[Rev. 2/6/2019 3:01:41 PM]
κ2009 Statutes of Nevada, Page 1933 (CHAPTER 370, SB 89)κ
(c) If there are insufficient persons available for the purposes of paragraphs (a) and (b) or if the landlord or his agent and the tenant cannot agree pursuant to paragraphs (a) and (b), the landlord or his agent or the tenant may request the Administrator to, and the Administrator shall, appoint a dealer licensed pursuant to chapter 489 of NRS or a certified appraiser who [is selected for this purpose by the Division.] shall make the determination.
9. The landlord shall pay the costs associated with determining the fair market value of a manufactured home and the [reasonable] cost of removing and disposing of a manufactured home pursuant to subsection 5.
10. The provisions of this section do not apply to a corporate cooperative park.
Sec. 81. NRS 118B.183 is hereby amended to read as follows:
118B.183 1. A landlord may convert an existing manufactured home park to any other use of the land if the change is approved by the appropriate local zoning board, planning commission or governing body. In addition to any other reasons, a landlord may apply for such approval if the landlord is forced to close the manufactured home park because of a valid order of a state or local governmental agency or court requiring the closure of the manufactured home park for health or safety reasons.
2. The landlord may undertake a conversion pursuant to this section only if:
(a) The landlord gives notice in writing to the Division and each tenant within 5 days after he files his application for the change in land use with the local zoning board, planning commission or governing body;
(b) The landlord pays the amounts required by subsections 4, 5 and 6;
(c) After the landlord is granted final approval of the change by the appropriate local zoning board, planning commission or governing body, written notice is served on each tenant in the manner provided in NRS 40.280, giving the tenant at least 180 days after the date of the notice before he is required to move his manufactured home from the lot; and
(d) The landlord complies with the provisions of NRS 118B.184 concerning the submission of a resident impact statement.
3. At the time of providing notice of the conversion of the park pursuant to this section, a landlord shall provide to each tenant:
(a) The address and telephone number of the Division;
(b) Any list published by the Division setting forth the names of licensed transporters of manufactured homes approved by the Division; and
(c) Any list published by the Division setting forth the names of mobile home parks within 100 miles that have reported having vacant spaces.
4. If the tenant chooses to move the manufactured home [, the] :
(a) The tenant shall, within 75 days after receiving notice of the conversion, notify the landlord in writing of the tenants election to move the manufactured home; and
(b) The landlord shall pay to the tenant:
[(a)] (1) The cost of moving the tenants manufactured home and its appurtenances to a new location in this State or another state within 100 miles from the manufactured home park; or
[(b)] (2) If the new location is more than 100 miles from the manufactured home park, the cost of moving the manufactured home for the first 100 miles,
κ2009 Statutes of Nevada, Page 1934 (CHAPTER 370, SB 89)κ
Κ including fees for inspection, any deposits for connecting utilities and the cost of taking down, moving, setting up and leveling his manufactured home and its appurtenances in the new lot or park.
5. If the landlord is unable to move a shed, due to its physical condition, that belongs to a tenant who has elected to have the landlord move his manufactured home, the landlord shall pay the tenant $250 as reimbursement for the shed. Each tenant may receive only one payment of $250 even if more than one shed is owned by the tenant.
6. If the tenant chooses not to move the manufactured home, the manufactured home cannot be moved without being structurally damaged or there is no manufactured home park within 100 miles that is willing to accept the manufactured home, the landlord:
(a) May remove and dispose of the manufactured home; and
(b) Shall pay to the tenant the fair market value of the manufactured home.
7. A landlord shall not increase the rent of any tenant:
(a) For 180 days before filing an application for a change in land use, permit or variance affecting the manufactured home park; or
(b) At any time after filing an application for a change in land use, permit or variance affecting the manufactured home park unless:
(1) The landlord withdraws the application or the appropriate local zoning board, planning commission or governing body denies the application; and
(2) The landlord continues to operate the manufactured home park after the withdrawal or denial.
8. For the purposes of this section, the fair market value of a manufactured home [and the reasonable cost of removing and disposing of a manufactured home] must be determined [by:] as follows:
(a) A dealer licensed pursuant to chapter 489 of NRS who is [agreed upon] a certified appraiser and who is selected jointly by the landlord or his agent and the tenant [; or] shall make the determination.
(b) [If the landlord and tenant cannot agree pursuant to] If there are insufficient dealers licensed pursuant to chapter 489 of NRS who are certified appraisers available for the purposes of paragraph (a), a person who possesses the qualifications pursuant to the Appraiser Qualifications for Manufactured Homes Classified as Personal Property as set forth in section 8-3 of Valuation Analysis for Single Family One- to Four-Unit Dwellings, HUD Directive Number 4150.2 CHG-1, of the United States Department of Housing and Urban Development, and who is selected jointly by the landlord or his agent and the tenant shall make the determination.
(c) If there are insufficient persons available for the purposes of paragraphs (a) and (b) or if the landlord or his agent and the tenant cannot agree pursuant to paragraphs (a) and (b), the landlord or his agent or the tenant may request the Administrator to, and the Administrator shall, appoint a dealer licensed pursuant to chapter 489 of NRS or a certified appraiser who [is selected for this purpose by the Division.] shall make the determination.
κ2009 Statutes of Nevada, Page 1935 (CHAPTER 370, SB 89)κ
9. The landlord shall pay the costs associated with determining the fair market value of a manufactured home and the [reasonable] cost of removing and disposing of a manufactured home pursuant to subsection 6.
10. The provisions of this section do not apply to a corporate cooperative park.
Sec. 82. Chapter 461 of NRS is hereby amended by adding thereto a new section to read as follows:
No right of action exists in favor of any person by reason of any action or failure to act on the part of the Division or any of its officers or employees in carrying out the provisions of this chapter.
Sec. 82.5. NRS 461.132 is hereby amended to read as follows:
461.132 Manufactured building [includes] means any modular building or any building which is constructed in whole or in substantial part using [one or more] modular components, but does not include a recreational park trailer.
Sec. 83. NRS 624.3015 is hereby amended to read as follows:
624.3015 The following acts, among others, constitute cause for disciplinary action under NRS 624.300:
1. Acting in the capacity of a contractor beyond the scope of the license.
2. Bidding to contract or contracting for a sum for one construction contract or project in excess of the limit placed on the license by the Board.
3. Knowingly bidding to contract or entering into a contract with a contractor for work in excess of his limit or beyond the scope of his license.
4. Knowingly entering into a contract with a contractor while that contractor is not licensed.
5. Constructing or repairing a mobile home, manufactured home , manufactured building or commercial coach [,] or factory-built housing unless the contractor:
(a) Is licensed pursuant to NRS 489.311; or
(b) Owns, leases or rents the mobile home, manufactured home [or] , manufactured building, commercial coach [.] or factory-built housing.
6. Engaging in any work or activities that require a contractors license while the license is placed on inactive status pursuant to NRS 624.282.
Sec. 84. NRS 489.601 is hereby repealed.
Sec. 85. This act becomes effective on July 1, 2009.
________
κ2009 Statutes of Nevada, Page 1936κ
Senate Bill No. 184Senator Schneider
Joint Sponsor: Assemblyman Christensen
CHAPTER 371
AN ACT relating to real estate; establishing provisions relating to brokers price opinions; and providing other matters properly relating thereto.
[Approved: May 29, 2009]
Legislative Counsels Digest:
This bill defines and specifies the minimum required contents of a brokers price opinion. This bill also sets forth the limitations on the use of a brokers price opinion and the circumstances under which a licensee may provide a brokers price opinion and collect a fee for preparing and providing that brokers price opinion. This bill further establishes requirements governing a brokers price opinion which is submitted electronically or on a form supplied by the requesting party.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 645 of NRS is hereby amended by adding thereto a new section to read as follows:
1. A person licensed pursuant to this chapter may prepare and provide a brokers price opinion and charge and collect a fee therefor if:
(a) The license of that licensee is active and in good standing; and
(b) The brokers price opinion meets the requirements of subsection 3.
2. A person licensed pursuant to this chapter may prepare a brokers price opinion for:
(a) An existing or potential seller for the purposes of listing and selling a parcel of real property;
(b) An existing or potential buyer of a parcel of real property;
(c) A third party making decisions or performing due diligence related to the potential listing, offering, sale, exchange, option, lease or acquisition price of a parcel of real property; or
(d) An existing or potential lienholder, except that a brokers price opinion prepared for an existing or potential lienholder may not be used in lieu of an appraisal for the purpose of determining whether to approve a mortgage loan.
3. A brokers price opinion must include, without limitation:
(a) A statement of the intended purpose of the brokers price opinion;
(b) A brief description of the real property and the interest in the real property for which the brokers price opinion is being prepared;
(c) The basis used to determine the brokers price opinion, including, without limitation, any applicable market data and the computation of capitalization;
(d) Any assumptions or limiting conditions used to determine the brokers price opinion;
κ2009 Statutes of Nevada, Page 1937 (CHAPTER 371, SB 184)κ
(e) The date of issuance of the brokers price opinion;
(f) A disclosure of any existing or contemplated interest of every licensee who prepares or provides the brokers price opinion, including, without limitation, the possibility of a licensee representing the seller or purchaser;
(g) The license number, name and signature of every licensee who prepares or provides the brokers price opinion;
(h) If a licensee who prepares or provides the brokers price opinion is a real estate salesman or a real estate broker-salesman, the name of the real estate broker with whom the licensee is associated; and
(i) In at least 14-point bold type, the following disclaimer:
Notwithstanding any preprinted language to the contrary, this opinion is not an appraisal of the market value of the property. If an appraisal is desired, the services of a licensed or certified appraiser must be obtained.
4. If a brokers price opinion is submitted electronically or on a form supplied by the requesting party:
(a) A signature required by paragraph (g) of subsection 3 may be an electronic signature, as defined by NRS 719.100.
(b) A signature required by paragraph (g) of subsection 3 and the disclaimer required by paragraph (i) of subsection 3 may be transmitted in a separate attachment if the electronic format or form supplied by the requesting party does not allow additional comments to be written by the licensee. The electronic format or the form supplied by the requesting party must:
(1) Reference the existence of a separate attachment; and
(2) Include a statement that the brokers price opinion is not complete without the attachment.
5. A brokers price opinion that is submitted electronically is subject to any regulations relating to recordkeeping as adopted pursuant to this chapter.
6. A broker is responsible for all activities of a licensee who is associated with the broker and with the preparation of a brokers price opinion.
7. The Commission may adopt regulations prescribing the manner in which a brokers price opinion must be prepared in accordance with the provisions of this section.
8. As used in this section, brokers price opinion means a written analysis, opinion or conclusion that a person licensed pursuant to this chapter prepares for a person described in subsection 2 relating to the estimated price for a specified parcel of real property.
Sec. 2. This act becomes effective on July 1, 2009.
________
κ2009 Statutes of Nevada, Page 1938κ
Senate Bill No. 230Senator Carlton (by request)
CHAPTER 372
AN ACT relating to real estate; revising provisions governing certain licenses issued by the Real Estate Division of the Department of Business and Industry; and providing other matters properly relating thereto.
[Approved: May 29, 2009]
Legislative Counsels Digest:
Existing law provides that: (1) the initial period of licensure for an original license as a real estate broker, broker-salesman or salesman is 12 consecutive months beginning on the first day of the first calendar month after the original license is issued by the Real Estate Division of the Department of Business and Industry; and (2) each subsequent period of licensure is 24 consecutive months. Existing law additionally provides that other licenses issued pursuant to chapter 645 of NRS are issued for a period of 24 consecutive months. (NRS 645.780) Sections 1 and 2 of this bill increase the period of initial licensure for a license as a real estate broker, broker-salesman or salesman from 12 to 24 consecutive months and each subsequent period of licensure from 24 to 48 consecutive months. Sections 1 and 2 also increase the period of licensure for other licenses issued by the Division from 24 to 48 consecutive months. (NRS 645.490)
Section 3 of this bill increases the fee for each original license of a real estate broker, broker-salesman, corporate broker, real estate salesman and branch office, and each renewal of such a license, to correspond with the increase in the period of licensure of each license pursuant to sections 1 and 2 of this bill. Section 3 also increases the penalty for the late filing of a renewal for such licenses. (NRS 645.830)
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 645.490 is hereby amended to read as follows:
645.490 1. Upon satisfactorily passing the written examination and upon complying with all other provisions of law and conditions of this chapter, a license shall thereupon be granted by the Division to the successful applicant therefor as a real estate broker, broker-salesman or salesman, and the applicant, upon receiving the license, may conduct the business of a real estate broker, broker-salesman or salesman in this State.
2. The Division shall issue licenses as a real estate broker, broker-salesman or salesman to all applicants who qualify and comply with all provisions of law and all requirements of this chapter.
3. Except as otherwise provided in NRS 645.785:
(a) An original license as a real estate broker, broker-salesman or salesman must be renewed with the Division before the expiration of the initial license period of [12] 24 consecutive months as prescribed in NRS 645.780; and
(b) Thereafter, the license must be renewed with the Division before the expiration of each subsequent license period of [24] 48 consecutive months as prescribed in NRS 645.780.
κ2009 Statutes of Nevada, Page 1939 (CHAPTER 372, SB 230)κ
Sec. 2. NRS 645.780 is hereby amended to read as follows:
645.780 1. Each license issued under the provisions of this chapter expires at midnight on the last day of the last month of the applicable license period for the license.
2. The initial license period for an original license as a real estate broker, broker-salesman or salesman is a period of [12] 24 consecutive months beginning on the first day of the first calendar month after the original license is issued by the Division. Thereafter, each subsequent license period is a period of [24] 48 consecutive months beginning on the first day of the first calendar month after a renewal of the license is issued by the Division for the subsequent license period.
3. For all other licenses, the license period is a period of [24] 48 consecutive months beginning on the first day of the first calendar month after the license or any renewal of the license is issued by the Division, unless a specific statute:
(a) Provides for a different license period; or
(b) Expressly authorizes a different license period to be provided for by regulation.
4. The Division may:
(a) Create and maintain a secure website on the Internet through which each license, permit, certificate or registration issued pursuant to the provisions of this chapter may be renewed; and
(b) For each license, permit, certificate or registration renewed through the use of a website created and maintained pursuant to paragraph (a), charge a fee in addition to any other fee provided for pursuant to this chapter which must not exceed the actual cost to the Division for providing that service.
Sec. 3. NRS 645.830 is hereby amended to read as follows:
645.830 1. The following fees must be charged by and paid to the Division:
For each original real estate brokers, broker-salesmans or corporate brokers license [$105] $210
For each original real estate salesmans license......................... [85] 170
For each original branch office license...................................... [120] 240
For real estate education, research and recovery to be paid at the time an application for an original license is filed 40
For real estate education, research and recovery to be paid at the time an application for renewal of a license is filed........................................................................................................ [40] 80
For each renewal of a real estate brokers, broker-salesmans or corporate brokers license [180] 360
For each renewal of a real estate salesmans license.............. [140] 280
For each renewal of a real estate branch office license.......... [110] 220
For each penalty for late filing of a renewal for a brokers, broker-salesmans or corporate brokers license [95] 180
For each penalty for late filing of a renewal for a salesmans license [75] 140
For each change of name or address...................................................... 20
κ2009 Statutes of Nevada, Page 1940 (CHAPTER 372, SB 230)κ
For each transfer of a real estate salesmans or broker-salesmans license and change of association or employment.............................................................................................................. $20
For each duplicate license where the original license is lost or destroyed, and an affidavit is made thereof 20
For each change of broker status from broker to broker-salesman.. 20
For each change of broker status from broker-salesman to broker.. 40
For each reinstatement to active status of an inactive real estate brokers, broker-salesmans or salesmans license 20
For each reinstatement of a real estate brokers license when the licensee fails to give immediate written notice to the Division of a change of name or business location....................... 30
For each reinstatement of a real estate salesmans or broker-salesmans license when he fails to notify the Division of a change of broker within 30 days of termination by previous broker 30
For each original registration of an owner-developer........................ 125
For each annual renewal of a registration of an owner-developer.. 125
For each enlargement of the area of an owner-developers registration 50
For each cooperative certificate issued to an out-of-state broker licensee for 1 year or fraction thereof 150
For each original accreditation of a course of continuing education 100
For each renewal of accreditation of a course of continuing education 50
For each annual approval of a course of instruction offered in preparation for an original license or permit 100
2. The fees prescribed by this section for courses of instruction offered in preparation for an original license or permit or for courses of continuing education do not apply to:
(a) Any university, state college or community college of the Nevada System of Higher Education.
(b) Any agency of the State.
(c) Any regulatory agency of the Federal Government.
3. The Commission shall adopt regulations which establish the fees to be charged and collected by the Division to pay the costs of any investigation of a persons background.
Sec. 4. The amendatory provisions of this act apply to licenses issued or renewed by the Real Estate Division of the Department of Business and Industry pursuant to chapter 645 of NRS on or after July 1, 2011.
Sec. 5. This act becomes effective on July 1, 2011.
________
κ2009 Statutes of Nevada, Page 1941κ
Senate Bill No. 265Senator Carlton (by request)
CHAPTER 373
AN ACT relating to the Private Investigators Licensing Board; revising provisions relating to licenses and registrations issued by the Board; revising provisions governing local regulation of such licensees and registrants; removing certain requirements for security guards and certain exemptions for counties whose population is less than 100,000; and providing other matters properly relating thereto.
[Approved: May 29, 2009]
Legislative Counsels Digest:
Existing law allows a person who holds a license issued by the Private Investigators Licensing Board to hire unlicensed employees if they hold a work card issued by the local sheriff. (NRS 648.060) Sections 4-6, 8 and 9 of this bill remove the requirement of obtaining a work card from the local sheriff and instead require an unlicensed employee to be registered with the Board. (NRS 648.060, 648.085, 648.140, 648.158, 648.203) Section 3 of this bill establishes the process and requirements for an application for registration. Section 2 of this bill requires the Board to issue a provisional registration while the application process is pending. Section 10 of this bill deems any person with an active work card issued before January 1, 2010, to be registered until the work card expires or until January 1, 2015, whichever is earlier.
Section 6 of this bill also removes the authority of certain local governments to regulate certain matters relating to licensees and registrants under chapter 648 of NRS.
Section 9 of this bill also removes: (1) the requirement that a security guard obtain a work card from the applicable sheriff; and (2) the exemption from certain requirements of chapter 648 of NRS for counties whose population is less than 100,000 (currently counties other than Clark and Washoe Counties).
Sections 2 and 9 of this bill allow the sheriff of a county whose population is 100,000 or more who has entered into a contract with the Board to issue a provisional registration or to receive a set of fingerprints from an applicant as a part of the registration process.
Section 3.5 of this bill exempts certified public accountants and commercial registered agents from the requirements of chapter 648 of NRS in the performance of certain duties relating to their professions.
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. 1. The Board or the sheriff of a county whose population is 100,000 or more who has entered into a contract with the Board to perform such services shall, upon completion and review by the Board or sheriff of a record of criminal history for the applicant pursuant to NRS 179A.070, issue a provisional registration to an applicant who:
(a) Submits a completed application for registration in compliance with section 3 of this act; and
(b) Meets the requirements for registration as adopted by the Board by regulation.
κ2009 Statutes of Nevada, Page 1942 (CHAPTER 373, SB 265)κ
2. A provisional registration issued to an applicant by the Board or sheriff expires automatically:
(a) If the Board denies the applicants application;
(b) Upon the issuance of a registration to the applicant; or
(c) If the applicants check for the fee for the application for registration is returned for insufficient funds.
3. Except as otherwise provided in this section, a provisional registration expires 90 days after its date of issuance unless an extension is granted by the Executive Director of the Board for good cause.
Sec. 3. 1. To obtain a registration, a person must:
(a) Be a natural person;
(b) File a written application for registration with the Board;
(c) Comply with the applicable requirements of this chapter; and
(d) Pay an application fee set by the Board of not more than $135.
2. An application for registration must include:
(a) A fully completed application for registration as an employee;
(b) A passport size photo;
(c) A completed set of fingerprint cards or a receipt for electronically submitted fingerprints of the applicant submitted as required by the Board; and
(d) Any other information or supporting materials required pursuant to the regulations adopted by the Board or by an order of the Board. Such information or supporting materials may include, without limitation, other forms of identification of the person.
3. Except as otherwise provided in this chapter, the Board shall issue a registration to an applicant if:
(a) The application is verified by the Board and complies with the applicable requirements of this chapter; and
(b) The applicant:
(1) Is of good moral character and temperate habits;
(2) Has not been convicted of, or entered a plea of nolo contendere to, a felony or a crime involving moral turpitude or the illegal use or possession of a dangerous weapon;
(3) Has not made a false statement of material fact on his application; and
(4) Has not violated any provision of this chapter, a regulation adopted pursuant thereto or an order of the Board.
4. Upon the issuance of a registration, a pocket card of such size, design and content as may be determined by the Board will be issued without charge to each registered person, and will be evidence that the person is duly registered pursuant to this chapter.
5. A registration issued pursuant to this section and the cards issued pursuant to subsection 4 expire 5 years after the date the registration is issued, unless it is renewed. To renew a registration, the holder of the registration must submit to the Board on or before the date the registration expires:
(a) A fully completed application for renewal of registration as an employee;
(b) A passport size photo;
(c) A completed set of fingerprint cards or a receipt for electronically submitted fingerprints of the applicant submitted as required by the Board;
(d) A renewal fee set by the Board of not more than $135; and
κ2009 Statutes of Nevada, Page 1943 (CHAPTER 373, SB 265)κ
(e) Any other information or supporting materials required pursuant to the regulations adopted by the Board or by an order of the Board. Such information or supporting materials may include, without limitation, other forms of identification of the person.
6. A denial of registration may be appealed to the Board. The Board shall adopt regulations providing for the consideration of such appeals.
Sec. 3.5. NRS 648.018 is hereby amended to read as follows:
648.018 Except as to polygraphic examiners and interns, this chapter does not apply:
1. To any detective or officer belonging to the law enforcement agencies of the State of Nevada or the United States, or of any county or city of the State of Nevada, while the detective or officer is engaged in the performance of his official duties.
2. To special police officers appointed by the police department of any city, county, or city and county within the State of Nevada while the officer is engaged in the performance of his official duties.
3. To insurance adjusters and their associate adjusters licensed pursuant to the Nevada Insurance Adjusters Law who are not otherwise engaged in the business of private investigators.
4. To any private investigator, private patrolman, process server, dog handler or security consultant employed by an employer regularly in connection with the affairs of that employer if a bona fide employer-employee relationship exists, except as otherwise provided in NRS 648.060, 648.140 and 648.203.
5. To a repossessor employed exclusively by one employer regularly in connection with the affairs of that employer if a bona fide employer-employee relationship exists, except as otherwise provided in NRS 648.060, 648.140 and 648.203.
6. To a person engaged exclusively in the business of obtaining and furnishing information as to the financial rating of persons.
7. To a charitable philanthropic society or association incorporated under the laws of this State which is organized and maintained for the public good and not for private profit.
8. To an attorney at law in performing his duties as such.
9. To a collection agency unless engaged in business as a repossessor, licensed by the Commissioner of Financial Institutions, or an employee thereof while acting within the scope of his employment while making an investigation incidental to the business of the agency, including an investigation of the location of a debtor or his assets and of property which the client has an interest in or lien upon.
10. To admitted insurers and agents and insurance brokers licensed by the State, performing duties in connection with insurance transacted by them.
11. To any bank organized pursuant to the laws of this State or to any national bank engaged in banking in this State.
12. To any person employed to administer a program of supervision for persons who are serving terms of residential confinement.
13. To any commercial registered agent, as defined in NRS 77.040, who obtains copies of, examines or extracts information from public records maintained by any foreign, federal, state or local government, or any agency or political subdivision of any foreign, federal, state or local government.
κ2009 Statutes of Nevada, Page 1944 (CHAPTER 373, SB 265)κ
14. To any holder of a certificate of certified public accountant issued by the Nevada State Board of Accountancy pursuant to chapter 628 of NRS while performing his duties pursuant to the certificate.
Sec. 4. NRS 648.060 is hereby amended to read as follows:
648.060 1. Except as otherwise provided in NRS 253.220, no person may:
(a) Engage in the business of private investigator, private patrolman, process server, repossessor, dog handler, security consultant, or polygraphic examiner or intern; or
(b) Advertise his business as such, irrespective of the name or title actually used,
Κ unless he is licensed pursuant to this chapter.
2. No person may be employed by a licensee unless the person [holds a work card issued by the sheriff of the county in which the work is to be performed.] is registered pursuant to this chapter. The provisions of this subsection do not apply to a person licensed pursuant to this chapter.
3. A person licensed pursuant to this chapter may employ only another licensee, or a nonlicensed person who:
(a) Is at least 18 years of age.
(b) Is a citizen of the United States or lawfully entitled to remain and work in the United States.
(c) Is of good moral character and temperate habits.
(d) Has not been convicted of a felony or a crime involving moral turpitude or the illegal use or possession of a dangerous weapon.
(e) Is registered pursuant to this chapter.
Sec. 5. NRS 648.085 is hereby amended to read as follows:
648.085 1. In addition to any other requirements set forth in this chapter:
(a) A natural person who applies for the issuance of a license or [work card] registration issued pursuant to this chapter shall include the social security number of the applicant in the application submitted to the Board.
(b) A natural person who applies for the issuance or renewal of a license or [work card] registration issued pursuant to this chapter shall submit to the Board the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.
2. The Board shall include the statement required pursuant to subsection 1 in:
(a) The application or any other forms that must be submitted for the issuance or renewal of the license or [work card;] registration; or
(b) A separate form prescribed by the Board.
3. A license or [work card] registration may not be issued or renewed by the Board pursuant to this chapter if the applicant is a natural person who:
(a) Fails to submit the statement required pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Board shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.
κ2009 Statutes of Nevada, Page 1945 (CHAPTER 373, SB 265)κ
or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Board shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.
Sec. 6. 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. A county or city shall not enact ordinances regulating persons licensed pursuant to this chapter, except [:
(a) Ordinances regulating the employer-employee relationship of licensees and their unlicensed employees; and
(b) General] 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 registered pursuant to this chapter 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 [,] registered pursuant to this chapter, except clerical personnel, and shall notify the Board within [10] 3 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.]
Sec. 7. NRS 648.144 is hereby amended to read as follows:
648.144 A license issued under the provisions of this chapter and the cards issued pursuant to NRS 648.142 expire on June 30 of each year [.] unless they are renewed. A licensee desiring a renewal of his license must file an application for renewal on or before June 30 on a form prescribed by the Board which is accompanied by the fee prescribed pursuant to NRS 648.120 and all information required to complete the application for renewal. A renewal license for the next ensuing year must then be issued together with renewal cards for the persons described in subsection 3 of NRS 648.142.
Sec. 8. NRS 648.158 is hereby amended to read as follows:
648.158 1. If the Board receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license or [work card] registration issued pursuant to this chapter, the Board shall deem the license or [work card] registration issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Board receives a letter issued to the holder of the license or [work card] registration by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license or [work card] registration has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
κ2009 Statutes of Nevada, Page 1946 (CHAPTER 373, SB 265)κ
district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license or [work card] registration has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
2. The Board shall reinstate a license or [work card] registration issued pursuant to this chapter that has been suspended by a district court pursuant to NRS 425.540 if the Board receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license or [work card] registration was suspended stating that the person whose license or [work card] registration was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
Sec. 9. NRS 648.203 is hereby amended to read as follows:
648.203 1. Except as otherwise provided in [subsection 2 or] NRS 253.220, it is unlawful for a person to [:
(a) Allow] allow an employee [, including an independent contractor,] to perform any work regulated pursuant to the provisions of this chapter unless the employee [holds a work card authorizing his work which is issued by the sheriff of the county in which the work is performed.] is registered pursuant to this chapter. The provisions of this [paragraph] subsection do not apply to a person licensed pursuant to this chapter.
[(b) Work as a security guard unless he holds a work card authorizing his work as a security guard issued in accordance with applicable ordinances by the sheriff of the county in which the work is performed.]
2. [The provisions of subsection 1 do not apply in any county whose population is less than 100,000, but this subsection does not prohibit a board of county commissioners from adopting similar restrictions by ordinance.
3.] The [sheriff of any county in which such restrictions apply] Board shall require any person applying for [such a work card] registration pursuant to this chapter to submit a complete set of his fingerprints or a receipt for electronically submitted fingerprints to the [sheriff] Board or to the sheriff of a county whose population is 100,000 or more who has entered into a contract with the Board to perform such services, who [may] shall forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation to determine the applicants criminal history.
Sec. 10. Any person who holds an active work card issued before January 1, 2010, will be deemed to be registered pursuant to chapter 648 of NRS. Notwithstanding the amendatory provisions of this act to the contrary, any such registration pursuant to this section expires on the date that the work card expires or January 1, 2015, whichever is earlier.
Sec. 11. 1. This section and section 3.5 of this act become effective upon passage and approval.
2. Sections 1, 2, 3 and 4 to 10, inclusive, of this act become effective on January 1, 2010.
________
κ2009 Statutes of Nevada, Page 1947κ
Senate Bill No. 310Senator Care
CHAPTER 374
AN ACT relating to trust companies; establishing various requirements for licensing as a retail trust company; establishing certain minimum capital requirements for trust companies; authorizing the Commissioner of Financial Institutions to take various actions relating to the regulation of trust companies; and providing other matters properly relating thereto.
[Approved: May 29, 2009]
Legislative Counsels Digest:
Sections 3, 4, 6-8, 12-14, 16, 18, 25-27 and 30-36 of this bill revise various provisions governing the licensing and conduct of retail trust companies.
Sections 15-21, 31 and 35 of this bill authorize the Commissioner of Financial Institutions to take various actions concerning the activities of retail trust companies and the enforcement of chapter 669 of NRS.
Section 26 of this bill revises the minimum requirements for the amount of capital that must be held by trust companies.
Section 30 of this bill revises various fees relating to the licensing of retail trust companies.
Section 11 of this bill makes certain information provided to the Division of Financial Institutions of the Department of Business and Industry confidential in certain circumstances.
Section 9 of this bill authorizes the Commissioner to be a signatory to the Nationwide Cooperative Agreement for Supervision and Examination of Multi-State Trust Institutions as adopted by the Conference of State Bank Supervisors.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 669 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 21, inclusive, of this act.
Sec. 2. 1. Family trust company means a corporation or limited-liability company that:
(a) Acts or proposes to act as a fiduciary;
(b) Is organized or qualified to do business in this State to serve family members; and
(c) Does not:
(1) Transact trust company business with;
(2) Propose to act as a fiduciary for; or
(3) Solicit trust company business from,
Κ a person who is not a family member.
2. As used in this section:
(a) Designated relative means the common ancestor of the family, who may be either a living or deceased person. With regard to:
(1) A licensed family trust company or a family trust company applying to be licensed pursuant to this chapter, the designated relative is the person who is designated in the application for a license under this chapter or in the annual renewal of a license.
(2) A family trust company other than a family trust company described in subsection 1, the designated relative is any person designated by the family trust company in a letter to the Commissioner sent by certified mail, return receipt requested.
κ2009 Statutes of Nevada, Page 1948 (CHAPTER 374, SB 310)κ
by the family trust company in a letter to the Commissioner sent by certified mail, return receipt requested.
(b) Family member includes, without limitation, the designated relative and:
(1) Any person within the tenth degree of lineal kinship to the designated relative;
(2) Any person within the ninth degree of collateral kinship to the designated relative;
(3) Any nonfamily member who is an individual beneficiary under a will or trust created by a family member specified in subparagraph (1) or (2), including the spouse and issue of that person;
(4) The spouse and any former spouse of the designated relative or of any person qualifying as a family member under subparagraph (1) or (2);
(5) Any person within the fifth degree of lineal kinship of a spouse or former spouse identified in subparagraph (3) or (4);
(6) A family affiliate and the officers, managers and directors of that family affiliate and their immediate families;
(7) An inter vivos or testamentary trust established by a family member either individually or jointly with a spouse or third party and any trustee, advisor or other person assisting with administration of that trust;
(8) An inter vivos or testamentary trust established by a person who is not a family member if noncharitable beneficiaries of that trust include family members;
(9) The estate of a family member;
(10) The estate of a nonfamily member if the noncharitable beneficiaries of that estate include family members; and
(11) A charitable foundation, charitable trust or charitable entity of which a family member is an organizer, incorporator, officer, member of the governing board, trustee, major donor or noncharitable beneficiary and the officers, directors, individual trustees and managers of that foundation, trust or entity and their immediate families.
3. For the purposes of this section:
(a) A family member is not a member of the public.
(b) A legally adopted person must be treated as a natural child of the adoptive parents.
(c) A stepchild must be treated as a natural child of the family member who is or was the stepparent of that child.
(d) Children of a spouse of a family member must be treated as natural children of that family member.
(e) Degrees are calculated by adding the number of steps from the designated relative through each person to the family member either directly, in the case of lineal kinship, or through the common ancestor, in the case of collateral kinship. As used in this paragraph:
(1) Collateral kinship means a relationship that is not lineal but stems from a common ancestor.
(2) Lineal kinship means a family member who is in the direct line of ascent or descent from the designated relative.
Sec. 2.3. Grandfathered trust company means a trust company that:
κ2009 Statutes of Nevada, Page 1949 (CHAPTER 374, SB 310)κ
1. Held a license pursuant to this chapter on March 16, 2009; or
2. Filed an application for a license pursuant to this chapter with the Commissioner on or before March 16, 2009, and held such license on October 1, 2009.
Sec. 2.7. 1. Noncustodial trust company means a grandfathered trust company that:
(a) Does not manage, or advise regarding, in the aggregate, more than $100,000,000 worth of a clients assets;
(b) Does not have custody or control of clients assets that exceed 20 percent of the total assets that the trust company manages for all clients; and
(c) To the extent that the trust company has custody or control of a clients assets, invests such assets pursuant to:
(1) Direction by the client; or
(2) The prudent investor standards of NRS 164.700 to 164.775, inclusive.
2. For the purposes of this section:
(a) Advise means to provide investment advice.
(b) Control means the ability to invest or transfer cash or any other asset in a fiduciary or client account to any person other than:
(1) In the case of an account for which the trust company acts as fiduciary, the settlor or beneficiary; and
(2) In the case of any other account of a client, the owner of the account.
(c) Manage means the exercise of discretion regarding investments, whether or not that discretion is delegated to another person.
Sec. 3. Retail trust company means an entity which is licensed under this chapter.
Sec. 4. 1. A retail trust company licensed in this State shall maintain its principal office in this State.
2. The conditions for a retail trust company to fulfill the requirements of subsection 1 include, but are not limited to:
(a) A verifiable physical office in this State that conducts such business operations in this State as are necessary to administer trusts in this State;
(b) The presence of an employee that is a resident of Nevada in the principal office who has experience that is satisfactory to the Commissioner in accepting and administering trusts;
(c) Maintenance of originals or true copies of all material business records and accounts of the retail trust company which may be accessed and are readily available for examination by the Division of Financial Institutions;
(d) Maintenance of the required cash portion of the stockholders equity pursuant to NRS 669.100 in accounts with one or more banks or other financial institutions located in this State;
(e) The provision of services to residents of this State consistent with the business plan provided by the trust company with its license application; and
(f) Such other conditions that the Commissioner may require to protect the public interest.
Sec. 5. (Deleted by amendment.)
κ2009 Statutes of Nevada, Page 1950 (CHAPTER 374, SB 310)κ
Sec. 6. 1. The Commissioner may conduct a pre-opening examination of a retail trust company and, in rendering a decision on an application for a license as a retail trust company, consider:
(a) The proposed market or markets to be served and, if they extend outside of this State, any exceptional risk, examination or supervision concerns associated with such markets;
(b) Whether the proposed organizational and capital structure and the amount of initial capital appear adequate in relation to the proposed business and market or markets, including, without limitation, the average level of assets under management and administration projected for each of the first 3 years of operation;
(c) Whether the anticipated volume and nature of business indicate a reasonable probability of success and profitability based on the market or markets proposed to be served;
(d) Whether the proposed officers and directors or managers of the proposed retail trust company, as a group, have sufficient experience, ability, standing and competence and whether each individually has sufficient trustworthiness and integrity to justify a belief that the proposed retail trust company will be free from improper or unlawful influence and otherwise will operate in compliance with the law and applicable fiduciary duties and that success of the proposed retail trust company is reasonably probable;
(e) Whether any investment services to trusts, estates, charities, employee benefit plans and other fiduciary accounts or to natural persons, partnerships, limited-liability companies and other entities, including, without limitation, providing investment advice with or without discretion or selling investments in or investment products of affiliated or nonaffiliated persons, will be conducted in compliance with all applicable fiduciary standards, including, without limitation, NRS 164.700 to 164.775, inclusive, the duty of loyalty and disclosure of material information;
(f) Whether the proposed retail trust company will be exempt from registration under the Investment Advisers Act of 1940, 15 U.S.C. § 80a-1 et seq., and any similar state laws in each state where it would otherwise be required to register and, if not, whether it will comply with such registration requirements before commencing business and thereafter will comply with all federal and state laws and regulations applicable to it, its employees and representatives as a registrant under such laws;
(g) Whether the proposed retail trust company will obtain suitable annual audits by qualified outside auditors of its books and records and its fiduciary activities under applicable account rules and standards as well as suitable internal audits; and
(h) Any other factors that the Commissioner may require.
2. The Commissioner may require a retail trust company to maintain capital in excess of the minimum required either initially or at any subsequent time based on his assessment of the risks associated with the retail trust companys business plan or any other circumstances revealed in the application, his investigation of the application or any examination of or filing by the retail trust company thereafter, including any examination before the opening of the retail trust company for business. In making such a determination, the Commissioner may consider:
(a) The nature and type of business proposed to be conducted by the retail trust company;
(b) The nature and liquidity of assets proposed to be held in its own account;
κ2009 Statutes of Nevada, Page 1951 (CHAPTER 374, SB 310)κ
(c) The amount of fiduciary assets projected to be under management or under administration of the retail trust company;
(d) The type of fiduciary assets proposed to be held and any proposed depository of such assets;
(e) The complexity of fiduciary duties and degree of discretion proposed to be undertaken by the retail trust company;
(f) The competence and experience of proposed management of the retail trust company;
(g) The extent and adequacy of proposed internal controls;
(h) The proposed presence or absence of annual audits by an independent certified public accountant, and the scope and frequency of such audits, whether they result in an opinion of the accountant and any qualifications to the opinion;
(i) The reasonableness of business plans for retaining or acquiring additional equity capital;
(j) The existence and adequacy of insurance proposed to be obtained by the retail trust company for the purpose of protecting its fiduciary assets;
(k) The success of the retail trust company in achieving the financial projections submitted with its licensing application;
(l) The fulfillment by the retail trust company of its representations and its descriptions of its business structures and methods and management set forth in its licensing application; and
(m) Any other factor that the Commissioner may require.
Sec. 7. 1. A license issued pursuant to this chapter is not transferable or assignable. Upon approval of the Commissioner, a licensee may merge or consolidate with, or transfer its assets and control to, another entity that has been issued a license under this chapter. In making a determination regarding whether to grant such approval, the Commissioner may consider the factors set forth in paragraphs (a) to (m), inclusive, of subsection 2 of section 6 of this act.
2. If there is a change in control of any retail trust company, the chief executive officer or managing member of the retail trust company shall report the fact and the person obtaining control to the Commissioner within 5 business days after obtaining knowledge of the change.
3. A retail trust company shall, within 5 business days after there is a change in the chief executive officer, managing member or a majority of the directors or managing directors of the retail trust company, report the change to the Commissioner. The retail trust company shall include in its report a statement of the past and current business and professional affiliations of each new chief executive officer, managing member, director or managing director. A new chief executive officer, managing member, director or managing director shall furnish to the Commissioner a complete financial statement on a form prescribed by the Commissioner.
4. A person who acquires control as a result of a change of control of a retail trust company shall submit an application to the Commissioner. The application must be submitted on a form prescribed by the Commissioner. The Commissioner shall conduct an investigation to determine whether the person has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business of a trust company in a manner which protects the interests of the general public.
κ2009 Statutes of Nevada, Page 1952 (CHAPTER 374, SB 310)κ
5. The retail trust company with which the applicant described in subsection 4 is affiliated shall pay the nonrefundable cost of the investigation as the Commissioner requires. If the Commissioner denies the application, he may forbid or limit the applicants participation in the business of the trust company.
6. As used in this section, control means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policy of a retail trust company, or a change in the ownership of at least 25 percent of the outstanding voting stock of, or participating members interest in, a retail trust company.
Sec. 8. 1. It is unlawful for any retail trust company licensed in this State to engage in trust company business at any office outside this State without the prior approval of the Commissioner.
2. Before the Commissioner will approve a branch to be located in another state, the retail trust company must:
(a) Obtain from that state a license as a trust company; or
(b) Meet all the requirements to do business as a trust company at an office in that state.
Sec. 9. The Commissioner is authorized to be, on his own behalf and that of the Division of Financial Institutions, a signatory to the Nationwide Cooperative Agreement for Supervision and Examination of Multi-State Trust Institutions as adopted by the Conference of State Bank Supervisors and exercise his discretion in the supervision of multi-state trust institutions consistently with that agreement.
Sec. 10. 1. The Commissioner may require a licensee to provide an audited financial statement prepared by an independent certified public accountant licensed to do business in this State.
2. On the fourth Monday in January of each year, each licensee shall submit to the Commissioner a list of stockholders required to be maintained pursuant to paragraph (c) of subsection 1 of NRS 78.105 or the list of members required to be maintained pursuant to paragraph (a) of subsection 1 of NRS 86.241, verified by the president or a manager, as appropriate.
3. The list of members required to be maintained pursuant to paragraph (a) of subsection 1 of NRS 86.241 must include the percentage of each members interest in the company, in addition to the requirements set forth in that section.
4. Except as otherwise provided in NRS 239.0115, any document submitted pursuant to this section is confidential.
Sec. 11. Except as otherwise provided in NRS 239.0115, any application and personal or financial records submitted by a person pursuant to the provisions of this chapter and any personal or financial records or other documents obtained by the Division of Financial Institutions pursuant to an examination or audit conducted by the Division are confidential and may be disclosed only to:
1. The Division, any authorized employee of the Division and any state or federal agency investigating the activities covered under the provisions of this chapter; and
2. Any person when the Commissioner, in his discretion, determines that the interests of the public that would be protected by disclosure outweigh the interest of any person in the confidential information not being disclosed.
κ2009 Statutes of Nevada, Page 1953 (CHAPTER 374, SB 310)κ
Sec. 12. The Commissioner may direct that the board of directors or managers of a retail trust company meet at least quarterly in regular meetings to review the books, records, funds and securities held by the retail trust company in its individual and fiduciary capacities and maintain a written record of those meetings for review by the Division.
Sec. 13. 1. Except as otherwise provided in subsection 3, the affairs and business of a retail trust company organized as a corporation under the laws of this State must be managed or controlled by a board of directors of not less than five in number who must be selected by the stockholders at the annual meeting of stockholders in such manner as may be provided by the bylaws of the corporation.
2. Except as otherwise provided in subsection 3, the affairs and business of a retail trust company organized as a limited-liability company under the laws of this State must be managed or controlled by no fewer than five managers selected from the members as provided in the operating agreement.
3. The Commissioner may authorize a retail trust company to be managed or controlled by no fewer than three directors or managers, as appropriate.
4. The board of directors or managers of a noncustodial trust company must be not less than three in number unless a smaller number is authorized by the Commissioner.
Sec. 14. 1. No person is eligible to serve as a director or manager of any retail trust company unless he:
(a) Displays the competence and integrity to transact the business of the retail trust company in a manner which safeguards the interests of the general public; and
(b) Has a financial status consistent with his responsibilities to the public.
2. The Commissioner may require any or all new directors or managing directors of a retail trust company to provide such financial and biographical information and verification thereof as he deems appropriate, including the completion of any forms required to be completed in connection with the licensing of a retail trust company.
Sec. 15. 1. For the purpose of discovering violations of this title or of securing information required under this chapter, the 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 an activity for which a license is required pursuant to the provisions of this chapter; and
(c) Any person that the 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 Commissioner or his authorized representatives must have and be given free access to the offices and places of business, files, safes and vaults of such persons.
3. The Commissioner may require the attendance of any person and examine him under oath regarding:
(a) Any transaction or business regulated pursuant to the provisions of this chapter; or
κ2009 Statutes of Nevada, Page 1954 (CHAPTER 374, SB 310)κ
(b) The subject matter of any audit, examination, investigation or hearing.
Sec. 16. The Commissioner may require the immediate removal from office of any officer, director, manager or employee of any retail trust company doing business under this chapter who is found to be dishonest, incompetent or reckless in the management of the affairs of the retail trust company, or who persistently violates the laws of this State or the lawful orders, instructions and regulations issued by the Commissioner.
Sec. 17. (Deleted by amendment.)
Sec. 18. 1. The Commissioner may institute disciplinary action or forthwith initiate proceedings to take possession of the business and property of any retail trust company when it appears that the retail trust company:
(a) Has violated its charter or any state or federal laws applicable to the business of a trust company.
(b) Is conducting its business in an unauthorized or unsafe manner.
(c) Is in an unsafe or unsound condition to transact its business.
(d) Has an impairment of its stockholders equity.
(e) Has refused to pay or transfer account assets to its account holders as required by the terms of the accounts governing instruments.
(f) Has become insolvent.
(g) Has neglected or refused to comply with the terms of a lawful order of the Commissioner.
(h) Has refused, upon proper demand, to submit its records, affairs and concerns for inspection and examination of an appointed or authorized examiner of the Commissioner.
(i) Has made a voluntary assignment of its assets to receivers, conservators, trustees or creditors without complying with NRS 669.230.
(j) Has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS.
(k) Has materially and willfully breached its fiduciary duties to its customers.
(l) Has failed to properly disclose all fees, interest and other charges to its customers.
(m) Has willfully engaged in material conflicts of interest regarding a customers account.
(n) Has made intentional material misrepresentations regarding any aspect of the services performed or proposed to be performed by the retail trust company.
2. The Commissioner also may forthwith initiate proceedings to take possession of the business and property of any trust company when it appears that the officers of the trust company have refused to be examined upon oath regarding its affairs.
Sec. 19. If the Commissioner finds that probable cause for revocation of any license exists and that enforcement of the provisions of this chapter requires immediate suspension of a license pending investigation, he may, upon 5 days written notice and a hearing, enter an order suspending a license for a period not exceeding 20 days, pending a hearing upon the revocation.
Sec. 20. 1. Whenever the 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 the person to desist or to refrain from such violation.
κ2009 Statutes of Nevada, Page 1955 (CHAPTER 374, SB 310)κ
in this chapter and without prejudice thereto, enter an order requiring the person to desist or to refrain from such violation.
2. The Attorney General or the Commissioner may bring an action to enjoin a person from engaging in or continuing a violation or from doing any act or acts in furtherance thereof. In any such action, an order or judgment may be entered awarding 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 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 a court may deem reasonably necessary to prevent violations of this chapter through or by means of the use of property and business, whether such books, papers, documents and records are in the possession of the defendant, a registered agent acting on behalf of the defendant or any other person. 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.
4. If a receiver is appointed pursuant to subsection 3, such receiver shall remit to the owners, members or shareholders of the retail trust company any amount of equity and capital of the retail trust company remaining after discharge of the liabilities and payment of the normal, prudent and reasonable expenses of the receivership.
Sec. 21. 1. If the Commissioner has reason to believe that grounds for revocation or suspension of a license exist, he shall give at least 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 a hearing, the Commissioner shall:
(a) Enter a written order dismissing the charges, revoking the license or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. The Commissioner shall send a copy of the order to the licensee by registered or certified mail.
(b) Impose upon the licensee an administrative fine of not more than $10,000 for each violation by the licensee of any provision of this chapter or any regulation adopted pursuant thereto.
(c) If a fine is imposed pursuant to this section, enter such order as is necessary to recover the costs of the proceeding, including his investigative costs and attorneys fees.
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 regulation adopted pursuant thereto or any lawful order of the Division of Financial Institutions;
(c) The licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS;
(d) Any fact or condition exists which would have justified the Commissioner in denying the licensees original application for a license pursuant to the provisions of this chapter; or
κ2009 Statutes of Nevada, Page 1956 (CHAPTER 374, SB 310)κ
(e) The licensee:
(1) Failed to open an office for the conduct of the business authorized by his license within 180 days after the date his license was issued; or
(2) Has failed to remain open for the conduct of the business for a period of 30 days without good cause therefor.
4. 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. 22. NRS 669.020 is hereby amended to read as follows:
669.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 669.029 to 669.070, inclusive, and sections 2 to 3, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 23. NRS 669.045 is hereby amended to read as follows:
669.045 1. Fiduciary means a trustee, executor, administrator, guardian of an estate, personal representative, conservator, assignee for the benefit of creditors, receiver, depositary or person that receives on deposit money or property from a public administrator under any provision of this chapter or from another fiduciary.
2. As used in this section, administrator includes servicers or administrators of individual retirement accounts within the meaning of section 408(a) of the Internal Revenue Code of 1986, 26 U.S.C. § 408(a), where the servicer or administrator holds itself out to the public for performance of such services and holds or maintains an ownership interest in the servicing rights of such accounts, or possesses or controls any of the assets of such accounts, including cash.
Sec. 24. NRS 669.080 is hereby amended to read as follows:
669.080 1. This chapter does not apply to a person who:
(a) Does business under the laws of this State, the United States or another state relating to banks, savings banks, savings and loan associations or thrift companies, but if the trust company business conducted in this State is not subject to supervision by a regulatory authority of another jurisdiction, the person must be licensed pursuant to this chapter [;] before engaging in such business in this State;
(b) Is appointed as a fiduciary pursuant to NRS 662.245;
(c) Is acting in the performance of his duties as an attorney at law;
(d) Acts as a trustee under a deed of trust;
(e) Acts as a registered agent for a domestic or foreign corporation, limited-liability company, limited partnership or limited-liability partnership;
(f) Acts as a trustee of a trust holding real property for the primary purpose of facilitating any transaction with respect to real estate if he is not regularly engaged in the business of acting as a trustee for such trusts;
(g) Engages in the business of a collection agency pursuant to chapter 649 of NRS;
(h) Engages in the business of an escrow agency, escrow agent or escrow officer pursuant to the provisions of chapter 645A or 692A of NRS;
(i) Acts as a trustee of a trust created for charitable or nonprofit purposes if he is not regularly engaged in the business of acting as trustee for such trusts;
(j) Receives money or other property as a real estate broker licensed under chapter 645 of NRS on behalf of a principal;
κ2009 Statutes of Nevada, Page 1957 (CHAPTER 374, SB 310)κ
(k) Engages in transactions as a broker-dealer or sales representative pursuant to chapter 90 of NRS;
(l) Acts as a fiduciary under a court trust;
(m) Does business as an insurer authorized to issue policies of life insurance and annuities or endowment contracts in this State and is subject to regulation and control of the Commissioner of Insurance; [or]
(n) Acts as a fiduciary [if:
(1) The fiduciary relationship is not one of his principal occupations; or
(2) He serves as a fiduciary for a relative by blood or marriage.] as an individual; or
(o) Acts as a family trust company, unless the family trust company is licensed under this chapter. A family trust company which is not licensed under the provisions of this chapter shall be deemed not to be engaged in trust company business for the purposes of this chapter.
2. A bank, savings bank, savings and loan association or thrift company claiming an exemption from this chapter pursuant to paragraph (a) of subsection 1 must notify the Commissioner of Financial Institutions of its intention to engage in the business of a trust company in this State and present proof satisfactory to the Commissioner of Financial Institutions that its fiduciary activities in this State will be subject to regulation by another jurisdiction.
Sec. 25. NRS 669.090 is hereby amended to read as follows:
669.090 It is unlawful for any [person] retail trust company to engage in the business of a trust company without complying with the provisions of this chapter and having a license issued by the Commissioner.
Sec. 26. NRS 669.100 is hereby amended to read as follows:
669.100 1. No retail trust company may be organized or operated with a stockholders equity of less than [$300,000,] $1,000,000, or in such greater amount as may be required by the Commissioner. The full amount of the initial stockholders equity must be paid in cash, exclusive of all organization expenses, before the trust company is authorized to commence business.
2. A retail trust company shall maintain at least 50 percent of its required stockholders equity in cash unless the Commissioner approves a smaller amount. The remaining 50 percent of its required stockholders equity may be a different form of readily marketable securities or with prior approval by the Commissioner other liquid, secure asset, bond, surety or insurance, or some combination of the foregoing.
3. Any grandfathered trust company other than a noncustodial trust company that does not have the minimum capital required by this section as of October 1, 2009, shall:
(a) Except as otherwise determined by the Commissioner, increase its capital to a minimum of:
(1) By October 1, 2010, $500,000;
(2) By October 1, 2011, $750,000; and
(3) By October 1, 2012, $1,000,000; and
(b) Maintain $500,000 of such minimum capital in cash on and after October 1, 2010.
4. Any noncustodial trust company that does not have the minimum capital required by this section as of October 1, 2009, shall:
κ2009 Statutes of Nevada, Page 1958 (CHAPTER 374, SB 310)κ
(a) Except as otherwise determined by the Commissioner, increase its capital to a minimum of:
(1) By October 1, 2010, $350,000;
(2) By October 1, 2011, $400,000; and
(3) By October 1, 2012, $500,000; and
(b) Maintain 50 percent of such minimum capital in cash on and after October 1, 2010.
5. As used in this section, in cash means in depository accounts with one or more banks in this State.
Sec. 27. NRS 669.130 is hereby amended to read as follows:
669.130 A retail trust company shall not transact business, except business that is incidental to its organization, until it is authorized by the Commissioner to commence the business of a trust company as provided in this chapter.
Sec. 28. NRS 669.150 is hereby amended to read as follows:
669.150 1. An applicant must file an application for a license to transact trust company business with the Commissioner on forms prescribed by the Commissioner, which must contain or be accompanied by such information as the Commissioner requires.
2. A nonrefundable fee of not more than $2,000 must accompany the application. The applicant must also pay such reasonable additional expenses incurred in the process of investigation as the Commissioner deems necessary. In addition, a fee of not less than $200 or more than $500, prorated on the basis of the licensing year as provided by the Commissioner, must be paid at the time of making the application.
3. [A] Except as otherwise provided in section 8 of this act, a trust company may maintain offices in this and other states. For every branch location of a trust company organized under the laws of this State, and every branch location in this State of a foreign trust company authorized to do business in this State, a request for approval and licensing must be filed with the Commissioner on such forms as he prescribes. A nonrefundable fee of not more than $500 must accompany each request. In addition, a fee of not more than $200, prorated on the basis of the licensing year as provided by the Commissioner, must be paid at the time of making the request.
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account for Financial Institutions created by NRS 232.545.
5. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
Sec. 29. NRS 669.160 is hereby amended to read as follows:
669.160 1. Within [60] 90 days after the application for a license is filed, the Commissioner shall investigate the facts of the application and the other requirements of this chapter to determine:
κ2009 Statutes of Nevada, Page 1959 (CHAPTER 374, SB 310)κ
(a) That the persons who will serve as directors or officers of the corporation, or the managers or members acting in a managerial capacity of the limited-liability company, as applicable:
(1) Have a good reputation for honesty, trustworthiness and integrity and display competence to transact the business of a trust company in a manner which safeguards the interests of the general public. The applicant must submit satisfactory proof of these qualifications to the Commissioner.
(2) Have not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(3) Have not made a false statement of material fact on the application.
(4) Have not been an officer or member of the board of directors for an entity which had a license [that was] issued pursuant to the provisions of this chapter that was suspended or revoked within the 10 years immediately preceding the date of the application [.] , and in the reasonable judgment of the Commissioner, there is evidence that the officer or member of the board of directors materially contributed to the actions resulting in the license suspension or revocation.
(5) Have not been an officer or member of the board of directors for a company which had a license as a trust company which was issued in any other state, district or territory of the United States or any foreign country suspended or revoked within the 10 years immediately preceding the date of the application [.] , and in the reasonable judgment of the Commissioner, there is evidence that the officer or member of the board of directors materially contributed to the actions resulting in the license suspension or revocation.
(6) Have not violated any of the provisions of this chapter or any regulation adopted pursuant to the provisions of this chapter.
(b) That the financial status of the directors and officers of the corporation or the managers or members acting in a managerial capacity of the limited-liability company is consistent with their responsibilities and duties.
(c) That the name of the proposed company complies with the provisions of NRS 657.200.
(d) That the initial stockholders equity is not less than the required minimum.
(e) That the applicant has retained the employee required by paragraph (b) of subsection 2 of section 4 of this act.
2. Notice of the entry of an order refusing a license to a trust company must be given in writing, served personally or sent by certified mail [or by telegram] to the company affected. The company, upon application, is entitled to a hearing before [a hearing officer appointed by the Director of the Department of Business and Industry,] the Commissioner, but if no such application is made within 30 days after the entry of an order refusing a license to any company, the Commissioner shall enter a final order.
3. [If the hearing officer affirms the] The order of the Commissioner [refusing the license, the applicant may file a petition for] is final for the purposes of judicial review . [pursuant to NRS 233B.130.]
κ2009 Statutes of Nevada, Page 1960 (CHAPTER 374, SB 310)κ
Sec. 30. NRS 669.190 is hereby amended to read as follows:
669.190 1. The initial fee to be paid for a retail trust company license [must be in proportion to the initial stockholders equity of the trust company as follows:
(a) A trust company with an initial stockholders equity of not less than $300,000 but not more than $500,000 must pay a license fee of not more than $1,000.
(b) A trust company with an initial stockholders equity of more than $500,000 but not more than $1,000,000 must pay a license fee of not more than not more than $1,500.
(c) A trust company with an initial stockholders equity of more than $1,000,000 must pay a license fee of not more than $2,000.] must not be more than $3,000.
2. In addition, every retail trust company must pay an initial license fee of not more than [$200] $500 for each branch office that is authorized by the Commissioner.
3. Thereafter, every retail trust company must pay annually on or before April 1 of each year a license fee [which must be in proportion to its existing stockholders equity as follows:
(a) A trust company with an existing stockholders equity of not less than $300,000 but not more than $500,000 must pay a license fee of not more than $1,000.
(b) A trust company with an existing stockholders equity of more than $500,000 but not more than $1,000,000 must pay a license fee of not more than $1,500.
(c) A trust company with an existing stockholders equity of more than $1,000,000 must pay a license fee of not more than $2,000.] of not more than $3,000.
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money collected under the provisions of this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
Sec. 31. NRS 669.200 is hereby amended to read as follows:
669.200 The Commissioner shall issue an order cancelling a retail trust companys license:
1. If [a] the proposed retail trust company fails to open for business within 6 months after the date the license was issued, or within an additional 6-month extension granted by the Commissioner upon written application and for good cause shown [, the Commissioner shall issue an order cancelling the trust companys license.] ; or
2. If the retail trust company fails to maintain regular business hours or otherwise conduct the business of a trust company for more than 30 days.
Sec. 32. NRS 669.210 is hereby amended to read as follows:
669.210 1. Each [licensed] retail trust company may [:] , in the conduct of its trust business, within and outside this State, subject to section 8 of this act, as applicable:
(a) Act as indenture trustee or as trustee under any mortgage or bond of any person or of any municipality or body politic.
(b) Accept and execute any municipal or corporate or individual trust not inconsistent with the laws of this State.
κ2009 Statutes of Nevada, Page 1961 (CHAPTER 374, SB 310)κ
(c) Act under the order or appointment of any court as guardian, administrator, receiver or trustee.
(d) Act as executor or trustee under any will.
(e) Act as fiscal or transfer agent of any state, municipality, body politic or corporation, and in such capacity receive and disburse money and register, transfer and countersign certificates of stock, bonds and other evidences of indebtedness.
(f) Act as [local or] a registered agent of foreign corporations.
(g) Accept and execute any trust business permitted by any law.
(h) Acquire the fiduciary rights, powers, duties and liabilities of a bank, savings and loan association, thrift company, trust company or credit union licensed pursuant to titles 55 and 56 of NRS, and upon the effective date of such an acquisition, the fiduciary rights, powers, duties and liabilities of the bank, savings and loan association, thrift company, trust company or credit union vest in and must be performed by the acquiring trust company.
(i) Act as an agent, advisory agent, assignee, attorney-in-fact, authenticating agent, bailee, bond or indenture trustee, conversion agent, curator, custodian, escrow agent, exchange agent, fiscal or paying agent, financial adviser, investment adviser, investment manager, managing agent, purchase agent, registrar, safekeeping agent, subscription agent, warrant agent or in similar capacities generally performed by corporate trustees, and in so acting, may possess, purchase, sell, invest, reinvest, safekeep or otherwise manage or administer real or personal property of other persons.
(j) Exercise the powers of a business corporation or limited-liability company organized or qualified as a foreign corporation or limited-liability company under Nevada law and any incidental powers that are reasonably necessary to enable it to fully exercise, in accordance with commonly accepted customs and usages, a power conferred in this chapter.
(k) Do and perform all acts necessary to exercise the powers enumerated in this subsection and authorized by this chapter and any other applicable laws of this State.
2. A retail trust company may not engage in any banking business by accepting deposits or making loans.
Sec. 33. NRS 669.220 is hereby amended to read as follows:
669.220 1. A retail trust company:
(a) Shall keep all trust funds and investments separate from the assets of the retail trust company, and all investments made by the retail trust company as a fiduciary must be designated so that the trust or estate to which the investments belong may be clearly identified.
(b) When it holds trust funds awaiting investment or distribution, may deposit or leave those funds on deposit with a state or national bank or credit union. The funds must not be deposited or left with the same corporation depositing them or leaving them on deposit, or with a corporation or association holding or owning a majority of the stock of the retail trust company making or leaving the deposit, unless that corporation or association first pledges, as security for the deposit, securities eligible for investment by state banks or credit unions which have a market value equal to that of the deposited funds. No security is required with respect to any portion of the deposits that is insured under the provisions of NRS 678.755 or a law of the United States.
κ2009 Statutes of Nevada, Page 1962 (CHAPTER 374, SB 310)κ
(c) When it acts in any capacity under a court trust or private trust, unless the instrument creating the trust provides otherwise, may cause any securities or other assets held by it in its representative capacity to be registered or titled in the name of a nominee or nominees of the retail trust company.
(d) When acting as depositary or custodian for the personal representative of a court trust or private trust, unless the instrument creating the trust provides otherwise, may with the consent of the personal representative of the trust, cause any securities or other assets held by it to be registered or titled in the name of a nominee or nominees of the retail trust company.
2. A trust company is liable for any loss occasioned by the acts of its nominees with respect to securities registered under this section.
3. No corporation or the registrar or transfer agent of the corporation is liable for registering or causing to be registered on the books of the corporation any securities in the name of any nominee of a trust company or for transferring or causing to be transferred on the books of the corporation any securities registered by the corporation in the name of any nominee of a trust company when the transfer is made on the authorization of the nominee.
4. [Except as otherwise provided in subsection 5, the] The assets forming the capital of a retail trust company must:
(a) Be cash, governmental obligations or insured deposits that mature within 3 years after acquisition [.] , readily marketable securities or other liquid, secure assets, bonds, sureties or insurance, or some combination of the foregoing in accordance with NRS 669.100.
(b) Have an aggregate market value that equals or exceeds [60] 100 percent of the companys [current] required stockholders equity . [or 60 percent of the companys initial stockholders equity, whichever is greater.]
5. A retail trust company may purchase or rent [land and equipment for use in the daily] real or personal property useful for the conduct of the business and other activities of the retail trust company.
6. A retail trust company may invest its money for its own account, other than those required or permitted to be maintained by subsection 4 or 5 or NRS 669.100, in any type or character of equity securities, debt securities or other asset, provided the investment complies with the prudent investor standards of NRS 164.700 to 164.775, inclusive.
Sec. 34. NRS 669.225 is hereby amended to read as follows:
669.225 1. In addition to the powers of investment granted to the trust company by the instrument creating the relationship of fiduciary or agent, a trust company which is acting as a fiduciary or agent may, in its discretion or at the direction of another person who is authorized to direct the investment of money held by the trust company as a fiduciary or agent, invest in the securities of an investment trust or investment company if:
(a) The investment trust or investment company is [registered pursuant to] an investment company for the purposes of the Investment Company Act of 1940, as amended, 15 U.S.C. §§ 80a-1 et seq.; [and]
(b) The portfolio of the investment trust or investment company consists substantially of investments which are not prohibited by the instrument creating the fiduciary or agency relationship [.] ; and
(c) The relationship of the investment company to the trust company is disclosed to any person who is currently receiving statements for the account, by a prospectus, a statement of account or otherwise.
κ2009 Statutes of Nevada, Page 1963 (CHAPTER 374, SB 310)κ
2. A retail trust company or an affiliate of the retail trust company [may provide] that provides services to the investment trust or investment company, including, without limitation, acting as an [investment adviser,] adviser, custodian, transfer agent, registrar, sponsor, distributor or shareholder serving agent manager , [and] may receive reasonable compensation for the services. The manner in which the compensation is calculated must be disclosed to [the] any person who is currently receiving [the benefits of the relationship of a fiduciary or agent with the trust company. The disclosure may be made] statements for the account by a prospectus, a statement of account or otherwise.
3. A retail trust company may deposit money held by the retail trust company as a fiduciary or agent [with an affiliate before investing or making other disposition of the money.] that is awaiting investment or distribution as provided in the governing instrument for the account in an affiliated bank. To the extent that the money invested in an affiliated bank is not insured by the Federal Deposit Insurance Corporation, the retail trust company shall set aside collateral as security, under the control of appropriate fiduciary officers and employees, with a market value that at all times equals or exceeds the amount of the uninsured fiduciary money.
4. Notwithstanding subsections 1, 2 and 3, a retail trust company authorized to exercise trust powers in this State which is acting as a fiduciary shall not purchase for the fiduciary estate any fixed income or equity security issued by the retail trust company or an affiliate thereof other than an investment company, unless:
(a) The retail trust company is expressly authorized to do so by the terms of the instrument creating the trust, a court order, the written consent of the grantor of the trust or the written consent of every adult beneficiary of the trust who, at the time the notice is provided, receives, or is entitled to receive, income under the trust or who would be entitled to receive a distribution of principal if the trust were terminated; or
(b) The security is fairly priced and otherwise complies with the prudent investor standards of NRS 164.700 to 164.775, inclusive, and the terms of the instrument, judgment, decree, or other document establishing the fiduciary relationship.
Sec. 35. NRS 669.295 is hereby amended to read as follows:
669.295 1. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 per violation upon a person who:
[1.] (a) Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or
[2.] (b) Violates any provision of this chapter or any regulation adopted pursuant thereto.
2. The maximum total fine that the Commissioner may impose on any person pursuant to this section with respect to the same or similar actions or series of actions which constitute the violations must not exceed the greater of $100,000 or 125 percent of all losses incurred by the retail trust company and its clients as the direct or indirect result of such violations.
Sec. 36. NRS 669.282 and 669.284 are hereby repealed.
Sec. 37. (Deleted by amendment.)
________
κ2009 Statutes of Nevada, Page 1964κ
Senate Bill No. 338Committee on Judiciary
CHAPTER 375
AN ACT relating to property; authorizing a landlord who leases or subleases any commercial premises to dispose of any abandoned personal property left on the commercial premises without incurring any civil or criminal liability under certain circumstances; authorizing the landlord to charge and collect certain reasonable and actual costs before releasing the abandoned personal property; and providing other matters properly relating thereto.
[Approved: May 29, 2009]
Legislative Counsels Digest:
Section 1 of this bill authorizes a landlord who leases or subleases any commercial premises under a rental agreement that has been terminated for any reason to dispose of any abandoned personal property left on the commercial premises without incurring any civil or criminal liability if the landlord takes certain steps to notify any holder of a perfected lien or security interest of the existence of the abandoned property and notifies, by certified mail, the tenant who left the property on the premises of his intention to dispose of the property. If the landlord and any holder of a perfected lien or security interest have a written agreement concerning the removal and disposal of abandoned property, that agreement determines the rights and obligations of those parties with respect to the removal and disposal of abandoned property.
Section 2 of this bill defines abandoned personal property as any personal property which is left unattended on the commercial premises after the termination of the tenancy and which is not removed within a certain period after the landlord has provided certain notices to the tenant and any holder of a perfected lien or security interest in the property. If the abandoned personal property is a vehicle, section 1 requires the vehicle to be disposed of in the manner provided in chapter 487 of NRS for abandoned vehicles.
Section 1 of this bill also authorizes the landlord to charge and collect the reasonable and actual costs of inventory, moving and safe storage, if necessary, of the abandoned personal property before releasing the abandoned personal property to the tenant or his authorized representative. If the tenant disputes the costs claimed by the landlord, section 1 authorizes the dispute to be resolved using the procedure specified in NRS 40.253, as amended by section 3 of this bill.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 118 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 2, a landlord who leases or subleases any commercial premises under a rental agreement that has been terminated for any reason may, in accordance with the following provisions, dispose of any abandoned personal property, regardless of its character, left on the commercial premises without incurring any civil or criminal liability:
κ2009 Statutes of Nevada, Page 1965 (CHAPTER 375, SB 338)κ
(a) The landlord may dispose of the abandoned personal property and recover his reasonable costs out of the abandoned personal property or the value thereof if the conditions set forth in subparagraphs (1) and (2) are satisfied:
(1) The landlord has notified the tenant in writing of his intention to dispose of the abandoned personal property and 14 days have elapsed since the notice was mailed to the tenant. The notice must be mailed, by certified mail, return receipt requested, to the tenant at the tenants present address, and if that address is unknown, then at the tenants last known address.
(2) The landlord has taken reasonable steps to:
(I) Determine whether the tenant has subjected the abandoned personal property to a perfected lien or security interest; and
(II) If the landlord determines that the tenant has subjected the abandoned personal property to a perfected lien or security interest, notify the holder of the perfected lien or the security interest that the abandoned personal property has been left on the premises.
Κ The landlord shall be deemed to have taken the reasonable steps required by subparagraph (2) if the landlord has reviewed the results of a current search of the records in which a financing statement must be filed in order to perfect a lien or security interest pursuant to chapter 104 of NRS for a financing statement naming the tenant as the debtor of a debt secured by the abandoned personal property and, if such a financing statement is found, mailed, to any secured party named on the financing statement at the address indicated on the financing statement, by certified mail, return receipt requested, a written notice stating that the abandoned personal property has been left on the premises.
(b) The landlord may charge and collect the reasonable and actual costs of inventory, moving and safe storage, if necessary, before releasing the abandoned personal property to the tenant or his authorized representative rightfully claiming the abandoned personal property within the appropriate period set forth in paragraph (a).
(c) Vehicles must be disposed of in the manner provided in chapter 487 of NRS for abandoned vehicles.
2. If a written agreement between a landlord and a secured party who has a perfected lien on, or a perfected security interest in, any abandoned personal property of the tenant contains provisions which relate to the removal and disposal of abandoned personal property, the provisions of the agreement determine the rights and obligations of the landlord and the secured party with respect to the removal and disposal of the abandoned personal property.
3. Any dispute relating to the amount of the costs claimed by the landlord pursuant to paragraph (b) of subsection 1 may be resolved using the procedure provided in subsection 7 of NRS 40.253.
Sec. 2. NRS 118.171 is hereby amended to read as follows:
118.171 As used in NRS 118.171 to 118.205, inclusive, and section 1 of this act, unless the context otherwise requires:
1. Abandoned personal property means any personal property which is left unattended on any commercial premises after the termination of the tenancy and which is not removed by the tenant or a person who has a perfected lien on, or perfected security interest in, the personal property within 14 days after the later of the date on which the landlord:
κ2009 Statutes of Nevada, Page 1966 (CHAPTER 375, SB 338)κ
(a) Mailed, by certified mail, return receipt requested, notice of his intention to dispose of the personal property, as required by subparagraph (1) of paragraph (a) of subsection 1 of section 1 of this act; or
(b) Provided notice to a person who has a perfected lien on, or a perfected security interest in, the personal property that the personal property has been left on the premises, as required by subparagraph (2) of paragraph (a) of subsection 1 of section 1 of this act.
2. Real property includes an apartment, a dwelling, a mobile home that is owned by a landlord and located on property owned by the landlord and commercial premises.
[2.] 3. Rental agreement means an agreement to lease or sublease real property for a term less than life which provides for the periodic payment of rent.
[3.] 4. Tenant means a person who has the right to possess real property pursuant to a rental agreement.
Sec. 3. NRS 40.253 is hereby amended to read as follows:
40.253 1. Except as otherwise provided in subsection 10, in addition to the remedy provided in NRS 40.2512 and 40.290 to 40.420, inclusive, when the tenant of any dwelling, apartment, mobile home, recreational vehicle or commercial premises with periodic rent reserved by the month or any shorter period is in default in payment of the rent, the landlord or his agent, unless otherwise agreed in writing, may serve or have served a notice in writing, requiring in the alternative the payment of the rent or the surrender of the premises:
(a) At or before noon of the fifth full day following the day of service; or
(b) If the landlord chooses not to proceed in the manner set forth in paragraph (a) and the rent is reserved by a period of 1 week or less and the tenancy has not continued for more than 45 days, at or before noon of the fourth full day following the day of service.
Κ As used in this subsection, day of service means the day the landlord or his agent personally delivers the notice to the tenant. If personal service was not so delivered, the day of service means the day the notice is delivered, after posting and mailing pursuant to subsection 2, to the sheriff or constable for service if the request for service is made before noon. If the request for service by the sheriff or constable is made after noon, the day of service shall be deemed to be the day next following the day that the request is made for service by the sheriff or constable.
2. A landlord or his agent who serves a notice to a tenant pursuant to paragraph (b) of subsection 1 shall attempt to deliver the notice in person in the manner set forth in paragraph (a) of subsection 1 of NRS 40.280. If the notice cannot be delivered in person, the landlord or his agent:
(a) Shall post a copy of the notice in a conspicuous place on the premises and mail the notice by overnight mail; and
(b) After the notice has been posted and mailed, may deliver the notice to the sheriff or constable for service in the manner set forth in subsection 1 of NRS 40.280. The sheriff or constable shall not accept the notice for service unless it is accompanied by written evidence, signed by the tenant when he took possession of the premises, that the landlord or his agent informed the tenant of the provisions of this section which set forth the lawful procedures for eviction from a short-term tenancy. Upon acceptance, the sheriff or constable shall serve the notice within 48 hours after the request for service was made by the landlord or his agent.
κ2009 Statutes of Nevada, Page 1967 (CHAPTER 375, SB 338)κ
3. A notice served pursuant to subsection 1 or 2 must:
(a) Identify the court that has jurisdiction over the matter; and
(b) Advise the tenant of his right to contest the matter by filing, within the time specified in subsection 1 for the payment of the rent or surrender of the premises, an affidavit with the court that has jurisdiction over the matter stating that he has tendered payment or is not in default in the payment of the rent.
4. If the tenant files such an affidavit at or before the time stated in the notice, the landlord or his agent, after receipt of a file-stamped copy of the affidavit which was filed, shall not provide for the nonadmittance of the tenant to the premises by locking or otherwise.
5. Upon noncompliance with the notice:
(a) The landlord or his agent may apply by affidavit of complaint for eviction to the Justice Court of the township in which the dwelling, apartment, mobile home or commercial premises are located or to the district court of the county in which the dwelling, apartment, mobile home or commercial premises are located, whichever has jurisdiction over the matter. The court may thereupon issue an order directing the sheriff or constable of the county to remove the tenant within 24 hours after receipt of the order. The affidavit must state or contain:
(1) The date the tenancy commenced.
(2) The amount of periodic rent reserved.
(3) The amounts of any cleaning, security or rent deposits paid in advance, in excess of the first months rent, by the tenant.
(4) The date the rental payments became delinquent.
(5) The length of time the tenant has remained in possession without paying rent.
(6) The amount of rent claimed due and delinquent.
(7) A statement that the written notice was served on the tenant in accordance with NRS 40.280.
(8) A copy of the written notice served on the tenant.
(9) A copy of the signed written rental agreement, if any.
(b) Except when the tenant has timely filed the affidavit described in subsection 3 and a file-stamped copy of it has been received by the landlord or his agent, and except when the landlord is prohibited pursuant to NRS 118A.480, the landlord or his agent may, in a peaceable manner, provide for the nonadmittance of the tenant to the premises by locking or otherwise.
6. Upon the filing by the tenant of the affidavit permitted in subsection 3, regardless of the information contained in the affidavit, and the filing by the landlord of the affidavit permitted by subsection 5, the Justice Court or the district court shall hold a hearing, after service of notice of the hearing upon the parties, to determine the truthfulness and sufficiency of any affidavit or notice provided for in this section. If the court determines that there is no legal defense as to the alleged unlawful detainer and the tenant is guilty of an unlawful detainer, the court may issue a summary order for removal of the tenant or an order providing for the nonadmittance of the tenant. If the court determines that there is a legal defense as to the alleged unlawful detainer, the court shall refuse to grant either party any relief, and, except as otherwise provided in this subsection, shall require that any further proceedings be conducted pursuant to NRS 40.290 to 40.420, inclusive. The issuance of a summary order for removal of the tenant does not preclude an action by the tenant for any damages or other relief to which he may be entitled.
κ2009 Statutes of Nevada, Page 1968 (CHAPTER 375, SB 338)κ
entitled. If the alleged unlawful detainer was based upon subsection 5 of NRS 40.2514, the refusal by the court to grant relief does not preclude the landlord thereafter from pursuing an action for unlawful detainer in accordance with NRS 40.251.
7. The tenant may, upon payment of the appropriate fees relating to the filing and service of a motion, file a motion with the court, on a form provided by the clerk of the court, to dispute the amount of the costs, if any, claimed by the landlord pursuant to NRS 118A.460 or section 1 of this act for the inventory, moving and storage of personal property left on the premises. The motion must be filed within 20 days after the summary order for removal of the tenant or the abandonment of the premises by the tenant, or within 20 days after:
(a) The tenant has vacated or been removed from the premises; and
(b) A copy of those charges has been requested by or provided to the tenant,
Κ whichever is later.
8. Upon the filing of a motion pursuant to subsection 7, the court shall schedule a hearing on the motion. The hearing must be held within 10 days after the filing of the motion. The court shall affix the date of the hearing to the motion and order a copy served upon the landlord by the sheriff, constable or other process server. At the hearing, the court may:
(a) Determine the costs, if any, claimed by the landlord pursuant to NRS 118A.460 [,] or section 1 of this act and any accumulating daily costs; and
(b) Order the release of the tenants property upon the payment of the charges determined to be due or if no charges are determined to be due.
9. A landlord shall not refuse to accept rent from a tenant that is submitted after the landlord or his agent has served or had served a notice pursuant to subsection 1 if the refusal is based on the fact that the tenant has not paid collection fees, attorneys fees or other costs other than rent, a reasonable charge for late payments of rent or dishonored checks, or a security. As used in this subsection, security has the meaning ascribed to it in NRS 118A.240.
10. This section does not apply to the tenant of a mobile home lot in a mobile home park or to the tenant of a recreational vehicle lot in an area of a mobile home park in this State other than an area designated as a recreational vehicle lot pursuant to the provisions of subsection 6 of NRS 40.215.
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κ2009 Statutes of Nevada, Page 1969κ
Senate Bill No. 355Committee on Judiciary
CHAPTER 376
AN ACT relating to trade practices; enacting the Uniform Debt-Management Services Act; repealing the existing provisions governing the regulation of debt adjusters; and providing other matters properly relating thereto.
[Approved: May 29, 2009]
Legislative Counsels Digest:
Existing law provides for the regulation of debt adjusters by the Commissioner of Financial Institutions. (Chapter 676 of NRS) This bill repeals those provisions and enacts the Uniform Debt-Management Services Act, which provides for the regulation of providers of debt-management services by the Commissioner of Financial Institutions.
Sections 26-38 of this bill provide for the registration of providers of debt-management services, which includes providers of credit counseling, providers that develop and implement debt-management plans and providers of debt settlement services. No provider may enter into an agreement with any debtor in this State without registering as a consumer debt-management service in this State. Registration requires submission of detailed information concerning the service, including, without limitation, its financial condition, the identity of principals, locations at which service will be offered, the form for agreements with debtors and business history in other jurisdictions. To register, a service must have an effective insurance policy against fraud, dishonesty, theft and the like in an amount not less than $250,000. It must also provide a security bond of a minimum of $50,000 which has the Commissioner as a beneficiary. If a registration substantially duplicates one in another state, the service may offer proof of registration in that other state to satisfy the registration requirements in this State. A satisfactory application will result in a certificate to do business from the Commissioner. A yearly renewal is required.
Sections 39-49 of this bill govern agreements between debtors and providers of debt-management services. To enter into agreements with debtors, there is a disclosure requirement respecting fees and services to be offered, and the risks and benefits of entering into such a contract. The service must offer counseling services from a certified counselor or certified debt specialist, and a plan must be created by the counselor or debt specialist for debt-management service to commence. The contents of the agreements and fees that may be charged are set forth in sections 39-49. There is a penalty-free 3-day right of rescission on the part of the debtor. In addition, the debtor may cancel the agreement after 30 days, but may be subject to fees if that occurs. The service may terminate the agreement if required payments are delinquent for at least 60 days. Any payments for creditors received from a debtor must be kept in a trust account that may not be used to hold any other funds of the service. There are strict accounting requirements and periodic reporting requirements respecting funds held.
Section 50 of this bill prohibits specific acts on the part of a service, including, without limitation, misappropriation of funds in trust, settlement for more than 50 percent of a debt with a creditor without a debtors consent, gifts or premiums to enter into an agreement and representation that settlement has occurred without certification from a creditor. Sections 51-59 of this bill provide that the enforcement of the provisions of this bill occurs at two levels, the Commissioner and the individual level. The Commissioner has investigative power, power to order an individual to cease and desist, power to assess a civil penalty up to $10,000 and power to bring a civil action. An individual may bring a civil action for compensatory damages, including, without limitation, triple damages, if a provider of debt-management services obtains payments not authorized by the provisions of this bill, and may seek punitive damages and attorneys fees.
κ2009 Statutes of Nevada, Page 1970 (CHAPTER 376, SB 355)κ
damages, including, without limitation, triple damages, if a provider of debt-management services obtains payments not authorized by the provisions of this bill, and may seek punitive damages and attorneys fees. A service has a good faith mistake defense against liability. The statute of limitations pertaining to an action by the Commissioner is 4 years, and 2 years for a private right of action. Section 58 of this bill provides that a violation of a provision of this bill constitutes a deceptive trade practice and that, for such a violation, an individual may recover pursuant to the provisions of this bill or the provisions of existing law relating to deceptive trade practices.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Title 56 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 61, inclusive, of this act.
Sec. 2. This chapter may be cited as the Uniform Debt-Management Services Act.
Sec. 3. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 4 to 24, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 4. Affiliate means:
1. With respect to an individual:
(a) The spouse of the individual;
(b) A sibling of the individual or the spouse of a sibling;
(c) An individual or the spouse of an individual who is a lineal ancestor or lineal descendant of the individual or the individuals spouse;
(d) An aunt, uncle, great aunt, great uncle, first cousin, niece, nephew, grandniece or grandnephew, whether related by the whole or the half blood or adoption, or the spouse of any of them; or
(e) Any other individual occupying the residence of the individual; and
2. With respect to an entity:
(a) A person that directly or indirectly controls, is controlled by or is under common control with the entity;
(b) An officer of, or an individual performing similar functions with respect to, the entity;
(c) A director of, or an individual performing similar functions with respect to, the entity;
(d) Subject to adjustment of the dollar amount pursuant to subsection 6 of section 54 of this act, a person that receives or received more than $25,000 from the entity in either the current year or the preceding year or a person that owns more than 10 percent of, or an individual who is employed by or is a director of, a person that receives or received more than $25,000 from the entity in either the current year or the preceding year;
(e) An officer or director of, or an individual performing similar functions with respect to, a person described in paragraph (a);
(f) The spouse of, or an individual occupying the residence of, an individual described in paragraphs (a) to (e), inclusive; or
(g) An individual who has the relationship specified in paragraph (d) of subsection 1 to an individual or the spouse of an individual described in paragraphs (a) to (e), inclusive.
κ2009 Statutes of Nevada, Page 1971 (CHAPTER 376, SB 355)κ
Sec. 5. Agreement means an agreement between a provider and an individual for the performance of debt-management services.
Sec. 6. Bank means a financial institution, including, without limitation, a commercial bank, savings bank, savings and loan association, credit union and trust company, engaged in the business of banking, chartered under federal or state law and regulated by a federal or state banking regulatory authority.
Sec. 7. Business address means the physical location of a business, including, without limitation, the name and number of a street.
Sec. 8. Certified counselor means an individual certified by a training program or certifying organization, approved by the Commissioner, that authenticates the competence of individuals providing education and assistance to other individuals in connection with debt-management services in which an agreement contemplates that creditors will reduce finance charges or fees for late payment, default or delinquency.
Sec. 9. Certified debt specialist means an individual certified by a training program or certifying organization, approved by the Commissioner, that authenticates the competence of individuals providing education and assistance to other individuals in connection with debt settlement services.
Sec. 10. Commissioner means the Commissioner of Financial Institutions.
Sec. 11. Concessions means assent to repayment of a debt on terms more favorable to an individual than the terms of the contract between the individual and a creditor.
Sec. 11.5. Credit counseling means providing education and assistance to an individual concerning debts owed by the individual which may include, without limitation, the development and implementation of a debt-management plan.
Sec. 12. Day means calendar day.
Sec. 12.5. Debt-management plan means a plan which contemplates that:
1. Regular, periodic payments will be made to a provider by or on behalf of an individual to whom debt-management services are being provided; and
2. The individuals creditors will reduce financing charges or fees for late payment, default or delinquency.
Κ The term does not include a plan which contemplates that creditors of the individual will settle debts for less than the principal amount of the debt.
Sec. 13. Debt-management services means services as an intermediary between an individual and one or more creditors of the individual for the purpose of obtaining concessions and includes credit counseling, the development and implementation of debt-management plans and debt settlement services. The term does not include:
1. Legal services provided in an attorney-client relationship by an attorney licensed or otherwise authorized to practice law in this State;
2. Accounting services provided in an accountant-client relationship by a certified public accountant licensed to provide accounting services in this State; or
κ2009 Statutes of Nevada, Page 1972 (CHAPTER 376, SB 355)κ
3. Financial-planning services provided in a financial planner-client relationship by a member of a financial-planning profession whose members the Commissioner, by regulation, determines are:
(a) Licensed by this State;
(b) Subject to a disciplinary mechanism;
(c) Subject to a code of professional responsibility; and
(d) Subject to a continuing education requirement.
Sec. 13.5. Debt settlement services means debt-management services which contemplate that:
1. Regular, periodic payments will be made by or on behalf of the individual to whom the services are being provided;
2. The individual will accumulate such payments in a bank account which is insured by the Federal Deposit Insurance Corporation, owned by the individual and not controlled by the provider; and
3. The individual will use the accumulated amount of the payments made pursuant to subsection 1 to make payments to:
(a) The provider for any fees charged by the provider pursuant to section 45 of this act; and
(b) Creditors in order to settle the debts of the individual for less than the principal amount of the debt.
Sec. 14. Entity means a person other than an individual.
Sec. 15. Good faith means honesty in fact and the observance of reasonable standards of fair dealing.
Sec. 16. Person means an individual, corporation, business trust, estate, trust, partnership, limited-liability company, association, joint venture or any other legal or commercial entity. The term does not include a public corporation, government or governmental subdivision, agency or instrumentality.
Sec. 17. Plan means a program or strategy in which a provider furnishes debt-management services to an individual and which includes a schedule of payments to be made by or on behalf of the individual and used to pay debts owed by the individual.
Sec. 18. Principal amount of the debt means the amount of a debt at the time of an agreement.
Sec. 19. Provider means a person that provides, offers to provide or agrees to provide debt-management services directly or through others.
Sec. 20. Record means information which is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.
Sec. 21. Settlement fee means a charge imposed on or paid by an individual in connection with a creditors assent to accept in full satisfaction of a debt an amount less than the principal amount of the debt.
Sec. 22. Sign means, with present intent to authenticate or adopt a record:
1. To execute or adopt a tangible symbol; or
2. To attach to or logically associate with the record an electronic sound, symbol or process.
Sec. 23. State means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
κ2009 Statutes of Nevada, Page 1973 (CHAPTER 376, SB 355)κ
Sec. 24. Trust account means an account held by a provider that is:
1. Established in an insured bank;
2. Separate from other accounts of the provider or its designee;
3. Designated as a trust account or other account designated to indicate that the money in the account is not the money of the provider or its designee; and
4. Used to hold money of one or more individuals for disbursement to creditors of the individuals.
Sec. 25. 1. This chapter does not apply to an agreement with an individual who the provider has no reason to know resides in this State at the time of the agreement.
2. This chapter does not apply to a provider to the extent that the provider:
(a) Provides or agrees to provide debt-management, educational or counseling services to an individual who the provider has no reason to know resides in this State at the time the provider agrees to provide the services; or
(b) Receives no compensation for debt-management services from or on behalf of the individuals to whom it provides the services or from their creditors.
3. This chapter does not apply to the following persons or their employees when the person or the employee is engaged in the regular course of the persons business or profession:
(a) A judicial officer, a person acting under an order of a court or an administrative agency or an assignee for the benefit of creditors;
(b) A bank;
(c) An affiliate, as defined in paragraph (a) of subsection 2 of section 4 of this act, of a bank if the affiliate is regulated by a federal or state banking regulatory authority; or
(d) A title insurer, escrow company or other person that provides bill-paying services if the provision of debt-management services is incidental to the bill-paying services.
Sec. 26. 1. Except as otherwise provided in subsection 2, a provider may not provide debt-management services to an individual who it reasonably should know resides in this State at the time it agrees to provide the services, unless the provider is registered under this chapter.
2. If a provider is registered under this chapter, subsection 1 does not apply to an employee or agent of the provider.
3. The Commissioner shall maintain and publicize a list of the names of all registered providers.
Sec. 27. 1. An application for registration as a provider must be in a form prescribed by the Commissioner.
2. Subject to adjustment of dollar amounts pursuant to subsection 6 of section 54 of this act, an application for registration as a provider must be accompanied by:
(a) The fee established by the Commissioner;
(b) The bond required by section 35 of this act;
(c) If the debt-management services to be provided by the provider will include the development and implementation of debt-management plans, identification of all trust accounts required by section 44 of this act and an irrevocable consent authorizing the Commissioner to review and examine the trust accounts;
κ2009 Statutes of Nevada, Page 1974 (CHAPTER 376, SB 355)κ
identification of all trust accounts required by section 44 of this act and an irrevocable consent authorizing the Commissioner to review and examine the trust accounts;
(d) Evidence of insurance in the amount of $250,000:
(1) Against the risks of dishonesty, fraud, theft and other misconduct on the part of the applicant or a director, employee or agent of the applicant;
(2) Issued by an insurance company authorized to do business in this State and rated at least A or equivalent by a nationally recognized rating organization approved by the Commissioner;
(3) With a deductible not exceeding $5,000;
(4) Payable for the benefit of the applicant, this State and individuals who are residents of this State, as their interests may appear; and
(5) Not subject to cancellation by the applicant or the insurer until 60 days after written notice has been given to the Commissioner;
(e) Proof of compliance with NRS 360.760 to 360.798, inclusive; and
(f) If the applicant is exempt from taxation, evidence of nonprofit and tax-exempt status applicable to the applicant under the Internal Revenue Code, 26 U.S.C. § 501.
Sec. 28. An application for registration must be signed under oath and include:
1. The applicants name, principal business address and telephone number and all other business addresses in this State, electronic mail addresses and Internet website addresses;
2. All names under which the applicant conducts business;
3. The address of each location in this State at which the applicant will provide debt-management services or a statement that the applicant will have no such location;
4. The name and home address of each officer and director of the applicant and each person that owns at least 10 percent of the applicant;
5. Identification of every jurisdiction in which, during the 5 years immediately preceding the application:
(a) The applicant or any of its officers or directors have been licensed or registered to provide debt-management services; or
(b) Individuals have resided when they received debt-management services from the applicant;
6. A statement describing, to the extent it is known or should be known by the applicant, any material civil or criminal judgment or litigation and any material administrative or enforcement action by a governmental agency in any jurisdiction against the applicant, any of its officers, directors, owners or agents or any person who is authorized to have access to the trust account required by section 44 of this act;
7. The applicants financial statements for each of the 2 years immediately preceding the application or, if it has not been in operation for the 2 years preceding the application, for the period of its existence, which must be audited by an accountant licensed to conduct audits if the applicant is claiming nonprofit or tax-exempt status or if the applicants business practices involve holding, accessing or directing the funds of an individual;
κ2009 Statutes of Nevada, Page 1975 (CHAPTER 376, SB 355)κ
8. Evidence of accreditation by an independent accrediting organization approved by the Commissioner;
9. Evidence that, within 12 months after initial employment, each of the applicants counselors becomes certified as a certified counselor or certified debt specialist;
10. A description of the three most commonly used educational programs that the applicant provides or intends to provide to individuals who reside in this State and a copy of any materials used or to be used in those programs;
11. A description of the applicants financial analysis and initial budget plan, including, without limitation, any form or electronic model used to evaluate the financial condition of individuals;
12. A copy of each form of agreement that the applicant will use with individuals who reside in this State;
13. The schedule of fees and charges that the applicant will use with individuals who reside in this State;
14. A complete set of the fingerprints of every officer of the applicant and every employee or agent of the applicant who is authorized to have access to the trust account required by section 44 of this act and written permission from each individual submitting a complete set of fingerprints authorizing the Commissioner to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;
15. The names and addresses of all employers of each director during the 10 years immediately preceding the application;
16. A description of any ownership interest of at least 10 percent by a director, owner or employee of the applicant in:
(a) Any affiliate of the applicant; or
(b) Any entity that provides products or services to the applicant or any individual relating to the applicants debt-management services;
17. If the applicant is exempt from taxation, a statement of the amount of compensation of the applicants five most highly compensated employees for each of the 3 years immediately preceding the application or, if it has not been in operation for the 3 years preceding the application, for the period of its existence;
18. The identity of each director who is an affiliate, as defined in subsection 1 of section 4 of this act or paragraph (a), (b), (d), (e), (f) or (g) of subsection 2 of section 4 of this act, of the applicant; and
19. Any other information that the Commissioner reasonably requires to perform the Commissioners duties under section 31 of this act.
Sec. 29. An applicant or registered provider shall notify the Commissioner within 10 days after a change in the information specified in paragraph (d) or (f) of subsection 2 of section 27 of this act or subsection 1, 3, 6, 12 or 13 of section 28 of this act.
Sec. 30. 1. Except as otherwise provided in subsection 2, the Commissioner shall make the information in an application for registration as a provider available to the public.
2. Except as otherwise provided in NRS 239.0115, the information required by subsections 7, 14 and 17 of section 28 of this act and the addresses required by subsection 4 of section 28 of this act are confidential and not subject to inspection by the general public.
κ2009 Statutes of Nevada, Page 1976 (CHAPTER 376, SB 355)κ
Sec. 31. 1. Except as otherwise provided in subsections 3 and 4, the Commissioner shall issue a certificate of registration as a provider to a person that complies with sections 27 and 28 of this act.
2. If an applicant has otherwise complied with sections 27 and 28 of this act, including a timely effort to obtain the information required by subsection 14 of section 28 of this act, but the information has not been received, the Commissioner may issue a temporary certificate of registration. The temporary certificate expires not later than 180 days after issuance.
3. The Commissioner may deny registration if:
(a) The application contains information that is materially erroneous or incomplete;
(b) An officer, director or owner of the applicant has been convicted of a crime, or suffered a civil judgment, involving dishonesty or the violation of state or federal securities laws;
(c) The applicant or any of its officers, directors or owners have defaulted in the payment of money collected for others; or
(d) The Commissioner finds that the financial responsibility, experience, character or general fitness of the applicant or its owners, directors, employees or agents does not warrant belief that the business will be operated in compliance with this chapter.
4. The Commissioner shall deny registration if, with respect to an applicant that is organized as a nonprofit entity or has obtained tax-exempt status under the Internal Revenue Code, 26 U.S.C. § 501, the applicants board of directors is not independent of the applicants employees and agents.
5. Subject to adjustment of the dollar amount pursuant to subsection 6 of section 54 of this act, a board of directors is not independent for purposes of subsection 4 if more than one-fourth of its members:
(a) Are affiliates of the applicant, as defined in subsection 1 of section 4 of this act or paragraph (a), (b), (d), (e), (f) or (g) of subsection 2 of section 4 of this act; or
(b) After the date 10 years before first becoming a director of the applicant, were employed by or directors of a person that received from the applicant more than $25,000 in either the current year or the preceding year.
Sec. 32. 1. The Commissioner shall approve or deny an initial registration as a provider within 120 days after an application is filed. In connection with a request pursuant to subsection 19 of section 28 of this act for additional information, the Commissioner may extend the 120-day period for not more than 60 days. Within 7 days after denying an application, the Commissioner, in a record, shall inform the applicant of the reasons for the denial.
2. If the Commissioner denies an application for registration as a provider or does not act on an application within the time prescribed in subsection 1, the applicant may appeal and request a hearing pursuant to NRS 233B.121 to 233B.150, inclusive.
3. Subject to subsection 4 of section 33 of this act and section 56 of this act, a registration as a provider is valid for 1 year.
κ2009 Statutes of Nevada, Page 1977 (CHAPTER 376, SB 355)κ
Sec. 33. 1. A provider must obtain a renewal of its registration annually.
2. An application for renewal of registration as a provider must be in a form prescribed by the Commissioner, signed under oath, and:
(a) Be filed not fewer than 30 days and not more than 60 days before the registration expires;
(b) Be accompanied by the fee established by the Commissioner and the bond required by section 35 of this act;
(c) Contain the matter required for initial registration as a provider by subsections 8 and 9 of section 28 of this act and a financial statement, audited by an accountant licensed to conduct audits, for the applicants fiscal year immediately preceding the application;
(d) Disclose any changes in the information contained in the applicants application for registration or its immediately previous application for renewal, as applicable, and if an application is otherwise complete and the applicant has made a timely effort to obtain the information required by subsection 14 of section 28 of this act but the information has not been received, the Commissioner may issue a temporary renewal of registration which expires not later than 180 days after issuance;
(e) Supply evidence of insurance in an amount equal to the larger of $250,000 or the highest daily balance in the trust account required by section 44 of this act during the 6-month period immediately preceding the application:
(1) Against risks of dishonesty, fraud, theft and other misconduct on the part of the applicant or a director, employee or agent of the applicant;
(2) Issued by an insurance company authorized to do business in this State and rated at least A or equivalent by a nationally recognized rating organization approved by the Commissioner;
(3) With a deductible not exceeding $5,000;
(4) Payable for the benefit of the applicant, this State and the individuals who are residents of this State, as their interests may appear; and
(5) Not subject to cancellation by the applicant or the insurer until 60 days after written notice has been given to the Commissioner;
(f) If the applicant has developed and implemented debt-management plans, disclose:
(1) The total amount of money received by the applicant pursuant to plans during the preceding 12 months from or on behalf of individuals who reside in this State and the total amount of money distributed to creditors of those individuals during that period; and
(2) To the best of the applicants knowledge, the gross amount of money accumulated during the preceding 12 months pursuant to plans by or on behalf of individuals who reside in this State and with whom the applicant has agreements; and
(g) Provide any other information that the Commissioner reasonably requires to perform the Commissioners duties under this section.
3. Except as otherwise provided in this subsection, the Commissioner shall make the information in an application for renewal of registration as a provider available to the public. Except as otherwise provided in NRS 239.0115, the information required by subsections 7, 14 and 17 of section 28 of this act and the addresses required by subsection 4 of section 28 of this act are confidential and not subject to inspection by the general public.
κ2009 Statutes of Nevada, Page 1978 (CHAPTER 376, SB 355)κ
section 28 of this act and the addresses required by subsection 4 of section 28 of this act are confidential and not subject to inspection by the general public.
4. If a registered provider files a timely and complete application for renewal of registration, the registration remains effective until the Commissioner, in a record, notifies the applicant of a denial and states the reasons for the denial.
5. If the Commissioner denies an application for renewal of registration as a provider, the applicant, within 30 days after receiving notice of the denial, may appeal and request a hearing pursuant to NRS 233B.121 to 233B.150, inclusive. Subject to section 56 of this act, while the appeal is pending, the applicant must continue to provide debt-management services to individuals with whom it has agreements. If the denial is affirmed, subject to the Commissioners order and section 56 of this act, the applicant must continue to provide debt-management services to individuals with whom it has agreements until, with the approval of the Commissioner, it transfers the agreements to another registered provider or returns to the individuals all unexpended money that is under the applicants control.
Sec. 34. If a provider holds a license or certificate of registration in another state authorizing it to provide debt-management services, the provider may submit a copy of that license or certificate and the application for it instead of an application in the form prescribed by subsection 1 of section 27 of this act, section 28 of this act or subsection 2 of section 33 of this act. The Commissioner shall accept the application and the license or certificate from the other state as an application for registration as a provider or for renewal of registration as a provider, as appropriate, in this State if:
1. The application in the other state contains information substantially similar to or more comprehensive than that required in an application submitted in this State;
2. The applicant provides the information required by subsections 1, 3, 10, 12 and 13 of section 28 of this act; and
3. The applicant, under oath, certifies that the information contained in the application is current or, to the extent it is not current, supplements the application to make the information current.
Sec. 35. 1. Except as otherwise provided in section 36 of this act, a provider that is required to be registered under this chapter shall file a surety bond with the Commissioner, which must:
(a) Be continuously in effect during the period of registration and for 2 years after the provider ceases providing debt-management services to individuals in this State; and
(b) Run to this State for the benefit of this State and of individuals who reside in this State when they agree to receive debt-management services from the provider, as their interests may appear.
2. Subject to adjustment of the dollar amount pursuant to subsection 6 of section 54 of this act, a surety bond filed pursuant to subsection 1 must:
(a) Be in the amount of $50,000 or other larger amount that the Commissioner determines is warranted by the financial condition and business experience of the provider, the history of the provider in performing debt-management services, the risk to individuals and any other factor the Commissioner considers appropriate;
κ2009 Statutes of Nevada, Page 1979 (CHAPTER 376, SB 355)κ
performing debt-management services, the risk to individuals and any other factor the Commissioner considers appropriate;
(b) Be issued by a bonding, surety or insurance company authorized to do business in this State and rated at least A by a nationally recognized rating organization; and
(c) Have payment conditioned upon noncompliance of the provider or its agent with this chapter.
3. If the principal amount of a surety bond is reduced by payment of a claim or a judgment, the provider shall immediately notify the Commissioner and, within 30 days after notice by the Commissioner, file a new or additional surety bond in an amount set by the Commissioner. The amount of the new or additional bond must be at least the amount of the bond immediately before payment of the claim or judgment. If for any reason a surety terminates a bond, the provider shall immediately file a new surety bond in the amount of $50,000 or other larger amount determined pursuant to subsection 2.
4. The Commissioner or an individual may obtain satisfaction out of the surety bond procured pursuant to this section if:
(a) The Commissioner assesses expenses under paragraph (a) of subsection 2 of section 54 of this act, issues a final order under paragraph (b) of subsection 1 of section 55 of this act or recovers a final judgment under paragraph (d) or (e) of subsection 1 of section 55 of this act or subsection 4 of section 55 of this act; or
(b) An individual recovers a final judgment pursuant to subsection 1 or 2 of section 57 of this act or paragraph (a), (b) or (d) of subsection 3 of section 57 of this act.
5. If claims against a surety bond exceed or are reasonably expected to exceed the amount of the bond, the Commissioner, on the initiative of the Commissioner or on petition of the surety, shall, unless the proceeds are adequate to pay all costs, judgments and claims, distribute the proceeds in the following order:
(a) To satisfaction of a final order or judgment under paragraph (b), (d) or (e) of subsection 1 of section 55 of this act or subsection 4 of section 55 of this act;
(b) To final judgments recovered by individuals pursuant to subsection 1 or 2 of section 57 of this act or paragraph (a), (b) or (d) of subsection 3 of section 57 of this act, pro rata;
(c) To claims of individuals established to the satisfaction of the Commissioner, pro rata; and
(d) If a final order or judgment is issued under subsection 1 of section 55 of this act, to the expenses charged pursuant to paragraph (a) of subsection 2 of section 54 of this act.
Sec. 36. 1. Instead of the surety bond required by section 35 of this act, a provider may deliver to the Commissioner, in the amount required by subsection 2 of section 35 of this act, and, except as otherwise provided in subparagraph (1) of paragraph (b), payable or available to this State and to individuals who reside in this State when they agree to receive debt-management services from the provider, as their interests may appear, if the provider or its agent does not comply with this chapter:
(a) A certificate of insurance issued by an insurance company authorized to do business in this State and rated at least A or equivalent by a nationally recognized rating organization, approved by the Commissioner and with no deductible, or, if the provider supplies a bond in the amount of $5,000, a deductible not exceeding $5,000; or
κ2009 Statutes of Nevada, Page 1980 (CHAPTER 376, SB 355)κ
and with no deductible, or, if the provider supplies a bond in the amount of $5,000, a deductible not exceeding $5,000; or
(b) With the approval of the Commissioner:
(1) An irrevocable letter of credit, issued or confirmed by a bank approved by the Commissioner, payable upon presentation of a certificate by the Commissioner stating that the provider or its agent has not complied with this chapter; or
(2) Bonds or other obligations of the United States or guaranteed by the United States or bonds or other obligations of this State or a political subdivision of this State, to be deposited and maintained with a bank approved by the Commissioner for this purpose.
2. If a provider furnishes a substitute pursuant to subsection 1, the provisions of subsections 1, 3, 4 and 5 of section 35 of this act apply to the substitute.
Sec. 37. 1. A provider shall act in good faith in all matters under this chapter.
2. A provider who holds funds on behalf of an individual to whom it provides debt-management services shall act as a fiduciary with respect to those funds.
Sec. 38. A provider that is required to be registered under this chapter shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified counselor, certified debt specialist or customer service representative, as appropriate, during ordinary business hours.
Sec. 39. 1. Before providing debt-management services, a registered provider shall give the individual an itemized list of goods and services and the charges for each. The list must be clear and conspicuous, be in a record the individual may keep whether or not the individual assents to an agreement and describe the goods and services the provider offers:
(a) Free of additional charge if the individual enters into an agreement;
(b) For a charge if the individual does not enter into an agreement; and
(c) For a charge if the individual enters into an agreement, using the following terminology, as applicable, and format:
Set-up fee ____________________________________
dollar amount of fee
Monthly service fee ____________________________________
dollar amount of fee or method
of determining amount
Settlement fee ____________________________________
dollar amount of fee or method
of determining amount
Goods and services in addition to those provided in connection with a plan:
______ ___________________________________________
(item) dollar amount or method of determining amount
______ ___________________________________________
(item) dollar amount or method of determining amount
κ2009 Statutes of Nevada, Page 1981 (CHAPTER 376, SB 355)κ
2. A provider may not furnish debt-management services unless the provider, through the services of a certified counselor or certified debt specialist:
(a) Provides the individual with reasonable education about the management of personal finance;
(b) Has prepared a financial analysis; and
(c) If the provider will develop and implement a debt-management plan and the individual is to make regular, periodic payments:
(1) Has prepared a plan for the individual;
(2) Has made a determination, based on the providers analysis of the information provided by the individual and otherwise available to the provider, that the plan is suitable for the individual and the individual will be able to meet the payment obligations under the plan; and
(3) Believes that each creditor of the individual listed as a participating creditor in the plan will accept payment of the individuals debts as provided in the plan.
3. Before an individual assents to an agreement, a provider shall:
(a) Provide the individual with a copy of the analysis and plan required by subsection 2 in a record which identifies the provider and which the individual may keep whether or not the individual assents to the agreement;
(b) Inform the individual of the availability, at the individuals option, of assistance by a toll-free communication system or in person to discuss the financial analysis and plan required by subsection 2; and
(c) If the agreement contemplates that the provider will develop and implement a debt-management plan and with respect to all creditors identified by the individual or otherwise known by the provider to be creditors of the individual, provide the individual with a list of:
(1) Creditors that the provider expects to participate in the plan and grant concessions;
(2) Creditors that the provider expects to participate in the plan but not grant concessions;
(3) Creditors that the provider expects not to participate in the plan; and
(4) All other creditors.
4. Before an individual assents to an agreement, the provider shall inform the individual in a separate record which the individual may keep:
(a) Of the name and business address of the provider;
(b) That plans are not suitable for all individuals and the individual may ask the provider about other ways, including, without limitation, bankruptcy, to deal with indebtedness;
(c) That establishment of a plan may adversely affect the individuals credit rating or credit scores;
(d) That nonpayment of debt may lead creditors to increase finance and other charges or undertake collection activity, including, without limitation, litigation;
(e) Unless it is not true, that the provider may receive compensation from the creditors of the individual; and
(f) That, unless the individual is insolvent, if a creditor settles for less than the full amount of the debt, the plan may result in the creation of taxable income to the individual, even though the individual does not receive any money.
κ2009 Statutes of Nevada, Page 1982 (CHAPTER 376, SB 355)κ
5. If a provider may receive payments from an individuals creditors and the plan contemplates that the provider will develop and implement a debt-management plan, the provider may comply with subsection 4 by providing the following disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals, and you may ask us to provide information about other ways, including bankruptcy, to deal with your debts.
(2) Using a debt-management plan may make it harder for you to obtain credit.
(3) We may receive compensation for our services from your creditors.
______________________________________
Name and business address of provider
6. If a provider will not receive payments from an individuals creditors and the plan contemplates that the provider will develop and implement a debt-management plan, a provider may comply with subsection 4 by providing the following disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Debt-management plans are not right for all individuals, and you may ask us to provide information about other ways, including bankruptcy, to deal with your debts.
(2) Using a debt-management plan may make it harder for you to obtain credit.
______________________________________
Name and business address of provider
7. If an agreement contemplates that a provider will provide debt settlement services, the provider may comply with subsection 4 by providing the following disclosure, surrounded by black lines:
IMPORTANT INFORMATION FOR YOU TO CONSIDER
(1) Our program is not right for all individuals, and you may ask us to provide information about bankruptcy and other ways to deal with your debts.
(2) Nonpayment of your debts under our program may:
Hurt your credit rating or credit scores;
Lead your creditors to increase finance and other charges; and
Lead your creditors to undertake activity, including lawsuits, to collect the debts.
(3) Reduction of debt under our program may result in taxable income to you, even though you will not actually receive any money.
______________________________________
Name and business address of provider
κ2009 Statutes of Nevada, Page 1983 (CHAPTER 376, SB 355)κ
Sec. 40. 1. A provider may satisfy the requirements of section 39, 41 or 49 of this act by means of the Internet or other electronic means if the provider obtains a consumers consent in the manner provided by section 101(c)(1) of the federal act.
2. The disclosures and materials required by section 39, 41 or 49 of this act must be presented in a form that is capable of being accurately reproduced for later reference.
3. With respect to disclosure by means of an Internet website, the disclosure of the information required by subsection 4 of section 39 of this act must appear on one or more screens that:
(a) Contain no other information; and
(b) The individual must see before proceeding to assent to formation of an agreement.
4. At the time of providing the materials and agreement required by subsections 3 and 4 of section 39 of this act and sections 41 and 49 of this act, a provider shall inform the individual that upon electronic, telephonic or written request, it will send the individual a written copy of the materials, and shall comply with a request as provided in subsection 5.
5. If a provider is requested, before the expiration of 90 days after an agreement is completed or terminated, to send a written copy of the materials required by subsections 3 and 4 of section 39 of this act or section 41 or 49 of this act, the provider shall send them at no charge within 3 business days after the request, but the provider need not comply with a request more than once per calendar month or if it reasonably believes the request is made for purposes of harassment. If a request is made more than 90 days after an agreement is completed or terminated, the provider shall send within a reasonable time a written copy of the materials requested.
6. A provider that maintains an Internet website shall disclose on the home page of its website or on a page that is clearly and conspicuously connected to the home page by a link that clearly reveals its contents:
(a) Its name and all names under which it does business;
(b) Its principal business address, telephone number and electronic mail address, if any; and
(c) The names of its principal officers.
7. Subject to subsection 8, if a consumer who has consented to electronic communication in the manner provided by section 101 of the federal act withdraws consent as provided in the federal act, a provider may terminate its agreement with the consumer.
8. If a provider wishes to terminate an agreement with a consumer pursuant to subsection 7, it shall notify the consumer that it will terminate the agreement unless the consumer, within 30 days after receiving the notification, consents to electronic communication in the manner provided in section 101(c) of the federal act. If the consumer consents, the provider may terminate the agreement only as permitted by subparagraph (6) of paragraph (f) of subsection 1 of section 41 of this act.
9. As used in this section:
(a) Consumer means an individual who seeks or obtains goods or services that are used primarily for personal, family or household purposes.
(b) Federal act means the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et seq.
κ2009 Statutes of Nevada, Page 1984 (CHAPTER 376, SB 355)κ
Sec. 41. 1. An agreement must:
(a) Be in a record;
(b) Be dated and signed by the provider and the individual;
(c) Include the name of the individual and the address where the individual resides;
(d) Include the name, business address and telephone number of the provider;
(e) Be provided to the individual before the individual assents to the agreement; and
(f) Disclose:
(1) The services to be provided, including, without limitation, whether the provider will provide credit counseling, develop and implement a debt-management plan, provide debt settlement services or provide any combination of these services;
(2) The amount, or method of determining the amount, of all fees, individually itemized, to be paid by the individual;
(3) If the agreement contemplates that the provider will develop and implement a debt-management plan or provide debt settlement services, the schedule of payments to be made by or on behalf of the individual, including the amount of each payment, the date on which each payment is due and an estimate of the date of the final payment;
(4) If the agreement contemplates that the provider will develop and implement a debt-management plan and a plan provides for regular periodic payments to creditors:
(I) Each creditor of the individual to which payment will be made, the amount owed to each creditor and any concessions the provider reasonably believes each creditor will offer;
(II) The schedule of expected payments to each creditor, including the amount of each payment and the date on which it will be made; and
(III) Each creditor that the provider believes will not participate in the plan and to which the provider will not direct payment;
(5) If the agreement contemplates that the provider will develop and implement a debt-management plan or provide debt settlement services, how the provider will comply with its obligations under subsection 1 of section 49 of this act;
(6) That the provider may terminate the agreement for good cause, upon return of unexpended money of the individual;
(7) That the individual may cancel the agreement as provided in section 42 of this act;
(8) That the individual may terminate a plan at any time without incurring any liability as provided in subparagraph (4) of paragraph (a) of subsection 4;
(9) That the individual may contact the Commissioner with any questions or complaints regarding the provider; and
(10) The address, telephone number and Internet address of the website of the Commissioner.
2. For purposes of paragraph (e) of subsection 1, delivery of an electronic record occurs when it is made available in a format in which the individual may retrieve, save and print it and the individual is notified that it is available.
κ2009 Statutes of Nevada, Page 1985 (CHAPTER 376, SB 355)κ
3. If the Commissioner supplies the provider with any information required under subparagraph 10 of paragraph (f) of subsection 1, the provider may comply with that requirement only by disclosing the information supplied by the Commissioner.
4. An agreement must provide that:
(a) The individual has a right to terminate the agreement at any time, without penalty or obligation or the payment of any termination fee, by giving the provider written or electronic notice, in which event:
(1) The provider will refund all unexpended money that the provider or its agent has received from or on behalf of the individual for the reduction or satisfaction of the individuals debt;
(2) With respect to an agreement which contemplates that creditors will settle debts for less than the principal amount of the debt, the provider will refund 65 percent of any portion of the set-up fee that has not been credited against the settlement fee;
(3) All powers of attorney granted by the individual to the provider are revoked and ineffective; and
(4) The provider will cease charging a monthly service fee, other than a monthly service fee which became due before the termination of the agreement.
(b) The individual authorizes any bank in which the provider or its agent has established a trust account to disclose to the Commissioner any financial records relating to the trust account;
(c) The provider will notify the individual within 5 days after learning of a creditors final decision to reject or withdraw from a plan and that this notice will include:
(1) The identity of the creditor; and
(2) The right of the individual to modify or terminate the agreement; and
(d) The individual may terminate a plan at any time without incurring any liability.
5. If an agreement contemplates that the provider will provide debt settlement services, the agreement may confer on a provider a power of attorney to settle the individuals debt for not more than 50 percent of the outstanding amount of the debt. The agreement may not confer a power of attorney to settle a debt for more than 50 percent of that amount, but may confer a power of attorney to negotiate with creditors of the individual on behalf of the individual. The agreement must provide that the provider will obtain the assent of the individual after a creditor has assented to a settlement for more than 50 percent of the outstanding amount of the debt.
6. An agreement may not:
(a) Provide for application of the law of any jurisdiction other than the United States and this State;
(b) Except as permitted by section 2 of the Federal Arbitration Act, 9 U.S.C. § 2, or NRS 38.206 to 38.248, inclusive, contain a provision that modifies or limits otherwise available forums or procedural rights, including, without limitation, the right to trial by jury, that are generally available to the individual under law other than this chapter;
(c) Contain a provision that restricts the individuals remedies under this chapter or law other than this chapter; or
(d) Contain a provision that:
κ2009 Statutes of Nevada, Page 1986 (CHAPTER 376, SB 355)κ
(1) Limits or releases the liability of any person for not performing the agreement or for violating this chapter; or
(2) Indemnifies any person for liability arising under the agreement or this chapter.
7. All rights and obligations specified in subsection 4 and section 42 of this act exist even if not provided in the agreement. A provision in an agreement which violates subsection 4, 5 or 6 is void.
Sec. 42. 1. An individual may cancel an agreement before midnight of the third business day after the individual assents to it, unless the agreement does not comply with subsection 2 or section 41 or 50 of this act, in which event the individual may cancel the agreement within 30 days after the individual assents to it. To exercise the right to cancel, the individual must give notice in a record to the provider. Notice by mail is given when mailed.
2. An agreement must be accompanied by a form that contains in boldface type, surrounded by bold black lines:
NOTICE OF RIGHT TO CANCEL
You may cancel this agreement, without any penalty or obligation, at any time before midnight of the third business day that begins the day after you agree to it by electronic communication or by signing it.
To cancel this agreement during this period, send an e-mail to ____________________ (e-mail address of provider) or mail or deliver a signed, dated copy of this notice, or any other written notice to ____________________ (name of provider) at ____________________ (address of provider) before midnight on ____________________ (date).
If you cancel this agreement within the 3-day period, we will refund all money you already have paid us.
You also may terminate this agreement at any later time, but we may not be required to refund fees you have paid us.
I cancel this agreement,
__________________________________________
Print your name
__________________________________________
Signature
__________________________________________
Date
3. If a personal financial emergency necessitates the disbursement of an individuals money to one or more of the individuals creditors before the expiration of 3 days after an agreement is signed, an individual may waive the right to cancel. To waive the right, the individual must send or deliver a signed, dated statement in the individuals own words describing the circumstances that necessitate a waiver. The waiver must explicitly waive the right to cancel. A waiver by means of a standard form record is void.
Sec. 43. Unless the Commissioner, by regulation, provides otherwise, the disclosures and documents required by this chapter must be in English. If a provider communicates with an individual primarily in a language other than English, the provider must furnish a translation into the other language of the disclosures and documents required by this chapter.
κ2009 Statutes of Nevada, Page 1987 (CHAPTER 376, SB 355)κ
other than English, the provider must furnish a translation into the other language of the disclosures and documents required by this chapter.
Sec. 44. 1. All money paid to a provider by or on behalf of an individual for distribution to creditors pursuant to a plan is held in trust. Within 2 business days after receipt, the provider shall deposit the money in a trust account established for the benefit of individuals to whom the provider is furnishing debt-management services.
2. Money held in trust by a provider is not property of the provider or its designee. The money is not available to creditors of the provider or its designee, except an individual from whom or on whose behalf the provider received money, to the extent that the money has not been disbursed to creditors of the individual.
3. A provider shall:
(a) Maintain separate records of account for each individual to whom the provider is furnishing debt-management services;
(b) Disburse money paid by or on behalf of the individual to creditors of the individual as disclosed in the agreement, except that the provider may delay payment to the extent that a payment by the individual is not final; and
(c) Promptly correct any payments which are not made or which are misdirected as a result of an error by the provider or other person in control of the trust account and reimburse the individual for any costs or fees imposed by a creditor as a result of the failure to pay or misdirection.
4. A provider may not commingle money in a trust account established for the benefit of individuals to whom the provider is furnishing debt-management services with money of other persons.
5. A trust account must at all times have a cash balance equal to the sum of the balances of each individuals account.
6. If a provider has established a trust account pursuant to subsection 1, the provider shall reconcile the trust account at least once a month. The reconciliation must compare the cash balance in the trust account with the sum of the balances in each individuals account. If the provider or its designee has more than one trust account, each trust account must be individually reconciled.
7. If a provider discovers, or has a reasonable suspicion of, embezzlement or other unlawful appropriation of money held in trust, the provider immediately shall notify the Commissioner by a method approved by the Commissioner. Unless the Commissioner, by regulation, provides otherwise, within 5 days thereafter, the provider shall give notice to the Commissioner describing the remedial action taken or to be taken.
8. If an individual terminates an agreement or it becomes reasonably apparent to a provider that a plan has failed, the provider shall promptly refund to the individual all money paid by or on behalf of the individual which has not been paid to creditors, less fees that are payable to the provider under section 45 of this act.
9. Before relocating a trust account from one bank to another, a provider shall inform the Commissioner of the name, business address and telephone number of the new bank. As soon as practicable, the provider shall inform the Commissioner of the account number of the trust account at the new bank.
κ2009 Statutes of Nevada, Page 1988 (CHAPTER 376, SB 355)κ
Sec. 45. 1. A provider may not impose directly or indirectly a fee or other charge on an individual or receive money from or on behalf of an individual for debt-management services except as permitted by this section.
2. A provider may not impose charges or receive payment for debt-management services until the provider and the individual have signed an agreement that complies with sections 41 and 50 of this act.
3. If an individual assents to an agreement, a provider may not impose a fee or other charge for educational or counseling services or the like, except as otherwise provided in this subsection and subsection 5 of section 50 of this act. The Commissioner may authorize a provider to charge a fee based on the nature and extent of the educational or counseling services furnished by the provider.
4. Subject to adjustment of dollar amounts pursuant to subsection 6 of section 54 of this act, the following rules apply:
(a) If an individual assents to a plan which contemplates that creditors will reduce finance charges or fees for late payment, default or delinquency, the provider may charge, not including money provided by creditors to support educational or counseling services concerning personal finance provided by nonprofit entities:
(1) A fee not to exceed $50 for consultation, obtaining a credit report, setting up an account and the like; and
(2) A monthly service fee, not to exceed $10 times the number of accounts remaining in a plan at the time the fee is assessed, but not more than $50 in any month.
(b) If an individual assents to an agreement which contemplates that creditors will settle debts for less than the principal amount of the debt, a provider may charge:
(1) Subject to subsection 4 of section 41 of this act, a fee for consultation, obtaining a credit report, setting up an account and the like, in an amount not to exceed the lesser of $400 and 4 percent of the debt in the plan at the inception of the plan; and
(2) A monthly service fee, not to exceed $10 times the number of accounts remaining in a plan at the time the fee is assessed, but not more than $50 in any month.
(c) A provider may not impose or receive fees under both paragraphs (a) and (b).
(d) Except as otherwise provided in subsection 5 of section 50 of this act, if an individual does not assent to an agreement, a provider may receive for educational or counseling services it provides to the individual a fee not to exceed $100 or, with the approval of the Commissioner, a larger fee. The Commissioner may approve a fee larger than $100 if the nature and extent of the educational or counseling services warrant the larger fee.
5. If, before the expiration of 90 days after the completion or termination of educational or counseling services, an individual assents to an agreement, the provider shall refund to the individual any fee paid pursuant to paragraph (d) of subsection 4.
6. Except as otherwise provided in subsections 3 and 4, if an agreement contemplates that creditors will settle an individuals debts for less than the principal amount of the debt, compensation for services in connection with settling debt may not exceed one of the following applicable settlement fee limits, the terms of which must be clearly disclosed in the agreement:
κ2009 Statutes of Nevada, Page 1989 (CHAPTER 376, SB 355)κ
connection with settling debt may not exceed one of the following applicable settlement fee limits, the terms of which must be clearly disclosed in the agreement:
(a) With respect to agreements in which a flat settlement fee is charged based on the overall amount of included debt, the total aggregate amount of fees charged to an individual under this chapter, including fees charged under subparagraphs (1) and (2) of paragraph (b) of subsection 4, may not exceed 17 percent of the principal amount of debt included in the agreement at the agreements inception. The flat settlement fee authorized under this paragraph must be assessed in equal monthly payments over not less than half of the length of the plan, as estimated at the plans inception, unless:
(1) Voluntarily accelerated by the individual in a separate record; and
(2) Offers of settlement by creditors have been obtained on at least half of the outstanding debt included in the agreement.
(b) With respect to agreements in which fees are calculated as a percentage of the amount saved by an individual, a settlement fee may not exceed 30 percent of the excess of the outstanding amount of each debt over the amount actually paid to the creditor, as calculated at the time of settlement. Settlement fees authorized under this paragraph must become billable only as debts are settled, and the total aggregate amount of fees charged to an individual under this paragraph, including fees charged under subparagraphs (1) and (2) of paragraph (b) of subsection 4, may not exceed 20 percent of the principal amount of debt included in the agreement at the agreements inception.
Κ A provider may not impose or receive fees under both paragraphs (a) and (b).
7. Subject to adjustment of the dollar amount pursuant to subsection 6 of section 54 of this act, if a payment to a provider by an individual under this chapter is dishonored, a provider may impose a reasonable charge on the individual, not to exceed the lesser of $25 and the amount permitted by law other than this chapter.
Sec. 46. A provider may not solicit a voluntary contribution from an individual or an affiliate of the individual for any service provided to the individual. A provider may accept voluntary contributions from an individual but, until 30 days after completion or termination of a plan, the aggregate amount of money received from or on behalf of the individual may not exceed the total amount the provider may charge the individual under section 45 of this act.
Sec. 47. 1. If a provider imposes a fee or other charge or receives money or other payments not authorized by section 45 or 46 of this act, the individual may void the agreement and recover as provided in section 57 of this act.
2. If a provider is not registered as required by this chapter when an individual assents to an agreement, the agreement is voidable by the individual.
3. If an individual voids an agreement under subsection 2, the provider does not have a claim against the individual for breach of contract or for restitution.
κ2009 Statutes of Nevada, Page 1990 (CHAPTER 376, SB 355)κ
Sec. 48. 1. If an individual who has entered into an agreement fails for 60 days to make payments required by the agreement, a provider may terminate the agreement.
2. If a provider or an individual terminates an agreement, the provider shall immediately return to the individual:
(a) Any money of the individual held in trust for the benefit of the individual; and
(b) If the agreement contemplated that the provider would provide debt settlement services, sixty-five percent of any portion of the set-up fee received pursuant to paragraph (b) of subsection 4 of section 45 of this act which has not been credited against settlement fees.
Sec. 49. 1. If an agreement contemplates that a provider will develop and implement a debt-management plan or provide debt settlement services, the provider shall provide the accounting required by subsection 2:
(a) Upon cancellation or termination of the agreement; and
(b) Before cancellation or termination of the agreement:
(1) At least once each month; and
(2) Within 5 business days after a request by an individual, but the provider need not comply with more than one request in any calendar month.
2. A provider, in a record, shall provide each individual for whom it has established a plan an accounting of the following information:
(a) The amount of money received from the individual since the last report;
(b) The amounts and dates of disbursement made on the individuals behalf, or by the individual upon the direction of the provider, since the last report to each creditor listed in the plan;
(c) The amounts deducted from the amount received from the individual;
(d) The amount held in reserve; and
(e) If, since the last report, a creditor has agreed to accept as payment in full an amount less than the principal amount of the debt owed by the individual:
(1) The total amount and terms of the settlement;
(2) The amount of the debt when the individual assented to the plan;
(3) The amount of the debt when the creditor agreed to the settlement; and
(4) The calculation of a settlement fee.
3. A provider shall maintain records for each individual for whom it provides debt-management services for 5 years after the final payment made by the individual and produce a copy of them to the individual within a reasonable time after a request for them. The provider may use electronic or other means of storage of the records.
Sec. 50. 1. A provider may not, directly or indirectly:
(a) Misappropriate or misapply money held in trust;
(b) Settle a debt on behalf of an individual for more than 50 percent of the outstanding amount of the debt owed a creditor, unless the individual assents to the settlement after the creditor has assented;
κ2009 Statutes of Nevada, Page 1991 (CHAPTER 376, SB 355)κ
(c) Take a power of attorney that authorizes it to settle a debt, unless the power of attorney expressly limits the providers authority to settle debts for not more than 50 percent of the outstanding amount of the debt owed a creditor;
(d) Exercise or attempt to exercise a power of attorney after an individual has terminated an agreement;
(e) Initiate a transfer from an individuals account at a bank or with another person unless the transfer is:
(1) A return of money to the individual; or
(2) Before termination of an agreement, properly authorized by the agreement and this chapter and for:
(I) Payment to one or more creditors pursuant to an agreement; or
(II) Payment of a fee;
(f) Offer a gift or bonus, premium, reward or other compensation to an individual for executing an agreement;
(g) Offer, pay or give a gift or bonus, premium, reward or other compensation to a person for referring a prospective customer, if the person making the referral has a financial interest in the outcome of debt-management services provided to the customer, unless neither the provider nor the person making the referral communicates to the prospective customer the identity of the source of the referral;
(h) Receive a bonus, commission or other benefit for referring an individual to a person;
(i) Structure a plan in a manner that would result in a negative amortization of any of an individuals debts, unless a creditor that is owed a negatively amortizing debt agrees to refund or waive the finance charge upon payment of the principal amount of the debt;
(j) Compensate its employees on the basis of a formula that incorporates the number of individuals the employee induces to enter into agreements;
(k) Settle a debt or lead an individual to believe that a payment to a creditor is in settlement of a debt to the creditor unless, at the time of settlement, the individual receives a certification by the creditor that the payment is in full settlement of the debt or is part of a payment plan, the terms of which are included in the certification, that on completion will lead to full settlement of the debt;
(l) Make a representation that:
(1) The provider will furnish money to pay bills or prevent attachments;
(2) Payment of a certain amount will permit satisfaction of a certain amount or range of indebtedness; or
(3) Participation in a plan will or may prevent litigation, garnishment, attachment, repossession, foreclosure, eviction or loss of employment;
(m) Misrepresent that it is authorized or competent to furnish legal advice or perform legal services;
(n) Represent in its agreements, disclosures required by this chapter, advertisements or Internet website that it is a not-for-profit entity unless it is organized and properly operating as a not-for-profit entity under the law of the state in which it was formed or a tax-exempt entity unless it has received certification of tax-exempt status from the Internal Revenue Service and is properly operating as a not-for-profit entity under the law of the state in which it was formed;
κ2009 Statutes of Nevada, Page 1992 (CHAPTER 376, SB 355)κ
received certification of tax-exempt status from the Internal Revenue Service and is properly operating as a not-for-profit entity under the law of the state in which it was formed;
(o) Take a confession of judgment or power of attorney to confess judgment against an individual;
(p) Employ an unfair, unconscionable or deceptive act or practice, including, without limitation, the knowing omission of any material information;
(q) Receive any compensation from the creditors of an individual, unless the compensation is a donation for the operating costs of the provider; or
(r) If the provider furnishes debt settlement services, represent that the provider is able to prevent telephone calls from creditors.
2. If a provider furnishes debt-management services to an individual, the provider may not, directly or indirectly:
(a) Purchase a debt or obligation of the individual;
(b) Receive from or on behalf of the individual:
(1) A promissory note or other negotiable instrument other than a check or a demand draft; or
(2) A postdated check or demand draft;
(c) Lend money or provide credit to the individual, except as a deferral of a settlement fee at no additional expense to the individual;
(d) Obtain a mortgage or other security interest from any person in connection with the services provided to the individual;
(e) Except as permitted by federal law, disclose the identity or identifying information of the individual or the identity of the individuals creditors, except to:
(1) The Commissioner, upon proper demand;
(2) A creditor of the individual, to the extent necessary to secure the cooperation of the creditor in a plan; or
(3) The extent necessary to administer the plan;
(f) Except as otherwise provided in subsection 6 of section 45 of this act, provide the individual less than the full benefit of a compromise of a debt arranged by the provider;
(g) Charge the individual for or provide credit or other insurance, coupons for goods or services, membership in a club, access to computers or the Internet or any other matter not directly related to debt-management services or educational or counseling services concerning personal finance, except to the extent such services are expressly authorized by the Commissioner;
(h) Furnish legal advice or perform legal services, unless the person furnishing that advice to or performing those services for the individual is licensed to practice law; or
(i) With respect to debt settlement services:
(1) Have an ownership interest in, or any control of, the settlement account of an individual to whom the provider is providing debt settlement services; or
(2) Provide debt settlement services with respect to a secured debt, a debt which was at any time a secured debt or a loan to which chapter 604A of NRS applies or include a secured debt, debt which was at any time a secured debt or a loan to which chapter 604A of NRS applies in the calculation of the providers fee.
κ2009 Statutes of Nevada, Page 1993 (CHAPTER 376, SB 355)κ
3. A provider, or an employee, officer or agent of a provider, may not provide legal services or advice or represent that the provider, or an employee, officer or agent of the provider, is authorized or competent to provide legal services or advice, unless the person providing legal services or advice, or about whom the representations concerning the provision of legal services or advice were made, is authorized to practice law in this State. As used in this subsection, legal services or advice include, without limitation, an analysis of the rights of a creditor or debtor with respect to a debt, advice concerning a response to legal filings or actions and predictions of the likely outcome of litigation or arbitration concerning a debt.
4. This chapter does not authorize any person to engage in the practice of law.
5. A provider may not receive a gift or bonus, premium, reward or other compensation, directly or indirectly, for advising, arranging or assisting an individual in connection with obtaining an extension of credit or other service from a lender or service provider, except for educational or counseling services required in connection with a government-sponsored program.
6. Unless a person supplies goods, services or facilities generally and supplies them to the provider at a cost no greater than the cost the person generally charges to others, a provider may not purchase goods, services or facilities from the person if an employee or a person that the provider should reasonably know is an affiliate of the provider:
(a) Owns more than 10 percent of the person; or
(b) Is an employee or affiliate of the person.
Sec. 51. Not later than 30 days after a provider has been served with notice of a civil action for violation of this chapter by or on behalf of an individual who resides in this State at either the time of an agreement or the time the notice is served, the provider shall notify the Commissioner in a record that it has been sued.
Sec. 52. 1. If the agreements of a provider contemplate that the provider will develop and implement a debt-management plan and the provider advertises debt-management services, it shall disclose, in an easily comprehensible manner, that using a debt-management plan may make it harder for the individual to obtain credit.
2. If the agreements of a provider contemplate that the provider will provide debt settlement services and the provider advertises debt settlement services, it shall disclose, in an easily comprehensible manner, the information specified in paragraphs (c) and (d) of subsection 4 of section 39 of this act.
Sec. 53. If a provider delegates any of its duties or obligations under an agreement or this chapter to another person, including, without limitation, an independent contractor, the provider is liable for conduct of the person which, if done by the provider, would violate the agreement or this chapter.
Sec. 54. 1. The Commissioner may act on his own initiative or in response to complaints and may receive complaints, take action to obtain voluntary compliance with this chapter, refer cases to the Attorney General and seek or provide remedies as provided in this chapter.
2. The Commissioner may investigate and examine, in this State or elsewhere, by subpoena or otherwise, the activities, books, accounts and records of a person that provides or offers to provide debt-management services, or a person to which a provider has delegated its obligations under an agreement or this chapter, to determine compliance with this chapter.
κ2009 Statutes of Nevada, Page 1994 (CHAPTER 376, SB 355)κ
records of a person that provides or offers to provide debt-management services, or a person to which a provider has delegated its obligations under an agreement or this chapter, to determine compliance with this chapter. Information that identifies individuals who have agreements with the provider must not be disclosed to the public. In connection with the investigation, the Commissioner may:
(a) Charge the person the reasonable expenses necessarily incurred to conduct the examination;
(b) Require or permit a person to file a statement under oath as to all the facts and circumstances of a matter to be investigated; and
(c) Seek a court order authorizing seizure from a bank at which the person maintains a trust account required by section 44 of this act, any or all money, books, records, accounts and other property of the provider that is in the control of the bank and relates to individuals who reside in this State.
3. The Commissioner may adopt regulations to implement the provisions of this chapter.
4. The Commissioner may enter into cooperative arrangements with any other federal or state agency having authority over providers and may exchange with any of those agencies information about a provider, including, without limitation, information obtained during an examination of the provider.
5. The Commissioner, by regulation, shall establish reasonable fees to be paid by providers for the expense of administering this chapter. The Commissioner may, in his discretion, establish a reduced fee schedule for providers that are qualified nonprofit entities.
6. The Commissioner, by regulation, shall adopt dollar amounts instead of those specified in sections 4, 27, 31, 35, 45, 55 and 57 of this act to reflect inflation, as measured by the Consumer Price Index for All Urban Consumers, published by the United States Department of Labor, or, if that Index is not available, another index adopted by regulation by the Commissioner. The Commissioner shall adopt a base year and adjust the dollar amounts, effective on July 1 of each year, if the change in the index from the base year, as of December 31 of the preceding year, is at least 10 percent. The dollar amount must be rounded to the nearest $100, except that the amounts in section 45 of this act must be rounded to the nearest dollar.
7. The Commissioner shall notify registered providers of any change in dollar amounts made pursuant to subsection 6 and make that information available to the public.
8. The Commissioner, by regulation, may:
(a) Require a provider to make additional disclosures before an individual assents to an agreement, including, without limitation, disclosures that:
(1) Nothing in the agreement requires the individuals creditors to accept payments pursuant to a plan.
(2) Nothing in the agreement prevents creditors of the individual from pursuing collection efforts, including, without limitation, telephone calls for the purpose of collecting a debt, and that creditors may sue the individual for any debt that remains unpaid.
(3) The provider cannot provide legal services or advice and, if the individual is sued, the individual should seek legal services or advice.
κ2009 Statutes of Nevada, Page 1995 (CHAPTER 376, SB 355)κ
(4) The provider is not a credit repair organization and does not claim that the plan will have a positive impact on the credit score of the individual.
(5) If an agreement contemplates that a provider will develop and implement a debt-management plan, a creditor may be included in the debt-management plan even if the creditor does not make a contribution.
(b) Establish any requirements and prohibitions with respect to advertising by providers which do not violate the Nevada Constitution or the Constitution of the United States. Such regulations may include, without limitation, a requirement that a provider submit all advertising used by the provider to the Commissioner within 30 days after the first publication of the advertisement.
Sec. 55. 1. The Commissioner may enforce this chapter and regulations adopted under this chapter by taking one or more of the following actions:
(a) Ordering a provider or a director, employee or other agent of a provider to cease and desist from any violations;
(b) Ordering a provider or a person that has caused a violation to correct the violation, including, without limitation, making restitution of money or property to a person aggrieved by a violation;
(c) Subject to adjustment of the dollar amount pursuant to subsection 6 of section 54 of this act, imposing on a provider or a person that has caused a violation a civil penalty not to exceed $10,000 for each violation;
(d) Prosecuting a civil action to:
(1) Enforce an order; or
(2) Obtain restitution or an injunction or other equitable relief, or both; or
(e) Intervening in an action brought under section 57 of this act.
2. Subject to adjustment of the dollar amount pursuant to subsection 6 of section 54 of this act, if a person violates or knowingly authorizes, directs or aids in the violation of a final order issued under paragraph (a) or (b) of subsection 1, the Commissioner may impose a civil penalty not to exceed $20,000 for each violation.
3. The Commissioner may maintain an action to enforce this chapter in any county.
4. The Commissioner may recover the reasonable costs of enforcing this chapter under subsections 1, 2 and 3, including, without limitation, attorneys fees based on the hours reasonably expended and the hourly rates for attorneys of comparable experience in the community.
5. In determining the amount of a civil penalty to impose under subsection 1 or 2, the Commissioner shall consider the seriousness of the violation, the good faith of the violator, any previous violations by the violator, the deleterious effect of the violation on the public, the net worth of the violator and any other factor the Commissioner considers relevant to the determination of the civil penalty.
Sec. 56. 1. The Commissioner may suspend, revoke or deny renewal of a providers registration if:
(a) A fact or condition exists that, if it had existed when the registrant applied for registration as a provider, would have been a reason for denying registration;
(b) The provider has committed a material violation of this chapter or a rule or order of the Commissioner under this chapter;
κ2009 Statutes of Nevada, Page 1996 (CHAPTER 376, SB 355)κ
(c) The provider is insolvent;
(d) The provider or an employee or affiliate of the provider has refused to permit the Commissioner to make an examination authorized by this chapter, failed to comply with paragraph (b) of subsection 2 of section 54 of this act within 15 days after request, or made a material misrepresentation or omission in complying with paragraph (b) of subsection 2 of section 54 of this act; or
(e) The provider has not responded within a reasonable time and in an appropriate manner to communications from the Commissioner.
2. If a provider does not comply with subsection 6 of section 44 of this act or if the Commissioner otherwise finds that the public health or safety or general welfare requires emergency action, the Commissioner may order a summary suspension of the providers registration, effective on the date specified in the order.
3. If the Commissioner suspends, revokes or denies renewal of the registration of a provider, the Commissioner may seek a court order authorizing seizure of any or all of the money in a trust account required by section 44 of this act, books, records, accounts and other property of the provider which are located in this State.
4. If the Commissioner suspends or revokes a providers registration, the provider may appeal and request a hearing pursuant to NRS 233B.121 to 233B.150, inclusive.
5. As used in this section, insolvent means:
(a) Having generally ceased to pay debts in the ordinary course of business other than as a result of good faith dispute;
(b) Being unable to pay debts as they become due; or
(c) Being insolvent within the meaning of the federal bankruptcy law, 11 U.S.C. §§ 101 et seq.
Sec. 57. 1. If an individual voids an agreement pursuant to subsection 2 of section 47 of this act, the individual may recover in a civil action all money paid or deposited by or on behalf of the individual pursuant to the agreement, except amounts paid to creditors, in addition to the recovery under paragraph (c) and (d) of subsection 3.
2. If an individual voids an agreement pursuant to subsection 1 of section 47 of this act, the individual may recover in a civil action three times the total amount of the fees, charges, money and payments made by the individual to the provider, in addition to the recovery under paragraph (d) of subsection 3.
3. Subject to subsection 4, an individual with respect to whom a provider violates this chapter may recover in a civil action from the provider and any person that caused the violation:
(a) Compensatory damages for injury, including, without limitation, noneconomic injury, caused by the violation;
(b) Except as otherwise provided in subsection 4 and subject to adjustment of the dollar amount pursuant to subsection 6 of section 54 of this act, with respect to a violation of section 39, 41 to 46, inclusive, or 49 of this act or subsection 1, 2 or 5 of section 50 of this act, the greater of the amount recoverable under paragraph (a) or $5,000;
(c) Punitive damages; and
(d) Reasonable attorneys fees and costs.
κ2009 Statutes of Nevada, Page 1997 (CHAPTER 376, SB 355)κ
4. In a class action, except for a violation of paragraph (e) of subsection 1 of section 50 of this act, the minimum damages provided in paragraph (b) of subsection 3 do not apply.
5. In addition to the remedy available under subsection 3, if a provider violates an individuals rights under section 42 of this act, the individual may recover in a civil action all money paid or deposited by or on behalf of the individual pursuant to the agreement, except for amounts paid to creditors.
6. A provider is not liable under this section for a violation of this chapter if the provider proves that the violation was not intentional and resulted from a good faith error notwithstanding the maintenance of procedures reasonably adapted to avoid the error. An error of legal judgment with respect to a providers obligations under this chapter is not a good faith error. If, in connection with a violation, the provider has received more money than authorized by an agreement or this chapter, the defense provided by this subsection is not available unless the provider refunds the excess within 2 business days after learning of the violation.
7. The Commissioner shall assist an individual in enforcing a judgment against the surety bond or other security provided under section 35 or 36 of this act.
Sec. 58. 1. A violation of a provision of this chapter constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.
2. If an act or practice of a provider violates both a provision of this chapter and a provision of chapter 598 of NRS, an individual may not recover under both for the same act or practice.
Sec. 59. 1. An action or proceeding brought pursuant to subsection 1, 2 or 3 of section 55 of this act must be commenced within 4 years after the conduct that is the basis of the Commissioners complaint.
2. An action brought pursuant to section 57 of this act must be commenced within 2 years after the latest of:
(a) The individuals last transmission of money to a provider;
(b) The individuals last transmission of money to a creditor at the direction of the provider;
(c) The providers last disbursement to a creditor of the individual;
(d) The providers last accounting to the individual pursuant to subsection 1 of section 49 of this act;
(e) The date on which the individual discovered or reasonably should have discovered the facts giving rise to the individuals claim; or
(f) Termination of actions or proceedings by the Commissioner with respect to a violation of the chapter.
3. The period prescribed in paragraph (e) of subsection 2 is tolled during any period during which the provider or, if different, the defendant has materially and willfully misrepresented information required by this chapter to be disclosed to the individual, if the information so misrepresented is material to the establishment of the liability of the defendant under this chapter.
Sec. 60. In applying and construing the Uniform Debt-Management Services Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
κ2009 Statutes of Nevada, Page 1998 (CHAPTER 376, SB 355)κ
Sec. 61. This chapter modifies, limits and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et seq., but does not modify, limit or supersede section 101(c) of that act, 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices described in section 103(b) of that act, 15 U.S.C. § 7003(b).
Sec. 62. NRS 598.741 is hereby amended to read as follows:
598.741 As used in NRS 598.741 to 598.787, inclusive, unless the context otherwise requires:
1. Buyer means a natural person who is solicited to purchase or who purchases the services of an organization which provides credit services.
2. Commissioner means the Commissioner of Consumer Affairs.
3. Division means the Consumer Affairs Division of the Department of Business and Industry.
4. Extension of credit means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family or household purposes.
5. Organization:
(a) Means a person who, with respect to the extension of credit by others, sells, provides or performs, or represents that he can or will sell, provide or perform, any of the following services, in return for the payment of money or other valuable consideration:
(1) Improving a buyers credit record, history or rating.
(2) Obtaining an extension of credit for a buyer.
(3) Providing counseling or assistance to a person in establishing or effecting a plan for the payment of his indebtedness, unless that counseling or assistance is provided by and is within the scope of the authorized practice of a [debt adjuster licensed] provider of debt-management services registered pursuant to [chapter 676 of NRS.] sections 2 to 61, inclusive, of this act.
(4) Providing advice or assistance to a buyer with regard to subparagraph (1) or (2).
(b) Does not include:
(1) A person organized, chartered or holding a license or authorization certificate to make loans or extensions of credit pursuant to the laws of this state or the United States who is subject to regulation and supervision by an officer or agency of this state or the United States.
(2) A bank, credit union or savings and loan institution whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or a private insurer approved pursuant to NRS 678.755.
(3) A person licensed as a real estate broker by this state where the person is acting within the course and scope of that license, unless the person is rendering those services in the course and scope of employment by or other affiliation with an organization.
(4) A person licensed to practice law in this state where the person renders services within the course and scope of his practice as an attorney at law, unless the person is rendering those services in the course and scope of employment by or other affiliation with an organization.
(5) A broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission where the broker-dealer is acting within the course and scope of such regulation.
κ2009 Statutes of Nevada, Page 1999 (CHAPTER 376, SB 355)κ
(6) A person [licensed] registered as a [debt adjuster] provider of debt-management services pursuant to [chapter 676 of NRS.] sections 2 to 61, inclusive, of this act.
(7) A reporting agency.
6. Reporting agency means a person who, for fees, dues or on a cooperative nonprofit basis, regularly engages in whole or in part in the business of assembling or evaluating information regarding the credit of or other information regarding consumers to furnish consumer reports to third parties, regardless of the means or facility of commerce used to prepare or furnish the consumer reports. The term does not include:
(a) A person solely for the reason that he conveys a decision regarding whether to guarantee a check in response to a request by a third party;
(b) A person who obtains or creates a consumer report and provides the report or information contained in it to a subsidiary or affiliate; or
(c) A person licensed pursuant to chapter 463 of NRS.
Sec. 63. NRS 645F.380 is hereby amended to read as follows:
645F.380 The provisions of NRS 645F.300 to 645F.450, inclusive, do not apply to, and the terms foreclosure consultant and foreclosure purchaser do not include:
1. An attorney at law rendering services in the performance of his duties as an attorney at law;
2. A [person, firm, company or corporation licensed to engage in the business of debt adjustment pursuant to chapter 676 of NRS while engaging in that business;] provider of debt-management services registered pursuant to sections 2 to 61, inclusive, of this act while providing debt-management services pursuant to sections 2 to 61, inclusive, of this act;
3. A person licensed as a real estate broker, broker-salesman or salesman pursuant to chapter 645 of NRS while acting under the authority of that license;
4. A person or the authorized agent of a person acting under the provisions of a program sponsored by the Federal Government, this State or a local government, including, without limitation, the Department of Housing and Urban Development, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Federal Home Loan Bank;
5. A person who holds or is owed an obligation secured by a mortgage or other lien on a residence in foreclosure if the person performs services in connection with this obligation or lien and the obligation or lien did not arise as the result of or as part of a proposed foreclosure reconveyance;
6. Any person doing business under the laws of this State or of the United States relating to banks, trust companies, savings and loan associations, industrial loan and thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee which is a United States Department of Housing and Urban Development approved mortgagee and any subsidiary or affiliate of those persons, and any agent or employee of those persons while engaged in the business of those persons;
7. A person licensed as an escrow agent, title agent, mortgage agent, mortgage broker or mortgage banker pursuant to chapter 645A, 692A, 645B or 645E of NRS, respectively, while acting under the authority of his license;
8. A nonprofit agency or organization that offers credit counseling or advice to a homeowner of a residence in foreclosure or a person in default on a loan; or
κ2009 Statutes of Nevada, Page 2000 (CHAPTER 376, SB 355)κ
9. A judgment creditor of the homeowner whose claim accrued before the recording of the notice of the pendency of an action for foreclosure against the homeowner pursuant to NRS 14.010 or the recording of the notice of default and election to sell pursuant to NRS 107.080.
Sec. 64. NRS 658.098 is hereby amended to read as follows:
658.098 1. On a quarterly or other regular basis, the Commissioner shall collect an assessment pursuant to this section from each:
(a) Check-cashing service or deferred deposit loan service that is supervised pursuant to chapter 604A of NRS;
(b) Collection agency that is supervised pursuant to chapter 649 of NRS;
(c) Bank that is supervised pursuant to chapters 657 to 668, inclusive, of NRS;
(d) Trust company that is supervised pursuant to chapter 669 of NRS;
(e) Development corporation that is supervised pursuant to chapter 670 of NRS;
(f) Corporation for economic revitalization and diversification that is supervised pursuant to chapter 670A of NRS;
(g) Person engaged in the business of selling or issuing checks or of receiving for transmission or transmitting money or credits that is supervised pursuant to chapter 671 of NRS;
(h) Savings and loan association that is supervised pursuant to chapter 673 of NRS;
(i) Person engaged in the business of lending that is supervised pursuant to chapter 675 of NRS;
(j) [Person engaged in the business of debt adjusting that is supervised pursuant to chapter 676 of NRS;
(k)] Thrift company that is supervised pursuant to chapter 677 of NRS; and
[(l)] (k) Credit union that is supervised pursuant to chapter 678 of NRS.
2. The Commissioner shall determine the total amount of all assessments to be collected from the entities identified in subsection 1, but that amount must not exceed the amount necessary to recover the cost of legal services provided by the Attorney General to the Commissioner and to the Division of Financial Institutions. The total amount of all assessments collected must be reduced by any amounts collected by the Commissioner from an entity for the recovery of the costs of legal services provided by the Attorney General in a specific case.
3. The Commissioner shall collect from each entity identified in subsection 1 an assessment that is based on:
(a) A portion of the total amount of all assessments as determined pursuant to subsection 2, such that the assessment collected from an entity identified in subsection 1 shall bear the same relation to the total amount of all assessments as the total assets of that entity bear to the total of all assets of all entities identified in subsection 1; or
(b) Any other reasonable basis adopted by the Commissioner.
4. The assessment required by this section is in addition to any other assessment, fee or cost required by law to be paid by an entity identified in subsection 1.
5. Money collected by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
κ2009 Statutes of Nevada, Page 2001 (CHAPTER 376, SB 355)κ
Sec. 65. NRS 676.010, 676.015, 676.020, 676.030, 676.040, 676.050, 676.060, 676.070, 676.080, 676.100, 676.110, 676.120, 676.125, 676.130, 676.135, 676.140, 676.150, 676.160, 676.170, 676.180, 676.190, 676.200, 676.205, 676.207, 676.210, 676.220, 676.230, 676.235, 676.240, 676.250, 676.260, 676.270, 676.280, 676.290, 676.295, 676.300, 676.310, 676.320, 676.330, 676.335 and 676.340 are hereby repealed.
Sec. 66. Transactions entered into before July 1, 2010, and the rights, duties and interests resulting from them may be completed, terminated or enforced as required or permitted by a law amended, repealed or modified by this act as though the amendment, repeal or modification had not occurred.
Sec. 67. This act becomes effective:
1. Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
2. On July 1, 2010, for all other purposes.
________
Assembly Bill No. 522Committee on Commerce and Labor
CHAPTER 377
AN ACT relating to energy; creating the Fund for Renewable Energy, Energy Efficiency and Energy Conservation Loans and the Account for Set-Aside Programs; authorizing the Director of the Office of Energy to administer the Fund; authorizing the granting of partial abatements of certain property taxes and local sales and use taxes to certain facilities for the generation of process heat from solar renewable energy, wholesale facilities for the generation of electricity from renewable energy, facilities for the generation of electricity from geothermal resources and facilities for the transmission of electricity produced from renewable energy; and providing other matters properly relating thereto.
[Approved: May 30, 2009]
Legislative Counsels Digest:
Sections 1.1-1.8 of this bill establish the Fund for Renewable Energy, Energy Efficiency and Energy Conservation Loans and the Account for Set-Aside Programs. The Director of the Office of Energy administers the Fund. The Fund and the Account for Set-Aside Programs may be used only for the purposes set forth in the American Recovery and Reinvestment Act and to make loans at a rate of not more than 3 percent to renewable energy systems for the construction of renewable energy projects. The Director is prohibited from committing any money in the Fund for expenditure without obtaining the prior approval of the Legislature or the Interim Finance Committee if the Legislature is not in session.
Section 28 of this bill authorizes the Nevada Energy Commissioner appointed pursuant to section 1.21 of Senate Bill No. 358 of this session to grant partial abatements of property taxes and local sales and use taxes to certain facilities for the generation of process heat from solar renewable energy, wholesale facilities for the generation of electricity from renewable energy, facilities for the generation of electricity from geothermal resources and facilities for the transmission of electricity produced from renewable energy. These abatements will cease to be effective in 40 years.
κ2009 Statutes of Nevada, Page 2002 (CHAPTER 377, AB 522)κ
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 701 of NRS is hereby amended by adding thereto the provisions set forth as sections 1.1 to 1.95, inclusive, of this act.
Sec. 1.1. As used in sections 1.1 to 1.8, inclusive, of this act, the words and terms defined in sections 1.15 to 1.45, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 1.15. American Recovery and Reinvestment Act means the American Recovery and Reinvestment Act of 2009, Public Law 111-5.
Sec. 1.2. Construction means the erection, building, acquisition, alteration, remodeling, improvement or extension of a project and the inspection and supervision of such activities and includes, without limitation:
1. Any preliminary planning to determine the feasibility of a project;
2. Engineering, architectural, legal, environmental, fiscal or economic investigations or studies, surveys, designs, plans, working drawings, specifications or procedures that comply with the provisions of the American Recovery and Reinvestment Act and any regulations adopted pursuant thereto; and
3. Any other activities reasonably necessary to the completion of a project.
Sec. 1.3. Federal grant means money authorized by the American Recovery and Reinvestment Act to:
1. Create a revolving loan fund to assist in the financing of the construction of renewable energy projects; or
2. Fund set-aside programs authorized by the American Recovery and Reinvestment Act.
Sec. 1.4. Fund means the Fund for Renewable Energy, Energy Efficiency and Energy Conservation Loans created by section 1.5 of this act.
Sec. 1.45. Renewable energy system has the meaning ascribed to it in NRS 704.7815.
Sec. 1.5. 1. The Fund for Renewable Energy, Energy Efficiency and Energy Conservation Loans is hereby created. The Director shall administer the Fund.
2. The account to fund activities, other than projects, authorized by the American Recovery and Reinvestment Act, to be known as the Account for Set-Aside Programs, is hereby created in the Fund for the Municipal Bond Bank.
3. The money in the Fund and the Account for Set-Aside Programs may be used only for the purposes set forth in the American Recovery and Reinvestment Act.
4. All claims against the Fund and the Account for Set-Aside Programs must be paid as other claims against the State are paid.
5. The faith of the State is hereby pledged that the money in the Account for the Revolving Fund and the Account for Set-Aside Programs will not be used for purposes other than those authorized by the American Recovery and Reinvestment Act.
Sec. 1.6. 1. The interest and income earned on money in the Fund and the Account for Set-Aside Programs must be credited to the Fund and the Account for Set-Aside Programs, respectively.
κ2009 Statutes of Nevada, Page 2003 (CHAPTER 377, AB 522)κ
2. All payments of principal and interest on all loans made to a renewable energy system and all proceeds from the sale, refunding or prepayment of obligations of a renewable energy system acquired or loans made in carrying out the purposes of the Fund must be deposited in the State Treasury for credit to the Fund.
3. The Director may accept gifts, contributions, grants and bequests of money from any public or private source. The money so accepted must be deposited in the State Treasury for credit to the Fund, or the Account for Set-Aside Programs, and can be used to provide money from the State to match the federal grant, as required by the American Recovery and Reinvestment Act.
4. Only federal money deposited in a separate subaccount of the Fund, including repayments of principal and interest on loans made solely from federal money, and interest and income earned on federal money in the Fund, may be used to benefit renewable energy systems not governmentally owned.
Sec. 1.7. 1. The Director shall:
(a) Use the money in the Fund and the Account for Set-Aside Programs for the purposes set forth in the American Recovery and Reinvestment Act.
(b) Determine whether renewable energy systems which receive money or other assistance from the Fund or the Account for Set-Aside Programs comply with the American Recovery and Reinvestment Act and regulations adopted pursuant thereto.
2. The Director may:
(a) Prepare and enter into required agreements with the Federal Government for the acceptance of grants of money for the Fund and the Account for Set-Aside Programs.
(b) Bind the Office of Energy to terms of the required agreements.
(c) Accept grants made pursuant to the American Recovery and Reinvestment Act.
(d) Manage the Fund and the Account for Set-Aside Programs in accordance with the requirements and objectives of the American Recovery and Reinvestment Act.
(e) Provide services relating to management and administration of the Fund and the Account for Set-Aside Programs, including the preparation of any agreement, plan or report.
(f) Perform, or cause to be performed by agencies or organizations through interagency agreement, contract or memorandum of understanding, set-aside programs pursuant to the American Recovery and Reinvestment Act.
3. The Director shall not commit any money in the Fund for expenditure for the purposes set forth in section 1.75 of this act without obtaining the prior approval of the Legislature or the Interim Finance Committee if the Legislature is not in session.
Sec. 1.75. 1. Except as otherwise provided in section 1.6 of this act, money in the Fund, including repayments of principal and interest on loans, and interest and income earned on money in the Fund, may be used only to make loans at a rate of not more than 3 percent to renewable energy systems for the construction of renewable energy projects.
2. Money in the Account for Set-Aside Programs may be used only to fund set-aside programs authorized by the American Recovery and Reinvestment Act.
κ2009 Statutes of Nevada, Page 2004 (CHAPTER 377, AB 522)κ
Reinvestment Act. Money in the Account for Set-Aside Programs may be transferred to the Fund pursuant to the American Recovery and Reinvestment Act.
3. A renewable energy system which requests a loan or other financial assistance must demonstrate that it has:
(a) Complied with the American Recovery and Reinvestment Act and regulations adopted pursuant thereto; or
(b) Agreed to take actions that are needed to ensure that it has the capability to comply with the American Recovery and Reinvestment Act and regulations adopted pursuant thereto.
4. Money from the Fund may not be given to an existing renewable energy system unless it has the technical, managerial and financial capability to ensure compliance with the American Recovery and Reinvestment Act and regulations adopted pursuant thereto. A new renewable energy system, to receive such funding, must demonstrate that it has the technical, managerial and financial capability to ensure compliance with the American Recovery and Reinvestment Act and regulations adopted pursuant thereto.
Sec. 1.8. The Director may adopt such regulations as are necessary to carry out the provisions of sections 1.1 to 1.8, inclusive, of this act.
Secs. 1.85-27. (Deleted by amendment.)
Sec. 27.5. Chapter 701A of NRS is hereby amended by adding thereto the provisions set forth as sections 28 and 28.5 of this act.
Sec. 28. 1. A person who intends to locate a facility for the generation of process heat from solar renewable energy, a wholesale facility for the generation of electricity from renewable energy, a facility for the generation of electricity from geothermal resources or a facility for the transmission of electricity produced from renewable energy or geothermal resources in this State may apply to the Director for a partial abatement of the local sales and use taxes, the taxes imposed pursuant to chapter 361 of NRS, or both local sales and use taxes and taxes imposed pursuant to chapter 361 of NRS. A facility that is owned, operated, leased or otherwise controlled by a governmental entity is not eligible for an abatement pursuant to this section.
2. As soon as practicable after the Director receives such an application, the Director shall submit the application to the Commissioner and forward a copy of the application to:
(a) The Chief of the Budget Division of the Department of Administration;
(b) The Department of Taxation;
(c) The board of county commissioners;
(d) The county assessor;
(e) The county treasurer; and
(f) The Commission on Economic Development.
Κ With the copy of the application forwarded to the county treasurer, the Director shall include a notice that the local jurisdiction may request a presentation regarding the facility. A request for a presentation must be made within 30 days after receipt of the application. The Commissioner shall hold a public hearing on the application. The hearing must not be held earlier than 30 days after all persons listed in this subsection have received a copy of the application.
κ2009 Statutes of Nevada, Page 2005 (CHAPTER 377, AB 522)κ
3. Except as otherwise provided in subsection 4, the Commissioner shall approve an application for a partial abatement pursuant to this section if the Commissioner makes the following determinations:
(a) The applicant has executed an agreement with the Commissioner which must:
(1) State that the facility will, after the date on which a certificate of eligibility for the abatement is issued pursuant to subsection 6, continue in operation in this State for a period specified by the Commissioner, which must be at least 10 years, and will continue to meet the eligibility requirements for the abatement; and
(2) Bind the successors in interest in the facility for the specified period.
(b) The facility is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the facility operates.
(c) No funding is or will be provided by any governmental entity in this State for the acquisition, design or construction of the facility or for the acquisition of any land therefor, except any private activity bonds as defined in 26 U.S.C. § 141.
(d) If the facility will be located in a county whose population is 100,000 or more or a city whose population is 60,000 or more, the facility meets the following requirements:
(1) There will be 75 or more full-time employees working on the construction of the facility during the second quarter of construction, including, unless waived by the Commissioner for good cause, at least 30 percent who are residents of Nevada;
(2) Establishing the facility will require the facility to make a capital investment of at least $10,000,000 in this State;
(3) The average hourly wage that will be paid by the facility to its employees in this State is at least 110 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
(4) The average hourly wage of the employees working on the construction of the facility will be at least 150 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the construction of the facility must be provided a health insurance plan that includes an option for health insurance coverage for dependents of the employees; and
(II) The cost of the benefits provided to the employees working on the construction of the facility will meet the minimum requirements for benefits established by the Commissioner by regulation pursuant to subsection 9.
(e) If the facility will be located in a county whose population is less than 100,000 or a city whose population is less than 60,000, the facility meets the following requirements:
κ2009 Statutes of Nevada, Page 2006 (CHAPTER 377, AB 522)κ
(1) There will be 50 or more full-time employees working on the construction of the facility during the second quarter of construction, including, unless waived by the Commissioner for good cause, at least 30 percent who are residents of Nevada;
(2) Establishing the facility will require the facility to make a capital investment of at least $3,000,000 in this State;
(3) The average hourly wage that will be paid by the facility to its employees in this State is at least 110 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
(4) The average hourly wage of the employees working on the construction of the facility will be at least 150 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the construction of the facility must be provided a health insurance plan that includes an option for health insurance coverage for dependents of the employees; and
(II) The cost of the benefits provided to the employees working on the construction of the facility will meet the minimum requirements for benefits established by the Commissioner by regulation pursuant to subsection 9.
(f) The financial benefits that will result to this State from the employment by the facility of the residents of this State and from capital investments by the facility in this State will exceed the loss of tax revenue that will result from the abatement.
4. The Commissioner shall not approve an application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to subsection 2 by a facility for the generation of electricity from geothermal resources unless the application is approved pursuant to this subsection. The board of county commissioners of a county must approve or deny the application not later than 30 days after the board receives a copy of the application. The board of county commissioners must not condition the approval of the application on a requirement that the facility for the generation of electricity from geothermal resources agree to purchase, lease or otherwise acquire in its own name or on behalf of the county any infrastructure, equipment, facilities or other property in the county that is not directly related to or otherwise necessary for the construction and operation of the facility. If the board of county commissioners does not approve or deny the application within 30 days after the board receives the application, the application shall be deemed denied.
5. Notwithstanding the provisions of subsection 3, the Commissioner may, if the Commissioner determines that such action is necessary:
(a) Approve an application for a partial abatement for a facility that does not meet the requirements set forth in paragraph (d) or (e) of subsection 3; or
(b) Add additional requirements that a facility must meet to qualify for a partial abatement.
κ2009 Statutes of Nevada, Page 2007 (CHAPTER 377, AB 522)κ
6. If the Commissioner approves an application for a partial abatement pursuant to this section of:
(a) Property taxes imposed pursuant to chapter 361 of NRS, the partial abatement must:
(1) Be for a duration of the 20 fiscal years immediately following the date of approval of the application;
(2) Be equal to 55 percent of the taxes on real and personal property payable by the facility each year; and
(3) Not apply during any period in which the facility is receiving another abatement or exemption from property taxes imposed pursuant to chapter 361 of NRS, other than any partial abatement provided pursuant to NRS 361.4722.
(b) Local sales and use taxes:
(1) The partial abatement must:
(I) Be for the 3 years beginning on the date of approval of the application;
(II) Be equal to that portion of the combined rate of all the local sales and use taxes payable by the facility each year which exceeds 0.6 percent; and
(III) Not apply during any period in which the facility is receiving another abatement or exemption from local sales and use taxes.
(2) The Department of Taxation shall issue to the facility a document certifying the abatement which can be presented to retailers at the time of sale. The document must clearly state that the purchaser is only required to pay sales and use taxes imposed in this State at the rate of 2.6 percent.
7. Upon approving an application for a partial abatement pursuant to this section, the Commissioner shall immediately notify the Director of the terms of the abatement and the Director shall immediately forward a certificate of eligibility for the abatement to:
(a) The Department of Taxation;
(b) The board of county commissioners;
(c) The county assessor;
(d) The county treasurer; and
(e) The Commission on Economic Development.
8. As soon as practicable after receiving a copy of:
(a) An application pursuant to subsection 2:
(1) The Chief of the Budget Division shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State and forward a copy of the fiscal note to the Director for submission to the Commissioner; and
(2) The Department of Taxation shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on each affected local government, and forward a copy of the fiscal note to each affected local government and to the Director for submission to the Commissioner.
(b) A certificate of eligibility pursuant to subsection 6, the Department of Taxation shall forward a copy of the certificate to each affected local government.
9. A partial abatement approved by the Commissioner pursuant to this section terminates upon any determination by the Commissioner that the facility has ceased to meet any eligibility requirements for the abatement.
κ2009 Statutes of Nevada, Page 2008 (CHAPTER 377, AB 522)κ
abatement. The Commissioner shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the facility has ceased to meet those requirements. The Commissioner shall immediately provide notice of each determination of termination to the Director, and the Director shall immediately provide a copy of the notice to:
(a) The Commissioner, who shall immediately notify each affected local government of the determination;
(b) The board of county commissioners;
(c) The county assessor;
(d) The county treasurer; and
(e) The Commission on Economic Development.
10. The Commissioner:
(a) Shall adopt regulations:
(1) Prescribing the minimum level of benefits that a facility must provide to its employees if the facility is going to use benefits paid to employees as a basis to qualify for a partial abatement pursuant to this section;
(2) Prescribing such requirements for an application for a partial abatement pursuant to this section as will ensure that all information and other documentation necessary for the Commissioner to make an appropriate determination is filed with the Director;
(3) Requiring each recipient of a partial abatement pursuant to this section to file annually with the Director, for submission to the Commissioner, such information and documentation as may be necessary for the Commissioner to determine whether the recipient is in compliance with any eligibility requirements for the abatement; and
(4) Regarding the capital investment that a facility must make to meet the requirement set forth in paragraph (d) or (e) of subsection 3; and
(b) May adopt such other regulations as the Commissioner determines to be necessary to carry out the provisions of this section.
11. Notwithstanding any statutory provision to the contrary, if the Commissioner approves an application for a partial abatement pursuant to this section of:
(a) Property taxes imposed pursuant to chapter 361 of NRS, the amount of all the property taxes which are collected from the facility for the period of the abatement must be allocated and distributed in such a manner that:
(1) Forty-five percent of that amount is deposited in the unrestricted balance of the State General Fund; and
(2) Fifty-five percent of that amount is distributed to the local governmental entities that would otherwise be entitled to receive those taxes in proportion to the relative amount of those taxes those entities would otherwise be entitled to receive.
(b) Local sales and use taxes, the State Controller shall allocate, transfer and remit an amount equal to all the sales and use taxes imposed in this State and collected from the facility for the period of the abatement in the same manner as if that amount consisted solely of the proceeds of taxes imposed by NRS 374.110 and 374.190.
12. As used in this section:
(a) Biomass means any organic matter that is available on a renewable basis, including, without limitation:
κ2009 Statutes of Nevada, Page 2009 (CHAPTER 377, AB 522)κ
(1) Agricultural crops and agricultural wastes and residues;
(2) Wood and wood wastes and residues;
(3) Animal wastes;
(4) Municipal wastes; and
(5) Aquatic plants.
(b) Commissioner means the Nevada Energy Commissioner appointed pursuant to section 1.21 of Senate Bill No. 358 of this session.
(c) Director means the Director of the Office of Energy appointed pursuant to NRS 701.150.
(d) Facility for the generation of electricity from renewable energy means a facility for the generation of electricity that:
(1) Uses renewable energy as its primary source of energy; and
(2) Has a generating capacity of at least 10 megawatts.
Κ The term does not include a facility that is located on residential property.
(e) Facility for the generation of process heat from solar renewable energy means a facility that:
(1) Uses solar renewable energy to generate process heat; and
(2) Has an output capacity of at least 25,840,000 British thermal units per hour.
(f) Fuel cell means a device or contrivance which, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.
(g) Local sales and use taxes means any taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in any political subdivision of this State, except the taxes imposed by the Sales and Use Tax Act.
(h) Renewable energy means:
(1) Biomass;
(2) Fuel cells;
(3) Solar energy;
(4) Waterpower; or
(5) Wind.
Κ The term does not include coal, natural gas, oil, propane or any other fossil fuel, geothermal energy or nuclear energy.
(i) Wholesale facility for the generation of electricity from renewable energy means a facility for the generation of electricity from renewable energy that, except as otherwise provided in subparagraph (2), does not sell the electricity to the end user of the electricity. The term includes:
(1) All the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity.
(2) A facility that is owned, leased or otherwise controlled by an entity that has authority to sell electricity and provide transmission services or distribution services, or both.
Sec. 28.5. The Renewable Energy Fund is hereby created. The Nevada Energy Commissioner appointed pursuant to section 1.21 of Senate Bill No. 358 of this session shall administer the Fund. The interest and income earned on the money in the fund must be credited to the fund. Not less than 75 percent of the money in the fund must be used to offset the cost of electricity to retail customers of a public utility that is subject to the portfolio standard established by the Public Utilities Commission of Nevada pursuant to NRS 704.7821.
κ2009 Statutes of Nevada, Page 2010 (CHAPTER 377, AB 522)κ
portfolio standard established by the Public Utilities Commission of Nevada pursuant to NRS 704.7821. The Nevada Energy Commissioner may establish other uses of the money in the Fund by regulation.
Secs. 29-106. (Deleted by amendment.)
Sec. 106.5. Section 28 of this act is hereby amended to read as follows:
Sec. 28. 1. A person who intends to locate a facility for the generation of process heat from solar renewable energy, a wholesale facility for the generation of electricity from renewable energy, a facility for the generation of electricity from geothermal resources or a facility for the transmission of electricity produced from renewable energy or geothermal resources in this State may apply to the Director for a partial abatement of the local sales and use taxes, the taxes imposed pursuant to chapter 361 of NRS, or both local sales and use taxes and taxes imposed pursuant to chapter 361 of NRS. A facility that is owned, operated, leased or otherwise controlled by a governmental entity is not eligible for an abatement pursuant to this section.
2. As soon as practicable after the Director receives such an application, the Director shall submit the application to the Commissioner and forward a copy of the application to:
(a) The Chief of the Budget Division of the Department of Administration;
(b) The Department of Taxation;
(c) The board of county commissioners;
(d) The county assessor;
(e) The county treasurer; and
(f) The Commission on Economic Development.
Κ With the copy of the application forwarded to the county treasurer, the Director shall include a notice that the local jurisdiction may request a presentation regarding the facility. A request for a presentation must be made within 30 days after receipt of the application. The Commissioner shall hold a public hearing on the application. The hearing must not be held earlier than 30 days after all persons listed in this subsection have received a copy of the application.
3. Except as otherwise provided in subsection 4, the Commissioner shall approve an application for a partial abatement pursuant to this section if the Commissioner makes the following determinations:
(a) The applicant has executed an agreement with the Commissioner which must:
(1) State that the facility will, after the date on which a certificate of eligibility for the abatement is issued pursuant to subsection 6, continue in operation in this State for a period specified by the Commissioner, which must be at least 10 years, and will continue to meet the eligibility requirements for the abatement; and
(2) Bind the successors in interest in the facility for the specified period.
κ2009 Statutes of Nevada, Page 2011 (CHAPTER 377, AB 522)κ
(b) The facility is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the facility operates.
(c) No funding is or will be provided by any governmental entity in this State for the acquisition, design or construction of the facility or for the acquisition of any land therefor, except any private activity bonds as defined in 26 U.S.C. § 141.
(d) If the facility will be located in a county whose population is 100,000 or more or a city whose population is 60,000 or more, the facility meets the following requirements:
(1) There will be 75 or more full-time employees working on the construction of the facility during the second quarter of construction, including, unless waived by the Commissioner for good cause, at least 30 percent who are residents of Nevada;
(2) Establishing the facility will require the facility to make a capital investment of at least $10,000,000 in this State;
(3) The average hourly wage that will be paid by the facility to its employees in this State is at least 110 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
(4) The average hourly wage of the employees working on the construction of the facility will be at least 150 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the construction of the facility must be provided a health insurance plan that includes an option for health insurance coverage for dependents of the employees; and
(II) The cost of the benefits provided to the employees working on the construction of the facility will meet the minimum requirements for benefits established by the Commissioner by regulation pursuant to subsection 9.
(e) If the facility will be located in a county whose population is less than 100,000 or a city whose population is less than 60,000, the facility meets the following requirements:
(1) There will be 50 or more full-time employees working on the construction of the facility during the second quarter of construction, including, unless waived by the Commissioner for good cause, at least 30 percent who are residents of Nevada;
(2) Establishing the facility will require the facility to make a capital investment of at least $3,000,000 in this State;
(3) The average hourly wage that will be paid by the facility to its employees in this State is at least 110 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
κ2009 Statutes of Nevada, Page 2012 (CHAPTER 377, AB 522)κ
(4) The average hourly wage of the employees working on the construction of the facility will be at least 150 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the construction of the facility must be provided a health insurance plan that includes an option for health insurance coverage for dependents of the employees; and
(II) The cost of the benefits provided to the employees working on the construction of the facility will meet the minimum requirements for benefits established by the Commissioner by regulation pursuant to subsection 9.
(f) The financial benefits that will result to this State from the employment by the facility of the residents of this State and from capital investments by the facility in this State will exceed the loss of tax revenue that will result from the abatement.
4. The Commissioner shall not approve an application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to subsection 2 by a facility for the generation of electricity from geothermal resources unless the application is approved pursuant to this subsection. The board of county commissioners of a county must approve or deny the application not later than 30 days after the board receives a copy of the application. The board of county commissioners must not condition the approval of the application on a requirement that the facility for the generation of electricity from geothermal resources agree to purchase, lease or otherwise acquire in its own name or on behalf of the county any infrastructure, equipment, facilities or other property in the county that is not directly related to or otherwise necessary for the construction and operation of the facility. If the board of county commissioners does not approve or deny the application within 30 days after the board receives the application, the application shall be deemed denied.
5. Notwithstanding the provisions of subsection 3, the Commissioner may, if the Commissioner determines that such action is necessary:
(a) Approve an application for a partial abatement for a facility that does not meet the requirements set forth in paragraph (d) or (e) of subsection 3; or
(b) Add additional requirements that a facility must meet to qualify for a partial abatement.
6. If the Commissioner approves an application for a partial abatement pursuant to this section of:
(a) Property taxes imposed pursuant to chapter 361 of NRS, the partial abatement must:
(1) Be for a duration of the 20 fiscal years immediately following the date of approval of the application;
(2) Be equal to 55 percent of the taxes on real and personal property payable by the facility each year; and
κ2009 Statutes of Nevada, Page 2013 (CHAPTER 377, AB 522)κ
(3) Not apply during any period in which the facility is receiving another abatement or exemption from property taxes imposed pursuant to chapter 361 of NRS, other than any partial abatement provided pursuant to NRS 361.4722.
(b) Local sales and use taxes:
(1) The partial abatement must:
(I) Be for the 3 years beginning on the date of approval of the application;
(II) Be equal to that portion of the combined rate of all the local sales and use taxes payable by the facility each year which exceeds [0.6] 0.25 percent; and
(III) Not apply during any period in which the facility is receiving another abatement or exemption from local sales and use taxes.
(2) The Department of Taxation shall issue to the facility a document certifying the abatement which can be presented to retailers at the time of sale. The document must clearly state that the purchaser is only required to pay sales and use taxes imposed in this State at the rate of [2.6] 2.25 percent.
7. Upon approving an application for a partial abatement pursuant to this section, the Commissioner shall immediately notify the Director of the terms of the abatement and the Director shall immediately forward a certificate of eligibility for the abatement to:
(a) The Department of Taxation;
(b) The board of county commissioners;
(c) The county assessor;
(d) The county treasurer; and
(e) The Commission on Economic Development.
8. As soon as practicable after receiving a copy of:
(a) An application pursuant to subsection 2:
(1) The Chief of the Budget Division shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State and forward a copy of the fiscal note to the Director for submission to the Commissioner; and
(2) The Department of Taxation shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on each affected local government, and forward a copy of the fiscal note to each affected local government and to the Director for submission to the Commissioner.
(b) A certificate of eligibility pursuant to subsection 6, the Department of Taxation shall forward a copy of the certificate to each affected local government.
9. A partial abatement approved by the Commissioner pursuant to this section terminates upon any determination by the Commissioner that the facility has ceased to meet any eligibility requirements for the abatement. The Commissioner shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the facility has ceased to meet those requirements. The Commissioner shall immediately provide notice of each determination of termination to the Director, and the Director shall immediately provide a copy of the notice to:
κ2009 Statutes of Nevada, Page 2014 (CHAPTER 377, AB 522)κ
(a) The Commissioner, who shall immediately notify each affected local government of the determination;
(b) The board of county commissioners;
(c) The county assessor;
(d) The county treasurer; and
(e) The Commission on Economic Development.
10. The Commissioner:
(a) Shall adopt regulations:
(1) Prescribing the minimum level of benefits that a facility must provide to its employees if the facility is going to use benefits paid to employees as a basis to qualify for a partial abatement pursuant to this section;
(2) Prescribing such requirements for an application for a partial abatement pursuant to this section as will ensure that all information and other documentation necessary for the Commissioner to make an appropriate determination is filed with the Director;
(3) Requiring each recipient of a partial abatement pursuant to this section to file annually with the Director, for submission to the Commissioner, such information and documentation as may be necessary for the Commissioner to determine whether the recipient is in compliance with any eligibility requirements for the abatement; and
(4) Regarding the capital investment that a facility must make to meet the requirement set forth in paragraph (d) or (e) of subsection 3; and
(b) May adopt such other regulations as the Commissioner determines to be necessary to carry out the provisions of this section.
11. Notwithstanding any statutory provision to the contrary, if the Commissioner approves an application for a partial abatement pursuant to this section of:
(a) Property taxes imposed pursuant to chapter 361 of NRS, the amount of all the property taxes which are collected from the facility for the period of the abatement must be allocated and distributed in such a manner that:
(1) Forty-five percent of that amount is deposited in the [unrestricted balance of the State General Fund;] Renewable Energy Fund created by section 28.5 of this act; and
(2) Fifty-five percent of that amount is distributed to the local governmental entities that would otherwise be entitled to receive those taxes in proportion to the relative amount of those taxes those entities would otherwise be entitled to receive.
(b) Local sales and use taxes, the State Controller shall allocate, transfer and remit an amount equal to all the sales and use taxes imposed in this State and collected from the facility for the period of the abatement in the same manner as if that amount consisted solely of the proceeds of taxes imposed by NRS 374.110 and 374.190.
12. As used in this section:
(a) Biomass means any organic matter that is available on a renewable basis, including, without limitation:
(1) Agricultural crops and agricultural wastes and residues;
(2) Wood and wood wastes and residues;
(3) Animal wastes;
κ2009 Statutes of Nevada, Page 2015 (CHAPTER 377, AB 522)κ
(4) Municipal wastes; and
(5) Aquatic plants.
(b) Commissioner means the Nevada Energy Commissioner appointed pursuant to section 1.21 of Senate Bill No. 358 of this session.
(c) Director means the Director of the Office of Energy appointed pursuant to NRS 701.150.
(d) Facility for the generation of electricity from renewable energy means a facility for the generation of electricity that:
(1) Uses renewable energy as its primary source of energy; and
(2) Has a generating capacity of at least 10 megawatts.
Κ The term does not include a facility that is located on residential property.
(e) Facility for the generation of process heat from solar renewable energy means a facility that:
(1) Uses solar renewable energy to generate process heat; and
(2) Has an output capacity of at least 25,840,000 British thermal units per hour.
(f) Fuel cell means a device or contrivance which, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.
(g) Local sales and use taxes means any taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in any political subdivision of this State, except the taxes imposed by the Sales and Use Tax Act.
(h) Renewable energy means:
(1) Biomass;
(2) Fuel cells;
(3) Solar energy;
(4) Waterpower; or
(5) Wind.
Κ The term does not include coal, natural gas, oil, propane or any other fossil fuel, geothermal energy or nuclear energy.
(i) Wholesale facility for the generation of electricity from renewable energy means a facility for the generation of electricity from renewable energy that, except as otherwise provided in subparagraph (2), does not sell the electricity to the end user of the electricity. The term includes:
(1) All the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity.
(2) A facility that is owned, leased or otherwise controlled by an entity that has authority to sell electricity and provide transmission services or distribution services, or both.
Sec. 106.7. Section 1.21 of Senate Bill No. 358 of this session is hereby amended to read as follows:
Sec. 1.21. 1. The Governor shall appoint the Nevada Energy Commissioner as the head of the Authority.
2. The Commissioner:
(a) Is in the unclassified service of the State;
(b) Serves at the pleasure of the Governor; and
κ2009 Statutes of Nevada, Page 2016 (CHAPTER 377, AB 522)κ
(c) Must have experience and demonstrated expertise in one or more of the following fields:
(1) Financing of energy projects;
(2) Energy generation projects;
(3) Energy transmission projects;
(4) Professional engineering related to energy efficiency; or
(5) Renewable energy.
3. The Commissioner may, within the limits of legislative appropriations or authorizations:
(a) Employ and fix the salaries of or contract for the services of such professional, technical and operational personnel and consultants as the execution of his duties and the operation of the Authority may require;
(b) Employ, or retain on a contract basis, legal counsel who shall:
(1) Be counsel and attorney for the Commissioner and the Authority in all actions, proceedings and hearings; and
(2) Generally aid the Authority in the performance of its duties; and
(c) Employ such additional personnel as may be required to carry out the duties of the Authority, who must be in the classified service of the State.
4. A person employed by the Commissioner pursuant to this section must be qualified by training and experience to perform the duties of his employment.
5. The Commissioner and the persons employed by the Commissioner shall not have any conflict of interest relating to the performance of their duties.
Sec. 106.9. Section 1.35 of Senate Bill No. 358 of this session is hereby amended to read as follows:
Sec. 1.35. 1. The New Energy Industry Task Force is hereby created.
2. The Task Force consists of the Commissioner and the following eight members who must be appointed by the Commissioner:
(a) A representative of the large-scale solar energy industry in this State;
(b) A representative of the geothermal energy industry in this State;
(c) A representative of the wind energy industry in this State;
(d) A representative of the distributed generation industry, energy efficiency equipment and installation industry or manufacturers of equipment for renewable energy power plants in this State;
(e) A representative of an electric utility in this State;
(f) A representative of an organization in this State that advocates on behalf of environmental or public lands issues who has expertise in or knowledge of environmental or public lands issues;
(g) A representative of a labor organization in this State; and
(h) A representative of an organization that represents contractors in this State.
κ2009 Statutes of Nevada, Page 2017 (CHAPTER 377, AB 522)κ
Sec. 107. The Legislature hereby finds that each exemption provided by this act from any ad valorem tax on property or excise tax on the sale, storage, use or consumption of tangible personal property sold at retail:
1. Will achieve a bona fide social or economic purpose and that the benefits of the exemption are expected to exceed any adverse effect of the exemption on the provision of services to the public by the State or a local government that would otherwise receive revenue from the tax from which the exemption would be granted; and
2. Will not impair adversely the ability of the State or a local government to pay, when due, all interest and principal on any outstanding bonds or any other obligations for which revenue from the tax from which the exemption would be granted was pledged.
Sec. 107.5. 1. The Nevada Energy Commissioner appointed pursuant to section 1.21 of Senate Bill No. 358 of this session shall propose a budget for his office and the Renewable Energy and Energy Efficiency Authority created by section 1.19 of Senate Bill No. 358 of this session for the 2009-2011 biennium to the Interim Finance Committee. The Committee:
(a) Shall make any changes it deems appropriate;
(b) Shall approve the budget; and
(c) May require the Public Utilities Commission of Nevada to transfer not more than $500,000 from its reserve account in the Public Utilities Commission Regulatory Fund created by NRS 703.147, to an account in the State General Fund for use by the Commissioner in a manner authorized in the budget approved pursuant to this subsection.
2. Not later than 10 days after the Interim Finance Committee approves the budget pursuant to subsection 1, the Public Utilities Commission of Nevada shall make any transfer required pursuant to paragraph (c) of subsection 1.
3. In accordance with, and out of any money received pursuant to, the American Recovery and Reinvestment Act of 2009, Public Law 111-5, the Interim Finance Committee may determine an amount of money up to 3 percent of the money received to be used by the Nevada Energy Commissioner and the Renewable Energy and Energy Efficiency Authority in the manner authorized in the budget approved pursuant to subsection 1.
4. The Interim Finance Committee may allocate money in the reserve account in the Public Utilities Commission Regulatory Fund created by NRS 703.147 in addition to the amount authorized by paragraph (c) of subsection 1 if the Interim Finance Committee determines that additional money is necessary to fund the budget of the Nevada Energy Commissioner or the Renewable Energy and Energy Efficiency Authority during the 2009-2011 biennium. Any money so allocated is hereby authorized for expenditure by the Nevada Energy Commissioner.
Sec. 108. Notwithstanding the provisions of sections 28 and 106.5 of this act, a person is not entitled to any partial abatement of taxes pursuant to those sections after June 30, 2049.
Sec. 109. (Deleted by amendment.)
Sec. 109.5. Sections 11.7 and 20.8 of Senate Bill No. 358 of this session are hereby repealed.
Sec. 110. 1. This section and sections 106.7, 106.9, 107.5 and 109.5 of this act become effective upon passage and approval.
2. Sections 1 to 1.8, inclusive, 27.5, 28, 28.5, 107, 108 and 109 of this act become effective on July 1, 2009.
κ2009 Statutes of Nevada, Page 2018 (CHAPTER 377, AB 522)κ
3. Sections 1.85, 1.9 and 1.95 of this act become effective on July 1, 2009, if and only if no other bill passed during the 2009 Legislative Session becomes effective that provides for the appointment, powers and duties of the Nevada Energy Commissioner.
4. Section 106.5 of this act becomes effective on July 1, 2011.
5. Sections 28, 28.5 and 106.5 of this act expire by limitation on June 30, 2049.
________
Assembly Bill No. 15Assemblyman Manendo
CHAPTER 378
AN ACT relating to animals; requiring notice of any sterilization requirements for dogs and cats required by local ordinance to be posted in a public park and the office of each licensed veterinarian; requiring a retailer or dealer who sells a dog or cat to disclose to the purchaser any sterilization requirements for the animal required by local ordinance; and providing other matters properly relating thereto.
[Approved: May 30, 2009]
Legislative Counsels Digest:
Existing law governs the sterilization of pets that are released by various releasing agencies, including societies to prevent cruelty to animals, animal shelters, nonprofit entities that provide temporary shelter for pets and organizations that take into custody pets which have been abandoned, abused or neglected. (NRS 574.600-574.660) Section 1 of this bill requires each licensed veterinarian to post in his office written notice of any sterilization requirements for dogs or cats required by local ordinance. Section 1 further requires a governmental entity with jurisdiction over a public park to post written notice in the park of any sterilization requirements for the animals required by local ordinance. Sections 2 and 3 of this bill require a retailer or dealer who sells a dog or cat to disclose to the purchaser the name and address of the breeder of the dog or cat and any sterilization requirements for the animal required by local ordinance. (NRS 574.460, 574.470) A retailer or dealer who fails to comply with the disclosure requirements is subject to an administrative fine imposed by the Director of the State Department of Agriculture in an amount not to exceed $250 for the first violation, $500 for the second violation and $1,000 for each subsequent violation. (NRS 574.485)
Section 4 of this bill provides that a retailer, dealer or operator must not separate a dog or cat from its mother until it is 8 weeks of age or accustomed to taking food or nourishment other than by nursing, whichever is later. (NRS 574.500)
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 574 of NRS is hereby amended by adding thereto a new section to read as follows:
1. A licensed veterinarian shall post written notice in a conspicuous place in his office of any sterilization requirements for dogs or cats required by local ordinance.
κ2009 Statutes of Nevada, Page 2019 (CHAPTER 378, AB 15)κ
2. A governmental entity with jurisdiction over a public park in which dogs or cats are allowed shall post written notice in a conspicuous place in the park of any sterilization requirements for dogs or cats required by local ordinance.
3. As used in this section, licensed veterinarian has the meaning ascribed to it in NRS 638.007.
Sec. 2. NRS 574.460 is hereby amended to read as follows:
574.460 1. A retailer or dealer shall, before selling a cat, provide the purchaser of the cat with a written statement that discloses:
(a) The name, address and telephone number of the retailer or dealer.
(b) The date the cat was born, if known.
(c) The name and address of the person from whom the retailer or dealer obtained the cat and, if the person holds a license issued by the United States Department of Agriculture, the persons federal identification number.
(d) The name and address of the breeder of the cat [, if any,] and, if the breeder holds a license issued by the United States Department of Agriculture, the breeders federal identification number.
(e) The registration numbers, if any, of the cats sire and dam with the appropriate breed registry or any health certifications from a health certification organization such as the Orthopedic Foundation for Animals or its successor organization, if any.
(f) A record of any immunizations administered to the cat before the time of sale, including the type of vaccine, date of administration and name and address of the veterinarian who prescribed the vaccine.
(g) Any sterilization requirements for the cat required by local ordinance.
(h) The medical history of the cat, including, without limitation:
(1) The date that a veterinarian examined and, if applicable, reexamined the cat pursuant to subsections 1 and 2 of NRS 574.450 and determined that the cat did not have any illness, disease or other condition that is terminal or requires immediate hospitalization or immediate surgical intervention. For the purposes of this subparagraph, the presence of internal or external parasites does not constitute an illness, disease or other condition that is terminal or requires immediate hospitalization or immediate surgical intervention, unless the cat is clinically ill as a result of the parasite.
(2) Whether any treatment or medication has been administered by the veterinarian who examined or, if applicable, reexamined the cat pursuant to subsections 1 and 2 of NRS 574.450 and if such treatment or medication was administered, a statement indicating on what date it was administered and for what illness, disease or condition.
(3) The date on which the veterinarian sterilized the cat, if applicable.
(4) The name and address of the veterinarian who performed the examinations , [or] reexaminations or sterilization or administered any treatments or medications.
[(h)] (i) That a copy of the veterinarians evaluation of the health of the cat made pursuant to NRS 574.450 is available to the purchaser.
2. The written statement must be signed and dated by the retailer or dealer and contain a space for the purchaser to sign and date the statement as an attestation that he has read and understands the disclosures contained in the statement.
κ2009 Statutes of Nevada, Page 2020 (CHAPTER 378, AB 15)κ
Sec. 3. NRS 574.470 is hereby amended to read as follows:
574.470 1. A retailer or dealer shall, before selling a dog, provide the purchaser of the dog with a written statement that discloses:
(a) The name, address and telephone number of the retailer or dealer.
(b) The date the dog was born, if known.
(c) The name and address of the person from whom the retailer or dealer obtained the dog and, if the person holds a license issued by the United States Department of Agriculture, the persons federal identification number.
(d) The name and address of the breeder of the dog [, if any,] and, if the breeder holds a license issued by the United States Department of Agriculture, the breeders federal identification number.
(e) The registration numbers, if any, of the dogs sire and dam with the appropriate breed registry or any health certificates from a health certification organization such as the Orthopedic Foundation for Animals or its successor organization, if any.
(f) A record of any immunizations administered to the dog before the time of sale, including the type of vaccine, date of administration and name and address of the veterinarian who prescribed the vaccine.
(g) Any sterilization requirements for the dog required by local ordinance.
(h) The medical history of the dog, including, without limitation:
(1) The date that a veterinarian examined and, if applicable, reexamined the dog pursuant to subsections 1 and 2 of NRS 574.450 and determined that the dog did not have any illness, disease or other condition that is terminal or requires immediate hospitalization or immediate surgical intervention. For the purposes of this subparagraph, the presence of internal or external parasites does not constitute an illness, disease or other condition that is terminal or requires immediate hospitalization or immediate surgical intervention, unless the dog is clinically ill as a result of the parasite.
(2) Whether any treatment or medication has been administered by the veterinarian who examined or, if applicable, reexamined the dog pursuant to subsections 1 and 2 of NRS 574.450 and, if such treatment or medication was administered, a statement indicating on what date it was administered and for what illness, disease or condition.
(3) The date on which the veterinarian sterilized the dog, if applicable.
(4) The name and address of the veterinarian who performed the examinations , [or] reexaminations or sterilization or administered any treatments or medications.
[(h)] (i) That a copy of the veterinarians evaluation of the health of the dog performed pursuant to NRS 574.450 is available to the purchaser.
2. The written statement must be signed and dated by the retailer or dealer and contain a space for the purchaser to sign and date the statement as an attestation that he has read and understands the disclosures contained in the statement.
Sec. 4. NRS 574.500 is hereby amended to read as follows:
574.500 A retailer, dealer or operator shall not separate a dog or cat from its mother until it is 8 weeks of age or accustomed to taking food or nourishment other than by nursing [.] , whichever is later.
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κ2009 Statutes of Nevada, Page 2021κ
Assembly Bill No. 25Committee on Transportation
CHAPTER 379
AN ACT relating to motor vehicles; prohibiting the waiver of certain examinations of applicants for a Nevada drivers license who are licensed in another jurisdiction but have not attained 21 years of age; providing an exception; establishing fees for the administration of certain examinations for noncommercial drivers licenses; and providing other matters properly relating thereto.
[Veto Overridden. Date Filed: June 1, 2009]
Legislative Counsels Digest:
Existing law authorizes the Department of Motor Vehicles to waive certain examinations for a person applying for a Nevada drivers license who possesses a valid drivers license of the same type or class issued by another jurisdiction but does not allow such a waiver if the person has not attained 25 years of age. (NRS 483.330) Section 1 of this bill prohibits such a waiver for a person who has not attained 21 years of age, subject to certain exceptions.
Existing law authorizes the Department to require every applicant for a drivers license to submit to an examination that may include components which test the applicants knowledge, skills and abilities. (NRS 483.330) Section 1.5 of this bill requires the Department to charge a fee of $25 for the administration of the examination for a noncommercial drivers license and a fee of $10 for each readministration of that examination to the same person.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 483.330 is hereby amended to read as follows:
483.330 1. The Department may require every applicant for a drivers license, including a commercial drivers license issued pursuant to NRS 483.900 to 483.940, inclusive, to submit to an examination. The examination may include:
(a) A test of the applicants ability to understand official devices used to control traffic;
(b) A test of his knowledge of practices for safe driving and the traffic laws of this State;
(c) Except as otherwise provided in subsection 2, a test of his eyesight; and
(d) Except as otherwise provided in subsection 3, an actual demonstration of his ability to exercise ordinary and reasonable control in the operation of a motor vehicle of the type or class of vehicle for which he is to be licensed.
Κ The examination may also include such further physical and mental examination as the Department finds necessary to determine the applicants fitness to drive a motor vehicle safely upon the highways.
2. The Department may provide by regulation for the acceptance of a report from an ophthalmologist, optician or optometrist in lieu of an eye test by a drivers license examiner.
3. If the Department establishes a type or classification of drivers license to operate a motor vehicle of a type which is not normally available to examine an applicants ability to exercise ordinary and reasonable control of such a vehicle, the Department may, by regulation, provide for the acceptance of an affidavit from a:
κ2009 Statutes of Nevada, Page 2022 (CHAPTER 379, AB 25)κ
to examine an applicants ability to exercise ordinary and reasonable control of such a vehicle, the Department may, by regulation, provide for the acceptance of an affidavit from a:
(a) Past, present or prospective employer of the applicant; or
(b) Local joint apprenticeship committee which had jurisdiction over the training or testing, or both, of the applicant,
Κ in lieu of an actual demonstration.
4. The Department may waive an examination pursuant to subsection 1 for a person applying for a Nevada drivers license who possesses a valid drivers license of the same type or class issued by another jurisdiction unless that person:
(a) Has not attained [25] 21 years of age [;] , except that the Department may, based on the driving record of the applicant, waive the examination to demonstrate his ability to exercise ordinary and reasonable control in the operation of a motor vehicle of the same type or class of vehicle for which he is to be licensed;
(b) Has had his license or privilege to drive a motor vehicle suspended, revoked or cancelled or has been otherwise disqualified from driving during the immediately preceding 4 years;
(c) Has been convicted of a violation of NRS 484.37955 or, during the immediately preceding 7 years, of a violation of NRS 484.379, 484.3795 or 484.379778 or a law of any other jurisdiction that prohibits the same or similar conduct;
(d) Has restrictions to his drivers license which the Department must reevaluate to ensure the safe driving of a motor vehicle by that person;
(e) Has had three or more convictions of moving traffic violations on his driving record during the immediately preceding 4 years; or
(f) Has been convicted of any of the offenses related to the use or operation of a motor vehicle which must be reported pursuant to the provisions of Parts 1327 et seq. of Title 23 of the Code of Federal Regulations relating to the National Driver Register Problem Driver Pointer System during the immediately preceding 4 years.
Sec. 1.5. NRS 483.410 is hereby amended to read as follows:
483.410 1. Except as otherwise provided in subsection 6 and NRS 483.417, for every drivers license, including a motorcycle drivers license, issued and service performed, the following fees must be charged:
An original or renewal license issued to a person 65 years of age or older $13.50
An original or renewal license issued to any person less than 65 years of age 18.50
Administration of the examination required by NRS 483.330 for a noncommercial drivers license 25.00
Each readministration to the same person of the examination required by NRS 483.330 for a noncommercial drivers license........................................................................................... 10.00
Reinstatement of a license after suspension, revocation or cancellation, except a revocation for a violation of NRS 484.379, 484.3795, 484.37955 or 484.379778, or pursuant to NRS 484.384 and 484.385 40.00
κ2009 Statutes of Nevada, Page 2023 (CHAPTER 379, AB 25)κ
Reinstatement of a license after revocation for a violation of NRS 484.379, 484.3795, 484.37955 or 484.379778, or pursuant to NRS 484.384 and 484.385............................... $65.00
A new photograph, change of name, change of other information, except address, or any combination 5.00
A duplicate license............................................................................. 14.00
2. For every motorcycle endorsement to a drivers license, a fee of $5 must be charged.
3. If no other change is requested or required, the Department shall not charge a fee to convert the number of a license from the licensees social security number, or a number that was formulated by using the licensees social security number as a basis for the number, to a unique number that is not based on the licensees social security number.
4. Except as otherwise provided in NRS 483.417, the increase in fees authorized by NRS 483.347 and the fees charged pursuant to NRS 483.415 must be paid in addition to the fees charged pursuant to subsections 1 and 2.
5. A penalty of $10 must be paid by each person renewing his license after it has expired for a period of 30 days or more as provided in NRS 483.386 unless he is exempt pursuant to that section.
6. The Department may not charge a fee for the reinstatement of a drivers license that has been:
(a) Voluntarily surrendered for medical reasons; or
(b) Cancelled pursuant to NRS 483.310.
7. All fees and penalties are payable to the Administrator at the time a license or a renewal license is issued.
8. Except as otherwise provided in NRS 483.340, subsection 3 of NRS 483.3485, NRS 483.415 and 483.840, and subsection 3 of NRS 483.863, all money collected by the Department pursuant to this chapter must be deposited in the State Treasury for credit to the Motor Vehicle Fund.
Sec. 2. This act becomes effective on July 1, 2009.
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κ2009 Statutes of Nevada, Page 2024κ
Assembly Bill No. 121Assemblywoman Koivisto
CHAPTER 380
AN ACT relating to health care facilities; requiring certain hospitals in larger counties to establish a staffing committee; requiring certain health care facilities to make available to the Health Division of the Department of Health and Human Services a documented staffing plan; and providing other matters properly relating thereto.
[Veto Overridden. Date Filed: June 1, 2009]
Legislative Counsels Digest:
Section 12 of this bill requires certain hospitals in a county whose population is 100,000 or more (currently Clark and Washoe Counties) to establish a staffing committee. Section 13 of this bill requires certain health care facilities in a county whose population is 100,000 or more to make available to the Health Division of the Department of Health and Human Services a documented staffing plan.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 449 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 28, inclusive, of this act.
Sec. 2. As used in sections 2 to 28, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 11, inclusive, of this act have the meanings ascribed to them in those sections.
Secs. 3-6. (Deleted by amendment.)
Sec. 7. Health care facility means:
1. A hospital;
2. An independent center for emergency medical care;
3. A psychiatric hospital; and
4. A surgical center for ambulatory patients.
Sec. 8. Nurse means a person licensed pursuant to chapter 632 of NRS to practice nursing, including, without limitation, a licensed practical nurse. The term does not include a certified nursing assistant.
Secs. 9-10. (Deleted by amendment.)
Sec. 11. Unit means a component within a health care facility for providing patient care.
Sec. 12. 1. Each hospital located in a county whose population is 100,000 or more and which is licensed to have more than 70 beds shall establish a staffing committee to develop a documented staffing plan as required pursuant to section 13 of this act. The staffing committee must consist of:
(a) Not less than one-half of the total members from the licensed nursing staff who are providing direct patient care at the hospital; and
(b) Not less than one-half of the total members appointed by the administration of the hospital.
2. The staffing committee of a hospital shall meet at least quarterly.
3. Each hospital that is required to establish a staffing committee pursuant to this section shall prepare a written report concerning the establishment of the staffing committee, the activities and progress of the staffing committee and a determination of the efficacy of the staffing committee.
κ2009 Statutes of Nevada, Page 2025 (CHAPTER 380, AB 121)κ
staffing committee and a determination of the efficacy of the staffing committee. The hospital shall submit the report on or before December 31 of each:
(a) Even-numbered year to the Director of the Legislative Counsel Bureau for transmission to the next regular session of the Legislature.
(b) Odd-numbered year to the Legislative Committee on Health Care.
Sec. 13. 1. As a condition of licensing, a health care facility located in a county whose population is 100,000 or more and which is licensed to have more than 70 beds shall make available to the Health Division a documented staffing plan and a written certification that the documented staffing plan is adequate to meet the needs of the patients of the health care facility. The documented staffing plan must include, without limitation:
(a) A detailed written plan setting forth the number, skill mix and classification of licensed nurses required in each unit in the health care facility, which must take into account the experience of the clinical and nonclinical support staff with whom the nurses collaborate, supervise or otherwise delegate assignments;
(b) A description of the types of patients who are treated in each unit, including, without limitation, the type of care required by the patients;
(c) A description of the activities in each unit, including, without limitation, discharges, transfers and admissions;
(d) A description of the size and geography of each unit;
(e) A description of any specialized equipment and technology available for each unit; and
(f) Any foreseeable changes in the size or function of each unit.
2. A documented staffing plan must provide sufficient flexibility to allow for adjustments based upon changes in a unit of the health care facility.
Secs. 14-28. (Deleted by amendment.)
Sec. 29. NRS 449.040 is hereby amended to read as follows:
449.040 Any person, state or local government or agency thereof desiring a license under the provisions of NRS 449.001 to 449.240, inclusive, and sections 2 to 28, inclusive, of this act must file with the Health Division an application on a form prescribed, prepared and furnished by the Health Division, containing:
1. The name of the applicant and, if a natural person, whether the applicant has attained the age of 21 years.
2. The type of facility to be operated.
3. The location of the facility.
4. In specific terms, the nature of services and type of care to be offered, as defined in the regulations.
5. The number of beds authorized by the Director of the Department of Health and Human Services or, if such authorization is not required, the number of beds the facility will contain.
6. The name of the person in charge of the facility.
7. Such other information as may be required by the Health Division for the proper administration and enforcement of NRS 449.001 to 449.240, inclusive [.] , and sections 2 to 28, inclusive, of this act.
8. Evidence satisfactory to the Health Division that the applicant is of reputable and responsible character. If the applicant is a firm, association, organization, partnership, business trust, corporation or company, similar evidence must be submitted as to the members thereof [,] and the person in charge of the facility for which application is made.
κ2009 Statutes of Nevada, Page 2026 (CHAPTER 380, AB 121)κ
evidence must be submitted as to the members thereof [,] and the person in charge of the facility for which application is made. If the applicant is a political subdivision of the State or other governmental agency, similar evidence must be submitted as to the person in charge of the institution for which application is made.
9. Evidence satisfactory to the Health Division of the ability of the applicant to comply with the provisions of NRS 449.001 to 449.240, inclusive, and sections 2 to 28, inclusive, of this act and the standards and regulations adopted by the Board.
10. Evidence satisfactory to the Health Division that the facility conforms to the zoning regulations of the local government within which the facility will be operated or that the applicant has applied for an appropriate reclassification, variance, permit for special use or other exception for the facility.
11. If the facility to be licensed is a residential establishment as defined in NRS 278.02384, and if the residential establishment is subject to the distance requirements set forth in subsection 3 of NRS 278.02386, evidence satisfactory to the Health Division that the residential establishment will be located and operated in accordance with the provisions of that subsection.
Secs. 30-33. (Deleted by amendment.)
Sec. 34. The provisions of section 12 of this act do not require a hospital to establish a new staffing committee if the hospital has a staffing committee in place on or before October 1, 2009.
Sec. 35. The Health Division of the Department of Health and Human Services shall not renew the license of any health care facility, as that term is defined in section 7 of this act, if the health care facility has not made available to the Health Division a documented staffing plan if such a health care facility is required to have such a plan pursuant to section 13 of this act.
Sec. 36. (Deleted by amendment.)
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κ2009 Statutes of Nevada, Page 2027κ
Assembly Bill No. 146Assemblyman Oceguera
CHAPTER 381
AN ACT relating to business; providing for the establishment of a state business portal by the Secretary of State; revising the provisions relating to the issuance of state business licenses and transferring certain responsibilities concerning state business licenses from the Department of Taxation to the Secretary of State; making an appropriation; and providing other matters properly relating thereto.
[Veto Overridden. Date Filed: June 1, 2009]
Legislative Counsels Digest:
Section 2 of this bill provides for the establishment of a state business portal by the Secretary of State to facilitate interaction among businesses and governmental agencies in this State by allowing businesses to conduct necessary transactions with governmental agencies in this State through use of the state business portal. The Secretary of State is required to: (1) establish, through cooperative efforts, the standards and requirements necessary to design, build and implement the state business portal; (2) establish the standards and requirements necessary for a state or local agency to participate in the state business portal; (3) authorize a state or local agency to participate in the state business portal if the Secretary of State determines that the agency meets the standards and requirements necessary for such participation; (4) determine the appropriate requirements to be used by businesses and governmental agencies conducting transactions through use of the state business portal; and (5) adopt regulations and take any appropriate action as necessary to provide for the establishment, operation and maintenance of the state business portal.
Section 3 of this bill authorizes the Secretary of State, within the limit of money authorized to him and subject to the approval of the State Board of Examiners, to enter into contracts and other lawful agreements with private or public entities to assist the Secretary of State in establishing, operating or maintaining the state business portal.
Section 4 of this bill provides that the Secretary of State may apply for and accept any gift, donation, bequest, grant or other source of money to provide for the establishment, operation and maintenance of the state business portal.
Sections 6-18 of this bill transfer certain duties and responsibilities concerning the issuance of state business licenses from the Department of Taxation to the Secretary of State. (NRS 360.760-360.798)
Section 45.5 of this bill makes an appropriation for the design and implementation of the state business portal.
Whereas, Historically, various state and local governmental agencies have often required businesses to submit various applications for necessary licenses, permits and approvals, through the use of numerous forms and formats and multiple web sites, as determined by those separate agencies; and
Whereas, Advances in information technology enable governmental agencies to make the exchange of information from business to government, from government to business, and across governmental agencies more efficient and effective for all parties; and
Whereas, States that make required transactions among businesses and governmental agencies faster, easier and cheaper than other states provide a competitive advantage for businesses under their jurisdiction and thereby encourage economic development within their jurisdiction; and
κ2009 Statutes of Nevada, Page 2028 (CHAPTER 381, AB 146)κ
competitive advantage for businesses under their jurisdiction and thereby encourage economic development within their jurisdiction; and
Whereas, The State of Nevada should strive to become the national leader for online interaction between business and government; and
Whereas, The establishment of a state business portal by the Secretary of State would provide a single, secure portal for the transaction of business and would improve efficiency, eliminate redundancy, streamline the establishment of businesses, improve accountability and enhance economic development in this State; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Title 7 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. 1. The Secretary of State shall provide for the establishment of a state business portal to facilitate interaction among businesses and governmental agencies in this State by allowing businesses to conduct necessary transactions with governmental agencies in this State through use of the state business portal.
2. The Secretary of State shall:
(a) Establish, through cooperative efforts, the standards and requirements necessary to design, build and implement the state business portal;
(b) Establish the standards and requirements necessary for a state or local agency to participate in the state business portal;
(c) Authorize a state or local agency to participate in the state business portal if the Secretary of State determines that the agency meets the standards and requirements necessary for such participation;
(d) Determine the appropriate requirements to be used by businesses and governmental agencies conducting transactions through use of the state business portal; and
(e) Adopt such regulations and take any appropriate action as necessary to carry out the provisions of this chapter.
Sec. 3. Within the limit of money authorized to him and subject to the approval of the State Board of Examiners, the Secretary of State may enter into contracts and other lawful agreements with private or public entities to assist the Secretary of State in establishing, operating or maintaining the state business portal and carrying out the provisions of this chapter.
Sec. 4. The Secretary of State may apply for and accept any gift, donation, bequest, grant or other source of money to carry out the provisions of this chapter.
Sec. 5. Title 7 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 6 to 18, inclusive, of this act.
Sec. 6. As used in sections 6 to 18, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 7 to 10, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 7. 1. Except as otherwise provided in subsection 2, business means:
(a) Any person, except a natural person, that performs a service or engages in a trade for profit;
κ2009 Statutes of Nevada, Page 2029 (CHAPTER 381, AB 146)κ
(b) Any natural person who performs a service or engages in a trade for profit if the person is required to file with the Internal Revenue Service a Schedule C (Form 1040), Profit or Loss From Business Form, or its equivalent or successor form, a Schedule E (Form 1040), Supplemental Income and Loss Form, or its equivalent or successor form, or a Schedule F (Form 1040), Profit or Loss From Farming Form, or its equivalent or successor form, for that activity; or
(c) Any entity organized pursuant to this title, including, without limitation, those entities required to file with the Secretary of State, whether or not the entity performs a service or engages in a business for profit.
2. The term does not include:
(a) A governmental entity.
(b) A nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c).
(c) A person who operates a business from his home and whose net earnings from that business are not more than 66 2/3 percent of the average annual wage, as computed for the preceding calendar year pursuant to chapter 612 of NRS and rounded to the nearest hundred dollars.
(d) A natural person whose sole business is the rental of four or fewer dwelling units to others.
(e) A business whose primary purpose is to create or produce motion pictures. As used in this paragraph, motion pictures has the meaning ascribed to it in NRS 231.020.
(f) A business organized pursuant to chapter 82 or 84 of NRS.
Sec. 7.5. (Deleted by amendment.)
Sec. 8. (Deleted by amendment.)
Sec. 9. State business license means the business license required pursuant to this chapter.
Sec. 10. Wages means any remuneration paid for personal services, including commissions, and bonuses and remuneration payable in any medium other than cash.
Sec. 11. 1. A person shall not conduct a business in this State unless and until the person obtains a state business license issued by the Secretary of State. If the person is:
(a) An entity required to file an initial or annual list with the Secretary of State pursuant to this title, the person must obtain the state business license at the time of filing the initial or annual list.
(b) Not an entity required to file an initial or annual list with the Secretary of State pursuant to this title, the person must obtain the state business license before conducting a business in this State.
2. An application for a state business license must:
(a) Be made upon a form prescribed by the Secretary of State;
(b) Set forth the name under which the applicant transacts or intends to transact business, or if the applicant is an entity organized pursuant to this title and on file with the Secretary of State, the exact name on file with the Secretary of State, the entity number as assigned by the Secretary of State, if known, and the location in this State of his place or places of business;
κ2009 Statutes of Nevada, Page 2030 (CHAPTER 381, AB 146)κ
(c) Be accompanied by a fee in the amount of $200; and
(d) Include any other information that the Secretary of State deems necessary.
Κ If the applicant is an entity organized pursuant to this title and on file with the Secretary of State and the applicant has no location in this State of its place of business, the address of its registered agent shall be deemed to be the location in this State of its place of business.
3. The application must be signed pursuant to NRS 239.330 by:
(a) The owner of a business that is owned by a natural person.
(b) A member or partner of an association or partnership.
(c) A general partner of a limited partnership.
(d) A managing partner of a limited-liability partnership.
(e) A manager or managing member of a limited-liability company.
(f) An officer of a corporation or some other person specifically authorized by the corporation to sign the application.
4. If the application for a state business license is defective in any respect or the fee required by this section is not paid, the Secretary of State may return the application for correction or payment.
5. The state business license required to be obtained pursuant to this section is in addition to any license to conduct business that must be obtained from the local jurisdiction in which the business is being conducted.
6. For the purposes of this chapter, a person shall be deemed to conduct a business in this State if a business for which the person is responsible:
(a) Is organized pursuant to this title, other than a business organized pursuant to chapter 82 or 84 of NRS;
(b) Has an office or other base of operations in this State;
(c) Has a registered agent in this State; or
(d) Pays wages or other remuneration to a natural person who performs in this State any of the duties for which he is paid.
7. As used in this section, registered agent has the meaning ascribed to it in NRS 77.230.
Sec. 12. If a person fails to obtain a state business license and pay the fee required pursuant to section 11 of this act before conducting a business in this State and the person is:
1. An entity required to file an annual list with the Secretary of State pursuant to this title, the person:
(a) Shall pay a penalty of $100 in addition to the annual state business license fee;
(b) Shall be deemed to have not complied with the requirement to file an annual list with the Secretary of State; and
(c) Is subject to all applicable provisions relating to the failure to file an annual list, including, without limitation, the provisions governing default and revocation of its charter or right to transact business in this State, except that the person is required to pay the penalty set forth in paragraph (a).
2. Not an entity required to file an annual list with the Secretary of State, the person shall pay a penalty in the amount of $100 in addition to the annual state business license fee.
κ2009 Statutes of Nevada, Page 2031 (CHAPTER 381, AB 146)κ
Sec. 13. 1. A natural person is not required to obtain more than one state business license for any combination of activities conducted by that person which are reported to the Internal Revenue Service for any federal tax year on two or more of the forms described in paragraph (b) of subsection 1 of section 7 of this act.
2. As used in this section, federal tax year means any period of 12 months for which a person is required to report income, tax deductions and tax credits pursuant to the provisions of the Internal Revenue Code and any regulations adopted pursuant thereto.
Sec. 14. 1. A person who applies for renewal of a state business license shall submit a fee in the amount of $200 to the Secretary of State:
(a) If the person is an entity required to file an annual list with the Secretary of State pursuant to this title, at the time the person submits the annual list to the Secretary of State, unless the person submits a certificate or other form evidencing the dissolution of the entity; or
(b) If the person is not an entity required to file an annual list with the Secretary of State pursuant to this title, on the last day of the month in which the anniversary date of issuance of the state business license occurs in each year, unless the person submits a written statement to the Secretary of State, at least 10 days before that date, indicating that the person will not be conducting a business in this State after that date.
2. The Secretary of State shall, 90 days before the last day for filing an application for renewal of the state business license of a person who holds a state business license, provide to the person a notice of the state business license fee due pursuant to this section and a reminder to file the application for renewal required pursuant to this section. Failure of any person to receive a notice does not excuse the person from the penalty imposed by law.
3. If a person fails to submit the annual state business license fee required pursuant to this section in a timely manner and the person is:
(a) An entity required to file an annual list with the Secretary of State pursuant to this title, the person:
(1) Shall pay a penalty of $100 in addition to the annual state business license fee;
(2) Shall be deemed to have not complied with the requirement to file an annual list with the Secretary of State; and
(3) Is subject to all applicable provisions relating to the failure to file an annual list, including, without limitation, the provisions governing default and revocation of its charter or right to transact business in this State, except that the person is required to pay the penalty set forth in subparagraph (1).
(b) Not an entity required to file an annual list with the Secretary of State, the person shall pay a penalty in the amount of $100 in addition to the annual state business license fee. The Secretary of State shall provide to the person a written notice that:
(1) Must include a statement indicating the amount of the fees and penalties required pursuant to this section and the costs remaining unpaid.
(2) May be provided electronically, if the person has requested to receive communications by electronic transmission, by electronic mail or other electronic communication.
Sec. 15. (Deleted by amendment.)
κ2009 Statutes of Nevada, Page 2032 (CHAPTER 381, AB 146)κ
Sec. 15.5. The Secretary of State may adopt such regulations as are necessary to carry out the provisions of this chapter.
Sec. 16. The Secretary of State shall deposit all money received pursuant to this chapter with the State Treasurer for credit to the State General Fund.
Sec. 17. 1. Except as otherwise provided in this chapter and NRS 239.0115, the records and files of the Secretary of State concerning the administration of this chapter are confidential and privileged. The Secretary of State, and any employee of the Secretary of State engaged in the administration of this chapter or charged with the custody of any such records or files, shall not disclose any information obtained from those records or files. Neither the Secretary of State nor any employee of the Secretary of State may be required to produce any of the records, files and information for the inspection of any person or for use in any action or proceeding.
2. The records and files of the Secretary of State concerning the administration of this chapter are not confidential and privileged in the following cases:
(a) Testimony by a member or employee of the Secretary of State and production of records, files and information on behalf of the Secretary of State or a person in any action or proceeding pursuant to the provisions of this chapter if that testimony or the records, files or information, or the facts shown thereby, are directly involved in the action or proceeding.
(b) Delivery to a person or his authorized representative of a copy of any document filed by the person pursuant to this chapter.
(c) Publication of statistics so classified as to prevent the identification of a particular business or document.
(d) Exchanges of information with the Internal Revenue Service in accordance with compacts made and provided for in such cases.
(e) Disclosure in confidence to any person authorized to audit the accounts of the Secretary of State in pursuance of an audit, or to the Attorney General or other legal representative of the State in connection with an action or proceeding pursuant to this chapter, or to any agency of this or any other state charged with the administration or enforcement of laws relating to workers compensation, unemployment compensation, public assistance, taxation, labor or gaming.
(f) Exchanges of information pursuant to subsection 3.
(g) Disclosure of information concerning whether or not a person conducting a business in this State has a state business license.
3. The Secretary of State may agree with any county fair and recreation board or the governing body of any county, city or town for the continuing exchange of information concerning taxpayers.
4. The Secretary of State shall periodically, as he deems appropriate, but not less often than annually, transmit to the Administrator of the Division of Industrial Relations of the Department of Business and Industry a list of the businesses of which he has a record. The list must include the mailing address of the business as reported to the Secretary of State.
Sec. 18. 1. If a person who holds a state business license fails to comply with a provision of this chapter or a regulation of the Secretary of State adopted pursuant thereto, the Secretary of State may revoke or suspend the state business license of the person.
κ2009 Statutes of Nevada, Page 2033 (CHAPTER 381, AB 146)κ
2. If the license is suspended or revoked, the Secretary of State shall provide written notice of the action to the person who holds the state business license.
3. The Secretary of State shall not issue a new license to the former holder of a revoked state business license unless the Secretary of State is satisfied that the person will comply with the provisions of this chapter and the regulations of the Secretary of State adopted pursuant thereto.
Sec. 19. NRS 78.150 is hereby amended to read as follows:
78.150 1. A corporation organized pursuant to the laws of this State shall, on or before the last day of the first month after the filing of its articles of incorporation with the Secretary of State, file with the Secretary of State a list, on a form furnished by him, containing:
(a) The name of the corporation;
(b) The file number of the corporation, if known;
(c) The names and titles of the president, secretary and treasurer, or the equivalent thereof, and of all the directors of the corporation;
(d) The address, either residence or business, of each officer and director listed, following the name of the officer or director;
(e) The information required pursuant to NRS 77.310; and
(f) The signature of an officer of the corporation certifying that the list is true, complete and accurate.
2. The corporation shall annually thereafter, on or before the last day of the month in which the anniversary date of incorporation occurs in each year, file with the Secretary of State, on a form furnished by him, an annual list containing all of the information required in subsection 1.
3. Each list required by subsection 1 or 2 must be accompanied by:
(a) A declaration under penalty of perjury that the corporation:
(1) Has complied with the provisions of [NRS 360.780;] sections 6 to 18, inclusive, of this act; and
(2) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing with the Office of the Secretary of State.
(b) A statement as to whether the corporation is a publicly traded company. If the corporation is a publicly traded company, the corporation must list its Central Index Key. The Secretary of State shall include on his Internet website the Central Index Key of a corporation provided pursuant to this paragraph and instructions describing the manner in which a member of the public may obtain information concerning the corporation from the Securities and Exchange Commission.
4. Upon filing the list required by:
(a) Subsection 1, the corporation shall pay to the Secretary of State a fee of $125.
(b) Subsection 2, the corporation shall pay to the Secretary of State, if the amount represented by the total number of shares provided for in the articles is:
$75,000 or less........................................................................................ $125
Over $75,000 and not over $200,000.................................................. 175
Over $200,000 and not over $500,000................................................ 275
Over $500,000 and not over $1,000,000............................................ 375
Over $1,000,000:
For the first $1,000,000.................................................................... 375
For each additional $500,000 or fraction thereof....................... 275
κ2009 Statutes of Nevada, Page 2034 (CHAPTER 381, AB 146)κ
Κ The maximum fee which may be charged pursuant to paragraph (b) for filing the annual list is $11,100.
5. If a director or officer of a corporation resigns and the resignation is not reflected on the annual or amended list of directors and officers, the corporation or the resigning director or officer shall pay to the Secretary of State a fee of $75 to file the resignation.
6. The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 2, cause to be mailed to each corporation which is required to comply with the provisions of NRS 78.150 to 78.185, inclusive, and which has not become delinquent, a notice of the fee due pursuant to subsection 4 and a reminder to file the annual list required by subsection 2. Failure of any corporation to receive a notice or form does not excuse it from the penalty imposed by law.
7. If the list to be filed pursuant to the provisions of subsection 1 or 2 is defective in any respect or the fee required by subsection 4 is not paid, the Secretary of State may return the list for correction or payment.
8. An annual list for a corporation not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and must be accompanied by the appropriate fee as provided in subsection 4 for filing. A payment submitted pursuant to this subsection does not satisfy the requirements of subsection 2 for the year to which the due date is applicable.
Sec. 20. NRS 80.110 is hereby amended to read as follows:
80.110 1. Each foreign corporation doing business in this State shall, on or before the last day of the first month after the filing of its certificate of corporate existence with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:
(a) The names and addresses, either residence or business, of its president, secretary and treasurer, or the equivalent thereof, and all of its directors;
(b) The information required pursuant to NRS 77.310; and
(c) The signature of an officer of the corporation.
2. Each list filed pursuant to subsection 1 must be accompanied by:
(a) A declaration under penalty of perjury that the foreign corporation has complied with the provisions of [NRS 360.780] sections 6 to 18, inclusive, of this act and which acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing with the Office of the Secretary of State.
(b) A statement as to whether the foreign corporation is a publicly traded company. If the corporation is a publicly traded company, the corporation must list its Central Index Key. The Secretary of State shall include on his Internet website the Central Index Key of a corporation provided pursuant to this subsection and instructions describing the manner in which a member of the public may obtain information concerning the corporation from the Securities and Exchange Commission.
3. Upon filing:
(a) The initial list required by subsection 1, the corporation shall pay to the Secretary of State a fee of $125.
κ2009 Statutes of Nevada, Page 2035 (CHAPTER 381, AB 146)κ
(b) Each annual list required by subsection 1, the corporation shall pay to the Secretary of State, if the amount represented by the total number of shares provided for in the articles is:
$75,000 or less........................................................................................ $125
Over $75,000 and not over $200,000.................................................. 175
Over $200,000 and not over $500,000................................................ 275
Over $500,000 and not over $1,000,000............................................ 375
Over $1,000,000:
For the first $1,000,000.................................................................... 375
For each additional $500,000 or fraction thereof....................... 275
Κ The maximum fee which may be charged pursuant to paragraph (b) for filing the annual list is $11,100.
4. If a director or officer of a corporation resigns and the resignation is not reflected on the annual or amended list of directors and officers, the corporation or the resigning director or officer shall pay to the Secretary of State a fee of $75 to file the resignation.
5. The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, cause to be mailed to each corporation which is required to comply with the provisions of NRS 80.110 to 80.175, inclusive, and which has not become delinquent, the blank forms to be completed and filed with him. Failure of any corporation to receive the forms does not excuse it from the penalty imposed by the provisions of NRS 80.110 to 80.175, inclusive.
6. An annual list for a corporation not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.
Sec. 21. NRS 82.523 is hereby amended to read as follows:
82.523 1. Each foreign nonprofit corporation doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign nonprofit corporation with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:
(a) The name of the foreign nonprofit corporation;
(b) The file number of the foreign nonprofit corporation, if known;
(c) The names and titles of the president, the secretary and the treasurer, or the equivalent thereof, and all the directors of the foreign nonprofit corporation;
(d) The address, either residence or business, of the president, secretary and treasurer, or the equivalent thereof, and each director of the foreign nonprofit corporation;
(e) The information required pursuant to NRS 77.310; and
(f) The signature of an officer of the foreign nonprofit corporation certifying that the list is true, complete and accurate.
2. Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign nonprofit corporation:
(a) Has complied with the provisions of [NRS 360.780;] sections 6 to 18, inclusive, of this act; and
κ2009 Statutes of Nevada, Page 2036 (CHAPTER 381, AB 146)κ
(b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing with the Office of the Secretary of State.
3. Upon filing the initial list and each annual list pursuant to this section, the foreign nonprofit corporation must pay to the Secretary of State a fee of $25.
4. The Secretary of State shall, 60 days before the last day for filing each annual list, cause to be mailed to each foreign nonprofit corporation which is required to comply with the provisions of NRS 82.523 to 82.5239, inclusive, and which has not become delinquent, the blank forms to be completed and filed with him. Failure of any foreign nonprofit corporation to receive the forms does not excuse it from the penalty imposed by the provisions of NRS 82.523 to 82.5239, inclusive.
5. If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.
6. An annual list for a foreign nonprofit corporation not in default that is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.
Sec. 22. NRS 86.263 is hereby amended to read as follows:
86.263 1. A limited-liability company shall, on or before the last day of the first month after the filing of its articles of organization with the Secretary of State, file with the Secretary of State, on a form furnished by him, a list that contains:
(a) The name of the limited-liability company;
(b) The file number of the limited-liability company, if known;
(c) The names and titles of all of its managers or, if there is no manager, all of its managing members;
(d) The address, either residence or business, of each manager or managing member listed, following the name of the manager or managing member;
(e) The information required pursuant to NRS 77.310; and
(f) The signature of a manager or managing member of the limited-liability company certifying that the list is true, complete and accurate.
2. The limited-liability company shall thereafter, on or before the last day of the month in which the anniversary date of its organization occurs, file with the Secretary of State, on a form furnished by him, an annual list containing all of the information required in subsection 1.
3. Each list required by subsections 1 and 2 must be accompanied by a declaration under penalty of perjury that the limited-liability company:
(a) Has complied with the provisions of [NRS 360.780;] sections 6 to 18, inclusive, of this act; and
(b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.
4. Upon filing:
(a) The initial list required by subsection 1, the limited-liability company shall pay to the Secretary of State a fee of $125.
(b) Each annual list required by subsection 2, the limited-liability company shall pay to the Secretary of State a fee of $125.
κ2009 Statutes of Nevada, Page 2037 (CHAPTER 381, AB 146)κ
5. If a manager or managing member of a limited-liability company resigns and the resignation is not reflected on the annual or amended list of managers and managing members, the limited-liability company or the resigning manager or managing member shall pay to the Secretary of State a fee of $75 to file the resignation.
6. The Secretary of State shall, 90 days before the last day for filing each list required by subsection 2, cause to be mailed to each limited-liability company which is required to comply with the provisions of this section, and which has not become delinquent, a notice of the fee due under subsection 4 and a reminder to file a list required by subsection 2. Failure of any company to receive a notice or form does not excuse it from the penalty imposed by law.
7. If the list to be filed pursuant to the provisions of subsection 1 or 2 is defective or the fee required by subsection 4 is not paid, the Secretary of State may return the list for correction or payment.
8. An annual list for a limited-liability company not in default received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year.
Sec. 23. NRS 86.5461 is hereby amended to read as follows:
86.5461 1. Each foreign limited-liability company doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign limited-liability company with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list on a form furnished by him that contains:
(a) The name of the foreign limited-liability company;
(b) The file number of the foreign limited-liability company, if known;
(c) The names and titles of all its managers or, if there is no manager, all its managing members;
(d) The address, either residence or business, of each manager or managing member listed pursuant to paragraph (c);
(e) The information required pursuant to NRS 77.310; and
(f) The signature of a manager or managing member of the foreign limited-liability company certifying that the list is true, complete and accurate.
2. Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign limited-liability company:
(a) Has complied with the provisions of [NRS 360.780;] sections 6 to 18, inclusive, of this act; and
(b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing with the Office of the Secretary of State.
3. Upon filing:
(a) The initial list required by this section, the foreign limited-liability company shall pay to the Secretary of State a fee of $125.
(b) Each annual list required by this section, the foreign limited-liability company shall pay to the Secretary of State a fee of $125.
4. If a manager or managing member of a foreign limited-liability company resigns and the resignation is not reflected on the annual or amended list of managers and managing members, the foreign limited-liability company or the resigning manager or managing member shall pay to the Secretary of State a fee of $75 to file the resignation.
κ2009 Statutes of Nevada, Page 2038 (CHAPTER 381, AB 146)κ
limited-liability company or the resigning manager or managing member shall pay to the Secretary of State a fee of $75 to file the resignation.
5. The Secretary of State shall, 90 days before the last day for filing each annual list required by this section, cause to be mailed to each foreign limited-liability company which is required to comply with the provisions of NRS 86.5461 to 86.5468, inclusive, and which has not become delinquent, the blank forms to be completed and filed with him. Failure of any foreign limited-liability company to receive the forms does not excuse it from the penalty imposed by the provisions of NRS 86.5461 to 86.5468, inclusive.
6. If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.
7. An annual list for a foreign limited-liability company not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of this section for the year to which the due date is applicable.
Sec. 24. NRS 87.510 is hereby amended to read as follows:
87.510 1. A registered limited-liability partnership shall, on or before the last day of the first month after the filing of its certificate of registration with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of the filing of its certificate of registration with the Secretary of State occurs, file with the Secretary of State, on a form furnished by him, a list that contains:
(a) The name of the registered limited-liability partnership;
(b) The file number of the registered limited-liability partnership, if known;
(c) The names of all of its managing partners;
(d) The address, either residence or business, of each managing partner;
(e) The information required pursuant to NRS 77.310; and
(f) The signature of a managing partner of the registered limited-liability partnership certifying that the list is true, complete and accurate.
Κ Each list filed pursuant to this subsection must be accompanied by a declaration under penalty of perjury that the registered limited-liability partnership has complied with the provisions of [NRS 360.780, an acknowledgment] sections 6 to 18, inclusive, of this act and acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.
2. Upon filing:
(a) The initial list required by subsection 1, the registered limited-liability partnership shall pay to the Secretary of State a fee of $125.
(b) Each annual list required by subsection 1, the registered limited-liability partnership shall pay to the Secretary of State a fee of $125.
3. If a managing partner of a registered limited-liability partnership resigns and the resignation is not reflected on the annual or amended list of managing partners, the registered limited-liability partnership or the resigning managing partner shall pay to the Secretary of State a fee of $75 to file the resignation.
4. The Secretary of State shall, at least 90 days before the last day for filing each annual list required by subsection 1, cause to be mailed to the registered limited-liability partnership a notice of the fee due pursuant to subsection 2 and a reminder to file the annual list required by subsection 1.
κ2009 Statutes of Nevada, Page 2039 (CHAPTER 381, AB 146)κ
subsection 2 and a reminder to file the annual list required by subsection 1. The failure of any registered limited-liability partnership to receive a notice or form does not excuse it from complying with the provisions of this section.
5. If the list to be filed pursuant to the provisions of subsection 1 is defective, or the fee required by subsection 2 is not paid, the Secretary of State may return the list for correction or payment.
6. An annual list that is filed by a registered limited-liability partnership which is not in default more than 90 days before it is due shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.
Sec. 25. NRS 87.541 is hereby amended to read as follows:
87.541 1. Each foreign registered limited-liability partnership doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign registered limited-liability partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:
(a) The name of the foreign registered limited-liability partnership;
(b) The file number of the foreign registered limited-liability partnership, if known;
(c) The names of all its managing partners;
(d) The address, either residence or business, of each managing partner;
(e) The information required pursuant to NRS 77.310; and
(f) The signature of a managing partner of the foreign registered limited-liability partnership certifying that the list is true, complete and accurate.
2. Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign registered limited-liability partnership:
(a) Has complied with the provisions of [NRS 360.780;] sections 6 to 18, inclusive, of this act; and
(b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.
3. Upon filing:
(a) The initial list required by this section, the foreign registered limited-liability partnership shall pay to the Secretary of State a fee of $125.
(b) Each annual list required by this section, the foreign registered limited-liability partnership shall pay to the Secretary of State a fee of $125.
4. If a managing partner of a foreign registered limited-liability partnership resigns and the resignation is not reflected on the annual or amended list of managing partners, the foreign registered limited-liability partnership or the managing partner shall pay to the Secretary of State a fee of $75 to file the resignation.
5. The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, cause to be mailed to each foreign registered limited-liability partnership which is required to comply with the provisions of NRS 87.541 to 87.544, inclusive, and which has not become delinquent, the blank forms to be completed and filed with him. Failure of any foreign registered limited-liability partnership to receive the forms does not excuse it from the penalty imposed by the provisions of NRS 87.541 to 87.544, inclusive.
κ2009 Statutes of Nevada, Page 2040 (CHAPTER 381, AB 146)κ
6. If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.
7. An annual list for a foreign registered limited-liability partnership not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.
Sec. 26. NRS 87A.290 is hereby amended to read as follows:
87A.290 1. A limited partnership shall, on or before the last day of the first month after the filing of its certificate of limited partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of the filing of its certificate of limited partnership occurs, file with the Secretary of State, on a form furnished by him, a list that contains:
(a) The name of the limited partnership;
(b) The file number of the limited partnership, if known;
(c) The names of all of its general partners;
(d) The address, either residence or business, of each general partner;
(e) The information required pursuant to NRS 77.310; and
(f) The signature of a general partner of the limited partnership certifying that the list is true, complete and accurate.
Κ Each list filed pursuant to this subsection must be accompanied by a declaration under penalty of perjury that the limited partnership has complied with the provisions of [NRS 360.780] sections 6 to 18, inclusive, of this act and which acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.
2. Except as otherwise provided in subsection 3, a limited partnership shall, upon filing:
(a) The initial list required by subsection 1, pay to the Secretary of State a fee of $125.
(b) Each annual list required by subsection 1, pay to the Secretary of State a fee of $125.
3. A registered limited-liability limited partnership shall, upon filing:
(a) The initial list required by subsection 1, pay to the Secretary of State a fee of $125.
(b) Each annual list required by subsection 1, pay to the Secretary of State a fee of $125.
4. If a general partner of a limited partnership resigns and the resignation is not reflected on the annual or amended list of general partners, the limited partnership or the resigning general partner shall pay to the Secretary of State a fee of $75 to file the resignation.
5. The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, cause to be mailed to each limited partnership which is required to comply with the provisions of this section, and which has not become delinquent, a notice of the fee due pursuant to the provisions of subsection 2 or 3, as appropriate, and a reminder to file the annual list. Failure of any limited partnership to receive a notice or form does not excuse it from the penalty imposed by NRS 87A.300.
κ2009 Statutes of Nevada, Page 2041 (CHAPTER 381, AB 146)κ
6. If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 2 or 3 is not paid, the Secretary of State may return the list for correction or payment.
7. An annual list for a limited partnership not in default that is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.
8. A filing made pursuant to this section does not satisfy the provisions of NRS 87A.240 and may not be substituted for filings submitted pursuant to NRS 87A.240.
Sec. 27. NRS 87A.560 is hereby amended to read as follows:
87A.560 1. Each foreign limited partnership doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign limited partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:
(a) The name of the foreign limited partnership;
(b) The file number of the foreign limited partnership, if known;
(c) The names of all its general partners;
(d) The address, either residence or business, of each general partner;
(e) The information required pursuant to NRS 77.310; and
(f) The signature of a general partner of the foreign limited partnership certifying that the list is true, complete and accurate.
2. Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign limited partnership:
(a) Has complied with the provisions of [NRS 360.780;] sections 6 to 18, inclusive, of this act; and
(b) Acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.
3. Upon filing:
(a) The initial list required by this section, the foreign limited partnership shall pay to the Secretary of State a fee of $125.
(b) Each annual list required by this section, the foreign limited partnership shall pay to the Secretary of State a fee of $125.
4. If a general partner of a foreign limited partnership resigns and the resignation is not reflected on the annual or amended list of general partners, the foreign limited partnership or the resigning general partner shall pay to the Secretary of State a fee of $75 to file the resignation of the general partner.
5. The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, cause to be mailed to each foreign limited partnership, which is required to comply with the provisions of NRS 87A.560 to 87A.600, inclusive, and which has not become delinquent, the blank forms to be completed and filed with him. Failure of any foreign limited partnership to receive the forms does not excuse it from the penalty imposed by the provisions of NRS 87A.560 to 87A.600, inclusive.
6. If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.
κ2009 Statutes of Nevada, Page 2042 (CHAPTER 381, AB 146)κ
7. An annual list for a foreign limited partnership not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.
Sec. 28. NRS 88.395 is hereby amended to read as follows:
88.395 1. A limited partnership shall, on or before the last day of the first month after the filing of its certificate of limited partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of the filing of its certificate of limited partnership occurs, file with the Secretary of State, on a form furnished by him, a list that contains:
(a) The name of the limited partnership;
(b) The file number of the limited partnership, if known;
(c) The names of all of its general partners;
(d) The address, either residence or business, of each general partner;
(e) The information required pursuant to NRS 77.310; and
(f) The signature of a general partner of the limited partnership certifying that the list is true, complete and accurate.
Κ Each list filed pursuant to this subsection must be accompanied by a declaration under penalty of perjury that the limited partnership has complied with the provisions of [NRS 360.780] sections 6 to 18, inclusive, of this act and which acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.
2. Except as otherwise provided in subsection 3, a limited partnership shall, upon filing:
(a) The initial list required by subsection 1, pay to the Secretary of State a fee of $125.
(b) Each annual list required by subsection 1, pay to the Secretary of State a fee of $125.
3. A registered limited-liability limited partnership shall, upon filing:
(a) The initial list required by subsection 1, pay to the Secretary of State a fee of $125.
(b) Each annual list required by subsection 1, pay to the Secretary of State a fee of $175.
4. If a general partner of a limited partnership resigns and the resignation is not reflected on the annual or amended list of general partners, the limited partnership or the resigning general partner shall pay to the Secretary of State a fee of $75 to file the resignation.
5. The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, cause to be mailed to each limited partnership which is required to comply with the provisions of this section, and which has not become delinquent, a notice of the fee due pursuant to the provisions of subsection 2 or 3, as appropriate, and a reminder to file the annual list. Failure of any limited partnership to receive a notice or form does not excuse it from the penalty imposed by NRS 88.400.
6. If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 2 or 3 is not paid, the Secretary of State may return the list for correction or payment.
7. An annual list for a limited partnership not in default that is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.
κ2009 Statutes of Nevada, Page 2043 (CHAPTER 381, AB 146)κ
deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.
8. A filing made pursuant to this section does not satisfy the provisions of NRS 88.355 and may not be substituted for filings submitted pursuant to NRS 88.355.
Sec. 29. NRS 88.591 is hereby amended to read as follows:
88.591 1. Each foreign limited partnership doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign limited partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:
(a) The name of the foreign limited partnership;
(b) The file number of the foreign limited partnership, if known;
(c) The names of all its general partners;
(d) The address, either residence or business, of each general partner;
(e) The information required pursuant to NRS 77.310; and
(f) The signature of a general partner of the foreign limited partnership certifying that the list is true, complete and accurate.
2. Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign limited partnership:
(a) Has complied with the provisions of [NRS 360.780;] sections 6 to 18, inclusive, of this act; and
(b) Acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.
3. Upon filing:
(a) The initial list required by this section, the foreign limited partnership shall pay to the Secretary of State a fee of $125.
(b) Each annual list required by this section, the foreign limited partnership shall pay to the Secretary of State a fee of $125.
4. If a general partner of a foreign limited partnership resigns and the resignation is not reflected on the annual or amended list of general partners, the foreign limited partnership or the resigning general partner shall pay to the Secretary of State a fee of $75 to file the resignation of the general partner.
5. The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, cause to be mailed to each foreign limited partnership, which is required to comply with the provisions of NRS 88.591 to 88.5945, inclusive, and which has not become delinquent, the blank forms to be completed and filed with him. Failure of any foreign limited partnership to receive the forms does not excuse it from the penalty imposed by the provisions of NRS 88.591 to 88.5945, inclusive.
6. If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.
7. An annual list for a foreign limited partnership not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.
κ2009 Statutes of Nevada, Page 2044 (CHAPTER 381, AB 146)κ
Sec. 30. NRS 88A.600 is hereby amended to read as follows:
88A.600 1. A business trust formed pursuant to this chapter shall, on or before the last day of the first month after the filing of its certificate of trust with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of the filing of its certificate of trust with the Secretary of State occurs, file with the Secretary of State, on a form furnished by him, a list signed by at least one trustee that contains the name and street address of at least one trustee and the information required pursuant to NRS 77.310. Each list filed pursuant to this subsection must be accompanied by a declaration under penalty of perjury that the business trust:
(a) Has complied with the provisions of [NRS 360.780;] sections 6 to 18, inclusive, of this act; and
(b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.
2. Upon filing:
(a) The initial list required by subsection 1, the business trust shall pay to the Secretary of State a fee of $125.
(b) Each annual list required by subsection 1, the business trust shall pay to the Secretary of State a fee of $125.
3. If a trustee of a business trust resigns and the resignation is not reflected on the annual or amended list of trustees, the business trust or the resigning trustee shall pay to the Secretary of State a fee of $75 to file the resignation.
4. The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, cause to be mailed to each business trust which is required to comply with the provisions of NRS 88A.600 to 88A.660, inclusive, and which has not become delinquent, the blank forms to be completed and filed with him. Failure of a business trust to receive the forms does not excuse it from the penalty imposed by law.
5. An annual list for a business trust not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year.
Sec. 31. NRS 88A.732 is hereby amended to read as follows:
88A.732 1. Each foreign business trust doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign business trust with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:
(a) The name of the foreign business trust;
(b) The file number of the foreign business trust, if known;
(c) The name of at least one of its trustees;
(d) The address, either residence or business, of the trustee listed pursuant to paragraph (c);
(e) The information required pursuant to NRS 77.310; and
(f) The signature of a trustee of the foreign business trust certifying that the list is true, complete and accurate.
2. Each list required to be filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign business trust: