in an amount which will be sufficient to yield an annual income which is approximately equal to the estimated annual amount deposited in the trust fund for the education of pupils.
4. The committee may recommend that all or any part of the money in the trust fund for the education of pupils, including the endowment, be invested with the money in the University of Nevada System Endowment Fund. Any money so invested must be accounted for separately.
Sec. 94. Section 4 of chapter 21, Statutes of Nevada 1987, is hereby amended to read as follows:
Sec. 4. 1. The department shall deposit all payments received pursuant to section 2 of this act in the state treasury [for] :
(a) For credit to the estate tax account in the state general fund [.] , an amount determined by the department as necessary to pay the costs of administration of this chapter and to refund any overpayments of tax.
(b) For credit to the estate tax account for the endowment of the University of Nevada System, 50 percent of the remainder after deducting the amount pursuant to paragraph (a).
(c) For credit to the trust fund for the education of pupils, 50 percent of the remainder after deducting the amount pursuant to paragraph (a).
κ1987 Statutes of Nevada, Page 2113 (CHAPTER 786, SB 23)κ
percent of the remainder after deducting the amount pursuant to paragraph (a).
2. The interest earned on the money in the estate tax account must be credited to the account.
[3. The money in the estate tax account may only be disbursed as authorized by the legislature.]
Sec. 95. Section 3 of chapter 21, Statutes of Nevada 1987, is hereby repealed.
Sec. 96. 1. For the biennium beginning on July 1, 1987, the amount of money which the board of regents is authorized to spend pursuant to section 90 of this act is in addition to any other money they are authorized by the legislature to spend as a part of the executive budget approved by the legislature.
2. No money in the trust fund for the education of pupils may be spent before July 1, 1989.
Sec. 97. Sections 2 to 93, inclusive, of this act, apply only to estates subject to the tax imposed by section 2 of chapter 21, Statutes of Nevada 1987.
Sec. 98. This act becomes effective upon passage and approval.
________
Assembly Bill No. 891Committee on Ways and Means
CHAPTER 787
AN ACT relating to employees in the unclassified service of the state; increasing certain salaries; making an appropriation; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The following state officers and employees in the unclassified service of the State of Nevada are entitled to receive annual salaries of not more than the approximate maximum amounts set forth following their specified titles or positions:
Approximate
Title or Position Annual
Salary
1. Office of the governor:
Executive assistant ........................................................................ $51,619
Executive assistant ........................................................................ 48,437
Executive assistant ........................................................................ 43,562
Employee relations officer ............................................................ 39,064
Executive assistant ........................................................................ 36,189
κ1987 Statutes of Nevada, Page 2114 (CHAPTER 787, AB 891)κ
Executive assistant ........................................................................ $34,027
Office manager ............................................................................... 31,681
Secretary to governor ................................................................... 26,977
Administrative secretary (each) .................................................. 21,134
Administrative secretary .............................................................. 19,039
2. Office of the lieutenant governor:
Chief assistant ............................................................................... $27,080
Administrative secretary .............................................................. 21,134
3. Office of the secretary of state:
Chief deputy ................................................................................... $37,080
Coordinator, corporate filing ....................................................... 28,840
Chief, annual list division ............................................................. 22,284
Deputy secretary of state, securities division .......................... 43,806
4. Office of the state treasurer:
Chief deputy state treasurer ........................................................ $34,191
Treasury cashier ............................................................................ 30,071
5. Office of controller:
Chief deputy controller ................................................................. $45,423
Accountant, controllers office ................................................... 39,478
Assistant controller ...................................................................... 34,191
6. Office of the attorney general:
(a) Central office in Carson City:
Chief deputy V, attorney general ................................................ $55,062
Chief deputy IV, criminal .............................................................. 50,444
Chief deputy IV, civil .................................................................... 50,444
Deputy III, public lands ................................................................ 46,057
Deputy III, criminal (each) ............................................................ 46,057
Deputy II, civil (each) ................................................................... 39,478
Deputy I, criminal .......................................................................... 34,215
Chief investigator .......................................................................... 34,505
Investigator, criminal division (each) ......................................... 30,996
Investigator, private investigators licensing board ................ 30,996
Administrative assistant .............................................................. 30,769
Supervisor, office services ........................................................... 35,020
Criminal justice coordinator ......................................................... 46,057
Criminal legal researcher ............................................................... 22,371
Civil legal researcher ..................................................................... 22,371
Capital case coordinator ............................................................... 46,057
(b) Central office in Las Vegas:
Chief deputy V, Las Vegas ........................................................... $55,062
Investigator, Las Vegas ................................................................ 30,996
Deputy III, criminal (each) ............................................................ 46,057
Office manager ............................................................................... 21,172
(c) Department of transportation legal counsel:
Chief deputy IV .............................................................................. $50,444
Deputy III (each) ........................................................................... 46,057
κ1987 Statutes of Nevada, Page 2115 (CHAPTER 787, AB 891)κ
Deputy II (each) ............................................................................. $39,478
Deputy I .......................................................................................... 34,215
Legal research assistant (each) ................................................... 22,371
(d) Agency deputies:
Chief deputy V, gaming ................................................................ $55,062
Chief deputy IV, human resources ............................................. 50,444
Chief deputy IV, commerce .......................................................... 50,444
Deputy IV, gaming control board (each) ................................... 50,444
Deputy IV, nuclear waste ............................................................. 50,444
Deputy IV, Colorado River commission...................................... 50,444
Deputy III, mental hygiene and mental retardation .................. 46,057
Deputy III, welfare (each) ............................................................. 46,057
Deputy III, gaming commission (each) ...................................... 46,057
Deputy III, taxation ....................................................................... 46,057
Deputy III, insurance .................................................................... 46,057
Deputy III, personnel .................................................................... 46,057
Deputy III, insurance fraud .......................................................... 46,057
Deputy III, environmental protection ......................................... 46,057
Deputy III, taxicab and civil ......................................................... 46,057
Deputy III, housing ....................................................................... 46,057
Deputy III, group insurance and civil ........................................ 46,057
Deputy III, water resources ......................................................... 46,057
Deputy III, prison (each) .............................................................. 46,057
Deputy III, consumer affairs ........................................................ 46,057
Deputy III, real estate ................................................................... 46,057
Deputy III, equal rights ................................................................ 46,057
Deputy III, civil and mental hygiene and mental retardation .. 46,057
Deputy III, labor commission, administration, general services and date processing ............................................................................ 46,057
Deputy III, conservation, secretary of state, treasurer ............ 46,057
Deputy III, securities division ..................................................... 46,057
Deputy III, motor vehicles (each) ............................................... 46,057
Deputy III, investigations ............................................................ 46,057
Deputy III, Colorado River commission ..................................... 46,057
Deputy II, motor vehicles (each) ................................................. 39,478
Deputy II, welfare (each) .............................................................. 39,478
Deputy II, taxation ......................................................................... 39,478
Deputy II, parole and probation .................................................. 39,478
Deputy II, criminal and pharmacy ............................................... 39,478
Deputy I, prison (each) ................................................................. 34,215
Chief fraud investigator ................................................................ 30,900
Insurance investigator (each) ...................................................... 25,750
(e) Office of advocate for customers of public utilities:
Consumers advocate ................................................................... $52,638
Staff counsel .................................................................................. 48,361
κ1987 Statutes of Nevada, Page 2116 (CHAPTER 787, AB 891)κ
Rate specialist ................................................................................ $43,146
Accountant .................................................................................... 47,586
Administrative assistant .............................................................. 26,320
Assistant staff counsel ................................................................ 37,853
Regulatory analyst ........................................................................ 37,853
(f) Crime prevention:
Crime prevention coordinator ...................................................... $25,451
7. Department of administration:
Director ........................................................................................... $60,255
Deputy budget administrator ...................................................... 48,410
Appeals officer, hearings (each) ................................................. 46,350
Chief assistant budget administrator ......................................... 43,175
Director, Clear Creek ..................................................................... 25,905
8. Department of commerce:
Director ........................................................................................... $55,620
Commissioner of insurance .......................................................... 46,350
Administrator, financial institutions ........................................... 46,350
Deputy commissioner of insurance ............................................ 42,090
Deputy administrator, financial institutions (each)................... 43,562
Certified public accountant, financial institutions ................... 37,815
Administrator, housing division ................................................. 46,350
State fire marshal ........................................................................... 43,775
Administrator, manufactured housing division ........................ 39,064
Administrator, real estate division .............................................. 39,064
Administrator, unclaimed property ............................................. 36,813
Deputy commissioner of insurance (Carson City) ................... 32,468
Deputy administrator, real estate division (Las Vegas)............ 32,316
Commissioner of consumer affairs .............................................. 34,191
Deputy administrator, housing division .................................... 39,064
Chief assistant, housing division ............................................... 31,566
Chief accountant, housing division ........................................... 39,064
Deputy director, commerce .......................................................... 39,064
9. State department of conservation and natural resources:
Director ........................................................................................... $54,157
Administrator, division of environmental protection .............. 49,745
State engineer (division of water resources) ............................. 49,745
State forester firewarden .............................................................. 45,320
Administrator, division of state parks ........................................ 42,622
Administrator, division of state lands ........................................ 38,139
District supervisor, water commissioners, division of water resources ................................................................................................. 35,633
Executive director, Heil Wild Horse Bequest ............................ 30,900
Director of Tahoe land acquisition ............................................. 36,232
κ1987 Statutes of Nevada, Page 2117 (CHAPTER 787, AB 891)κ
10. Department of data processing:
Director ........................................................................................... $51,577
Chief, systems and programming ................................................ 48,033
Chief, facility management ........................................................... 42,111
11. Department of education:
Superintendent of public instruction ......................................... $61,105
Deputy superintendent of public instruction ........................... 51,589
Deputy superintendent for administration ................................ 51,589
12. State gaming control board:
Chairman, gaming control board ................................................. $68,135
Member, gaming control board (each) ....................................... 64,890
Chief, investigation ....................................................................... 48,690
Chief, enforcement ........................................................................ 48,690
Chief, audit ..................................................................................... 48,690
Chief, special investigation and intelligence ............................. 48,690
Chief, tax and license .................................................................... 48,690
Executive secretary, gaming commission .................................. 39,478
Manager, electronics lab .............................................................. 46,057
Chief electronics ............................................................................ 48,690
Electronics engineer ...................................................................... 46,057
Industrial production engineer .................................................... 46,057
Digital circuits engineer ................................................................ 46,057
Coordinator, applicant services .................................................. 42,768
Chief deputy, enforcement (each) ............................................... 44,084
Chief deputy, audit (each) ............................................................ 44,084
Chief deputy, tax and license ....................................................... 44,084
Chief deputy, investigations (each) ........................................... 44,084
Senior programmer analyst .......................................................... 36,847
Hearings officer ............................................................................. 39,478
Supervisor, special investigations and intelligence ................. 40,794
Administrative coordinator .......................................................... 40,794
Business manager, office services .............................................. 40,794
Systems programmer ..................................................................... 39,478
Senior corporate securities agent ............................................... 38,163
Financial analyst, office services (each) .................................... 36,847
Supervisor, investigations (each) ............................................... 40,794
Supervisor, enforcement .............................................................. 40,794
Supervisor, audit (each) ............................................................... 40,794
Management analyst, gaming commission (each) ................... 39,478
Manager, systems and programming ......................................... 40,794
Securities analyst, gaming (each) ............................................... 38,163
Management services officer ...................................................... 44,084
Senior agent, investigation (each) .............................................. 36,847
Senior agent, investigation and intelligence (each) ................. 36,847
Training officer .............................................................................. 36,847
Senior agent, audit (each) ............................................................ 36,847
κ1987 Statutes of Nevada, Page 2118 (CHAPTER 787, AB 891)κ
Senior agent, tax and license (each) ........................................... $36,847
Electronics specialist .................................................................... 35,531
Senior agent, enforcement (each) ............................................... 36,847
Intelligence analyst ....................................................................... 36,847
Agent II, special investigations and intelligence (each) ......... 32,899
Agent II, audit (each) .................................................................... 32,899
Agent II, investigations (each) ................................................... 32,899
Agent II, enforcement (each) ....................................................... 32,899
Agent II, tax and license ............................................................... 32,899
Agent I, financial investigations (each) ..................................... 28,950
Agent I, investigations (each) ..................................................... 28,950
Agent I, enforcement (each) ........................................................ 28,950
Electronics technician, enforcement ........................................... 31,583
Agent I, audit (each) ..................................................................... 28,950
Agent I, treasury regulations compliance (each) ..................... 28,950
Agent I, tax and license (each) .................................................... 28,950
Agent I, special investigations and intelligence (each) .......... 28,950
Legal researcher, gaming .............................................................. 26,320
Statistician, gaming ....................................................................... 25,003
Programmer analyst (each) ........................................................... 34,215
Senior agent, labor organization ................................................. 36,847
Agent II, labor organization (each) ............................................. 32,899
13. Department of general services:
Director ........................................................................................... $52,953
Administrator, motor pool ............................................................ 39,478
14. Department of personnel:
Director ........................................................................................... $50,309
15. Department of human resources:
Director ........................................................................................... $64,896
Deputy director .............................................................................. 51,231
Chief, health planning ................................................................... 51,231
Administrator, health division ..................................................... 51,176
Medical program coordinator, Nevada mental health institute ................................................................................................. 84,460
Medical program coordinator, southern Nevada mental health services ................................................................................................. 84,460
Administrator, mental hygiene and mental retardation division ................................................................................................. 61,285
State welfare administrator ........................................................... 55,620
Deputy administrator, mental hygiene and mental retardation division (each) ................................................................................................. 54,057
Administrator, rehabilitation division ........................................ 51,500
Administrator, youth services division ..................................... 46,989
Superintendent, childrens home (each) .................................... 45,061
κ1987 Statutes of Nevada, Page 2119 (CHAPTER 787, AB 891)κ
Administrator, aging services division ...................................... $45,526
Deputy administrator, aging services (Las Vegas) .................. 41,254
Deputy administrator, aging services (Carson City) ................ 41,254
Superintendent, youth training center ....................................... 45,061
Superintendent, girls training center .......................................... 43,173
16. Department of industrial relations:
Director ........................................................................................... $50,309
Assistant director .......................................................................... 48,690
Attorney ......................................................................................... 43,865
Administrator, division of industrial insurance regulation ..... 47,872
Administrator, division of occupational safety and health .... 45,182
Administrator, division of mine inspection ............................... 39,567
17. Office of the labor commissioner:
Labor commissioner ...................................................................... $38,315
Deputy (Las Vegas) ...................................................................... 24,621
Chief assistant ............................................................................... 21,668
18. Department of the military:
Adjutant general ............................................................................ $42,768
Director, division of emergency management ........................... 39,083
19. Department of minerals:
Director ........................................................................................... $54,296
Deputy director .............................................................................. 40,170
Administrator for dangerous mines ............................................ 32,000
20. Department of museums and history:
Director ........................................................................................... $46,350
Director, Nevada state museum .................................................. 36,064
Director, Nevada state museum, Las Vegas .............................. 36,064
Director, Nevada historical society ............................................ 36,064
Assistant director, Nevada historical society ........................... 29,263
21. State board of parole commissioners:
Chairman ......................................................................................... $40,170
Parole board member (each) ......................................................... 35,020
Secretary to parole board ............................................................. 28,296
22. Office of the state public defender:
State public defender .................................................................... $53,146
Supervising public defender (office) .......................................... 50,775
Supervising public defender (trial) ............................................. 48,612
Supervising public defender (appeals) ...................................... 48,612
Deputy public defender (each) .................................................... 39,478
Deputy public defender (prison) ................................................. 39,478
Investigator (each) ........................................................................ 30,996
Deputy appellate ........................................................................... 39,478
23. Public service commission of Nevada:
Chairman ......................................................................................... $57,680
κ1987 Statutes of Nevada, Page 2120 (CHAPTER 787, AB 891)κ
Public service commissioner (each) ............................................ $54,590
Deputy commissioner ................................................................... 49,347
Senior auditor (each) ..................................................................... 44,762
Financial analyst ............................................................................ 45,582
Utility operations and rate specialist .......................................... 47,890
Auditor (each) ................................................................................ 40,862
Staff counsel .................................................................................. 51,322
Assistant staff counsel (each) .................................................... 45,582
Director, consumer affairs ............................................................ 36,847
Public education and statistical analyst .................................... 37,309
Commissioner assistant (2 positions) each ............................... 32,198
Commissioner assistant (3 positions) each ............................... 31,566
Utility rate and tariff specialist (each) ........................................ 36,413
Manager, engineering services ................................................... 50,795
Engineer, communications ........................................................... 47,890
Engineer, water .............................................................................. 45,582
Engineer, electric ........................................................................... 47,890
Engineer, gas pipeline ................................................................... 45,582
Senior engineering analyst .......................................................... 40,862
Manager, audit ............................................................................... 51,454
Director regulatory operations .................................................... 54,590
Systems analyst ............................................................................. 43,387
Manager, rates and tariffs ............................................................ 45,583
Chief railroad inspector ................................................................ 33,893
Chief transportation inspector (each) ........................................ 33,893
Manager, transportation .............................................................. 45,582
Specialist in transportation rates and tariffs ............................. 39,351
Senior analyst (each) .................................................................... 40,862
Manager, consumer affairs office (Las Vegas) ......................... 34,243
Legal counsel ................................................................................. 51,322
Secretary of policy ........................................................................ 49,347
Assistant legal counsel ................................................................ 45,582
Economist ....................................................................................... 48,920
Supervision economist ................................................................. 49,347
Resource planning engineer ........................................................ 45,582
Assistant general counsel - transportation ............................... 45,582
Senior auditor - transportation .................................................... 44,762
Financial specialist ........................................................................ 45,582
Systems supervisor ....................................................................... 45,582
Assistant secretary ....................................................................... 36,175
Assistant staff counsel ................................................................ 45,582
24. Department of taxation:
Executive director .......................................................................... $53,560
Deputy executive director ............................................................ 43,562
Deputy executive director ............................................................ 47,298
Deputy executive director ............................................................ 40,562
κ1987 Statutes of Nevada, Page 2121 (CHAPTER 787, AB 891)κ
25. Commission on tourism:
Executive director .......................................................................... $54,075
Director of marketing .................................................................... 45,380
Public information officer ............................................................. 40,842
Business manager ......................................................................... 37,839
Development specialist, tourism (each) ..................................... 40,685
Development specialist, tourism (1/2 position) ........................ 18,025
Editor publisher, Nevada Magazine............................................ 47,298
Associate editor ............................................................................ 27,038
Managing editor, division of publications ................................ 32,701
Editor, promotions, division of publications ............................. 26,560
Market and promotion manager, division of publications ...... 27,038
Business manager, Nevada Magazine ....................................... 37,420
Development specialist, Nevada Magazine (1/2 position) ...... 18,025
26. Commission on economic development:
Executive director .......................................................................... $55,530
Deputy director .............................................................................. 45,380
Senior associate, industrial development (each) ...................... 40,842
Director, film ................................................................................... 45,380
Senior associate, film .................................................................... 40,842
Associate, film ............................................................................... 35,941
27. High-level nuclear waste:
Director ........................................................................................... $44,709
Chief, technical programs ............................................................. 43,563
Chief of planning ........................................................................... 41,270
Planner ............................................................................................ 36,771
Planner/researcher ......................................................................... 32,960
28. Miscellaneous departments, commissions and other agencies:
Director, department of transportation ...................................... $62,727
Deputy director, department of transportation ......................... 61,105
Director, department of motor vehicles and public safety ...... 55,532
Director, department of prisons .................................................. 65,191
Manager, state public works board ............................................ 58,710
Executive director, employment security department .............. 52,530
Director, Colorado River commission ......................................... 59,158
Executive director, state department of agriculture .................. 47,483
Administrator, veterinary medical services ............................... 56,650
Chief parole and probation officer .............................................. 49,440
Deputy manager, state public works board ............................... 51,500
Chief assistant, state public works board .................................. 36,050
Director, department of wildlife ................................................... 49,440
Deputy director, department of wildlife ..................................... 43,080
Commissioner, local government employee-management relations board ................................................................................................. 41,142
κ1987 Statutes of Nevada, Page 2122 (CHAPTER 787, AB 891)κ
Executive director, state dairy commission ............................... $40,562
Taxicab administrator .................................................................... 39,478
Director, state job training office ................................................ 39,064
Deputy director, department of motor vehicles and public safety ................................................................................................. 39,064
Director, office of community services ...................................... 43,215
Executive director, equal rights commission ............................. 38,625
Deputy director, Colorado River commission ........................... 43,260
Director, state occupational information coordinating committee ................................................................................................. 36,440
Chairman, committee to hire the handicapped .......................... 38,055
Executive secretary, Nevada athletic commission .................... 35,020
Executive director, Nevada Indian commission ........................ 33,372
Executive director, council on the arts ....................................... 32,960
Director, division of brand inspection ....................................... 33,859
Nevada commissioner for veteran affairs .................................. 30,203
Deputy director, office of community services ......................... 27,070
Nevada deputy commissioner for veteran affairs (Las Vegas) ................................................................................................. 25,247
Secretary, local government employee-management relations board ................................................................................................. 20,921
Industrial attorney ......................................................................... 47,380
Deputy industrial attorney ........................................................... 41,758
Deputy industrial attorney (2 positions) each .......................... 39,426
Deputy industrial attorney (3 positions) each .......................... 38,254
Director, WICHE ............................................................................ 37,595
Director, rural housing .................................................................. 37,080
29. Supreme court:
Supervisory staff attorney ........................................................... $54,590
Deputy supervisory staff attorney ............................................. 42,179
Clerk ................................................................................................. 43,260
Chief deputy clerk ......................................................................... 34,067
Court administrator ....................................................................... 53,470
Deputy court administrator .......................................................... 42,179
Law librarian ................................................................................... 40,402
Senior judicial clerk-attorney (each) ........................................... 28,045
Sec. 2. 1. There is hereby appropriated from the state general fund to the state board of examiners for reimbursement to any department, commission or agency of the State of Nevada, including the judicial branch of government, which receives part or all of its funding from the state general fund, for the difference between the maximum amount allowed in section 1 of this act and the amount budgeted for that purpose:
For the fiscal year 1987-88...................................................................... $559,762
For the fiscal year 1988-89...................................................................... 559,762
2. There is hereby appropriated from the state highway fund to the state board of examiners for reimbursement to a state agency which receives part or all of its funding from the state highway fund for the difference between the maximum amount allowed in section 1 of this act and the amount budgeted for that purpose:
κ1987 Statutes of Nevada, Page 2123 (CHAPTER 787, AB 891)κ
or all of its funding from the state highway fund for the difference between the maximum amount allowed in section 1 of this act and the amount budgeted for that purpose:
For the fiscal year 1987-88...................................................................... $34,258
For the fiscal year 1988-89...................................................................... 34,258
3. Any balance of the sums appropriated by this section remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 and reverts to the fund from which it was appropriated as soon as all payments of money committed have been made.
________
Senate Bill No. 313Committee on Commerce and Labor
CHAPTER 788
AN ACT relating to marriage and family therapy; creating a board of examiners for marriage and family therapists; making various changes concerning marriage and family therapists; providing a penalty; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 629.031 is hereby amended to read as follows:
629.031 Provider of health care means a physician licensed under chapter 630, 630A or 633 of NRS, dentist, licensed nurse, dispensing optician, optometrist, registered physical therapist, podiatrist, licensed psychologist, licensed marriage and family therapist, chiropractor, doctor of traditional Oriental medicine in any form, medical laboratory director or technician, pharmacist or a licensed hospital as the employer of any such person.
Sec. 1.5. NRS 641.029 is hereby amended to read as follows:
641.029 This chapter does not apply to:
1. A physician licensed to practice in this state.
2. A person [who is] licensed to practice dentistry in this state.
3. A person [certified] licensed as a marriage and family [counselor] therapist under chapter 641A of NRS.
4. A person certified as a counselor by the bureau of alcohol and drug abuse of the rehabilitation division of the department of human resources.
5. Any clergyman.
Sec. 2. (Deleted by amendment.)
Sec. 3. Chapter 641A of NRS is hereby amended by adding thereto a new section to read as follows:
The board shall issue a license to an applicant who meets the requirements imposed pursuant to this chapter. A license expires on January 1, 2 years after the date on which it is issued or renewed.
κ1987 Statutes of Nevada, Page 2124 (CHAPTER 788, SB 313)κ
Secs. 4 and 5. (Deleted by amendment.)
Sec. 6. NRS 641A.010 is hereby amended to read as follows:
641A.010 The practice of marriage and family [counseling] therapy is hereby declared a learned profession, profoundly affecting public safety and welfare and charged with the public interest, and therefore subject to protection and regulation by the state.
Sec. 7. NRS 641A.030 is hereby amended to read as follows:
641A.030 Board means the board of examiners for marriage and family [counselor examiners.] therapists.
Sec. 8. NRS 641A.040 is hereby amended to read as follows:
641A.040 [Certificate] License means a [certificate of registration] license issued by the board pursuant to this chapter to practice as a marriage and family [counselor.] therapist.
Sec. 9. NRS 641A.050 is hereby amended to read as follows:
641A.050 [Certificatee] Licensee means a person [certified] licensed as a marriage and family [counselor] therapist by the board.
Sec. 10. NRS 641A.060 is hereby amended to read as follows:
641A.060 [Marriage and family counselor] Marriage and family therapist means a person who describes himself [,] or his services to the public by any title or description which incorporates the term marriage and family therapist or marriage and family counselor, and under such a title offers to render or renders services to [individuals, partnerships, associations, corporations or other members of the public for remuneration.] any person.
Sec. 11. NRS 641A.080 is hereby amended to read as follows:
641A.080 [Practice of marriage and family counseling] Practice of marriage and family therapy means the application of established principles of learning, motivation, perception, thinking, emotional, marital and sexual relationships and adjustments by persons trained in psychology, social work, psychiatry or [marital counseling.] marriage and family therapy. The application of such principles includes [, but is not restricted to:
1. Counseling] :
1. Therapy and counseling and the use of psychotherapeutic measures with persons or groups with adjustment problems in the areas of marriage, family or personal relationships.
2. Doing research on problems related to marital relationships and human behavior.
3. Consultation with others doing marriage and family [counseling.] therapy.
Sec. 12. NRS 641A.090 is hereby amended to read as follows:
641A.090 The board of examiners for marriage and family [counselor examiners,] therapists, consisting of six members appointed by the governor, is hereby created.
Sec. 13. NRS 641A.100 is hereby amended to read as follows:
641A.100 1. The governor shall appoint [:] to the board:
(a) Four members who are [certified] licensed marriage and family [counselors] therapists and are in good standing with or acceptable for membership in their local or state societies and associations when they exist [.
κ1987 Statutes of Nevada, Page 2125 (CHAPTER 788, SB 313)κ
membership in their local or state societies and associations when they exist [. At least one member shall be appointed in each of the following specialties: Psychiatry, psychology, social work.] ; and
(b) Two members who are representatives of the general public.
2. [A member who is a psychiatrist must have completed a residency in psychiatry.
3. Members with academic backgrounds in psychology or social work must possess graduate degrees in these fields or the equivalent and have at least 1 year of paid work experience where marriage and family counseling was a significant part of that work.
4.] The members who are representatives of the general public shall not participate in preparing, conducting or grading any examination required by the board.
3. The governor may, after notice and hearing, remove any member of the board for misconduct in office, incompetence, neglect of duly or other sufficient cause.
Sec. 14. NRS 641A.130 is hereby amended to read as follows:
641A.130 The board shall [hold a regular meeting at least once a year.] meet at least once every 6 months at a time and place fixed by the board. The board shall hold a special meeting upon a call of the president or upon a request by a majority of the members. Three members of the board [shall] constitute a quorum.
Sec. 15. NRS 641A.140 is hereby amended to read as follows:
641A.140 At the regular meeting the board shall elect from its membership a president , a vice president and a secretary-treasurer, who shall hold office for 1 year and until the election and qualification of their successors.
Sec. 16. NRS 641A.150 is hereby amended to read as follows:
641A.150 The secretary-treasurer shall make and keep on behalf of the board, the following:
1. A record of all meetings and proceedings.
2. A record of all examinations and applicants.
3. A register of all [certificates and certificate holders.] licenses and licensees.
4. An inventory of the property of the board and of the state in the boards possession.
Sec. 17. NRS 641A.160 is hereby amended to read as follows:
641A.160 The board [may make and promulgate rules and] shall adopt regulations not inconsistent with the provisions of this chapter governing its procedure, the examination and [certification] licensing of applicants, the granting, refusal, revocation or suspension of [certificates,] licenses and the practice of marriage and family [counseling] therapy as it applies to this chapter.
Sec. 18. NRS 641A.170 is hereby amended to read as follows:
641A.170 The board [may] shall under the provisions of this chapter:
1. Examine and pass upon the qualifications of the applicants for [certification.
κ1987 Statutes of Nevada, Page 2126 (CHAPTER 788, SB 313)κ
2. Certify] licensing.
2. License qualified applicants.
3. Revoke or suspend [certificates.] licenses.
4. Establish requirements for continuing education.
5. Collect all fees and make disbursements pursuant to this chapter.
Sec. 19. NRS 641A.180 is hereby amended to read as follows:
641A.180 The board shall determine which schools in and out of this state have courses of study for the preparation of marriage and family [counseling] therapy which are sufficient [and thorough for certification purposes.] for the purposes of licensing. Published lists of educational institutions accredited by recognized accrediting organizations may be used in the evaluation of such courses of study.
Sec. 20. NRS 641A.210 is hereby amended to read as follows:
641A.210 Each person desiring a [certificate shall make application] license must apply to the board upon a form, and in a manner, prescribed by the board. The application [shall] must be accompanied by the application fee prescribed by the board.
Sec. 21. NRS 641A.220 is hereby amended to read as follows:
641A.220 Each applicant [shall] must furnish evidence satisfactory to the board that he:
1. Is at least 21 years of age.
2. Is of good moral character.
3. Is a citizen of the United States, or is lawfully entitled to remain and work in the United States.
4. Has [finished] completed his residency training in psychiatry from an accredited institution approved by the board or has a graduate degree in [psychology, social work, or has training deemed equivalent by the board in both subject matter and extent of training.
5.] marriage and family therapy, psychology or social work from an accredited institution approved by the board.
5. Has at least 1 year of postgraduate experience in marriage and family [counseling] therapy deemed satisfactory to the board [.] ; and
6. Holds an undergraduate degree from an accredited institution approved by the board.
Sec. 22. NRS 641A.230 is hereby amended to read as follows:
641A.230 Each qualified applicant for a [certificate may] license must be given a written examination by the board on his knowledge of marriage and family [counseling.] therapy. In addition, the board may require an oral examination. [When examinations are given, they shall] Examinations must be given at a time and place and under such supervision as the board may determine. A grade of 75 percent is a passing grade. The board may examine in whatever applied or theoretical fields it deems appropriate.
Sec. 23. NRS 641A.240 is hereby amended to read as follows:
641A.240 The board may grant a [certificate] license without any examination to any person [certified] licensed by the board of examiners in another state if the board determines that the requirements in [such] that state are at least equivalent to the requirements of this chapter.
κ1987 Statutes of Nevada, Page 2127 (CHAPTER 788, SB 313)κ
another state if the board determines that the requirements in [such] that state are at least equivalent to the requirements of this chapter.
Sec. 24. NRS 641A.260 is hereby amended to read as follows:
641A.260 1. To renew a [certificate] license issued pursuant to this chapter, each person must, on or before the [first day of January of each odd-numbered year:] date of expiration of the current license:
(a) Apply to the board for renewal;
(b) Pay the [biennial registration] fee for renewal set by the board; and
(c) Submit evidence to the board of his completion of the requirements for continuing education.
2. The board shall, as a prerequisite for the renewal of a [certificate,] license, require each holder to comply with the requirements for continuing education adopted by the board.
Sec. 25. NRS 641A.270 is hereby amended to read as follows:
641A.270 Failure to pay the [biennial registration fee shall automatically effect a revocation of the certificate after a period of 60 days from the 1st day of January of each off-numbered year. The certificate shall not be restored] fee for renewal automatically effects a revocation of the license on the date of expiration of the license. The license may not be reinstated except upon written application and the payment of the [biennial registration fee and the restoration] fee for renewal and the fee for reinstatement required by this chapter.
Sec. 26. NRS 641A.280 is hereby amended to read as follows:
641A.280 After a [certificate of a certificatee has lapsed for a continuous period of 5 years, such certificatee] license has lapsed continuously for 5 years, a person applying for reinstatement of a [certificate shall reapply for certification] license must reapply upon the laws and regulations in effect at the time of application . [, his previous certification notwithstanding.]
Sec. 27. NRS 641A.290 is hereby amended to read as follows:
641A.290 The board shall charge and collect not more than the following fees, respectively:
For application for a [certificate] license ..................................................... $25
For examination of an applicant for a [certificate] license .................. [50] 100
For issuance of a [certificate] license .................................................... [25] 50
For issuance of a [certificate] license by reciprocity .......................... [75] 100
For [biennial] annual renewal of a [certificate] license .................... [200] 100
For reinstatement of a [certificate] license revoked for nonpayment of the fee for [biennial] renewal .................................................................................... 100
Sec. 28. NRS 641A.310 is hereby amended to read as follows:
641A.310 The board may refuse to grant a [certificate] license or may suspend or revoke a [certificate] license for any of the following reasons:
1. Conviction of a felony, or of any offense involving moral turpitude, the record of conviction being conclusive evidence thereof. [The board may inquire into the circumstances surrounding the commission of the offense in order to fix the degree of discipline advisable, or to determine if such a conviction is an offense involving moral turpitude.]
κ1987 Statutes of Nevada, Page 2128 (CHAPTER 788, SB 313)κ
2. Habitual drunkenness or addiction to the use of a controlled substance as defined in chapter 453 of NRS.
3. Impersonating a [certified] licensed marriage and family [counselor] therapist or allowing another person to use his [certificate.] license.
4. Using fraud or deception in applying for a [certificate] license or in passing the examination provided for in this chapter.
5. Rendering or offering to render services outside the area of his training, experience or competence.
6. Committing unethical practices contrary to the interest of the public as [deemed] determined by the board.
7. Unprofessional conduct as determined by the board.
8. Negligence, fraud or deception in connection with services he is licensed to provide pursuant to this chapter.
Sec. 29. NRS 641A.320 is hereby amended to read as follows:
641A.320 The board may discipline the holder of any [certificate] license whose default has been entered or who has been heard by the board and found guilty, by any of the following methods:
1. Placing him upon probation for a period to be determined by the board.
2. Suspending his [certificate for a period not exceeding] license for not more than 1 year.
3. Revoking his [certificate.] license.
4. Administering a private or public reprimand.
5. Limiting his practice.
6. Imposing an administrative fine of not more than $5,000.
7. Requiring him to complete successfully another examination.
Sec. 30. NRS 641A.330 is hereby amended to read as follows:
641A.330 1. A complaint may be made against a [certificatee] licensee by an agency or inspector employed by the board, any other [certificatee] licensee or any aggrieved person, charging one or more of the causes for which [such certificate] the license may be revoked or suspended with such particularity as to enable the defendant to prepare a defense thereto.
2. A complaint [shall] must be made in writing and [shall be] signed and verified by the person making it. The original complaint and two copies [shall] must be filed with the secretary-treasurer.
Sec. 31. NRS 641A.340 is hereby amended to read as follows:
641A.340 As soon as practicable after the filing of a complaint, the board shall fix a date for the hearing [thereof, which date shall] on the matter, which date must not be less than 30 days [thereafter.] after the filing of the complaint. The secretary-treasurer shall immediately notify the [defendant certificatee] licensee of the complaint and the date and place fixed for the hearing thereof. A copy of the complaint [shall] must be attached to the notice.
Secs. 32 and 33. (Deleted by amendment.)
Sec. 34. NRS 641A.370 is hereby amended to read as follows:
641A.370 If the board revokes or suspends a [certificate] license for a fixed time, the [certificatee] licensee may apply for a rehearing within 10 days after the date of the suspension or revocation and the board may grant [such] the application upon the terms and conditions it deems appropriate within 30 days [thereafter.]
κ1987 Statutes of Nevada, Page 2129 (CHAPTER 788, SB 313)κ
days after the date of the suspension or revocation and the board may grant [such] the application upon the terms and conditions it deems appropriate within 30 days [thereafter.] after the application.
Sec. 35. NRS 641A.400 is hereby amended to read as follows:
641A.400 One year [from] after the date of a revocation of a [certificate,] license, application may be made to the board for reinstatement. The board has complete discretion to accept or reject an application for reinstatement and may require examination for [such] reinstatement.
Sec. 36. NRS 641A.410 is hereby amended to read as follows:
641A.410 1. It is unlawful for any person to [represent himself as a] engage in the practice of marriage and family [counselor within the meaning of this chapter] therapy unless he is [certified] licensed under the provisions of this chapter . [, except that any marriage and family counselor employed by an accredited educational institution or public agency which has set explicit standards may represent himself by the title conferred upon him by such institution or agency.
2. This section does not grant approval for any person to offer his services as a marriage and family counselor to any other person as a consultant, and to accept remuneration for such services, other than that of his institutional salary, unless he has been certified under the provisions of this chapter.
3. A student of psychology or social work, a psychological or social work intern and any other person preparing for the profession of marriage and family counseling under the supervision of a qualified psychologist, social worker, psychiatrist or marriage and family counselor in training institutions or facilities recognized by the board may be designated by the title marriage and family counselor trainee, psychology trainee, social work trainee, or any other title which clearly indicates his training status.]
2. The provisions of this chapter do not:
(a) Prevent any licensed physician, licensed nurse, certified psychologist, certified alcohol or drug abuse counselor, licensed or ordained minister in good standing within his denomination or other person licensed or certified by the state from carrying out the functions permitted by his respective license or certification if the person does not hold himself out to the public by any title and description of service likely to cause confusion with the titles and descriptions of service set forth in this chapter.
(b) Apply to any activity or service of a student who is obtaining a professional education as recognized by the board if the activity or service constitutes a part of the students supervised course of study, the activities are supervised by a licensee under this chapter and the student is designated by the title intern in marriage and family therapy or any other title which clearly indicates his status as a student.
(c) Apply to any activity or service of an intern while he is obtaining the experience required for licensing as a marriage and family therapist.
κ1987 Statutes of Nevada, Page 2130 (CHAPTER 788, SB 313)κ
Sec. 37. NRS 641A.420 is hereby amended to read as follows:
641A.420 A marriage and family [counselor] therapist who is not a resident of Nevada and not [certified] licensed in Nevada who meets the requirements for [certification] licensing in this chapter is not subject to the provisions of this chapter if he [does] :
1. Does not practice marriage and family [counseling] therapy in the State of Nevada for over 30 days in any 1 calendar year [, and if he is] ; and
2. Is invited as a consultant by a marriage and family [counselor certified] therapist licensed in Nevada.
Sec. 38. NRS 641A.430 is hereby amended to read as follows:
641A.430 It is unlawful for any person, other than a person [certified] licensed under this chapter, to employ or use the term marriage and family counselor, marriage and family therapist, martial adviser, marital therapist, or marital consultant, or any similar [titles,] title in connection with his work, or in any way imply that he is [certified] licensed by the board, unless he is [certified] licensed under this chapter . [, except as specified in subsection 1 of NRS 641A.410.]
Sec. 39. NRS 641A.440 is hereby amended to read as follows:
641A.440 Any person who violates any of the provisions of this chapter or, having had his [certificate] license suspended or revoked, continues to represent himself as a marriage and family [counselor, is guilty of a misdemeanor.] therapist shall be punished by imprisonment in the county jail for not more than 1 year or by a fine of not more than $5,000, or by both fine and imprisonment. Each violation [shall be deemed] is a separate offense.
Sec. 40. NRS 641A.450 is hereby amended to read as follows:
641A.450 A violation of this chapter by a person unlawfully representing himself as a marriage and family [counselor as defined in this chapter] therapist may be enjoined by a district court on petition by the board. In any such proceeding it is not necessary to show that any person is individually injured. If the respondent is found guilty of misrepresenting himself as a marriage and family [counselor,] therapist, the court shall enjoin him from making such a representation [unless and] until he has been [duly certified.] licensed. Procedure in such cases [shall be] is the same as in any other application for an injunction. The remedy by injunction is in addition to criminal prosecution and punishment.
Sec. 41. NRS 200.5093 is hereby amended to read as follows:
200.5093 1. If any of the persons listed in subsection 2 suspects an instance of abuse, neglect or exploitation of an older person, he shall immediately report his suspicion to:
(a) The local office of the welfare or aging services division of the department of human resources;
(b) Any police department or sheriffs office; or
(c) The countys office for protective services, if one exists in the county where the suspected action occurred.
If the report of abuse, neglect or exploitation involves an act or omission of the welfare division, aging services division or a law enforcement agency, the report must be made to an agency other than the one alleged to have committed the act or omission.
κ1987 Statutes of Nevada, Page 2131 (CHAPTER 788, SB 313)κ
the welfare division, aging services division or a law enforcement agency, the report must be made to an agency other than the one alleged to have committed the act or omission. Each agency, after reducing the report to writing, shall forward a copy of the report to the aging services division of the department of human resources.
2. Reports must be made by:
(a) Every physician, dentist, dental hygienist, chiropractor, optometrist, podiatrist, medical examiner, resident, intern, professional or practical nurse, physicians assistant, psychiatrist, psychologist, marriage and family [counselor,] therapist, alcohol or drug abuse counselor, driver of an ambulance, advanced emergency medical technician-ambulance or other person providing medical services licensed or certified to practice in this state, who examines, attends or treats an older person who appears to have been abused, neglected or exploited.
(b) Any personnel of a hospital or similar institution engaged in the admission, examination, care or treatment of persons or an administrator, manager or other person in charge of a hospital or similar institution upon notification of the suspected abuse, neglect or exploitation of an older person by a member of the staff of the hospital.
(c) A coroner.
(d) Every clergyman, practitioner of Christian Science or religious healer, unless he acquired the knowledge of abuse, neglect or exploitation from the offender during a confession, or a social worker.
(e) Every person who maintains or is employed by an agency to provide nursing in the home.
(f) Every attorney, unless he has acquired the knowledge of abuse, neglect or exploitation from a client who has been or may be accused of the abuse, neglect or exploitation.
(g) Any employee of the welfare or aging services division of the department of human resources.
(h) Any employee of a law enforcement agency or a countys office for protective services or an adult or juvenile probation officer.
(i) Any person who maintains or is employed by a facility or establishment that provides care for older persons.
(j) Any person who maintains, is employed by or serves as a volunteer for an agency or service which advises persons regarding the abuse, neglect or exploitation of an older person and refers them to persons and agencies where their requests and needs can be met.
3. Every physician who, as a member of the staff of a hospital or similar institution, has reason to believe that an older person has been abused, neglected or exploited shall notify the superintendent, manager or other person in charge of the institution. The superintendent, manager or other person in charge shall make a report as required in subsection 1.
4. A report may be filed by any other person.
5. A division, office or department which receives a report pursuant to this section shall cause the investigation of the report within 3 working days.
6. If the investigation of the report results in the belief that the older person is abused, neglected or exploited, the welfare division of the department of human resources or the countys office for protective services may provide protective services to the older person if he is able and willing to accept them.
κ1987 Statutes of Nevada, Page 2132 (CHAPTER 788, SB 313)κ
person is abused, neglected or exploited, the welfare division of the department of human resources or the countys office for protective services may provide protective services to the older person if he is able and willing to accept them.
Sec. 42. NRS 432B.220 is hereby amended to read as follows:
432B.220 1. A report must be made immediately to an agency which provides protective services or to a law enforcement agency when there is reason to believe that a child has been abused or neglected. If the report of abuse or neglect of a child involves the acts or omissions of an agency which provides protective services or a law enforcement agency, the report must be made to and the investigation made by an agency other than the one alleged to have committed the acts or omissions.
2. Reports must be made by the following persons who, in their professional or occupational capacities, know or have reason to believe that a child has been abused or neglected:
(a) A physician, dentist, dental hygienist, chiropractor, optometrist, podiatrist, medical examiner, resident, intern, professional or practical nurse, physicians assistant, psychiatrist, psychologist, marriage and family [counselor,] therapist, alcohol or drug abuse counselor, advanced emergency medical technician-ambulance or other person providing medical services licensed or certified in this state;
(b) Any personnel of a hospital or similar institution engaged in the admission, examination, care or treatment of persons or an administrator, manager or other person in charge of a hospital or similar institution upon notification of suspected abuse or neglect of a child by a member of the staff of the hospital;
(c) A coroner;
(d) A clergyman, practitioner of Christian Science or religious healer, unless he has acquired the knowledge of the abuse or neglect from the offender during a confession;
(e) A social worker and an administrator, teacher, librarian or counselor of a school;
(f) Any person who maintains or is employed by a facility or establishment that provides care for children, childrens camp or other public or private facility, institution or agency furnishing care to a child;
(g) Any person licensed to conduct a foster home;
(h) Any officer or employee of a law enforcement agency or an adult or juvenile probation officer;
(i) An attorney, unless he has acquired the knowledge of the abuse or neglect from a client who is or may be accused of the abuse or neglect; and
(j) Any person who maintains, is employed by or serves as a volunteer for an agency or service which advises persons regarding abuse or neglect of a child and refers them to persons and agencies where their requests and needs can be met.
3. A report may be made by any other person.
4. Any person required to report under this section who has reasonable cause to believe that a child has died as a result of abuse or neglect shall report this belief to the appropriate medical examiner or coroner, who shall investigate the report and submit to an agency which provides protective services his written findings, which must include the information required under the provisions of subsection 2 of NRS 432B.230.
κ1987 Statutes of Nevada, Page 2133 (CHAPTER 788, SB 313)κ
report this belief to the appropriate medical examiner or coroner, who shall investigate the report and submit to an agency which provides protective services his written findings, which must include the information required under the provisions of subsection 2 of NRS 432B.230.
Sec. 43. NRS 433.209 is hereby amended to read as follows:
433.209 Person professionally qualified in the field of psychiatric mental health means:
1. A psychiatrist licensed to practice medicine in the State of Nevada;
2. A psychologist certified to practice in this state or employed as such by the division;
3. A social worker who holds a masters degree in social work, or is a candidate for that degree and is employed by the division; [or]
4. A registered nurse who holds a masters degree in the field of psychiatric nursing and is employed by the division [.] ; or
5. A marriage and family therapist licensed pursuant to chapter 641A of NRS.
Sec. 44. (Deleted by amendment.)
Sec. 45. NRS 433.265 is hereby amended to read as follows:
433.265 Any person employed by the division as a psychiatrist, psychologist , marriage and family therapist or registered nurse must be licensed or certified by the appropriate state licensing board for his respective profession.
Sec. 46. Chapter 689A of NRS is hereby amended by adding thereto a new section to read as follows:
If any policy of health insurance provides coverage for treatment of an illness which is within the authorized scope of the practice of a licensed marriage and family therapist, the insured is entitled to reimbursement for treatment by a marriage and family therapist who is licensed pursuant to chapter 641A of NRS.
Sec. 47. Chapter 689B of NRS is hereby amended by adding thereto a new section to read as follows:
If any policy of group health insurance provides coverage for treatment of an illness which is within the authorized scope of the practice of a licensed marriage and family therapist, the insured is entitled to reimbursement for treatment by a marriage and family therapist who is licensed pursuant to chapter 641A of NRS.
Sec. 48. Chapter 695A of NRS is hereby amended by adding thereto a new section to read as follows:
If any certificate of health insurance provides coverage for treatment of an illness which is within the authorized scope of the practice of a licensed marriage and family therapist, the insured is entitled to reimbursement for treatment by a marriage and family therapist who is licensed pursuant to chapter 641A of NRS.
Sec. 49. Chapter 695B of NRS is hereby amended by adding thereto a new section to read as follows:
If any contract for hospital or medical service provides coverage for treatment of an illness which is within the authorized scope of the practice of a licensed marriage and family therapist, the insured is entitled to reimbursement for treatment by a marriage and family therapist who is licensed pursuant to chapter 641A of NRS.
κ1987 Statutes of Nevada, Page 2134 (CHAPTER 788, SB 313)κ
a licensed marriage and family therapist, the insured is entitled to reimbursement for treatment by a marriage and family therapist who is licensed pursuant to chapter 641A of NRS.
Sec. 50. Chapter 695C of NRS is hereby amended by adding thereto a new section to read as follows:
If any evidence of coverage provides coverage for treatment of an illness which is within the authorized scope of the practice of a licensed marriage and family therapist, the insured is entitled to reimbursement for treatment by a marriage and family therapist who is licensed pursuant to chapter 641A of NRS.
Sec. 51. Section 38 of Senate Bill No. 234 of this session is hereby amended to read as follows:
Sec. 38. NRS 433.265 is hereby amended to read as follows:
433.265 Any person employed by the division as a psychiatrist, psychologist, marriage and family therapist , [or] registered nurse or social worker must be licensed or certified by the appropriate state licensing board for his respective profession.
Sec. 52. Section 39 of Senate Bill No. 234 of this session is hereby amended to read as follows:
Sec. 39. NRS 641.029 is hereby amended to read as follows:
641.029 This chapter does not apply to:
1. A physician licensed to practice in this state.
2. A person licensed to practice dentistry in this state.
3. A person licensed as a marriage and family therapist under chapter 641A of NRS.
4. A person licensed to engage in social work pursuant to chapter 641B of NRS.
5. A person certified as a counselor by the bureau of alcohol and drug abuse of the rehabilitation division of the department of human resources.
[5.] 6. Any clergyman.
Sec. 53. Section 46 of Senate Bill No. 234 of this session is hereby amended to read as follows:
Sec. 46. Section 5 of chapter 634, Statutes of Nevada 1985, at page 2044, is hereby amended to read as follows:
Sec. 5. NRS 433.209 is hereby amended to read as follows:
433.209 Person professionally qualified in the field of psychiatric mental health means:
1. A psychiatrist licensed to practice medicine in the State of Nevada [;] and certified by the American Board of Psychiatry and Neurology;
2. A psychologist certified to practice in this state ; [or employed as such by the division;]
3. A social worker who holds a masters degree in social work, [or is a candidate for that degree] is licensed by the state as a clinical social worker and is employed by the division; [or]
κ1987 Statutes of Nevada, Page 2135 (CHAPTER 788, SB 313)κ
4. A marriage and family therapist licensed pursuant to chapter 641A of NRS; or
5. A registered nurse who [holds a masters degree in the field of psychiatric nursing and is] :
(a) Is licensed to practice professional nursing in this state;
(b) Holds a masters degree in the field of psychiatric nursing; and
(c) Is employed by the division.
Sec. 54. NRS 641A.250, 641A.350 and 641A.380 are hereby repealed.
Sec. 55. Any certificate issued under the provisions of chapter 641A of NRS before July 1, 1987, expires on July 1, 1988. Any qualified person may apply to the board of examiners for marriage and family therapists for a license pursuant to chapter 641A of NRS as amended by this act.
Sec. 56. 1. The terms of the members of the board of marriage and family counselor examiners expire on July 1, 1987.
2. The governor shall appoint as the initial representatives of marriage and family therapists on the board of examiners for marriage and family therapists persons who are certified marriage and family counselors. The initial members of the board must be appointed by the governor as follows:
(a) Two marriage and family therapists and one representative of the general public must be appointed for terms of 2 years; and
(b) The remaining members must be appointed for terms of 3 years.
Sec. 57. 1. Sections 45, 51 and 52 of this act become effective at 12:01 a.m. on July 1, 1987.
2. Section 53 of this act becomes effective at 12:02 a.m. on July 1, 1987.
________
Senate Bill No. 254Committee on Commerce and Labor
CHAPTER 789
AN ACT relating to the private investigators licensing board; making various changes concerning the licensing and regulation of private investigators and related occupations; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 648 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. Consultant means a person who engages in the business of furnishing advice on the proper methods and equipment for the providing of security and protection for persons and property.
Sec. 3. A person licensed pursuant to this chapter may employ only another licensee or a nonlicensed person who:
κ1987 Statutes of Nevada, Page 2136 (CHAPTER 789, SB 254)κ
1. Is at least 18 years of age.
2. Is a citizen of the United States or lawfully entitled to remain and work in the United States.
3. Is of good moral character and temperate habits.
4. Has not been convicted of a felony or a crime involving moral turpitude or the illegal use or possession of a dangerous weapon.
Sec. 4. NRS 648.005 is hereby amended to read as follows:
648.005 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 648.006 to 648.015, inclusive, and section 2 of this act, have the meanings ascribed to them in those sections.
Sec. 5. NRS 648.020 is hereby amended to read as follows:
648.020 1. The private investigators licensing board, consisting of the attorney general or his deputy and four members appointed by the governor, is hereby created.
2. The governor shall appoint:
(a) One member who is a private investigator.
(b) One member who is a private patrolman.
(c) One member who is a polygraphic examiner.
(d) One member who is a representative of the general public.
3. The chairman of the board is the attorney general or a deputy attorney general designated by the attorney general to act in that capacity.
4. [Members] Each member of the board [are] , except the chairman, is entitled to receive :
(a) A salary of not more than $60, as fixed by the board, for each day or portion of a day during which he attends a meeting of the board;
(b) The per diem [expenses and travel allowances as] allowance provided by law [.] for state officers and employees generally; and
(c) His actual expenses for travel while he is engaged in the business of the board.
5. The member who is a representative of the general public shall not participate in preparing, conducting or grading any examination required by the board.
Sec. 6. NRS 648.030 is hereby amended to read as follows:
648.030 1. The board shall from time to time adopt regulations to enable it to carry out the provisions of this chapter.
2. The board shall classify licenses according to the type of business in which they are engaged and may limit the field and scope of the operations of a licensee to those in which he is classified.
3. The board shall establish the criteria for authorizing self-insurance maintained by licensees pursuant to NRS 648.135.
4. The board may by regulation fix qualifications of licensees and of the directors and officers of corporate licensees necessary to promote the public welfare.
[4.] 5. The board may by regulation require licensees and their employees to attend courses in firearm safety conducted by instructors approved by the board. The board may require a licensee or his employee to complete a certain amount of training in firearm safety before he may be permitted to carry a firearm in the course of his duties.
κ1987 Statutes of Nevada, Page 2137 (CHAPTER 789, SB 254)κ
complete a certain amount of training in firearm safety before he may be permitted to carry a firearm in the course of his duties.
Sec. 7. NRS 648.060 is hereby amended to read as follows:
648.060 No person, unless he is licensed under this chapter, may:
1. Engage in the business of private investigator, private patrolman, process server, repossessor, dog handler , consultant or polygrahic examiner or intern; or
2. Advertise his business as such, irrespective of the name or title actually used.
Sec. 8. NRS 648.100 is hereby amended to read as follows:
648.100 1. The board shall require an applicant to pass a written examination for an initial license and may require an applicant to pass an oral examination. Examinations must be given at least four times a year.
2. The board shall conduct such investigation of an applicant, including the directors and officers of a corporate applicant, as it considers necessary. An applicant shall deposit with the board at the time of making an initial application for any license a fee of $750 for the first category of license and $250 for each additional category of license for which application is made, which must be applied to the cost of conducting the investigation. [The] An individual applicant who is a resident of Nevada is liable for the entire cost of the investigation up to a maximum cost of $1,500 for the first category of license and $500 for each additional category of license for which application is made . [, and] A corporate applicant or an individual applicant who is not a resident of Nevada is liable for the entire cost of the investigation. Each applicant must pay the entire fee for which he is liable before taking an examination.
3. The board may refuse to grant a license if it determines that the applicant has:
(a) Committed any act which if committed by a licensee would be a ground for the suspension or revocation of a license under this chapter.
(b) Committed any act constituting dishonesty or fraud.
(c) Demonstrated untruthfulness or a lack of integrity.
(d) Been refused a license under this chapter or had a license revoked.
(e) Been an officer, director, partner or manager of any firm, partnership, association or corporation which has been refused a license under this chapter or whose license has been revoked.
(f) While unlicensed, performed any act for which a license is required by this chapter.
(g) Knowingly made any false statement in his application.
(h) Refused to provide any information required by the board.
4. The board shall provide the applicant with a copy of the report of the investigation within a reasonable time after it receives the completed report.
Sec. 9. NRS 648.135 is hereby amended to read as follows:
648.135 1. Before issuing any license or annual renewal thereof, the board shall require satisfactory proof that the applicant or licensee [is] :
(a) Is covered by a policy of insurance for protection against liability to third persons , with limits of liability in amounts not less than $200,000, written by an insurance company authorized to do business in this state [and providing limits of liability:
κ1987 Statutes of Nevada, Page 2138 (CHAPTER 789, SB 254)κ
third persons , with limits of liability in amounts not less than $200,000, written by an insurance company authorized to do business in this state [and providing limits of liability:
(a) In amounts not less than $100,000 for the death or injury of one person in any one incident, $300,000 for the death or injury of two or more persons in any one incident, and $20,000 for the damage or destruction of property of another in any one incident; or
(b) In an amount of at least $300,000 for both personal injury or death and the damage or destruction of property.] ; or
(b) Possesses and will continue to possess sufficient means to act as a self-insurer against that liability.
2. Every licensee shall maintain the policy of insurance or self-insurance required by this section. The license of every such licensee is automatically suspended [during any period such coverage is not in effect.] 10 days after receipt by the licensee of notice from the board that the required insurance is not in effect, unless satisfactory proof of insurance is provided to the board within that period.
3. Proof of insurance or self-insurance must be in such a form as the board may require.
Sec. 9.5. NRS 648.140 is hereby amended to read as follows:
648.140 1. Any license obtained pursuant to the provisions of this chapter gives the licensee or any bona fide employee of the licensee authority to engage in the type of business for which he is licensed in any county or city in the State of Nevada . [, subject to county and city ordinances.] A county or city shall not enact ordinances regulating persons licensed pursuant to this chapter, except general business regulations designed to raise revenue or assure compliance with building codes and ordinances or regulations concerning zoning and safety from fire.
2. Except for polygraphic examiners and interns, a licensee may employ, in connection with his business, as many unlicensed persons as may be necessary, but at all times every licensee is accountable for the good conduct of every person employed by him in connection with his business. Each licensee shall furnish the board with the information requested by it concerning all unlicensed employees, except clerical personnel, and shall notify the board within 10 days after such employees begin or terminate their employment.
3. The board may by regulation require that a licensee pay registration fees for each of his unlicensed employees, except clerical employees, and impose such terms and conditions in connection with those fees as it deems appropriate. The registration fee must not exceed $10 for each unlicensed employee.
4. Each licensee shall report quarterly on forms provided by the board the name of each unlicensed employee employed by him at the time of the report and the name of each unlicensed employee who has left his employ since the date of the last quarterly report. The report required by this subsection is in addition to the reports required by subsection 2.
κ1987 Statutes of Nevada, Page 2139 (CHAPTER 789, SB 254)κ
Sec. 10. NRS 648.141 is hereby amended to read as follows:
648.141 [If the] The person on the basis of whose qualifications a license is issued [is absent from this state for a period of 30 consecutive days or ceases to be affiliated with the licensee for any reason, the licensee may continue to operate for such temporary period and under such terms and conditions as the board shall prescribe by regulation.] shall devote not less than 51 percent of his usual business hours per year to the conduct of the licensees business in Nevada.
Sec. 11. NRS 648.160 is hereby amended to read as follows:
648.160 1. The board may, upon its own motion, investigate the actions of any person holding or claiming to hold a license.
2. The board shall, upon the filing with it of a verified written complaint [in writing of] by any person setting forth facts which, if proven, would constitute grounds for refusal, suspension or revocation of a license, investigate the actions of any person holding or claiming to hold a license.
3. The board has the power of subpena in [a hearing before it on a license violation.] any proceeding before the board pursuant to this chapter concerning the activity of an unlicensed person or discipline of a licensee. If any person refuses to respond to a subpena, the board shall certify the facts to the district court of the county where the hearing is being conducted. The court shall thereupon issue an order directing the person to appear before the court and show cause why he should not be punished as for contempt. The order and a copy of the certified statement [shall] must be served on the person. Thereafter the court [shall have] has jurisdiction of the matter. The same proceedings [shall] must be had, the same penalties may be imposed and the person charged may purge himself of the contempt in the same way, as in the case of a person who has committed a contempt in the trial of a civil action.
Sec. 12. NRS 648.181 is hereby amended to read as follows:
648.181 1. The board may apply to any court of competent jurisdiction to enjoin any person who has engaged or is about to engage in any act which violates any provision of this chapter or any regulation adopted [pursuant thereto.] by the board.
2. Such an injunction:
(a) May be issued without proof of actual damage sustained by any person.
(b) Does not preclude criminal prosecution and punishment of a violator.
3. In addition to issuing the injunction, the court may impose a civil penalty not to exceed $10,000 if the person has violated a provision of NRS 648.060.
________
κ1987 Statutes of Nevada, Page 2140κ
Assembly Bill No. 486Committee on Labor and Management
CHAPTER 790
AN ACT relating to the state industrial insurance system; providing for the licensure of employers representatives; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 616 of NRS is hereby amended by adding thereto a new section to read as follows:
1. It is unlawful for any person who is not:
(a) Employed full time by the employer or the employees labor organization;
(b) Admitted to practice law in this state; or
(c) Appearing without compensation on behalf of another,
to represent the employer or employee at hearings of contested cases unless licensed to do so by the commissioner.
2. The commissioner shall adopt regulations which include the:
(a) Requirements for licensure of employers and employees representatives, including:
(1) The registration of each representative; and
(2) The filing of a copy of each written agreement for the compensation of a representative;
(b) Procedure for such licensure; and
(c) Causes for revocation of such a license, including any applicable action listed in NRS 616.647 or a violation of this section.
3. Any person who is employed by or contracts with an employer to represent the employer at hearings regarding contested claims is an agent of the employer. If the employers representative violates any provision of this chapter, the employer is liable for any penalty assessed because of that violation.
4. An employer shall not make the compensation of any person representing him contingent in any manner upon the outcome of any contested claim.
Sec. 2. This act becomes effective on July 1, 1987, for the purposes of adopting regulations, and on January 1, 1988, for all other purposes.
________
κ1987 Statutes of Nevada, Page 2141κ
Assembly Bill No. 872Assemblymen Sedway, Myrna Williams, May, Gaston, Price and Craddock
CHAPTER 791
AN ACT relating to taxation; accelerating the collection of the tax upon the net proceeds of mines; providing for the use by the state of the first accelerated payment as general revenue; authorizing the department of taxation to accept payment of contemplated taxes on the net proceeds of mines before the tax becomes effective; and providing other matters properly relating thereto.
[Approved June 26, 1987]
whereas, This 64th session of the legislature has extensively considered amending the constitution of the State of Nevada to permit taxation of the net proceeds of mines separately from the taxation ad valorem of other property, but any increase of the taxes from this source would not occur during the coming biennium when the need for revenue will be pressing; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 362 of NRS is hereby amended by adding thereto a new section to read as follows:
1. A mine is affected by this section only if the ratio of its net proceeds to its gross yield, calculated from the actual results of its operation for the calendar year preceding the year in which an estimated payment may be required under this section, exceeds 25 percent. This calculation must be made separately for each geographically separate mine.
2. In addition to the statement required by subsection 1 of NRS 362.110, each person who is required to file that statement and who owns, works or operates a mine affected by this section shall, on or before the date when the tax for the preceding calendar year is due, file with the department a statement showing the estimated gross yield and estimated net proceeds from each such mine for the entire current calendar year, and shall pay the tax upon the net proceeds so estimated with his payment of the tax payable for the preceding calendar year. The Nevada tax commission shall, in its certificate required by NRS 362.130, identify each person required by this section to file an estimate. If an estimate is filed, the amount due under the final assessment pursuant to NRS 362.130 is the difference between the total tax established upon the assessment and the sum of the estimated payments made or credited, if any, for that calendar year. If the sum of the estimated payments exceeds the total tax, the taxpayer is entitled to credit the excess against the ensuing estimates or final taxes due until it is exhausted.
Sec. 2. NRS 362.130 is hereby amended to read as follows:
362.130 1. When the department determines the net proceeds of any mine or mines, the Nevada tax commission shall prepare its certificate of the amount of the net proceeds of the mine or mines in triplicate and shall file one copy of the certificate with the department, one copy with the county assessor of the county in which the mine or mines are located, and shall send the third copy to the person, corporation or association which is the owner of the mine, operator of the mine, or recipient of the royalty payment, as the case may be.
κ1987 Statutes of Nevada, Page 2142 (CHAPTER 791, AB 872)κ
one copy of the certificate with the department, one copy with the county assessor of the county in which the mine or mines are located, and shall send the third copy to the person, corporation or association which is the owner of the mine, operator of the mine, or recipient of the royalty payment, as the case may be.
2. Upon the filing of the copy of the certificate with the county assessor and with the department, the assessment must be made in the amount fixed by the certificate of the Nevada tax commission. The certificate of assessment must be filed and mailed not later than June 25 immediately following the month of February during which the statement was filed.
3. The taxes due must be established on June 25 and the assessment must be mailed on or before the first Monday in July. [The] Except as otherwise provided in section 1 of this act, the taxes are due on the date on which the first installment of taxes paid pursuant to NRS 361.483 are due. If [a persons] an appeal of the certification is pending, [he] the person assessed must pay the tax under protest in a timely manner.
Sec. 3. Each county treasurer who receives an estimated payment for the calendar year 1987 shall remit to the state controller for deposit in the state general fund the entire amount of the estimated payments made for that year.
Sec. 4. To provide additional revenue for the state before the process of amending the constitution of the State of Nevada as it concerns the taxation of mines can be accomplished, the department of taxation is authorized to accept from any person, in addition to the payment actually due the appropriate county under the statutes in effect at the time of payment, one or more payments on account of the tax the payer estimates will be due the state if the contemplated amendment to the constitution is adopted. Any payment so made and accepted must be deposited in the state treasury to the credit of the state general fund.
Sec. 5. The amount of each payment so made must be recorded separately by the department, but the taxpayer is entitled to credit for that amount only:
1. In the fiscal year 1992-1993 or thereafter;
2. If the total revenue accepted by the department of taxation pursuant to section 4 of this act as payments on account of the tax the payer estimates will be due the state if the contemplated amendment to the constitution is adopted is $10,500,000 or more for the fiscal year 1988-1989;
3. If the total revenue from the tax on the net proceeds of mines in the year when the credit is claimed exceeds $50,000,000; and
4. To the extent in any one fiscal year of 10 percent of the credit available on July 1, 1992.
Sec. 6. If the proposed constitutional amendment is not agreed to by the 65th session of the legislature or is not approved by a vote of the people, any amount paid pursuant to section 4 of this act and all accrued interest and income earned on that money shall be deemed a gift to the state and is thereafter not refundable and must not be credited against any tax liability of the person making the payment.
κ1987 Statutes of Nevada, Page 2143 (CHAPTER 791, AB 872)κ
Sec. 7. 1. This section and sections 1, 2 and 3 of this act become effective on July 1, 1987.
2. Sections 4, 5 and 6 of this act become effective on July 1, 1987, if and only if this legislature has proposed an amendment to the constitution of the State of Nevada which would permit a tax limited to the net proceeds of mines but at a rate different from other taxes ad valorem. Sections 4, 5 and 6 of this act expire by limitation:
(a) On July 1, 1992, for the purpose of authorizing the acceptance of payments in addition to those legally due; and
(b) For all other purposes, upon the exhaustion of the last of any credits due to any taxpayer under this act.
________
Assembly Bill No. 432Assemblymen Sader, Thompson, Sedway, Evans, Craddock, Nevin, Freeman, Kissam, Gaston, Schofield, Porter, Myrna Williams, Wendell Williams, Fay, Wisdom, Triggs, Swain, Price, Garner, Haller, Callister, Spinello, Arberry, Dini, May, Thomas, Carpenter, Adler, Getto, Brookman, Kerns, Tebbs, Spriggs and Marvel
CHAPTER 792
AN ACT relating to elections; authorizing a person to register to vote when he applies for a drivers license or identification card or to register a motor vehicle; making an appropriation; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 293 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The department of motor vehicles and public safety shall inquire of each qualified elector who applies in person to register a motor vehicle, for the issuance, renewal or correction of any type of drivers license or for an identification card whether he desires to complete an application to register to vote by use of a single form containing the necessary information required by this chapter and subsection 2.
2. If the elector desires to complete an application for registration, he shall complete and sign an affidavit containing the following statement: I ................................, do solemnly swear (or affirm) under penalty of perjury that I am a citizen of the United States and that on the date of the next ensuing election I will have attained the age of 18 years and will have continuously resided in the State of Nevada, county of .........................., at least 30 days and in my precinct at least 10 days before the next preceding election. I further swear (or affirm) under penalty of perjury that the present address I listed herein is my sole legal place of residence and that I claim no other place as may legal residence.
κ1987 Statutes of Nevada, Page 2144 (CHAPTER 792, AB 432)κ
the present address I listed herein is my sole legal place of residence and that I claim no other place as may legal residence.
3. For the purposes of this section, each employee specifically authorized to do so by the director of the department may oversee the completion of the affidavit and application. The authorized employee shall check the application for completeness and verify the information required by the affidavit of registration. The authorized employee shall stamp the application for registration to validate it and shall provide the applicant with a receipt verifying the submission of the application. The department shall, except as otherwise provided in this subsection, forward each such application on a weekly basis to the county clerk or, if applicable, to the registrar of voters of the county in which the applicant resides. During the 2 weeks immediately preceding the close of registration for an election the applications must be forwarded daily.
4. Upon receipt of such an application, the county clerk or registrar of voters shall determine whether the application is complete. If he determines that the application is complete, the applicant shall be deemed registered as of the date of the submission of the application. If he determines that the application is not complete, he shall notify the applicant by mail at the mailing address stated on the application of the additional information required. The applicant shall be deemed registered as of the date of the initial submission of the application if the additional information is provided before the close of registration. If the applicant has not provided the additional information before the close of registration, the incomplete application is void.
5. The secretary of state shall, with the approval of the director of the department of motor vehicles and public safety, adopt regulations which:
(a) Establish any procedure necessary to provide an elector who applies to register to vote pursuant to this section the opportunity to do so;
(b) Provide for the form of the application of registration to be used by the department of motor vehicles and public safety; and
(c) Provide for the transfer of the completed applications of registration from the department of motor vehicles and public safety to the appropriate county clerk or registrar of voters for inclusion in the election board registers and registrar of voters register.
Sec. 2. NRS 482.215 is hereby amended to read as follows:
482.215 1. All applications for registration, except applications for renewal of registration, must be made as provided in this section.
2. Applications for all registrations, except renewals of registration, must be made in person, if practicable, to any office or agent of the department.
3. Each application must be made upon the appropriate form furnished by the department and contain:
(a) The signature of the owner.
(b) His residential address.
(c) His declaration of the county where he intends the vehicle to be based, unless the vehicle is deemed to have no base. The department shall use this declaration to determine the county to which the privilege tax is to be paid.
κ1987 Statutes of Nevada, Page 2145 (CHAPTER 792, AB 432)κ
use this declaration to determine the county to which the privilege tax is to be paid.
(d) A brief description of the vehicle to be registered, including the name of the maker, the engine, identification or serial number, whether new or used, and the last license number, if known, and the state in which issued, and upon the registration of a new vehicle, the date of sale by the manufacturer or franchised and licensed dealer in this state for the make to be registered to the person first purchasing or operating the vehicle.
(e) Proof satisfactory to the department that the applicant has provided the security required by NRS 485.185 and his signed declaration that he will maintain the security during the period of registration.
(f) If the security is provided by a contract of insurance, the insurer shall provide evidence of that insurance on a form approved by the commissioner of insurance, which identifies the vehicle and indicates, at the time of application for registration, coverage which meets the requirements of NRS 485.185. The department may file that evidence, return it to the applicant or otherwise dispose of it.
(g) If required, evidence of the applicants compliance with controls over emission.
4. The application must contain each other information as may be required by the department, and must be accompanied by proof of ownership satisfactory to the department.
5. For purposes of the proof, declaration and evidence required by paragraphs (e) and (f) of subsection 3:
(a) Vehicles which are subject to the fee for a license and the requirements of registration of the Interstate Highway User Fee Apportionment Act, and which are based in this state, may be declared as a fleet by the registered owner thereof, on his original application for or application for renewal of a proportional registration. The owner may file a single certificate of insurance covering that fleet.
(b) Other fleets composed of [ten] 10 or more vehicles based in this state or vehicles insured under a blanket policy which does not identify individual vehicles may each be declared annually as a fleet by the registered owner thereof for the purposes of an application for his original or any renewed registration. The owner may file a single certificate of insurance covering that fleet.
(c) A person who qualifies as a self-insurer pursuant to NRS 485.380 may file a copy of his certificate of self-insurance.
(d) A person who qualifies for an operators policy of liability insurance pursuant to NRS 485.3091 and section 8 of [this act] Assembly Bill No. 118 of this session may file evidence of that insurance.
6. At the time of applying for registration of a vehicle, an applicant may, if eligible, register to vote pursuant to section 1 of this act.
Sec. 3. NRS 482.280 is hereby amended to read as follows:
482.280 1. The registration of every vehicle expires at midnight on the day specified on the receipt of registration. The department shall mail to each holder of a valid certificate of registration an application for renewal of registration for the following period of registration.
κ1987 Statutes of Nevada, Page 2146 (CHAPTER 792, AB 432)κ
each holder of a valid certificate of registration an application for renewal of registration for the following period of registration. The applications must be mailed by the department in sufficient time to allow all applicants to mail the applications to the department and to receive new certificates of registration and license plates, stickers, tabs or other suitable devices by mail before the expiration of their registrations. An applicant may present the application to any agent or office of the department.
2. An application mailed or presented to the department or to a county assessor under the provisions of this section must include:
(a) A signed declaration by the applicant that he has and will maintain, during the period of registration, security as required by NRS 485.185. Security may be provided by an operators policy of liability insurance if the applicant and the policy meet the requirements of NRS 485.3091 and section 8 of [this act.] Assembly Bill No. 118 of this session.
(b) If required, evidence of compliance with standards for control of emissions.
3. The department shall insert in each application mailed pursuant to subsection 1 the amount of privilege tax to be collected for the county under the provisions of NRS 482.260.
4. An owner who has made proper application for renewal of registration before the expiration of the current registration but who has not received the license plate or plates or card of registration for the ensuing period of registration is entitled to operate or permit the operation of that vehicle upon the highways upon displaying thereon the license plate or plates issued for the preceding period of registration for such a time as may be prescribed by the department as it may find necessary for the issuance of the new plate or plates or card of registration.
5. At the time of applying for renewal of registration of a vehicle, an applicant may, if eligible, register to vote pursuant to section 1 of this act.
Sec. 4. NRS 483.290 is hereby amended to read as follows:
483.290 1. Every application for an instruction permit or for a drivers license must:
(a) Be made upon a form furnished by the department.
(b) Be verified by the applicant before a person authorized to administer oaths. Officers and employees of the department are hereby authorized to administer such oaths without charge.
(c) Be accompanied by the required fee.
(d) State the full name, date of birth, sex, and residence address of the applicant and briefly describe the applicant.
(e) State whether the applicant has theretofore been licensed as a driver, and, if so, when and by what state or country, and whether any such license has ever been suspended or revoked, or whether an application has ever been refused, and, if so, the date of and reason for [such] the suspension, revocation or refusal.
(f) Include such other information as the department may require to determine the applicants competency and eligibility.
κ1987 Statutes of Nevada, Page 2147 (CHAPTER 792, AB 432)κ
2. Every applicant shall furnish proof of his age by displaying:
(a) If the applicant was born in the United States, a birth certificate, baptismal certificate or other proof acceptable to the department, including, but not limited to, a drivers license issued by another state or the District of Columbia; or
(b) If the applicant was born outside the United States, a Certificate of Citizenship, Certificate of Naturalization, Arrival-Departure Record, Alien Registration Receipt Card, United States Citizen Identification Card or Letter of Authorization issued by the Immigration and Naturalization Service of the United States Department of Justice, a Report of Birth Abroad of a United States Citizen Child issued by the Department of State, a drivers license issued by another state or the District of Columbia, or a passport.
3. At the time of applying for a drivers license, an applicant may, if eligible, register to vote pursuant to section 1 of this act.
Sec. 5. NRS 483.850 is hereby amended to read as follows:
483.850 1. Every application for an identification card must be made upon a form provided by the department and include:
(a) The applicants full name.
(b) His social security number, if any.
(c) His date of birth.
(d) His state of legal residence.
(e) His current address.
(f) A statement that he does not possess a valid Nevada drivers license.
2. When the form is completed, the applicant shall sign the form and verity the contents before a person authorized to administer oaths.
3. At the time of applying for an identification card, an applicant may, if eligible, register to vote pursuant to section 1 of this act.
Sec. 6. 1. There is hereby appropriated from the state general fund to the Department of Motor Vehicles and Public Safety for the cost of registering voters pursuant to section 1 of this act:
For the fiscal year 1987-88 ....................................................................... $28,205
For the fiscal year 1988-89 ....................................................................... 28,205
2. Any remaining balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 7. This act expires by limitation on July 1, 1989.
Sec. 8. Sections 2 and 3 of this act become effective at 12:01 a.m. on July 1, 1987.
________
κ1987 Statutes of Nevada, Page 2148κ
Assembly Bill No. 663Committee on Labor and Management
CHAPTER 793
AN ACT relating to industrial insurance; revising provisions governing the regulation of fees and charges for certain benefits provided through the state industrial insurance system and self-insured employers; authorizing certain contracts for the exclusive provision of services and goods to injured employees; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 616 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 2, an insurer may contract with suppliers to provide services and goods to injured employees. Such contracts may provide for the exclusive provision of specified services or goods to injured employees.
2. An insurer shall not enter into any exclusive agreement or contract pursuant to subsection 1:
(a) With any physician or chiropractor to provide primary care for an injured employee;
(b) With any hospital for general care for patients acutely ill; or
(c) Which would restrict the ability of an injured employee to choose a treating physician or chiropractor pursuant to NRS 616.342.
Sec. 2. NRS 616.412 is hereby amended to read as follows:
616.412 1. All fees and charges for accident benefits are subject to regulation by the department and must not:
(a) Exceed [such] the fees and charges [as prevail] usually paid in the [same community] state for similar treatment . [of injured persons.]
(b) Be unfairly discriminatory as between persons legally qualified to provide the particular service for which the fees or charges are asked.
2. [If the department adopts a schedule of allowable fees and charges, each must be set at the median in a statistical sample of the fees and charges billed in the same community for similar treatment of any injured persons in similar facilities. The schedule must be revised at least annually.] The director shall, giving consideration to the fees and charges being paid in the state, establish a schedule of reasonable fees and charges allowable for accident benefits. The director shall review and revise the schedule annually and shall not increase the schedule by any factor greater than the corresponding annual increase in the Consumer Price Index (Medical Care Component).
3. The director may request a health insurer, health maintenance organization or provider of accident benefits, an agent or employee of such a person, or an agency of the state, to provide the director with such information concerning fees and charges paid for similar services as he deems necessary to carry out the provisions of subsections 1 and 2.
κ1987 Statutes of Nevada, Page 2149 (CHAPTER 793, AB 663)κ
deems necessary to carry out the provisions of subsections 1 and 2. The director shall not require any person to record or report his fees or charges in a manner inconsistent with the persons own system of records. The director may require a person or entity providing records or reports of fees charged to provide interpretation and identification concerning the information delivered. The director may impose an administrative fine of $500 for each refusal to provide the information requested pursuant to this subsection.
4. The department may adopt reasonable regulations necessary to carry out the provisions of this section.
[4. For the purposes of this section: (a) Clark County comprises one community;
(b) Washoe and Douglas counties and Carson City comprise one community; and
(c) Together, the remaining counties in the state comprise one community.]
________
Assembly Bill No. 457Committee on Judiciary
CHAPTER 794
AN ACT relating to securities; adopting the Uniform Securities Act for the regulation of securities and the licensing of persons who deal in securities; providing penalties; and providing other matters properly relating thereto.
[Approved June 26, 1987]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 90 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 77, inclusive, of this act.
Sec. 2. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 to 21, inclusive, of this act, have the meanings ascribed to them in those sections.
Sec. 3. Administrator means the administrator of the division.
Sec. 4. Broker-dealer means any person engaged in the business of effecting transactions in securities for the account of others or for his own account. Broker-dealer does not include:
1. A sales representative;
2. An issuer, except when effecting transactions other than with respect to its own securities;
3. A depository institution; or
4. Any other person the administrator by regulation or order designates.
Sec. 5. 1. Depository institution means:
(a) A person that is organized, chartered or holding an authorization certificate under the laws of a state or of the United States which authorizes the person to receive deposits, including a savings, share, certificate or deposit account, and that is supervised and examined for the protection of depositors by an official or agency of a state or the United States; and
κ1987 Statutes of Nevada, Page 2150 (CHAPTER 794, AB 457)κ
the person to receive deposits, including a savings, share, certificate or deposit account, and that is supervised and examined for the protection of depositors by an official or agency of a state or the United States; and
(b) A trust company or other institution that is authorized by federal or state law to exercise fiduciary powers of the type a national bank is permitted to exercise under the authority of the comptroller of the currency and is supervised and examined by an official or agency of a state or the United States.
2. Depository institution does not include an insurance company or other organization primarily engaged in the insurance business or a Morris Plan bank, industrial loan company, or a similar bank or company unless its deposits are insured by a federal agency.
Sec. 6. Division means the securities division of the office of the secretary of state.
Sec. 7. Filing means the actual delivery of a document or application to the administrator or his designee or to the principal office of the administrator. File has a corresponding meaning.
Sec. 8. Financial or institutional investor means any of the following, whether acting for itself or others in a fiduciary capacity other than as an agent:
1. A depository institution;
2. An insurance company;
3. A separate account of an insurance company;
4. An investment company as defined in the Investment Company Act of 1940;
5. An employee pension, profit-sharing, or benefit plan if the plan has total assets in excess of $5,000,000 or its investment decisions are made by a named fiduciary, as defined in the Employee Retirement Income Security Act of 1974, that is either a broker-dealer registered under the Securities Exchange Act of 1934, an investment adviser registered or exempt from registration under the Investment Advisers Act of 1940, a depository institution, or an insurance company; and
6. Any other institutional buyer.
Sec. 9. Fraud, deceit and defraud are not limited to common-law fraud or deceit.
Sec. 10. Investment adviser means any person who, for compensation, engages in the business of advising others as to the value of securities or as to the advisability of investing in, purchasing or selling securities, or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. The term does not include:
1. An employee of an adviser;
2. A depository institution;
3. A lawyer, accountant, engineer or teacher whose performance of investment advisory services is solely incidental to the practice of his profession;
4. A broker-dealer whose performance of investment advisory services is solely incidental to the conduct of business as a broker-dealer and who receives no special compensation for the investment advisory services;
κ1987 Statutes of Nevada, Page 2151 (CHAPTER 794, AB 457)κ
solely incidental to the conduct of business as a broker-dealer and who receives no special compensation for the investment advisory services;
5. A publisher, employee or columnist of a newspaper, news magazine or business or financial publication, or an owner, operator, producer or employee of a cable, radio or television network, station or production facility if, in either case, the financial or business news published or disseminated is made available to the general public and the content does not consist of rendering advice on the basis of the specific investment situation of each client;
6. A person whose advice, analyses or reports relate only to securities exempt under paragraph (a) of subsection 2 of section 43 of this act; or
7. Any other person the administrator by regulation or order designates.
Sec. 11. Issuer means a person who issues or proposes to issue a security, except that:
1. The issuer of a collateral trust certificate, voting trust certificate, certificate of deposit for a security or share in an investment company without a board of directors or persons performing similar functions, is the person or persons performing the acts and assuming the duties of depositor or manager pursuant to the provisions of the trust or other agreement or instrument under which the security is issued;
2. The issuer of an equipment trust certificate, including a conditional sales contract, or similar security serving the same purpose, is the person to whom the equipment or property is or is to be leased or conditionally sold; and
3. The issuer of a fractional undivided interest in an oil, gas or other mineral lease or in payments out of production under such a lease, right or royalty is the owner of an interest in the lease or in payments out of such production, whether whole or fractional, who creates fractional interests for the purpose of sale.
Sec. 12. Nonissuer transaction means a transaction not directly or indirectly for the benefit of the issuer.
Sec. 13. Person includes a government, governmental agency or political subdivision of a government.
Sec. 14. Price amendment means the amendment to a registration statement filed under the Securities Act of 1933 or, if no amendment is filed, the prospectus or prospectus supplement filed under the Securities Act of 1933, which includes a statement of the offering price, underwriting and selling discounts or commissions, amount of proceeds, conversion rates, call prices and other matters dependent upon the offering price.
Sec. 15. Promoter includes:
1. A person who, acting alone or in concert with one or more other persons, takes the entrepreneurial initiative in founding or organizing the business or enterprise of an issuer;
2. An officer or director who owns any securities of an issuer or any person who owns, beneficially or of record, 10 percent or more of any class of securities of the issuer if the officer, director or other person acquires any of those securities within 3 years before the issuer files a registration under this chapter in a transaction which does not possess the indicia of bargaining at arms length; and
κ1987 Statutes of Nevada, Page 2152 (CHAPTER 794, AB 457)κ
this chapter in a transaction which does not possess the indicia of bargaining at arms length; and
3. A member of the immediate family of a person within subsection 1 or 2 if the member received the securities in a transaction which does not possess the indicia of bargaining at arms length.
Sec. 16. Sale includes every contract of sale, contract to sell, or other disposition, of a security or interest in a security for value. Sell has a corresponding meaning. In this context:
1. Offer to sell includes every attempt or offer to dispose of, or solicitation of an offer to purchase, a security or interest in a security for value.
2. Offer to purchase includes every attempt or offer to obtain, or solicitation of an offer to sell, a security or interest in a security for value, but the term does not include a transaction that is subject to section 14(d) of the Securities Exchange Act of 1934.
3. A security given or delivered with, or as a bonus on account of, a purchase of securities or other item is considered to constitute a part of the subject of the purchase and to have been offered for sale and sold for value.
4. A gift of assessable stock is deemed to involve an offer and sale.
5. A sale or offer of a warrant or right to purchase or subscribe to another security of the same or another issuer, or a sale or offer of a security that gives the holder a present or future right or privilege to convert into another security of the same of another issuer, is deemed to include an offer of the other security.
6. The terms defined in this subsection do not include:
(a) The creation of a security interest or a loan;
(b) A stock dividend, whether the corporation distributing the dividend is the issuer of the stock or not, if nothing of value is given by the stockholders for the dividend other than the surrender of a right to a cash or property dividend and each stockholder may elect to take the dividend in cash, property or stock; or
(c) An act incident to a judicially approved reorganization in which a security is issued in exchange for one or more outstanding securities, claims or property interests, or partly in exchange and partly for cash.
Sec. 17. Sales representative means a natural person other than a broker-dealer, authorized to act and acting for a broker-dealer or issuer effecting or attempting to effect purchases or sales of securities. A partner, officer or director of a broker-dealer or issuer, or a person occupying a similar status or performing similar functions, is a sales representative only if he otherwise comes within the definition.
Sec. 18. Securities Act of 1933, Securities Exchange Act of 1934, Public Utility Holding Company Act of 1935, Investment Company Act of 1940, Investment Advisers Act of 1940, Employees Retirement Income Security Act of 1974, National Housing Act and Commodity Exchange Act mean the federal statutes of those names as amended.
Sec. 19. Security means a note, stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in a profit-sharing agreement, a limited partnership interest, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in an oil, gas or other mineral lease or in payments out of production of such a lease, right or royalty, a put, call, straddle or option on a security, certificate of deposit or group or index of securities including any interest therein or based on the value of any of the foregoing, or, in general, any interest or instrument commonly known as a security or any certificate of interest or participation in, temporary or interim certificate for, receipt for, whole or partial guarantee of or warrant or right to subscribe to or purchase any of the foregoing.
κ1987 Statutes of Nevada, Page 2153 (CHAPTER 794, AB 457)κ
agreement, a limited partnership interest, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in an oil, gas or other mineral lease or in payments out of production of such a lease, right or royalty, a put, call, straddle or option on a security, certificate of deposit or group or index of securities including any interest therein or based on the value of any of the foregoing, or, in general, any interest or instrument commonly known as a security or any certificate of interest or participation in, temporary or interim certificate for, receipt for, whole or partial guarantee of or warrant or right to subscribe to or purchase any of the foregoing. The term does not include:
1. An insurance or endowment policy or annuity contract under which an insurance company promises to pay a fixed sum of money either in a lump sum or periodically for life or some other specified period; or
2. An interest in a contributory or noncontributory pension or welfare plan subject to the Employee Retirement Income Security Act of 1974.
Sec. 20. Self-regulatory organization means a national securities exchange registered under section 6 of the Securities Exchange Act of 1934, a national association of brokers and dealers registered under section 15A of the Securities Exchange Act of 1934, a clearing agency registered under section 17A of the Securities Exchange Act of 1934, the Municipal Securities Rulemaking Board established under section 15B(b)(1) of the Securities Exchange Act of 1934 or section 21 of the Commodity Exchange Act.
Sec. 21. State means a state, commonwealth, territory or possession of the United States, the District of Columbia or the commonwealth of Puerto Rico.
Sec. 22. 1. It is unlawful for any person to transact business in this state as a broker-dealer or sales representative unless licensed or exempt from licensing under this chapter.
2. It is unlawful for any issuer of any broker-dealer licensed under this chapter to employ or contract with a person as a sales representative within this state unless the sales representative is licensed or exempt form licensing under this chapter.
3. It is unlawful for a broker-dealer or an issuer engaged in offering securities in this state to employ or contract with, in connection with any of the broker-dealers or issuers activities in this state, any person who is suspended or barred from association with a broker-dealer or investment adviser by the administrator. A broker-dealer or issuer does not violate this subsection unless he knows or in the exercise of reasonable care should know of the suspension or bar. Upon request from a broker-dealer or issuer, and for good cause shown, the administrator by order may waive the prohibition of this subsection with respect to a particular person who has been suspended or barred.
Sec. 23. 1. The following broker-dealers are exempt from licensing under section 22 of this act:
κ1987 Statutes of Nevada, Page 2154 (CHAPTER 794, AB 457)κ
(a) A broker-dealer who is registered or, except as provided in subsection 2, is not required to be registered under the Securities Exchange Act of 1934 and who has no place of business in this state if:
(1) The transactions effected by the broker-dealer in this state are exclusively with the issuer of the securities involved in the transactions, other broker-dealers licensed or exempt under this chapter, and financial or institutional investors;
(2) The broker-dealer is licensed under the securities laws of a state in which he maintains a place of business and he offers and sells in this state to a person who is an existing customer of the broker-dealer and whose principal place of residence is not in this state; or
(3) The broker-dealer is licensed under the securities laws of a state in which he maintains a place of business and during any 12 consecutive months he does not effect more than 15 transactions with persons in this state in addition to the transactions with the issuers of the securities involved in the transactions, financial or institutional investors, or broker-dealers, whether or not the offeror or an offeree is then present in this state.
(b) Other broker-dealers the administrator by regulation or order exempts.
2. The following sales representatives are exempt from licensing under section 22 of this act:
(a) A sales representative acting for a broker-dealer exempt under subsection 1;
(b) A sales representative acting for an issuer in effecting transactions in a security exempted by paragraphs (a), (b), (c), (d), (l), (m) and (n) of subsection 2 of section 43 of this act;
(c) A sales representative acting for an issuer in effecting offers or sales of securities in transactions exempted by section 44 of this act;
(d) A sales representative acting for an issuer effecting transactions with employees, partners, officers or directors of the issuer, a parent or a wholly owned subsidiary of the issuer, if no commission or other similar compensation is paid or given directly or indirectly to the sales representative for soliciting an employee, partner, officer or director in this state; and
(e) Other sales representatives the administrator by regulation or order exempts.
Sec. 24. 1. It is unlawful for any person to transact business in this state as an investment adviser unless licensed or exempt from licensing under this chapter.
2. It is unlawful for an investment adviser to employ, to engage in any activity in this state, any person who is suspended or barred from association with a broker-dealer or investment adviser by the administrator. An investment adviser does not violate this subsection unless the investment adviser knows or in the exercise of reasonable care should know of the suspension or bar. Upon request from an investment adviser and for good cause shown, the administrator, by order, may waive the prohibition of this subsection with respect to a person suspended or barred.
κ1987 Statutes of Nevada, Page 2155 (CHAPTER 794, AB 457)κ
Sec. 25. The following investment advisers are exempt from licensing under section 24 of this act:
1. An investment adviser who is registered or is not required to be registered as an investment adviser under the Investment Advisers Act of 1940 if:
(a) Its only clients in this state are other investment advisers, broker-dealers or financial or institutional investors;
(b) The investment adviser has no place of business in this state and directs business communications in this state to a person who is an existing client of the investment adviser and whose principal place of residence is not in this state; or
(c) The investment adviser has no place of business in this state and during any 12 consecutive months it does not direct business communications in this state to more than five present or prospective clients other than those specified in paragraph (a) of this subsection, whether or not the person or client to whom the communication is directed is present in this state; and
2. Other investment advisers the administrator by regulation or order exempts.
Sec. 26. 1. An applicant for licensing as a broker-dealer, sales representative or investment adviser shall file with the administrator an application for licensing and a consent to service of process pursuant to section 68 of this act and pay the fee required by section 27 of this act. The application for licensing must contain the information the director determines by regulation to be necessary and appropriate to facilitate the administration of this chapter.
2. The requirements of subsection 1 are satisfied by an applicant who has filed and maintains a completed and current registration with the Securities and Exchange Commission or a self-regulatory organization if the information contained in that registration is readily available to the administrator through a central depository system approved by him. Such an applicant must also file a notice with the administrator in the form and content determined by the administrator by regulation and a consent to service of process pursuant to section 68 of this act and the fee required by section 27 of this act. The administrator, by order, may require the submission of additional information by an applicant.
Sec. 27. 1. An applicant for licensing shall pay a licensing fee, due annually in the following amounts:
(a) Broker-dealer, $150.
(b) Sales representative, $50.
(c) Investment adviser, $150.
2. The administrator by regulation may require licensing of branch offices and impose a fee for the licensing and an annual fee.
3. For the purpose of this section, a branch office means any place of business in this state other than the principal office in the state of the broker-dealer, from which one or more sales representatives transact business.
κ1987 Statutes of Nevada, Page 2156 (CHAPTER 794, AB 457)κ
Sec. 28. 1. The administrator by regulation or order may require an examination of an applicant applying for licensing under this chapter, a class of applicants, or a class of persons who will represent an investment adviser in performing an act that requires licensing as an investment adviser in this state.
2. Any examination required must be administered by the administrator or his designee. Examinations may be oral or written, or both, and may differ for each class of applicants.
3. The administrator by order may waive any examination requirement imposed pursuant to subsection 1 as to any person or class of persons if he determines that an examination is not necessary for the protection of investors by reason of the training and experience of the applicant or class of applicants.
Sec. 29. 1. Unless a proceeding under section 33 of this act has been instituted, the license of any broker-dealer, sales representative or investment adviser becomes effective 30 days after an application for licensing has been filed and is complete, including any amendment, if all requirements imposed pursuant to section 28 of this act have been satisfied. An application or amendment is complete when the applicant has furnished information responsive to each applicable item of the application. The administrator may by order authorize an earlier effective date of licensing.
2. The license of a broker-dealer, sales representative or investment adviser is effective until terminated by revocation, suspension, expiration or withdrawal.
3. The license of a sales representative is only effective with respect to transactions effected on behalf of the broker-dealer or issuer for whom the sales representative is licensed.
4. A person shall not at any one time act as a sales representative for more than one broker-dealer or for more than one issuer, unless the administrator by regulation or order authorizes multiple licenses.
5. If a person licensed as a sales representative terminates association with a broker-dealer or issuer or ceases to be a sales representative, the sales representative and the broker-dealer or issuer on whose behalf the sales representative was acting shall promptly notify the administrator.
6. The administrator by regulation may authorize one or more special classifications of licenses as a broker-dealer, sales representative or investment adviser to be issued to applicants subject to limitations and conditions on the nature of the activities that may be conducted by persons so licensed.
Sec. 30. 1. The administrator by regulation may require that:
(a) A licensed broker-dealer who is not registered under the Securities Exchange Act of 1934 maintain minimum net capital and a prescribed ratio between net capital and aggregate indebtedness, which may vary with type or class of broker-dealer; or
(b) A licensed investment adviser who is not registered under the Investment Adviser Act of 1940 maintain a minimum net worth.
κ1987 Statutes of Nevada, Page 2157 (CHAPTER 794, AB 457)κ
2. If a licensed broker-dealer or investment adviser knows, or has reasonable cause to know, that a requirement imposed on it under this section is not being met, the broker-dealer or investment adviser shall promptly notify the administrator of its current financial condition.
3. The administrator by regulation may require a fidelity bond from a broker-dealer who is not registered under the Securities Exchange Act of 1934.
4. A licensed broker-dealer or investment adviser shall file financial and other reports that the administrator determines by regulation or order are necessary, but filing a copy of the financial reports filed under the Securities and Act of 1934, in the case of a broker-dealer, or the Investment Advisers Act of 1940, in the case of an investment adviser, satisfies the requirements regarding the filing of financial reports pursuant to this subsection.
5. A licensed broker-dealer, sales representative or investment adviser shall make and maintain records that the administrator determines by regulation are necessary and appropriate, but compliance with the recordkeeping requirements of the Securities and Exchange Act of 1934, in the case of a broker-dealer, or the Investment Advisers Act of 1940, in the case of an investment adviser, satisfies the requirements of this subsection.
6. Required records may be maintained in any form of data storage if they are readily accessible to the administrator. Required records must be preserved for 5 years unless the administrator by regulation specifies a different period for a particular type or class of records.
7. If the information contained in a document filed with the administrator as part of the application for licensing or under the section, except information the administrator by regulation or order excludes, is or becomes inaccurate or incomplete in a material respect, the licensed person shall promptly file correcting information, unless notification of termination has been given under subsection 5 of section 29 of this act.
Sec. 31. 1. A licensed broker-dealer or investment adviser may file an application for licensing of a successor, whether or not the successor is then in existence, if the fee the administrator prescribes for the application is submitted with the application.
2. If a broker-dealer or investment adviser succeeds to and continues the business of a licensed broker-dealer or investment adviser and the successor files an application for licensing within 30 days after the succession, the license of the predecessor remains effective as the license of the successor for 60 days after the succession.
3. Licensing of each licensed sales representative of the broker-dealer filing an application under subsection 1 or 2 continues without a separate filing or fee upon the licensing of the successor.
Sec. 32. 1. The administrator, without previous notice, may examine in a manner reasonable under the circumstances the records, within or without this state, of a licensed broker-dealer, sales representative or investment adviser in order to determine compliance with this chapter. Broker-dealers, sales representatives and investment advisers shall make their records available to the administrator in legible form.
κ1987 Statutes of Nevada, Page 2158 (CHAPTER 794, AB 457)κ
sales representatives and investment advisers shall make their records available to the administrator in legible form.
2. The administrator may copy records or require a licensed person to copy records and provide the copies to the administrator to the extent and in a manner reasonable under the circumstances.
3. The administrator by regulation may impose a reasonable fee for the expense of conducting an examination under this section.
Sec. 33. 1. The administrator by order may deny, suspend or revoke any license, fine any licensed person, limit the activities governed by this chapter that an applicant or licensed person may perform in this state, bar an applicant or licensed person from association with a licensed broker-dealer or investment adviser or bar from employment with a licensed broker-dealer or investment adviser a person who is a partner, officer, director or a person occupying a similar status or performing a similar function for an applicant or licensed person if the administrator finds that the order is in the public interest and that the applicant or licensed person or, in the case of a broker-dealer or investment adviser, any partner, officer, director or person occupying a similar status or performing similar functions or any person directly or indirectly controlling the broker-dealer or investment adviser:
(a) Has filed an application for licensing with the administrator which, as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in a material respect or contained a statement that was, in light of the circumstances under which it was made, false or misleading with respect to a material fact;
(b) Has violated or failed to comply with a provision of this chapter as now or formerly in effect or a regulation or order under this chapter;
(c) Is the subject of an adjudication or determination after notice and opportunity for hearing, within the last 5 years by a securities agency or administrator of another state or a court of competent jurisdiction that the person has violated the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act or the securities law of any other state, but only if the acts constituting the violation of that states law would constitute a violation of this chapter had the acts taken place in this state;
(d) Within the last 10 years has been convicted of a felony or misdemeanor which the administrator finds:
(1) Involves the purchase or sale of a security, taking a false oath, making a false report, bribery, perjury, burglary, robbery or conspiracy to commit any of the foregoing offenses;
(2) Arises out of the conduct of business as a broker-dealer, investment adviser, depository institution, insurance company or fiduciary; or
(3) Involves the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion or misappropriation of money or securities or conspiracy to commit any of the foregoing offenses;
(e) Is permanently or temporarily enjoined by any court of competent jurisdiction from acting as an investment adviser, underwriter, broker-dealer or as an affiliated person or employee of an investment company, depository institution or insurance company or from engaging in or continuing any conduct or practice in connection with any of the foregoing activities or in connection with the purchase or sale of a security;
κ1987 Statutes of Nevada, Page 2159 (CHAPTER 794, AB 457)κ
or as an affiliated person or employee of an investment company, depository institution or insurance company or from engaging in or continuing any conduct or practice in connection with any of the foregoing activities or in connection with the purchase or sale of a security;
(f) Is the subject of an order of the administrator denying, suspending or revoking his license as a broker-dealer, sales representative or investment adviser;
(g) Is the subject of any of the following orders which are currently effective and were issued within the last 5 years:
(1) An order by the securities agency or administrator of another state, Canadian province or territory or by the securities and exchange commission, entered after notice and opportunity for hearing, denying, suspending or revoking the persons license as a broker-dealer, sales representative or investment adviser;
(2) A suspension or expulsion from membership in or association with a member of a self-regulatory organization;
(3) An order of the United States Postal Service relating to fraud;
(4) An order to cease and desist entered after notice and opportunity for hearing by the administrator, the securities agency or administrator of another state, Canadian province or territory, the Securities and Exchange Commission or the Commodity Futures Trading Commission; or
(5) An order by the Commodities Futures Trading Commission denying, suspending or revoking registration under the Commodity Exchange Act;
(h) Has engaged in unethical or dishonest practices in the securities business;
(i) Is insolvent, either in the sense that liabilities exceed assets or in the sense that obligations cannot be met as they mature, but the administrator may not enter an order against a broker-dealer or investment adviser under this subparagraph without a finding of insolvency as to the broker-dealer or investment adviser;
(j) Is determined by the administrator in compliance with section 34 of this act not to be qualified on the basis of lack of training, experience and knowledge of the securities business;
(k) Has failed reasonably to supervise a sales representative or employee; or
(l) Has failed to pay the proper registration fee within 30 days after being notified by the administrator of a deficiency, but the administrator shall vacate an order under this paragraph when the deficiency is corrected.
2. The administrator may not institute a proceeding on the basis of a fact or transaction known to the director when the license became effective unless the proceeding is instituted within 90 days after issuance of the license.
3. If the administrator finds that an applicant or licensed person is no longer in existence or has ceased to do business as a broker-dealer, sales representative or investment adviser or is adjudicated mentally incompetent or subjected to the control of a committee, conservator or guardian or cannot be located after reasonable search, the administrator may by order deny the application or revoke the license.
κ1987 Statutes of Nevada, Page 2160 (CHAPTER 794, AB 457)κ
Sec. 34. The administrators determination that an applicant or licensed person lacks qualification under section 33 of this act is limited by the following provisions:
1. The administrator may not enter an order against a broker-dealer because of the lack of qualification of:
(a) A person other than the broker-dealer if the broker-dealer is a natural person; or
(b) A sales representative of the broker-dealer.
2. The administrator may not enter an order against an investment adviser because of the lack of qualification of:
(a) A person other than the investment adviser, if the investment adviser is a natural person; or
(b) Any other person who represents the investment adviser in doing an act that makes the person an investment adviser.
3. The administrator may not enter an order solely on the basis of lack of experience if the applicant or registrant is qualified by training or knowledge, or both.
4. The administrator shall consider that a sales representative who will work under the supervision of a licensed broker-dealer need not have the same qualifications as a broker-dealer.
5. The administrator shall consider that an investment adviser is not necessarily qualified solely on the basis of experience as a broker-dealer or sales representative.
Sec. 35. 1. An application for a license may be withdrawn by the applicant without prejudice before the license becomes effective.
2. Withdrawal from licensing as a broker-dealer, sales representative or investment adviser becomes effective 30 days after receipt by the administrator of an application to withdraw or within such shorter period of time as the administrator determines, unless:
(a) A proceeding to revoke or suspend is pending when the application is filed;
(b) A proceeding to revoke or suspend or to impose conditions upon the withdrawal is instituted within 30 days after the application is filed; or
(c) Additional information is requested by the administrator regarding the application.
3. If a proceeding is pending or instituted under subsection 2, withdrawal becomes effective at the time and upon the conditions the administrator by order determines. If additional information is requested, withdrawal is effective 30 days after the additional information is filed. Although no proceeding is pending or instituted and withdrawal becomes effective, the administrator may institute a proceeding under section 33 of this act within 1 year after withdrawal became effective and enter an order as of the last date on which licensing was effective.
Sec. 36. 1. Unless prohibited by regulation or order of the administrator, an investment adviser registered under the Investment Advisers Act of 1940 may take or retain custody of securities or money of a client.
κ1987 Statutes of Nevada, Page 2161 (CHAPTER 794, AB 457)κ
2. To the extent permitted by regulation or order of the administrator, an investment adviser exempt from registration under the Investment Advisers Act of 1940, but licensed as an investment adviser under this chapter, may take or retain custody of securities or money of a client.
Sec. 37. It is unlawful for a person to offer to sell or sell any security in this state unless the security is registered or the security or transaction is exempt under this chapter.
Sec. 38. 1. Securities for which a registration statement has been filed under the Securities Act of 1933 in connection with the offering of the securities may be registered by filing, whether or not they are also eligible for registration under section 39 or 40 of this act, if:
(a) The issuer is organized under the laws of the United States or a state or, if the issuer is not organized under the laws of the United States or a state it has appointed a duly authorized agent in the United States for service of process;
(b) The issuer has actively engaged in business operations in the United States for a period of at least 36 consecutive calendar months immediately before the filing of the federal registration statement;
(c) The issuer has registered a class of equity securities under section 12(b) or 12(g) of the Securities Exchange Act of 1934, and the class of securities is held of record by 500 or more persons;
(d) The issuer has:
(1) Either a total net worth of $4,000,000 or a total net worth of $2,000,000 and net pretax income from operations before allowances for extraordinary items, for at least 2 of the 3 preceding fiscal years;
(2) Not less than 400,000 units of the class of security registered under section 12 of the Securities Exchange Act of 1934 held by the public, excluding securities held by officers and directors of the issuer, underwriters and persons beneficially owning 10 percent or more of that class of security; and
(3) No outstanding warrants and options held by the underwriters and executive officers and directors of the issuer in an amount exceeding 10 percent of the total number of shares to be outstanding after completion of the offering of the securities being registered;
(e) The issuer has been subject to the requirements of section 12 of the Securities Exchange Act of 1934 and has filed all the material required to be filed under sections 13 and 14 of that act for at least 36 consecutive calendar months immediately before the filing of the statement and the issuer has filed in a timely manner all reports required to be filed during the 12 calendar months next preceding the filing of the federal registration statement;
(f) For at least 30 days during the 3 months next preceding the offering of the securities registered there have been at least four market makers for the class of equity securities registered under section 12 of the Securities Exchange Act of 1934;
(g) Each of the underwriters participating in the offering of the security and each broker-dealer who will offer the security in this state is a member of or is subject to the regulations of fair practice of a national association of securities dealers with respect to the offering and the underwriters have contracted to purchase the securities offered in a principal capacity;
κ1987 Statutes of Nevada, Page 2162 (CHAPTER 794, AB 457)κ
of or is subject to the regulations of fair practice of a national association of securities dealers with respect to the offering and the underwriters have contracted to purchase the securities offered in a principal capacity;
(h) The aggregate commissions or discounts to be received by the underwriters will not exceed 10 percent of the aggregate price at which the securities being registered are offered to the public;
(i) Neither the issuer nor any of its subsidiaries, since the end of the fiscal year next preceding the filing of the registration statement, have:
(1) Failed to pay a dividend or sinking fund installment on preferred stock;
(2) Defaulted on indebtedness for borrowed money; or
(3) Defaulted on the rental on one or more long-term leases, and the defaults in the aggregate are material to the financial position of the issuer and its subsidiaries, taken as a whole; and
(j) In the case of an equity security, the price at which the security will be offered to the public is not less than $5 per share.
2. A registration statement under this section must contain the following information and be accompanied by the following documents in addition to the information specified in subsection 4 of section 41 of this act and the consent to service of process required by section 68 of this act:
(a) A statement demonstrating eligibility for registration by filing;
(b) The name, address and form of organization of the issuer;
(c) With respect to a person on whose behalf a part of the offering is to be made in a nonissuer distribution:
(1) Name and address;
(2) The amount of securities of the issuer held by the person as of the date of the filing of the registration statement; and
(3) A statement of the reasons for making the offering;
(d) A description of the security being registered; and
(e) A copy of the latest prospectus filed with the registration statement under and satisfying the requirements of section 10 of the Securities Act of 1933.
3. If the information and documents required to be filed by subsection 2 have been on file with the administrator for at least 5 business days, or any shorter period the administrator allows by regulation or order, and the applicable registration fee has been paid before the effectiveness of the federal registration statement, a registration statement under this section automatically becomes effective concurrently with the effectiveness of the federal registration statement. If the federal statement becomes effective before the conditions of this section are satisfied and they are not waived, the registration statement becomes effective when the conditions are satisfied. The registrant shall promptly notify the administrator by telephone or telegram of the date and time when the federal registration statement became effective and the content of the price amendment, if any, and shall file promptly a post-effective amendment containing the information and documents in the price amendment. The administrator shall promptly acknowledge receipt of notification and effectiveness of the registration statement as of the date and time the registration statement became effective with the Securities and Exchange Commission.
κ1987 Statutes of Nevada, Page 2163 (CHAPTER 794, AB 457)κ
acknowledge receipt of notification and effectiveness of the registration statement as of the date and time the registration statement became effective with the Securities and Exchange Commission.
Sec. 39. 1. Securities for which a registration statement has been filed under the Securities Act of 1933 in connection with the offering of the securities may be registered by coordination.
2. A registration statement under this section must contain the following information and be accompanied by the following documents in addition to the information specified in subsection 4 of section 41 of this act and the consent to service of process required by section 68 of this act:
(a) Two copies of the latest form of prospectus filed under the Securities Act of 1933;
(b) If the administrator by regulation or order requires:
(1) A copy of the articles of incorporation and bylaws, or their substantial equivalents, currently in effect:
(2) A copy of any agreement with or among underwriters;
(3) A copy of any indenture or other instrument governing the issuance of the security to be registered; and
(4) A copy, specimen or description of the security;
(c) If the administrator requests and subject to the provisions of section 64 of this act, any other information or copies of any other documents filed under the Securities Act of 1933; and
(d) An undertaking to forward promptly and in any event not later than the first business day after the day they are forwarded to or filed with the Securities and Exchange Commission, all future amendments to the federal prospectus, other than an amendment that delays the effective date of the registration statement, whichever occurs first.
3. A registration statement under this section becomes effective when the federal registration statement becomes effective if all the following conditions are satisfied:
(a) No order is in effect, and no proceeding is pending, under section 42 of this act;
(b) The registration statement has been on file with the administrator for at least 10 days, but if the registration statement is not filed with the administrator within 5 days after the initial filing under the Securities Act of 1933, the registration statement must have been on file with the administrator for 30 days or any shorter period as the administrator by regulation or order specifies; and
(c) A statement of the maximum and minimum proposed offering prices and the maximum underwriting discounts and commissions has been on file for 2 full business days or any shorter period the administrator by regulation or order permits and the offering is made within those limitations.
4. The registrant shall promptly notify the administrator of the date and time when the federal registration statement became effective and the content of the price amendment, if any, and shall promptly file a post-effective amendment containing the information and documents in the price amendment.
κ1987 Statutes of Nevada, Page 2164 (CHAPTER 794, AB 457)κ
5. Upon failure to receive the required notification and post-effective amendment with respect to the price amendment, the administrator may enter an order, retroactively denying effectiveness to the registration statement or suspending its effectiveness until the registrant complies with subsection 4. The administrator shall promptly notify the registrant of the issuance of the order. If the registrant proves compliance with the requirements of subsection 4 as to notice and post-effective amendment, the order is void as of its entry.
6. The administrator by regulation or order may waive either or both of the conditions specified in paragraphs (b) and (c) of subsection 3.
7. If the federal registration statement becomes effective before all the conditions in subsection 3 are satisfied and they are not waived, the registration statement automatically becomes effective when all the conditions are satisfied. If the registrant advises the administrator of the date when the federal registration statement is expected to become effective, the administrator shall promptly advise the registrant, at the registrants expense, whether all conditions are satisfied and whether the administrator then contemplates the institution of a proceeding under section 42 of this act, but the advice by the administrator does not preclude the institution of a proceeding for an order suspending the effectiveness of the registration statement. An order issued under this subsection is not retroactive.
8. The administrator by regulation or order may waive or modify the application of a requirement of this section if a provision or an amendment, repeal or other alteration of the provisions of the Securities Act of 1933 for the registration of securities or of the regulations adopted under that act renders the waiver or modification appropriate for further coordination of state and federal registration.
Sec. 40. 1. A security may be registered by qualification.
2. A registration statement under this section must contain the following information and be accompanied by the following documents in addition to the information specified in subsection 4 of section 41 of this act and the consent to service of process required by section 68 of this act:
(a) With respect to the issuer and any significant subsidiary:
(1) Its name, address and form of organization;
(2) The state or foreign jurisdiction and date of its organization;
(3) The general character and location of its business;
(4) A description of its physical property and equipment; and
(5) A statement of the general competitive conditions in the industry or business in which it is or will be engaged;
(b) With respect to every director and officer of the issuer or person occupying a similar status or performing similar functions;
(1) Name, address and principal occupation for the last 5 years;
(2) The amount of securities of the issuer held by the person as of a specified date within 30 days before the filing of the registration statement;
(3) The amount of the securities covered by the registration statement to which the person has indicated an intention to subscribe; and
κ1987 Statutes of Nevada, Page 2165 (CHAPTER 794, AB 457)κ
(4) A description of any material interest in any material transaction with the issuer or any significant subsidiary effected within the past 3 years or proposed to be effected;
(c) With respect to persons covered by paragraph (b), the compensation paid or given, directly or indirectly, during the last 12 months and estimated to be paid during the next 12 months by the issuer together with all predecessors, parents, subsidiaries and affiliates, to all those persons in the aggregate;
(d) With respect to any person owning of record, or beneficially if known, 10 percent or more of the outstanding shares of a class of equity security of the issuer, the information specified in paragraph (b) other than occupation;
(e) With respect to a promoter, if the issuer was organized within the last 3 years:
(1) The information specified in paragraph (b);
(2) The amount paid to the person within that period or intended to be paid; and
(3) The consideration for the payment;
(f) With respect to a person on whose behalf a part of the offering is to be made in a nonissuer distribution:
(1) Name and address;
(2) The amount of securities of the issuer held by the person as of the date of the filing of the registration statement;
(3) A description of any material interest in any material transaction with the issuer or any significant subsidiary effected within the past 3 years or proposed to be effected; and
(4) A statement of the reasons for making the offering;
(g) The capitalization and long-term debt, on both a current and a pro forma basis, of the issuer and any significant subsidiary, including a description of each security outstanding or being registered or otherwise offered, and a statement of the amount and kind of consideration, whether in the form of cash, physical assets, services, patents, goodwill or anything else, for which the issuer or a subsidiary has issued its securities within the last 2 years or is obligated to issue its securities;
(h) The kind and amount of securities to be offered, the proposed offering price or the method by which it is to be computed, any variation therefrom at which a proportion of the offering is to be made to a person or class of persons other than the underwriters, with a specification of the person or class, the basis upon which the offering is to be made if otherwise than for cash, the estimated aggregate underwriting and selling discounts or commissions and finders fees, including separately cash, securities, contracts or anything else of value to accrue to the underwriters or finders in connection with the offering or, if the selling discounts or commissions are variable, the basis of determining them and their maximum and minimum amounts, the estimated amounts of other selling expenses, including legal, engineering and accounting charges, the name and address of every underwriter and every recipient of a finders fee, a copy of any underwriting or selling-group agreement pursuant to which the distribution is to be made, or the proposed form of the agreement whose terms have not yet been determined, and a description of the plan of distribution of securities that are to be offered otherwise than through an underwriter;
κ1987 Statutes of Nevada, Page 2166 (CHAPTER 794, AB 457)κ
determined, and a description of the plan of distribution of securities that are to be offered otherwise than through an underwriter;
(i) The estimated cash proceeds to be received by the issuer from the offering, the purposes for which the proceeds are to be used by the issuer, the amount to be used for each purpose, the order of priority in which the proceeds will be used for the purposes stated, the amounts of funds to be raised from other sources to achieve the purposes stated, the sources to the funds, and, if part of the proceeds is to be used to acquire property, including goodwill, otherwise than in the ordinary course of business, the names and addresses of the vendors, the purchase price, the names of the persons who have received commissions in connection with the acquisition and the amounts of commissions and any other expense in connection with the acquisition, including the cost of borrowing money to finance the acquisition;
(j) A description of the stock options or other security options outstanding or to be created in connection with the offering and the amount of the options held or to be held by every person required to be named in paragraph (b), (d), (e), (f) or (h) and by a person who holds or will hold 10 percent or more in the aggregate of the options;
(k) The dates of, parties to and general effect, concisely stated, of every management or other material contract made or to be made otherwise than in the ordinary course of business if it is to be performed in whole or in part at or after the filing of the registration statement or was made within the last 2 years, and a copy of the contract;
(l) A description of any pending litigation or proceedings to which the issuer is a party and that materially affect its business or assets, including any litigation or proceeding known to be contemplated by a governmental authority;
(m) A copy of any prospectus, pamphlet, circular, form letter, advertisement or other sales literature intended as of the effective date to be used in connection with the offering;
(n) A copy, specimen or description of the security being registered, a copy of the issuers articles of incorporation and bylaws or their substantial equivalents, as currently in effect, and a copy of any indenture or other instrument covering the security to be registered;
(o) A signed or conformed copy of an opinion of counsel as to the legality of the security being registered, with an English translation if it is in a foreign language, which states whether the security when sold will be legally issued, fully paid and nonassessable and, if a debt security, a binding obligation of the issuer;
(p) The written consent of an accountant, engineer, appraiser or other person whose profession gives authority to a statement made by the person, if the person is named as having prepared or certified a report or valuation, other than a public and official document or statement, which is used in connection with the registration statement;
(q) A statement of financial condition of the issuer as of a date within 4 months before the filing of the registration statement, a statement of results of operations and analysis of surplus for each of the 3 fiscal years preceding the date of the statement of financial condition and for any period between the close of the last fiscal year and the date of the statement of financial condition, or for the period of the issuers and any predecessors existence if less than 3 years, and, if part of the proceeds of the offering is to be applied to the purchase of a business, the same financial statements which would be required if that business were the registrant; and
κ1987 Statutes of Nevada, Page 2167 (CHAPTER 794, AB 457)κ
of operations and analysis of surplus for each of the 3 fiscal years preceding the date of the statement of financial condition and for any period between the close of the last fiscal year and the date of the statement of financial condition, or for the period of the issuers and any predecessors existence if less than 3 years, and, if part of the proceeds of the offering is to be applied to the purchase of a business, the same financial statements which would be required if that business were the registrant; and
(r) Any additional information the administrator by regulation or order specifies.
3. A statement under this section becomes effective 30 calendar days, or any shorter period as the administrator by regulation or order specifies, after the date the registration statement or the last amendment other than a price amendment is filed, if:
(a) No order is in effect and no proceeding is pending under section 42 of this act;
(b) The administrator has not, under subsection 4, ordered that effectiveness be delayed; and
(c) The registrant has not requested that effectiveness be delayed.
4. The administrator may delay effectiveness for a single period of not more than 90 days if the administrator determines the registration statement is not complete in all material respects and promptly notifies the registrant of that determination. The administrator may delay effectiveness for a single period of not more than 30 days if the administrator determines that the delay is necessary, whether or not the administrator previously delayed effectiveness under this subsection.
Sec. 41. 1. A registration statement may be filed by the issuer, any other person on whose behalf the offering is to be made, or a broker-dealer licensed under this chapter.
2. Except as provided in subsection 3, a person filing a registration statement shall pay a filing fee of one-tenth of 1 percent of the maximum aggregate offering price at which the registered securities are to be offered in this state, but not less than $350 or more than $2,500. If a registration statement is withdrawn before the effective date or a pre-effective order is entered under section 42 of this act, the administrator shall retain the fee.
3. An open-end management company, a face amount certificate company or a unit investment trust, as defined in the Investment Company Act of 1940, may register an indefinite amount of securities under a registration statement. The registrant shall pay:
(a) A fee of $500 at the time of filing; and
(b) Within 60 days after the registrants fiscal year during which its statement is effective, a fee of $2,000, or file a report on a form the administrator adopts, specifying its sale of securities to persons in this state during the fiscal year and pay a fee of one-tenth of 1 percent of the aggregate sales price of the securities sold to persons in this state, but the latter fee shall not be less than $350 or more than $2,500.
κ1987 Statutes of Nevada, Page 2168 (CHAPTER 794, AB 457)κ
4. Except as otherwise permitted by subsection 3, a statement must specify:
(a) The amount of securities to be offered in this state and the states in which a statement or similar document in connection with the offering has been or is to be filed; and
(b) Any adverse order, judgment or decree entered by a securities agency or administrator in any state or by a court or the Securities and Exchange Commission in connection with the offering.
5. A document filed under this chapter as now or previously in effect, within 5 years before the filing of a registration statement, may be incorporated by reference in the registration statement if the document is currently accurate.
6. The administrator by regulation or order may permit the omission of an item of information or document from a statement.
7. In the case of a nonissuer offering, the administrator may not require information under section 42 of this act or subsection 13 of this section unless it is known to the person filing the registration statement or to the person on whose behalf the offering is to be made, or can be furnished by one of them without unreasonable effort or expense.
8. In the case of a registration under section 39 or 40 of this act by an issuer who has no public market for its shares and no significant earnings from continuing operations during the last 5 years or any shorter period of its existence, the administrator by regulation or order may require as a condition of registration that the following securities be deposited in escrow for not more than 3 years:
(a) A security issued to a promoter within the 3 years immediately before the offering or to be issued to a promoter for a consideration substantially less than the offering price; and
(b) A security issued to a promoter for a consideration other than cash, unless the registrant demonstrates that the value of the noncash consideration received in exchange for the security is substantially equal to the offering price for the security.
The administrator by regulation may determine the conditions of an escrow required under this subsection, but the administrator may not reject a depository solely because of location in another state.
9. The administrator by regulation may require as a condition of registration under section 39 or 40 of this act that the proceeds from the sale of the registered security in this state be impounded until the issuer receives a specified amount from the sale of the security. The administrator by regulation or order may determine the conditions of an impounding arrangement required under this subsection, but the administrator may not reject a depository solely because of its location in another state.
10. If a security is registered pursuant to section 38 or 39 of this act, the prospectus filed under the Securities Act of 1933 must be delivered to each purchaser in accordance with the requirements of that act for the delivery of a prospectus.
κ1987 Statutes of Nevada, Page 2169 (CHAPTER 794, AB 457)κ
11. If a security is registered pursuant to section 40 of this act, an offering document containing information the administrator by regulation or other designates must be delivered to each purchaser with or before the earliest of:
(a) The first written offer made to the purchaser by or for the account of the issuer or another person on whose behalf the offering is being made or by an underwriter or broker-dealer who is offering part of an unsold allotment or subscription taken by it as a participant in the distribution;
(b) Confirmation of a sale made by or for the account of a person named in paragraph (a);
(c) Payment pursuant to a sale; or
(d) Delivery pursuant to a sale.
12. A statement remains effective for 1 year after its effective date unless the administrator by regulation extends the period of effectiveness. All outstanding securities of the same class as a registered security are considered to be registered for the purpose of a nonissuer transaction while the registration statement is effective, unless the administrator by regulation or order provides otherwise. A registration statement may not be withdrawn after its effective date if any of the securities registered have been sold in this state, unless the administrator by regulation or order provides otherwise. No registration statement is effective while an order is in effect under subsection 1 of section 42 of this act.
13. During the period that an offering is being made pursuant to an effective registration statement, the administrator by regulation or order may require the person who filed the registration statement to file reports, not more often than quarterly, to keep reasonably current the information contained in the registration statement and to disclose the progress of the offering.
14. A registration statement filed under section 38 or 39 of this act may be amended after its effective date to increase the securities specified to be offered and sold. The amendment becomes effective upon filing of the amendment and payment of an additional filing fee of 3 times the fee otherwise payable, calculated in the manner specified in subsection 2, with respect to the additional securities to be offered and sold. The effectiveness of the amendment relates back to the date or dates of sale of the additional securities being registered.
15. A registration statement filed under section 40 of this act may be amended after its effective date to increase the securities specified to be offered and sold, if the public offering price and underwriters discounts and commissions are not changed from the respective amounts which the administrator was informed. The amendment becomes effective when the administrator so orders and relates back to the date of sale of the additional securities being registered. A person filing an amendment shall pay an additional filing fee of 3 times the fee otherwise payable, calculated in the manner specified in subsection 2, with respect to the additional securities to be offered and sold.
κ1987 Statutes of Nevada, Page 2170 (CHAPTER 794, AB 457)κ
Sec. 42. 1. The administrator may issue an order denying effectiveness to, or suspending or revoking the effectiveness of, a registration statement if the administrator finds that the order is in the public interest and that:
(a) The registration statement as of its effective date or as of the proposed effective date in the case of an order denying effectiveness, an amendment under subsection 14 or 15 of section 41 of this act, as of its effective date, or a report under subsection 13 of section 41 of this act, is incomplete in any material respect or contains a statement that, in the light of the circumstances under which it was made, was false or misleading with respect to a material fact;
(b) This chapter, or a regulation, order or condition lawfully imposed under this chapter, has been willfully violated in connection with the offering by:
(1) The person filing the registration statement:
(2) The issuer, a partner, officer or director of the issuer, a person occupying similar status or performing similar functions, or a person directly or indirectly controlling or controlled by the issuer, but only if the person filing the registration statement is directly or indirectly controlled by or acting for the issuer; or
(3) An underwriter;
(c) The security registered or sought to be registered is the subject of a permanent or temporary injunction of a court of competent jurisdiction or an administrative order similar to an order under this section entered under any other federal or state law applicable to the offering, except that the administrator may not:
(1) Institute a proceeding against an effective registration statement under this paragraph more than 1 year after the date of the order or injunction relied on; or
(2) Enter an order under this paragraph on the basis of an order or injunction entered under the securities act of another state unless the order or injunction was based on facts that currently would constitute a ground for an order under this section;
(d) The issuers enterprise or method of business includes or would include activities that are illegal where performed;
(e) The offering has worked or tended to work a fraud upon purchasers or would so operate;
(f) The offering has been or would be made with unreasonable amounts of underwriters and sellers discounts, commissions or other compensation, or promoters profits or participation, or unreasonable amounts or kinds of options;
(g) A security sought to be registered pursuant to section 38 of this act is not eligible for such registration;
(h) With respect to a security sought to be registered pursuant to section 39 of this act, there has been a failure to comply with the undertaking required by paragraph (d) of subsection 2 of that section; or
(i) The applicant or registrant has failed to pay the proper filing fee, but the administrator may enter only an order denying effectiveness under this paragraph and shall vacate the order if the deficiency is corrected.
κ1987 Statutes of Nevada, Page 2171 (CHAPTER 794, AB 457)κ
the administrator may enter only an order denying effectiveness under this paragraph and shall vacate the order if the deficiency is corrected.
2. The administrator may not institute a proceeding:
(a) Against an effective registration statement on the basis of a fact or transaction known to the administrator when the registration statement became effective unless the proceeding is instituted within 30 days after the registration statement became effective; or
(b) With respect to a registration filed under section 38 of this act on the basis of paragraph (e) or (f) of subsection 1.
3. The administrator may vacate or modify an order entered under this section if he finds that the conditions which prompted entry have changed or that it is otherwise in the public interest.
Sec. 43. 1. As used in this section:
(a) Guaranteed means guaranteed as to payment of all or substantially all of principal and interest or dividends.
(b) Insured means insured as to payment of all or substantially all of principal and interest or dividends.
2. The following securities are exempt from sections 37 and 47 of this act:
(a) A security, including a revenue obligation, issued, insured or guaranteed by the United States, an agency or corporate or other instrumentality of the United States, an international agency or corporate or other instrumentality of which the United States and one or more foreign governments are members, a state, a political subdivision of a state, or an agency or corporate or other instrumentality of one or more states or their political subdivisions, or a certificate of deposit for any of the foregoing, but this exemption does not include a security payable solely from revenues to be received from a nongovernmental industrial or commercial enterprise unless the:
(1) Payments are insured or guaranteed by a person whose securities are exempt from registration under paragraph (b) or the revenues from which the payments are to be made are a direct obligation of such a person; or
(2) The security is issued by this state or an agency, instrumentality or political subdivision of this state.
(b) A security issued, insured or guaranteed by Canada, a Canadian province or territory, a political subdivision of Canada or of a Canadian province or territory, an agency or corporate or other instrumentality of one or more of the foregoing, or any other foreign government or governmental combination or entity with which the United States maintains diplomatic relations, if the security is recognized as a valid obligation by the issuer, insurer or guarantor.
(c) A security issued by and representing an interest in or a direct obligation of a depository institution if the deposit or share accounts of the depository institution are insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or a successor to an applicable agency authorized by federal law.
κ1987 Statutes of Nevada, Page 2172 (CHAPTER 794, AB 457)κ
(d) A security issued by and representing an interest in or a direct obligation of, or insured or guaranteed by, an insurance company organized under the laws of any state and authorized to do business in this state.
(e) A security issued or guaranteed by a railroad, other common carrier, public utility or holding company that is:
(1) Subject to the jurisdiction of the Interstate Commerce Commission;
(2) A registered holding company under the Public Utility Holding Company Act of 1935 or a subsidiary of a registered holding company within the meaning of that act;
(3) Regulated in respect to its rates and charges by a governmental authority of the United States or a state; or
(4) Regulated in respect to the issuance or guarantee of the security by a governmental authority of the United States, a state, Canada, or a Canadian province or territory.
(f) Equipment trust certificates in respect to equipment leased or conditionally sold to a person, if securities issued by the person would be exempt under this section.
(g) A security listed or approved for listing upon notice of issuance on the New York Stock Exchange, the American Stock Exchange, the Midwest Stock Exchange, the Pacific Stock Exchange or other exchange designated by the administrator, any other security of the same issuer which is of senior or substantially equal rank, a security called for by subscription right or warrant so listed or approved, or a warrant or right to purchase or subscribe to any of the foregoing.
(h) A security designated or approved for designation upon issuance or notice of issuance for inclusion in the national market system by the National Association of Securities Dealers, Inc., any other security of the same issuer which is of senior or substantially equal rank, a security called for by subscription right or warrant so designated, or a warrant or a right to purchase or subscribe to any of the foregoing.
(i) A security designated or approved for designation upon issuance or notice of issuance for inclusion in the automated quotation system of the National Association of Securities Dealers, Inc., that are not included under paragraph (h), any other security of the same issuer which is of senior or substantially equal rank, a security called for by subscription right or warrant so designated, or a warrant or a right to purchase or subscribe to any of the foregoing.
(j) An option issued by a clearing agency registered under the Securities Exchange Act of 1934, other than an off-exchange futures contract or substantially similar arrangement, if the security, currency, commodity, or other interest underlying the option is:
(1) Registered under section 38, 39 or 40 of this act;
(2) Exempt under this section; or
(3) Not otherwise required to be registered under this chapter.
(k) A security issued by a person organized and operated not for private profit but exclusively for a religious, educational, benevolent, charitable, fraternal, social, athletic or reformatory purpose, or as a chamber of commerce or trade or professional association if at least 10 days before the sale of the security the issuer has filed with the administrator a notice setting forth the material terms of the proposed sale and copies of any sales and advertising literature to be used and the administrator by order does not disallow the exemption within the next 5 full business days.
κ1987 Statutes of Nevada, Page 2173 (CHAPTER 794, AB 457)κ
fraternal, social, athletic or reformatory purpose, or as a chamber of commerce or trade or professional association if at least 10 days before the sale of the security the issuer has filed with the administrator a notice setting forth the material terms of the proposed sale and copies of any sales and advertising literature to be used and the administrator by order does not disallow the exemption within the next 5 full business days.
(l) A promissory note, draft, bill of exchange or bankers acceptance that evidences an obligation to pay cash within 9 months after the date of issuance, exclusive of days of grace, is issued in denominations of at least $50,000 and receives a rating in one of the three highest rating categories from a nationally recognized statistical rating organization, or a renewal of such an obligation that is likewise limited, or a guarantee of such an obligation or of a renewal.
(m) A security issued in connection with an employees stock purchase, savings, option, profit-sharing, pension or similar employees benefit plan.
(n) A membership or equity interest in, or a retention certificate or like security given in lieu of a cash patronage dividend issued by, a cooperative organized and operated as a nonprofit membership cooperative under the cooperative laws of any state if not traded to the public.
(o) A security issued by an issuer registered as an open-end management investment company or unit investment trust under section 8 of the Investment Company Act of 1940 if:
(1) The issuer is advised by an investment adviser that is a depository institution exempt from registration under the Investment Adviser Act of 1940 or that is currently registered as an investment adviser, and has been registered, or is affiliated with an adviser that has been registered, as an investment adviser under the Investment Advisers Act of 1940 for at least 3 years next preceding an offer or sale of a security claimed to be exempt under this paragraph, and the issuer has acted, or is affiliated with an investment adviser that has acted, as investment adviser to one or more registered investment companies or unit investment trusts for at least 3 years next preceding an offer or sale of a security claimed to be exempt under this paragraph; or
(2) The issuer has a sponsor that has at all times throughout the 3 years before an offer or sale of a security claimed to be exempt under this paragraph sponsored one or more registered investment companies or unit investment trusts the aggregate total assets of which have exceeded $100,000,000.
3. For the purpose of paragraph (o) of subsection 2, an investment adviser is affiliated with another investment adviser if it controls, is controlled by, or is under common control with the other investment adviser.
4. The exemption provided by paragraph (o) of subsection 2 is available only if the person claiming the exemption files with the administrator a notice of intention to sell which sets forth the name and address of the issuer and the securities to be offered in this state and pays a fee of:
(a) Two hundred and fifty dollars for the initial claim of exemption and the same amount at the beginning of each fiscal year thereafter in which securities are to be offered in this state, in the case of an open-end management company; or
κ1987 Statutes of Nevada, Page 2174 (CHAPTER 794, AB 457)κ
securities are to be offered in this state, in the case of an open-end management company; or
(b) One hundred and fifty dollars for the initial claim of exemption in the case of a unit investment trust.
5. An exemption provided by any other paragraph of subsection 2 except paragraph (k), (m) or (n) is available only if, before a sale is made, the person claiming the exemption files with the administrator a signed notice of intention to sell or issue and pays a nonrefundable fee of $150.
Sec. 44. The following transactions are exempt from sections 37 and 47 of this act:
1. An isolated nonissuer transaction, whether or not effected through a broker-dealer.
2. A nonissuer transaction in an outstanding security if the issuer of the security has a class of securities subject to registration under section 12 of the Securities Exchange Act of 1934 and has been subject to the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934 for not less than 90 days next preceding the transaction, or has filed and maintained with the administrator for not less than 90 days preceding the transaction information, in such form as the administrator, by regulation, specifies, substantially comparable to the information the issuer would be required to file under section 12(b) or 12(g) of the Securities Exchange Act of 1934 were the issuer to have a class of its securities registered under section 12 of the Securities Exchange Act of 1934, and paid a fee with the filing of $150.
3. A nonissuer transaction in a security if a nationally recognized securities manual designated by the administrator by regulation or order contains the names of the issuers officers and directors, a statement of financial condition of the issuer as of a date within the last 18 months, and a statement of income or operations for either the last fiscal year before that date or the most recent year of operation.
4. A nonissuer transaction in a security that has a fixed maturity or a fixed interest or dividend provision if there has been no default during the current fiscal year or within the 3 preceding years, or during the existence of the issuer, and any predecessors if less than 3 years, in the payment of principal, interest or dividends on the security.
5. A nonissuer transaction effected by or through a registered broker-dealer pursuant to an unsolicited order or offer to purchase.
6. A transaction between the issuer or other person on whose behalf the offering of a security is made and an underwriter, or a transaction among underwriters.
7. A transaction in a bond or other evidence of indebtedness secured by a real estate mortgage, deed of trust, personal property security agreement, or by an agreement for the sale of real estate or personal property, if the entire mortgage, deed of trust or agreement, together with all the bonds or other evidences of indebtedness secured thereby, is offered and sold as a unit.
κ1987 Statutes of Nevada, Page 2175 (CHAPTER 794, AB 457)κ
8. A transaction by an executor, administrator, sheriff, marshal, receiver, trustee in bankruptcy, guardian or conservator.
9. A transaction executed by a bona fide secured party without the purpose of evading this chapter.
10. An offer to sell or sale of a security to a financial or institutional investor or to a broker-dealer.
11. A transaction pursuant to an offer to sell securities of an issuer if:
(a) The transaction is part of an issue in which there are no more than 25 purchasers in this state, other than those designated in subsection 10, during any 12 consecutive months;
(b) No general solicitation or general advertising is used in connection with the offer to sell or sale of the securities;
(c) No commission or other similar compensation is paid or given, directly or indirectly, to a person, other than a broker-dealer licensed or not required to be licensed under this chapter, for soliciting a prospective purchaser in this state; and
(d) One of the following conditions is satisfied.
(1) The seller reasonably believes that all the purchasers in this state, other than those designated in subsection 10, are purchasing for investment; or
(2) Immediately before and immediately after the transaction, the issuer reasonably believes that the securities of the issuer are held by 50 or fewer beneficial owners, other than those designated in subsection 10, and the transaction is part of an aggregate offering that does not exceed $500,000 during any 12 consecutive months.
12. An offer to sell or sale of a preorganization certificate or subscription if:
(a) No commission or other similar compensation is paid or given, directly or indirectly, for soliciting a prospective subscriber;
(b) No public advertising or general solicitation is used in connection with the offer to sell or sale;
(c) The number of offers does not exceed 50;
(d) The number of subscribers does not exceed 10; and
(e) No payment is made by a subscriber.
13. An offer to sell or sale of a preorganization certificate or subscription issued in connection with the organization or a depository institution if that organization is under the supervision of an official or agency of a state or of the United States which has and exercises the authority to regulate and supervise the organization of the depository institution. For the purpose of this subsection, supervision of the organization by an official or agency means that the official or agency by law has authority to require disclosures to prospective investors similar to those required under section 40 of this act, impound proceeds from the sale of a preorganization certificate or subscription until organization of the depository institution is completed, and require refund to investors if the depository institution does not obtain a grant of authority from the appropriate official or agency.
κ1987 Statutes of Nevada, Page 2176 (CHAPTER 794, AB 457)κ
14. A transaction pursuant to an offer to sell to existing security holders of the issuer, including persons who at the time of the transaction are holders of transferable warrants exercisable within not more than 90 days after their issuance, convertible securities or nontransferable warrants, if:
(a) No commission or other similar compensation other than a standby commission, is paid or given, directly or indirectly, for soliciting a security holder in this state; or
(b) The issuer first files a notice specifying the terms of the offer to sell and the administrator does not by order disallow the exemption within the next 5 full business days.
15. A transaction involving an offer to sell, but not a sale, of a security not exempt from registration under the Securities Act of 1933 if:
(a) A registration or offering statement or similar document as required under the Securities Act of 1933 has been filed, but is not effective;
(b) A registration statement, if required, has been filed under this chapter, but is not effective; and
(c) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the administrator or the Securities and Exchange Commission, and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.
16. A transaction involving an offer to sell, but not a sale, of a security exempt from registration under the Securities Act of 1933 if:
(a) A registration statement has been filed under this chapter, but is not effective; and
(b) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the administrator and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.
17. A transaction involving the distribution of the securities of an issuer to the security holders of another person in connection with a merger, consolidation, exchange of securities, sale of assets or other reorganization to which the issuer, or its parent or subsidiary, and the other person, or its parent or subsidiary, are parties, if:
(a) The securities to be distributed are registered under the Securities Act of 1933 before the consummation of the transaction; or
(b) The securities to be distributed are not required to be registered under the Securities Act of 1933, written notice of the transaction and a copy of the materials, if any, by which approval of the transaction will be solicited is given to the administrator at least 10 days before the consummation of the transaction and the administrator does not, by order, disallow the exemption within the next 10 days.
18. A transaction involving the offer to sell or sale of one or more promissory notes each of which is directly secured by a first lien on a single parcel of real estate, or a transaction involving the offer to sell or sale of participation interests in the notes if the notes and participation interests are originated by a depository institution and are offered and sold subject to the following conditions:
κ1987 Statutes of Nevada, Page 2177 (CHAPTER 794, AB 457)κ
originated by a depository institution and are offered and sold subject to the following conditions:
(a) The minimum aggregate sales price paid by each purchaser may not be less than $250,000;
(b) Each purchaser must pay cash either at the time of the sale or within 60 days after the sale; and
(c) Each purchaser may buy for his own account only.
19. A transaction involving the offer to sell or sale of one or more promissory notes directly secured by a first lien on a single parcel of real estate or participating interests in the notes, if the notes and interests are originated by a mortgagee approved by the Secretary of Housing and Urban Development under sections 203 and 211 of the National Housing Act and are offered or sold, subject to the conditions specified in subsection 18, to a depository institution or insurance company, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association.
20. A transaction between any of the persons described in subsection 19 involving a nonassignable contract to buy or sell the securities described in subsection 18 if the contract is to be completed within 2 years and if:
(a) The seller of the securities pursuant to the contract is one of the parties described in subsection 18 or 19 who may originate securities;
(b) The purchaser of securities pursuant to a contract is any other person described in subsection 19; and
(c) The conditions described in subsection 18 are fulfilled.
21. A transaction involving one or more promissory notes secured by a lien on real estate, or participating interests in those notes, by a mortgage company licensed pursuant to chapter 645B of NRS to engage in those transactions.
Sec. 45. 1. The administrator by regulation may exempt any other security or transaction or class of securities or transactions from sections 37 and 47 of this act.
2. The administrator by regulation may adopt a transactional exemption for limited offerings that will further the objectives of compatibility with the exemptions from securities registration authorized by the Securities Act of 1933 and uniformity among the states.
Sec. 46. 1. The administrator by order may deny or revoke an exemption specified in section 43 or 44 of this act, with respect to a specific security or transaction. An order under this subsection is not retroactive.
2. A person does not violate section 37 or 47 of this act by reason of an offer to sell or sale effected after the entry of an order under this section if he did not know, and in the exercise of reasonable care could not have known, of the order.
Sec. 47. The administrator by regulation or order may require the filing of any prospectus, pamphlet, circular, form letter, advertisement or other sales literature or advertising communication addressed or intended for distribution to prospective investors, including clients or prospective clients of an investment adviser unless the security or transaction is exempt under section 43 or 44 or the investment adviser is exempt under section 25 of this act.
κ1987 Statutes of Nevada, Page 2178 (CHAPTER 794, AB 457)κ
of an investment adviser unless the security or transaction is exempt under section 43 or 44 or the investment adviser is exempt under section 25 of this act.
Sec. 48. In connection with the offer to sell, sale, offer to purchase or purchase of a security, a person shall not, directly or indirectly:
1. Employ any device, scheme or artifice to defraud;
2. Make an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made not misleading in the light of the circumstances under which they are made; or
3. Engage in an act, practice or course of business which operates or would operate as a fraud or deceit upon a person.
Sec. 49. 1. Without limiting the general applicability of section 48 of this act, a person shall not:
(a) Quote a fictitious price with respect to a security;
(b) Effect a transaction in a security which involves no change in the beneficial ownership of the security for the purpose of creating a false or misleading appearance of active trading in a security or with respect to the market for the security;
(c) Enter an order for the purchase of a security with the knowledge that an order of substantially the same size and at substantially the same time and price for the sale of the security has been or will be entered by or for the same or affiliated person for the purpose of creating a false or misleading appearance of active trading in a security or with respect to the market for the security;
(d) Enter an order for the sale of a security with knowledge that an order of substantially the same size and at substantially the same time and price for the purchase of the security has been or will be entered by or for the same or affiliated person for the purpose of creating a false or misleading appearance of active trading in a security or with respect to the market for the security; or
(e) Employ any other deceptive or fraudulent device, scheme or artifice to manipulate the market in a security.
2. A transaction effected in compliance with the applicable provisions of the Securities Exchange Act of 1934 and the rules and regulations of the Securities and Exchange Commission thereunder is not a manipulation of the market under subsection 1.
Sec. 50. It is unlawful for an investment adviser or person who represents an investment adviser in performing an act that requires licensing as an investment adviser under this chapter, directly or indirectly, to:
1. Employ a device, scheme or artifice to defraud a client; or
2. Engage in an act, practice or course of business that operates or would operate as a fraud or deceit upon a client.
Sec. 51. It is unlawful for a person to make or cause to be made, in a document filed with the administrator or in a proceeding under this chapter a statement that the person knows or has reasonable grounds to know is, at the time and in the light of the circumstances under which it is made, false or misleading in a material respect.
κ1987 Statutes of Nevada, Page 2179 (CHAPTER 794, AB 457)κ
Sec. 52. 1. Neither the fact that an application for licensing or a statement has been filed under this chapter, nor the fact that a person is licensed or a security is registered under this chapter constitutes a finding by the administrator that any document filed under this chapter is true, complete and not misleading. Neither of those facts nor the fact that an exemption or exception is available for a security or a transaction means that the administrator has passed upon the merits or qualifications of, or recommended or given approval to, any person, security or transaction.
2. It is unlawful to make, or cause to be made, to a purchaser, customer or client a representation inconsistent with subsection 1.
Sec. 53. 1. The administrator may make any investigation, within or without this state, as he finds necessary to determine whether a person has violated or is about to violate this chapter or any regulation or order of the administrator under this chapter or to aid in enforcement of this chapter.
2. Except as provided in subsection 3 of section 64 of this act, the administrator may publish information concerning a violation of this chapter or a regulation or order of the administrator under this chapter or concerning types of securities or acts or practices in the offer, sale or purchase of types of securities which may operate as a fraud or deceit.
3. For purposes of an investigation or proceeding under this chapter the administrator or any officer or employee designated by the administrator by regulation or order may administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence and require the production, by subpena or otherwise, of books, papers, correspondence, memoranda, agreements or other documents or records which the administrator determines to be relevant or material to the investigation or proceeding. The administrator may require or permit a person to file a statement, under oath or otherwise as the administrator determines, as to the facts and circumstances concerning the matter to be investigated.
4. If the activities constituting an alleged violation for which the information is sought would be a violation of this chapter had the activities occurred in this state, the administrator may issue and apply to enforce subpenas in this state at the request of a securities agency or administrator of another state.
5. If a person does not testify or produce the documents required by the administrator or a designated officer or employee pursuant to subpena, the administrator or designated officer or employee may apply to the court for an order compelling compliance. A request for an order of compliance may be addressed to:
(a) The district court in and for the county where service may be obtained on the person refusing to testify or produce, if the person is subject to service of process in this state; or
(b) A court of another state having jurisdiction over the person refusing to testify or produce, if the person is not subject to service of process in this state.
6. Not later than the time the administrator requests an order for compliance, the administrator shall either send notice of the request by registered or certified mail, return receipt requested, to the respondent at the last known address or take other steps reasonably calculated to give the respondent actual notice.
κ1987 Statutes of Nevada, Page 2180 (CHAPTER 794, AB 457)κ
registered or certified mail, return receipt requested, to the respondent at the last known address or take other steps reasonably calculated to give the respondent actual notice.
Sec. 54. 1. If the administrator reasonably believes, whether or not based upon an investigation conducted under section 53 of this act, that:
(a) The sale of a security is subject to registration under this chapter and the security is being offered or has been offered or sold by the issuer or another person in violation of section 37 of this act; or
(b) A person is acting as a broker-dealer or investment adviser on violation of section 22 or 24 or this act,
the administrator, in addition to any specific power granted under this chapter and subject to compliance with the requirements of section 73 of this act, may issue, without a prior hearing, an order against the person engaged in the prohibited activities, directing him to desist and refrain from further activity until the security is registered or he is licensed under this chapter. The order to cease and desist must state the section of this chapter or regulation or order of the administrator under this chapter which the administrator reasonably believes has been or is being violated.
2. If the administrator reasonably believes, whether or not based upon an investigation conducted under section 53 of this act, that a person has violated this chapter or a regulation or order of the administrator under this chapter, the administrator, in addition to any specific power granted under this chapter, after notice and hearing in an administrative proceeding unless the right to notice and hearing is waived by the person against whom the sanction is imposed, may:
(a) Issue an order against him to cease and desist;
(b) Censure him if he is a licensed broker-dealer, sales representative or investment adviser;
(c) Bar or suspend him from association with a licensed broker-dealer or investment adviser in this state;
(d) Issue an order against an applicant, licensed person or other person who knowingly violates this chapter, imposing a civil penalty up to a maximum of $2,500 for a single violation or of $25,000 for multiple violations in a single proceeding or a series of related proceedings; or
(e) Initiate one or more of the actions specified in section 55 of this act.
3. Imposition of the sanctions under this section is limited as follows:
(a) If the administrator revokes the license of a broker-dealer, sales representative, or investment adviser or bars a person from association with a licensed broker-dealer or investment adviser under this section or section 33 of this act, the imposition of that sanction precludes imposition of a civil penalty under subsection 2; and
(b) The imposition by the administrator of one or more sanctions under subsection 2 with respect to a specific violation precludes him from later imposing any other sanctions under paragraphs (a) to (d), inclusive, of subsection 2 with respect to the violation.
4. For purposes of determining any sanction to be imposed pursuant to paragraphs (a) to (d), inclusive, of subsection 2, the administrator shall consider, among other factors, the frequency and persistence of the conduct constituting a violation of this chapter, or a regulation or order of the administrator under this chapter, the number of persons adversely affected by the conduct, and the resources of the person committing the violation.
κ1987 Statutes of Nevada, Page 2181 (CHAPTER 794, AB 457)κ
consider, among other factors, the frequency and persistence of the conduct constituting a violation of this chapter, or a regulation or order of the administrator under this chapter, the number of persons adversely affected by the conduct, and the resources of the person committing the violation.
Sec. 55. 1. Upon a showing by the administrator that a person has violated this chapter, or a regulation or order of the administrator under this chapter, the appropriate district court may grant or impose one or more of the following appropriate legal or equitable remedies:
(a) A temporary restraining order, permanent or temporary prohibitory or mandatory injunction or a writ of prohibition or mandamus;
(b) A civil penalty up to a maximum of $2,500 for a single violation or of $25,000 for multiple violations in a single proceeding or a series of related proceedings;
(c) A declaratory judgment;
(d) Restitution to investors;
(e) The appointment of a receiver or conservator for the defendant or the defendants assets; or
(f) Other relief as the court deems just.
2. Upon a showing that a person is about to violate this chapter, or a regulation or order of the administrator under this chapter, a court may issue:
(a) A temporary restraining order;
(b) A temporary or permanent injunction; or
(c) A writ of prohibition or mandamus.
3. In determining the appropriate relief to grant, the court shall consider enforcement actions taken and sanctions imposed by the administrator under section 54 of this act in connection with the transactions constituting violations of this chapter or a regulation or order of the administrator under this chapter.
4. The court shall not require the administrator to post a bond in an action under this section.
5. Upon a showing by the administrator or securities agency of another state that a person has violate the securities act of that state or a regulation or order of the administrator or securities agency of that state, the appropriate district court may grant, in addition to any other legal or equitable remedies, one or more of the following remedies:
(a) Appointment of a receiver, conservator or ancillary receiver or conservator for the defendant or the defendants assets located in this state; or
(b) Other relief as the court deems just.
Sec. 56. 1. A person who willfully violates a provision of this chapter, except section 51 of this act, or who violates section 51 knowing the statement made to be false or misleading in any material respect, shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $10,000, or by both fine and imprisonment, for each violation.
κ1987 Statutes of Nevada, Page 2182 (CHAPTER 794, AB 457)κ
2. A person who willfully violates an order denying, suspending or revoking the effectiveness of registration or an order to cease and desist issued by the administrator under this chapter is guilty of a misdemeanor.
3. A person convicted of violating a regulation or order under this chapter may be fined, but may not be imprisoned, if the person proves lack of knowledge of the regulation or order.
4. Nothing in this chapter limits the power of the state to punish a person for conduct which constitutes a crime under other law.
Sec. 57. 1. A person who offers or sells a security in violation of any of the following provisions:
(a) Subsection 1 of section 22 of this act;
(b) Section 37 of this act;
(c) Subsection 10 of section 41 of this act;
(d) Subsection 2 of section 48 of this act;
(e) Subsection 2 of section 52 of this act; or
(f) A condition imposed in subsection 8 or 9 of section 41 of this act,
is liable to the person purchasing the security. Upon tender of the security, the purchaser may recover the consideration paid for the security and interest at the legal rate of this state from the date of payment, costs and reasonable attorneys fees, less the amount of income received on the security. A purchaser who no longer owns the security may recover damages. Damages are the amount that would be recoverable upon a tender less the value of the security when the purchaser disposed of it, plus interest at the legal rate of this state from the date of disposition of the security, costs and reasonable attorneys fees determined by the court. Tender requires only notice of willingness to exchange the security for the amount specified.
2. A person who offers or sells a security in violation of subsection 2 of section 48 of this act is not liable under subsection 1 of this section if:
(a) The purchaser knew that a statement of a material fact was untrue or that there was an omission of a statement of a material fact; or
(b) The seller did not know and in the exercise of reasonable care could not have known of the untrue statement or misleading omission.
3. A person who willfully participates in any act or transaction in violation of section 49 of this act is liable to a person who purchases or sells a security, other than a security traded on a national securities exchange or quoted on a national automated quotation system administered by a self-regulatory organization, at a price that was affected by the act or transaction for the damages sustained as a result of the act or transaction. Damages are the difference between the price at which the securities were purchased or sold and the market value the securities would have had at the time of the persons purchases or sale in the absence of the act or transaction, plus interest at the legal rate of this state from the date of the act or transaction and reasonable attorneys fees.
4. A person who directly or indirectly controls another person who is liable under subsection 1 or 3, a partner, officer or director of the person liable, a person occupying a similar status or performing similar functions, any agent of the person liable, an employee of the person liable if the employee materially aids in the act, omission or transaction constituting the violation, and a broker-dealer or sales representative who materially aids in the act, omission or transaction constituting the violation, are also liable jointly and severally with and to the same extent as the other person, but it is a defense that the person did not know, and in the exercise of reasonable care could not have known, of the existence of the facts by which the liability is alleged to exist.
κ1987 Statutes of Nevada, Page 2183 (CHAPTER 794, AB 457)κ
any agent of the person liable, an employee of the person liable if the employee materially aids in the act, omission or transaction constituting the violation, and a broker-dealer or sales representative who materially aids in the act, omission or transaction constituting the violation, are also liable jointly and severally with and to the same extent as the other person, but it is a defense that the person did not know, and in the exercise of reasonable care could not have known, of the existence of the facts by which the liability is alleged to exist. With respect to a person who directly or indirectly, controls another person who is liable under subsection 3, it is also a defense that the controlling person acted in good faith and did not, directly or indirectly, induce the act, omission or transaction constituting the violation. Contribution among the several persons liable is the same as in cases arising out of breach of contract.
Sec. 58. A person may not sue under section 57 of this act unless suit is brought within the earliest of 1 year after the discovery of the violation, 1 year after discovery should have been made by the exercise of reasonable care, or 3 years after the act, omission or transaction constituting the violation.
Sec. 59. 1. Relief may not be obtained under subsection 1 of section 57 of this act if, before suit is commenced, the purchaser:
(a) Receives a written offer:
(1) Stating the respect in which liability under section 57 of this act may have arisen and fairly advising the purchase of his rights of rescission;
(2) If the basis for relief under subsection 1 of section 57 of this act is a violation of subsection 2 of section 48 of this act, including financial and other information necessary to correct all material misstatements or omissions in the information which was required by this chapter to be furnished to the purchaser as of the time of the sale of the security to the purchaser;
(3) Offering to repurchase the security for cash, payable on delivery of the security, equal to the consideration paid, plus interest at the legal rate of this state from the date of payment, less income received thereon, or, if the purchaser no longer owns the security, offering to pay the purchaser upon acceptance of the offer an amount in cash equal to the damages computed under subsection 1 of section 57 of this act plus attorneys fees; and
(4) Stating that the offer may be accepted by the purchaser at any time within a specified period of not less than 30 days after the date of its receipt by the purchaser or such shorter or longer time as the administrator by order prescribes; and
(b) Fails to accept the offer in writing within the period specified under subparagraph (4) of paragraph (a).
2. The administrator by regulation may prescribe the form in which the information specified in subsection 1 must be contained in an offer made under subsection 1.
3. An offer under subsection 1 must be delivered to the offeree or sent in a manner which assures actual receipt by the offeree.
κ1987 Statutes of Nevada, Page 2184 (CHAPTER 794, AB 457)κ
4. If, after acceptance, a rescission offer is not performed in accordance with either its terms or this section, the offeree may obtain relief under section 57 of this act without regard to this section.
Sec. 60. 1. In a civil action or administrative proceeding under this chapter, a person claiming an exemption or an exception from a definition has the burden of providing the exemption or exception.
2. In a criminal proceeding, the burden of going forward with evidence of a claim of exemption or exception from a definition is on the person claiming it.
Sec. 61. 1. Except as provided in section 59 of this act, a tender required under this chapter may be made before entry of judgment.
2. The rights and remedies provided by this chapter are in addition to any other rights or remedies that may exist at law or in equity but this chapter does not create any claim for relief not specified in sections 53 to 60, inclusive, of this act.
3. A claim for relief under this chapter survives the death of a person who might have obtained relief as a plaintiff or defendant.
Sec. 62. 1. This chapter must be administered by the secretary of state and the administrator. The secretary of state may employ personnel necessary to administer the provisions of this chapter.
2. Except as otherwise provided in section 75 of this act, all money received by the division pursuant to this chapter must be deposited in the state general fund.
Sec. 63. The administrator and employees of the division shall not use information filed with or obtained by the division for their personal gain or benefit or the gain or benefit of another person. The administrator and employees of the division shall not conduct securities dealings based upon public information filed with the division before there has been a sufficient period for the securities markets to assimilate the information.
Sec. 64. 1. Except as provided in subsection 2, information and documents filed with or obtained by the administrator are public information and are available for public examination.
2. Except as otherwise provided in subsection 3, the following information and documents do not constitute public information under subsection 1 and are confidential:
(a) Information or documents obtained by the administrator in connection with an investigation concerning possible violations of this chapter; and
(b) Information or documents filed with the administrator in connection with a registration statement filed under this chapter or a report under section 30 of this act which constitute trade secrets or commercial or financial information of a person for which that person is entitled to and has asserted a claim of privilege or confidentiality authorized by law.
3. The administrator may disclose any information obtained in connection with an investigation pursuant to section 53 of this act to the agencies and administrators specified in subsection 1 of section 65 of this act but only if disclosure is provided for the purpose of a civil, administrative or criminal investigation or proceeding, and the receiving agency or administrator represents in writing that under applicable law protections exist to preserve the integrity, confidentiality and security of the information.
κ1987 Statutes of Nevada, Page 2185 (CHAPTER 794, AB 457)κ
criminal investigation or proceeding, and the receiving agency or administrator represents in writing that under applicable law protections exist to preserve the integrity, confidentiality and security of the information.
4. This chapter does not create any privilege or diminish any privilege existing at common law, by statute, regulation or otherwise.
Sec. 65. 1. To encourage uniform interpretation and administration of this chapter and effective securities regulation and enforcement, the administrator and the employees of the division may cooperate with the securities agencies or administrator of one or more states, Canadian provinces or territories, or another country, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Securities Investor Protection Corporation, any self-regulatory organization, any national or international organization of securities officers or agencies and any governmental law enforcement or regulatory agency.
2. The cooperation authorized by subsection 1 includes:
(a) Establishing a central depository for licensing or registration under this chapter and for documents or records required or allowed to be maintained under this chapter;
(b) Making a joint examination or investigation for licensing or registration;
(c) Holding a joint administrative hearing;
(d) Filing and prosecuting a joint civil or administrative proceeding;
(e) Sharing and exchanging personnel;
(f) Sharing and exchanging information and documents subject to the restrictions of section 64 of this act; and
(g) Formulating, in accordance with chapter 233B of NRS, regulations or proposed regulations on matters, statements of policy, guidelines and interpretative opinions and releases.
Sec. 66. 1. To keep regulations adopted by the administrator in harmony with the regulations adopted by the Securities and Exchange Commission under the federal securities laws and to encourage uniformity with the regulations of securities agencies and administrators in other states, the administrator, so far as is consistent with this chapter, shall take into consideration the regulations adopted by the Securities and Exchange Commission and the regulations of securities agencies and administrators in other states that enact a law comparable to this chapter.
2. Unless other criteria are specifically provided in this chapter or special provision is made for an emergency, a regulation or order may not be adopted or entered unless the administrator determines from evidence adduced at a public hearing and entered in the record, showing specifically how the applicable criteria are satisfied, that the action is:
(a) In the public interest and appropriate for the protection of investors; and
(b) Consistent with the purposes fairly intended by the provisions of this chapter.
3. The administrator may use his own experience, technical competence, specialized knowledge, and judgment in the adoption of a regulation.
κ1987 Statutes of Nevada, Page 2186 (CHAPTER 794, AB 457)κ
4. The administrator by regulation or order may prescribe:
(a) The form and content of financial statements required under this chapter;
(b) The circumstances under which consolidated financial statements must be filed; and
(c) Whether a required financial statement must be certified and by whom. Unless the administrator by regulation or order provides otherwise, a financial statement required under this chapter must be prepared in accordance with generally accepted accounting principles or other accounting principles as are prescribed for the issuer of the financial statement by the Securities and Exchange Commission.
Sec. 67. No provision of this chapter imposing liability applies to an act done or omitted in good faith in conformity with:
1. A regulation or order adopted by the administrator, notwithstanding that the regulation or order is later amended, repealed or determined by judicial or other authority to be invalid; or
2. A declaratory order or ruling issued by the administrator.
Sec. 68. 1. An applicant for licensing or registration under this chapter or an issuer who proposes to offer a security in this state through an agent shall file with the administrator, in the form the administrator by regulation prescribes, an irrevocable consent appointing the administrator his agent for service of process in a noncriminal proceeding against him, a successor or personal representative which arises under this chapter or a regulation or order of the administrator under this chapter after the consent is filed, with the same force and validity as if served personally on the person filing the consent.
2. A person who has filed a consent complying with subsection 1 in connection with a previous application for registration need not file an additional consent.
3. If a person, including a nonresident of this state, engages in conduct prohibited or made actionable by this chapter or a regulation or order of the administrator under this chapter and the person has not filed a consent to service or process under subsection 1, the engaging in the conduct constitutes the appointment of the administrator as the persons agent for service of process in a noncriminal proceeding against him, a successor or personal representative which grows out of the conduct.
4. A consent to service filed on behalf of an issuer organized or domiciled under the laws of a foreign country whose securities are being offered in this state otherwise than by or through underwriters must be accompanied by an opinion of counsel stating that a judgment of United States courts will be recognized by the courts of the county in which the issuer was organized or is domiciled.
5. Service under subsection 1 or 3 may be made by leaving a copy of the process in the office of the administrator, but it is not effective unless:
(a) The plaintiff, who may be the administrator, sends notice of the service and a copy of the process by registered or certified mail, return receipt requested, to the defendant or respondent at the address set forth in the consent to service of process or, if no consent to service of process has been filed, at the last known address, or takes other steps which are reasonably calculated to give actual notice; and
κ1987 Statutes of Nevada, Page 2187 (CHAPTER 794, AB 457)κ
the consent to service of process or, if no consent to service of process has been filed, at the last known address, or takes other steps which are reasonably calculated to give actual notice; and
(b) The plaintiff files an affidavit of compliance with this subsection in the proceeding on or before the return day of the process, if any, or within such further time as the court, or the administrator in a proceeding before him, allows.
6. Service as provided in subsection 5 may be used in a proceeding before the administrator or by the administrator in a proceeding in which he is the moving party.
7. If the process is served under subsection 5 the court, or the administrator in a proceeding before him, may order continuances as may be necessary to afford the defendant or respondent reasonable opportunity to defend.
Sec. 69. 1. The administrator shall keep a register of:
(a) All applications for licensing and registration under this chapter;
(b) All licenses and registration statements that become effective under this chapter;
(c) All disciplinary and enforcement orders issued and reports of investigation made under this chapter;
(d) All declaratory orders and rulings issued under this chapter; and
(e) All other orders issued under this chapter.
2. All records required to be maintained by subsection 1 may be maintained in any form of data storage.
3. Upon request, the administrator shall certify under the state seal a copy as being a true and correct copy of the records maintained by the office. The administrator by regulation may establish reasonable charges for the furnishing or certifying of copies. In all courts and all proceedings under this chapter a copy so certified is prima facie evidence of the contents of the records certified.
Sec. 70. The administrator may commence an administrative proceeding at any time with respect to a matter within his jurisdiction. He shall commence an administrative proceeding upon the application of a person, unless:
1. The administrator lacks jurisdiction over the subject matter;
2. Resolution of the matter requires the administrator to exercise discretion to determine whether or not to issue an order;
3. A statute vests the administrator with discretion to conduct or not to conduct an administrative proceeding before issuing an order to resolve the matter and, in the exercise of discretion, he determines not to conduct an administrative proceeding;
4. Resolution of the matter does not require the administrator to issue an order that determines the persons legal rights, duties, privileges, immunities or other legal interests;
5. The matter is not timely submitted to the administrator; or
6. The matter is not submitted in a form substantially complying with the regulations of the administrator.
κ1987 Statutes of Nevada, Page 2188 (CHAPTER 794, AB 457)κ
Sec. 71. 1. As an alternative to provisions of chapter 233B of NRS for contested cases, the administrator may commence a proceeding under section 33 or section 42 of this act by entering a summary order. This order may be entered without notice, without opportunity for hearing, and need not be supported by findings of fact or conclusions of law, but must be in writing.
2. Upon entry of summary order the administrator shall promptly notify in writing all parties against whom action is taken or contemplated that the summary order has been entered and the reasons therefor. The administrator shall send all parties against whom action is taken a notice of opportunity for hearing on the matters set forth in the order. The notice must state that the parties have 15 days after receipt of the notice to mail a written request for a hearing to the administrator.
3. The administrator shall set the matter for hearing no more than 60 nor less than 15 days from the receipt of the request for hearing, and shall promptly notify the parties of the time and place for hearing. The time of the hearing may be continued upon the written request of the licensee for good cause shown.
4. The administrator may by order make a summary order final:
(a) Fifteen days after a party against whom action is taken or contemplated receives notice of the right to request a hearing if that party fails to request a hearing; or
(b) If a party fails to appear at the hearing on the date set for a hearing.
5. If a hearing is requested, the administrator may:
(a) Extend the summary order until final determination of the matter; or
(b) After further notice of the opportunity for prior hearing to all parties against whom action is taken or contemplated, modify or vacate the summary order.
6. Notice is complete upon delivery personally to the party or by mailing by certified mail to the last known address of the party. If the party is a sales representative, the administrator shall also notify the broker-dealer with whom he is associated of the action by certified mail.
Sec. 72. 1. The district court in and for the county in which any hearing may be held may compel the attendance of witnesses, the giving of testimony and the production of books and papers as required by any subpenas issued by the administrator.
2. In case of the refusal of any witness to attend or testify or produce any papers required by such a subpena, the administrator may report to the district court in and for the county in which the hearing is pending by petition, setting forth:
(a) That due notice has been given of the time and place of attendance of the witness or the production of the books and papers;
(b) That the witness has been subpenaed in the manner prescribed in this chapter; and
(c) That the witness has failed and refused to attend or produce the papers required by subpena before the administrator in the cause or proceeding named in the subpena or has refused to answer questions propounded to him in the course of the hearing or investigation,
κ1987 Statutes of Nevada, Page 2189 (CHAPTER 794, AB 457)κ
proceeding named in the subpena or has refused to answer questions propounded to him in the course of the hearing or investigation,
and asking an order of the court compelling the witness to attend and testify or produce the books or papers before the administrator.
3. The court, upon petition of the administrator shall enter an order directing the witness to appear before the court at a time and place to be fixed by the court in the order, the time to be not more than 10 days from the date of the order, and then and there show cause why he has not attended or testified or produced the books or papers before the administrator. A certified copy of the order must be served upon the witness. If it appears to the court that the subpena was regularly issued by the administrator, the court shall thereupon enter an order that the witness appear before the administrator at the time and place fixed in the order and testify or produce the require books or papers, and upon failure to obey the order the witness must be dealt with as for contempt of court.
Sec. 73. 1. The administrator may use emergency administrative proceedings in a situation involving an immediate danger to the public welfare requiring immediate action.
2. The administrator may take only such action as is necessary to prevent or avoid the immediate danger to the public welfare that justifies use of emergency administrative proceedings.
3. The administrator shall issue an order, including a brief statement of findings of fact, conclusions of law, and if it is an exercise of the agencys discretion, reasons of policy for the decision to justify the determination of an immediate danger and his decision to take the specific action.
4. The administrator shall give such notice as is practicable to persons who are required to comply with the order. The order is effective when issued.
5. After issuing an order under this section, the administrator shall proceed as quickly as feasible to complete proceedings that would be required under chapter 233B of NRS if the matter did not involve an immediate danger.
6. The record of the administrator consists of the documents regarding the matter that were considered or prepared by him. He shall maintain these documents as the official record.
7. Unless otherwise require by law, the administrators record need not constitute the exclusive basis for his action in emergency administrative proceedings or for judicial review of the action.
8. An order issued under this section is subject to judicial review in the manner provided in chapter 233B of NRS for the final decision in a contested case.
Sec. 74. 1. Sections 22, 37, 48, 49, 52 and 57 apply to a person who sells or offers to sell a security if:
(a) An offer to sell is made in this state; or
(b) An offer to purchase is made and accepted in this state.
2. Sections 22, 48, 49 and 52 apply to a person who purchases or offers to purchase a security if:
κ1987 Statutes of Nevada, Page 2190 (CHAPTER 794, AB 457)κ
(a) An offer to purchase is made in this state; or
(b) An offer to sell is made and accepted in this state.
3. For the purpose of this section, an offer to sell or to purchase is made in this state, whether or not either party is present in this state, if the offer:
(a) Originates in this state; or
(b) Is directed by the offeror to a destination in this state and received where it is directed, or at a post office in this state if the offer is mailed.
4. For the purpose of this section, an offer to purchase or to sell is accepted in this state if acceptance:
(a) Is communicated to the offeror in this state; and
(b) Has not previously been communicated to the offeror, orally or in writing, outside this state.
Acceptance is communicated to the offeror in this state, whether or not either party is present in this state, if the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state and it is received where it is directed, or at any post office in this state if the acceptance is mailed.
5. For the purpose of subsections 1 to 4, inclusive, an offer to sell or to purchase made in a newspaper or other publication of general, regular and paid circulation is not made in this state if the publication:
(a) Is not published in this state; or
(b) Is published in this state but has had more than two-thirds of its circulation outside this state during the past 12 months.
6. For the purpose of subsection 5, if a publication is published in editions, each edition is a separate publication except for material common to all editions.
7. For the purpose of subsections 1 to 4, inclusive, an offer to sell or to purchase made in a radio or television program or other electronic communication received in this state which originates outside this state is not made in this state.
8. For the purpose of subsection 7, a radio or television program or other electronic communication is considered as having originated in this state if either the broadcast studio or originating source of transmission is located within the state, unless:
(a) The program or communication is syndicated and distributed from outside this state for redistribution to the general public in this state;
(b) The program is supplied by a radio, television or other electronic network with the electronic signal originating from outside this state for redistribution to the general public in this state;
(c) The program or communication is an electronic signal that originates outside this state and is captured for redistribution to the general public in this state by a community antenna or cable, radio, cable television, or other electronic system; or
(d) The program or communication consists of an electronic signal which originates within this state, but which is not intended for redistribution to the general public in this state.
κ1987 Statutes of Nevada, Page 2191 (CHAPTER 794, AB 457)κ
Sec. 75. 1. No person subject to this chapter who makes or engages in the performance of a contract in violation of this chapter or a regulation or order of the administrator under this chapter, or who acquires a right under a contract with knowledge of the facts by which its making or performance is in violation, may obtain relief on the contract.
2. A provision in a contract entered into or effective in this state, binding a person acquiring a security to waive compliance with this chapter or a regulation or order of the administrator under this chapter is nonenforceable.
3. A provision in a contract containing an agreement to arbitrate or a provision for choice of law in a contract between persons all of whom are engaged in the securities business is not a provision waiving compliance with this chapter and is enforceable in accordance with its terms.
Sec. 76. 1. The revolving fund for investigation and enforcement actions involving securities is hereby created as a special revenue fund. All money received by the administrator as the result of an action for enforcement of the provisions of this chapter must be deposited in the state treasury for credit to the fund.
2. The division shall use the money in the fund to pay the expenses involved in the investigation of fraud involving securities and in actions to enforce the provisions of this chapter.
3. Expenses may be advanced from the fund to the administrator.
Sec. 77. This chapter may be cited as the Uniform Securities Act and must be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it and to coordinate the interpretation and administration of this chapter with the related federal laws and regulations.
Sec. 78. (Deleted by amendment.)
Sec. 79. NRS 233B.039 is hereby amended to read as follows:
233B.039 1. The following agencies are entirely exempted from the requirements of this chapter:
(a) The governor.
(b) The department of prisons.
(c) The University of Nevada System.
(d) The department of the military.
(e) The state gaming control board.
(f) The Nevada gaming commission.
(g) The state board of parole commissioners.
(h) The welfare division of the department of human resources.
(i) The state board of examiners acting pursuant to chapter 217 of NRS.
2. The department of education, the committee on group insurance and the commission on professional standards in education are subject to the provisions of this chapter for the purpose of adopting regulations but not with respect to any contested case.
3. The Nevada state board of accountancy is not subject to the provisions of this chapter for the purpose of adopting rules of professional conduct for accountants and auditors.
κ1987 Statutes of Nevada, Page 2192 (CHAPTER 794, AB 457)κ
4. The special provisions of:
(a) Chapter 612 of NRS for the distribution of regulations by and the judicial review of decisions of the employment security department;
(b) Chapters 616 and 617 of NRS for the determination of contested claims;
(c) Chapter 703 of NRS for the judicial review of decisions of the public service commission of Nevada; [and]
(d) Sections 2 to 35, inclusive, of [this act,] Assembly Bill No. 203 of this session, for the judicial review of decisions of the administrator of the securities division of the office of the secretary of state [,] ; and
(e) Section 71 of this act for the use of summary orders in contested cases,
prevail over the general provisions of this chapter.
5. The provisions of NRS 233B.122, 233B.124, 233B.125 and 233B.126 do not apply to the department of human resources in the adjudication of contested cases involving the issuance of letters of approval for health facilities and agencies.
6. The provisions of this chapter do not apply to any order for immediate action, including but not limited to quarantine and the treatment or cleansing of infected or infested animals, objects or premises, made under the authority of the state board of agriculture, the state board of health, the state board of sheep commissioners or any other agency of this state in the discharge of a responsibility for the preservation of human or animal health or for insect or pest control.
Sec. 79.5. Section 37 of Assembly Bill No. 203 of this session is hereby amended to read as follows:
Sec. 37. Chapter 225 of NRS is hereby amended by adding thereto a new section to read as follows:
1. There is hereby created within the office of the secretary of state a securities division. The secretary of state shall appoint a deputy as administrator of the division. The position of the deputy is unclassified and is in addition to the two unclassified positions in the office of the secretary of state authorized by subsection 3 of NRS 284.140.
2. The secretary of state may, alternatively:
(a) Use the services of an assigned deputy attorney general as legal counsel for the division.
(b) Appoint an attorney as legal counsel for the division. If appointed, he is in the unclassified service of the state.
(c) Contract for services to be rendered by such other legal counsel as are needed for assistance in administering chapter 90 of NRS.
3. Each of the legal counsel must be an attorney admitted to practice law in Nevada.
Sec. 80. NRS 90.010, 90.020, 90.030, 90.040, 90.041, 90.045, 90.050, 90.055, 90.060, 90.065, 90.070, 90.075, 90.080, 90.090, 90.093, 90.095, 90.100, 90.105, 90.109, 90.120, 90.130, 90.133, 90.135, 90.140, 90.150, 90.152, 90.153, 90.155, 90.157, 90.170, 90.172, 90.175, 90.180, 90.182, 90.185, 90.186, 90.190, 90.200, 90.205 are hereby repealed.